UAE E-Invoicing Service Providers: How to Choose the Right ASP in 2026
09/10/2026
From corporate tax registration to audits and bookkeeping, Young & Right offers personalized solutions that keep your business compliant and stress-free. Let’s take the complexity off your plate—starting with a free consultation.
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Young and Right Accounting and Tax Consultancy, founded by an experienced accounting professional with over a decade of experience in the UAE's real estate sector, is emerging as one of the best accounting firms in Dubai. The firm focuses in providing tailored consultancy services to real estate developers, ensuring that their financial operations are not only efficient but also compliant with the ever-evolving regulatory landscape of the region. One of the core contributions of Young and Right is escrow account-related consultancy. In Dubai's real estate market, escrow accounts are a critical tool for protecting buyers' funds and ensuring that developers accomplish their obligations. With wide experience in managing and advising on escrow accounts.
Developers need to complete the applicable project registration and approval procedures before the escrow account can be opened.
DLD's current process includes:
Dubai Land Department has also introduced an Initial Registration platform in September 2026, integrating project registration, real estate transaction registration and escrow account management into a more streamlined digital process.
The escrow account is managed by an approved account trustee.
DLD explains that the account trustee can be a bank or financial institution licensed by the UAE Central Bank to receive third-party deposits and approved by RERA for this purpose.
The trustee plays an important role in monitoring the account and processing permitted disbursements according to the applicable procedures.
Amounts received from purchasers of off-plan units are deposited into the project's escrow account.
Project financing can also be deposited into the account where the applicable requirements are satisfied.
DLD specifically states that amounts received from buyers of off-plan units and project development financing are deposited into the project escrow account.
This means developers should have appropriate systems for identifying and routing relevant project receipts correctly.
No.
An escrow account is not the same as a developer's ordinary operating account.
DLD states that payments from the escrow account are generally intended for project-related payments, including payments to contractors, consultants and marketing activities, subject to the applicable requirements. It also notes that not every expense incurred by a developer is eligible for payment from the escrow account.
For example, DLD's FAQ states that only 5% of total sales can be paid for project marketing purposes under the relevant framework.
Developers should therefore maintain proper project accounting and supporting documentation for escrow-related transactions.
Escrow disbursements are connected to the project's construction progress and applicable approval procedures.
When a construction milestone is completed, the developer's project manager can notify the account trustee and submit the relevant payment request. The trustee's engineer may inspect the project to verify the applicable construction stage before payment is released to eligible service providers.
This creates a connection between:
Construction progress → Verification → Escrow approval → Payment
Dubai Land Department provides an escrow account activation service that allows a developer to apply for activation of the disbursement mechanism for an off-plan project.
The current DLD procedure is submitted through the Oqood portal and sent to the escrow trustee for review before the escrow account department audits the application.
The service may require items such as:
DLD currently lists the service as free and indicates a service time of three business days, subject to the stated conditions.
The escrow framework includes a requirement to retain 5% of the total amount paid into the escrow account for one year after project completion as a guarantee relating to defects that may become apparent after completion.
DLD's FAQ explains that this amount is intended to provide security for addressing defects that are evident at completion or arise during the one-year period after handover.
This retained amount is an important consideration when developers plan the financial settlement of a completed project.
Developers may apply to withdraw surplus project amounts, but this is subject to the applicable requirements and approval procedures.
DLD's current withdrawal process requires the developer to submit an application through the Oqood system. The escrow trustee reviews the financial position and submits the relevant documents for review by the escrow account department.
For a project under construction, DLD's current requirements include conditions relating to:
Therefore, developers cannot simply treat purchaser funds in the escrow account as freely withdrawable business profits.
Yes, DLD provides a process for transferring a project's escrow account from one approved trustee to another.
The current transfer procedure can require:
The transfer must also satisfy the applicable project and financing requirements.
Once the project has been completed and the applicable requirements have been satisfied, the developer can proceed with the relevant escrow settlement process.
DLD provides a Settlement of the Escrow Account service for developers after project completion.
For certain withdrawals from a completed project, DLD requires evidence of 100% project completion and compliance with the applicable 5% completion escrow requirements.
One of the major purposes of Dubai's real estate escrow framework is to protect the interests of purchasers of off-plan properties.
When purchasing an off-plan property, buyers can consider checking:
DLD provides project-status information that can help users check development progress.
Buyers should also ensure that they follow the official payment instructions provided for the project.
An escrow account should not be confused with a company's ordinary corporate bank account.
| Escrow Account | Normal Business Account |
|---|---|
| Created for a specific real estate project | Used for general business operations |
| Used for regulated project funds | Used for ordinary company transactions |
| Subject to DLD/RERA-related oversight | Managed under normal banking arrangements |
| Funds are connected to the relevant project | Funds may be used for permitted company expenses |
| Disbursements are subject to applicable project requirements | Business payments are generally managed by the company |
This separation is particularly important for developers handling off-plan sales.
Developers should take care to avoid issues such as:
The escrow requirements should be addressed before collecting relevant purchaser payments.
Project receipts should be handled according to the applicable escrow requirements.
Not every corporate expense qualifies as an escrow payment.
Developers should maintain accurate records of collections, construction expenditure, consultant payments and other relevant transactions.
Escrow disbursements can depend on verified project progress.
Contracts, invoices, technical reports, payment schedules and other relevant records should be maintained appropriately.
Developers can use this simplified checklist:
Before launching an off-plan project:
During construction:
At project completion:
Learn how developer escrow accounts work in Dubai and why they are important for managing project-related funds and supporting regulatory compliance.
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