Omniyat Properties says it fully backs Dubai's new Escrow Law

Mehdi Amjad, President and CEO of Omniyat Holdings and Omniyat Properties, said the new law would lead to more transparency and confidence in the Dubai property market and would create a fresh wave of new-to-Dubai investors, such as institutional investors.

"We are very happy with the new law because it's positive for the serious developers like Omniyat Properties," he said. "This will give a further boost to an already strong market. We appreciate the vision of His Highness Sheikh Mohammed bin Rashed Al Maktoum, who has once again demonstrated that he has his finger on the pulse of the economy."

Mr Amjad said that the law would protect the investments of buyers of Dubai properties, whether commercial, residential or retail units. "I believe that the market will see a new wave of investors in the real estate sector which has a completely different demographic profile from the buyers who have been investing in the Emirate for the last five years since Dubai opened up the property market to foreigners."

Amjad said that institutional investors were reluctant to invest in off-plan developments in Dubai because of the lack of measures to protect their investments, but the new law gives them the security they have always required. "This is a natural progression for the Dubai market and will ensure its continuity," he added.

Mr Amjad also praised the Dubai Government for the way that the law was structured following consultations with the major developers operating in the local market. Omniyat Properties has been giving its input to the Dubai Lands Department for the past six months and has been working closely with its legal team.

"The law was structured in a very clever and efficient way so that, rather than having control by the government, causing more pressure on the land department, they used the top reputable banks to work with the developers. This is very efficient and another innovation by the government of Dubai which wants to reduce bureaucracy and cut red tape," he said.

Under the new system, developers like Omniyat Properties need simply to go to the Lands Department and register the property. The department will then issue instructions to the four approved banks to open an escrow account. Amjad pointed out that Omniyat is already working with HSBC to set up the escrow accounts for its developments.

He also pointed out that the law is a natural extension of Omniyat's activities and a natural progression for this futuristic property developer, as it had already been implementing a self-governing mechanism as part of its corporate governance agenda. "The company treats each of its development projects as a separate company and account," he said.

"This is why we have managed to attract a lot of investors to our projects. We have so far sold more than 3.7 billion dirham's' worth of properties in Dubai to a cross section of investors, including individuals and corporate. We have the trust and confidence of the market and this is something which can only be enhanced with the new law," he concluded.

Since its inception two years ago, Omniyat Properties has successfully launched and sold five commercial towers and two residential project. Building on its momentum this figure is set to rise to US$ 2.75 billion by the end of 2007, making the company one of the region's fastest growing property developers and a formidable player in one of the most exciting property hotspots in the world.

Omniyat Properties current portfolio includes: One Business Bay. Bayswater, The Binary, The Pad,The Opus and The Gemini all strategically located in the region's new business hub, Dubai Business Bay with The Square an integrated commercial, residential and retail complex located in the residential area of Mamzar, Deira in Dubai.