The legislative framework in the UAE has undergone dramatic changes in the field of development after the 2008 crisis, taking into account all previous errors and shortcomings. Now all developers, when starting construction of a facility, are required to open escrow accounts and transfer 40% of the market value of the current D/S to them.
Thus, only large and reliable developers with good capitalization can build projects, since they will receive their profit only when the keys are issued to new owners.
It is necessary to take into account the fact that any developer in the UAE can request a delay in the completion of the project for a year without consequences. If, after this period, the developer does not deliver the project, the UAE Land Department will revoke the construction license and contract out the project to another developer for completion within the required time frame. In this case, the owner of the property has the right to cancel the transaction and return funds from escrow accounts.