[Mr. Juma Al Ghurair – Chairman of Al Manal Development from second to left and side by side with Mr. Mubashar Khokar – CEO of Badr Al Islami, Mr. Juma Bin Humedan – Assistant General Manager of Dubai Land Department from second to right, followed by Mr. Marwan Bin Gleth – CEO for Real Estate Regulatory Agency]
[Dubai, UAE, August 08, 2007]- The first account under Law No. 8 of 2007 becomes operational. Investor payments in Al Manal Development’s new La Vista Residence project at Dubai Silicon Oasis are being banked with Badr Al Islami, Islamic Banking Division, Mashreq PSC in the first property trust management account to be opened in Dubai.
Mr. Juma Bin Humedan, Assistant General Manager of Dubai Land Department, Mr. Juma Al Ghurair, Chairman of Al Manal Development, and Mr. Mubashar Khokhar, CEO of Badr Al Islami Bank, marked the occasion with a ceremony at the Dubai Land Department.
The new property law, established by His Highness Sheikh Mohammed bin Rashid, is designed to protect the rights of the property investors and requires an Escrow Account at one of the banks approved by the Dubai Land Department. A trust account is a special bank account that holds the funds from “off plan” sales in trust for the investors and releases them only when agreed milestones are reached. This means investor funds will only be used to complete the project. Al Manal Development’s commitment to the new law and their prompt implementation has been welcomed by the CEO of Dubai Land Department, Mr. Marwan Bin Gletah, who says they are a good role model for other property developers in Dubai.
Implementing the new law is another step towards realising the vision of His Highness Sheikh Mohammed bin Rashid to turn Dubai into a strong player in the international economy, he said.
“This law just implemented by Al Manal Development is a critical part of winning international credibility and all parts of the property development sector have a positive role to play in implementing this law” he said. “It sends a clear signal to all property investors that Dubai will do all it can to ensure their investments here are protected.”
Al Manal Development Chairman Juma Al Ghurair said the company had taken this initiative to demonstrate its commitment to protect its clients’ investments and show that it is a company that can be trusted.
“We believe in this law 100 per cent and have been working closely with the Dubai Land Department and Badr Al Islami, our financial partner, to have it introduced as soon as possible,” Mr. Al Ghurair said. “Dubai Land Department has to be congratulated for showing strong leadership with this new law and providing clear guidelines for property developers to follow.”
Al Manal Development’s decision to set up its trust account with Badr Al Islami has been welcomed by Badr Al Islami’s CEO, Mubashar Khokhar. “Having such a prestigious developer leading this way at a very early stage adds a huge amount of credibility and support to the initiative of the Government of Dubai to regulate the real estate market and to protect all parties concerned,” he said.
“From our side, we are the first institution who has been approved by the Land Department to open Trust Management Accounts and, with the confidence bestowed on us by Al Manal Development, Badr Al Islami has also become the first institution to open a developer’s account in Dubai.
“We are more than ready to accommodate of the needs of Al Manal clients and investors. We have the requisite experience and dedicated resources to ensure the successful implementation of this new Trust law and to provide service par excellence to our clients,” he said.
The La Vista Residence project gained great success when it was launched in May this year, driven by a unique 100 per cent financing plan. Mr. Al Ghurair said: “This great success is due to the strength of the Al Manal name and is an ongoing situation where demand is outstripping supply due to the economic growth in UAE.”
Mr. Al Ghurair said his company does not begin selling any developments until acquiring all legal approvals. “We encourage all other property developers in Dubai to come on board and follow this ethical approach, so that investors can have complete confidence in their investment.”
The AED 330 million La Vista Residence project comprises seven low-rise eight-floor apartment buildings offering a total of 832 residential units. The project will offer studio, one and two bedroom apartments and is located in a prime area very close to the entrance and main road access. It is also close to the planned shopping mall and caters for companies providing information technology, telecommunications, electronic, computer hardware, software development and solutions.
Dubai Silicon Oasis is a 7.2 sq km master–planned community, strategically located on Dubai’s Emirates Road within easy access of Dubai International Airport and Jebel Ali Port.
Construction of La Vista Residence will start in October with completion due at the end of 2008. This is expected to fuel demand for the La Vista Residence apartments as the first companies will move into Dubai Silicon Oasis in 2008. Construction work is well under way on the master development with all the infrastructure complete and the main DSO headquarter building also finished and operational.
Badr Al-Islami is an independently managed business comprising Badr Al-Islami Finance and Badr Al-Islami Banking. Badr Al- Islami Finance, which is majority owned by Mashreq, is a private joint stock Islamic Finance Company. Badr-Al Islami Banking is the Islamic Banking Division of Mashreq.