Development Permits & Escrow in Dubai — Explained

Dubai’s development permits and escrow framework ensures off-plan projects are legally, financially, and technically compliant before sales—protecting buyers and enforcing developer accountability.

The Role of the Escrow Account

• Buyer payments go into a DLD-approved escrow; releases are tied to certified construction milestones.
• Independent auditors/engineers verify progress before funds move.

Key Conditions for Developers

• RERA registration; land ownership and clear title.
• Escrow opened; equity deposited (often ~20%) before collecting buyer funds.
• Full project approvals and ongoing third-party oversight.

How This Protects Investors

• Funds ring-fenced; withdrawals linked to real progress.
• Only approved, registered developers can sell/market.

Practical Example

• If a project is cancelled, DLD refunds buyers from escrow; otherwise, releases follow milestones (e.g., 20% completion).

Bottom line: Dubai’s permits + escrow system aligns developer incentives with delivery and safeguards buyers’ capital.