Sharjah To Introduce Escrow Accounts In January What It Means For Property Buyers

(MENAFN- Khaleej Times)

Sharjah is set to implement an escrow account system, with the first agreement expected to be announced later in the month, a senior official said, as the emirate continues to roll out reforms aimed at attracting greater investment into its real estate sector.

Saeed Ghanem Al Suwaidi, chairman of the Representative Committee of the Real Estate Sector Business Group at the Sharjah Chamber of Commerce and Industry, said the emirate is continuously updating its regulations in line with market requirements.

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“About two years ago, the freehold law was implemented. This year, the first escrow account will be announced at the real estate exhibition Acres 2026, which will be held in Sharjah. Previously, developers were required to provide a 20 per cent bank guarantee. Now, the escrow account system will be implemented, and the first agreement will be announced during the exhibition as the first developer to have this escrow account. This will significantly boost investor confidence in the emirate's real estate,” he said in an interview with Khaleej Times on the sidelines of the Acres 2026 press conference on Wednesday.

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“Escrow account also gives the developer greater flexibility to execute the project more efficiently,” added Al Suwaidi, who is also chairman of the organising committee of Acres.

What is an escrow account system?

Under the escrow account system, property buyers deposit their payments into a bank-managed account, from which developers are permitted to withdraw funds progressively as construction milestones are met. This mechanism ensures that the buyer's funds are protected and not diverted to other projects.

In 2024, Sharjah introduced a wide range of reforms related to the real estate sector. Executive Council Resolution No. (37) of 2024 was issued to regulate real estate project registration, escrow account management, and financial transparency, further enhancing the emirate's appeal to foreign investors.

Sharjah had earlier announced the freehold property law, allowing investors of all nationalities to purchase property in the emirate. The move provided a significant boost to both residential and commercial real estate activity, attracting billions of dirhams in foreign investment.

In November 2025, Sharjah's real estate sector set a new historical record, with total transactions reaching Dh9.5 billion-the highest monthly figure ever recorded in the emirate's history.

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