Real Estate Regulatory Agency Streamlines Governance of Owners' Associations

Signs agreement to open owners' associations accounts with Noor Bank

Dubai-UAE: 22nd December, 2018 –   Real Estate Regulatory Agency (RERA), in its role as the umbrella entity for property owners' associations in Dubai, signed an agreement with Noor Bank to manage and service the accounts of these owners' associations in a professional manner. This agreement is in line with RERA's sustained efforts to streamline the expenses and governance of owners' associations to enhance efficiency across operations.

His Excellency Marwan bin Ghalita, CEO of RERA, and John Iossifidis, CEO of Noor Bank, signed the agreement. This agreement will strengthen the 10-year long-term cooperative relationship between the two sides.

His Excellency Marwan bin Ghalita said: “The agreement is part of RERA's corporate governance plan to manage service costs in co-ownership areas, thereby ensuring transparency and security by following accounting standards for asset exchange. Under RERA's directive, Noor Bank is mandated to open and manage the escrow accounts for owners' associations, audit them to protect the deposited funds and send audit reports to RERA, in addition to paying for the services as per the agreed terms.”

He added: “We are proud to partner with Noor Bank that has established a distinguished reputation as a preferred Islamic banking and financial services provider to individuals and companies across the region. We have appointed and registered the bank as an account trustee, granting it authorisation to provide financial services, such as opening bank accounts for owners' associations.”

John Iossifidis, CEO of Noor Bank, said: “Noor Bank is proud to partner with RERA to offer escrow services to owners' associations. The move aligns with the new regulations aimed at protecting the rights of property owners and minimising risks associated with purchasing homes in the emirate of Dubai.”

He added: “The collaboration reaffirms our commitment to supporting government-backed initiatives and contributing to the growth of the real estate industry in the UAE.

Noor Bank's services to RERA are subject to the laws and regulations highlighted in the agreement. RERA's role is limited to supervision and follow-ups without involvement in the operational matters related to the escrow accounts.