How does the law in Dubai protect investors from failure?
If you decide to invest in real estate, you must be prepared for certain risks — they are always there. The question is how they are regulated. In Dubai, for example, owners, including foreign ones, are reliably insured against the main damage.
The following measures apply in the emirate:
- Before the construction of the object, the developer is obliged to provide a bank guarantee confirming the availability of funds for the implementation of the project.
- The transaction is carried out through an escrow account – the buyer deposits money on it, and it goes to the developer only after the completion of a certain stage of construction and obtaining permission from DLD.
- Inspection of developers by the Dubai Land Department (Dubai Land Department, DLD) — a body that, in case of any problems with financing, delay in implementation, etc., can revoke the developer’s license.
But even if the developer loses his license at the time of construction, don’t panic: DLD transfers the object for completion to another.
Investors themselves can protect themselves if they study in advance a specific developer, his history and the quality of implementation of past projects. This protects better escrow accounts and bank guarantees.
