Ajman evaluating infrastructure demands for new investments

Ajman Real Estate Regulatory Agency (Arra) is evaluating the infrastructure requirements for new investments in the emirate and expects to get an overall picture in the next six to eight months, a senior government official said yesterday.

"We are studying and evaluating the infrastructure requirements for the new investments in Ajman. We will be able to get a clear picture on the exact consumption loads in the next six to eight months," Arra Director-General Omar Al Barguthi told Emirates Business.

Asked if the onus was on the government to develop infrastructure, he said: "There are clear agreements with master developers that spell out who is responsible for the infrastructure development. However, we will be able to determine consumption loads only after we know the number of developers and the number of developments that are going to be completed."

According to reports, the Ajman Government invested $375 million (Dh1.38 billion) in 2008 to develop infrastructure such as construction of roads, intersections and bridges, as well as maintenance and renovation of public facilities. The figure is almost triple the amount allocated in 2007.

Arra yesterday signed an agreement with Abu Dhabi Islamic Bank, the second bank after Ajman Bank to offer escrow account facilities to developers. "We have given out letters to developers to open escrow accounts. Now it is up to the banks and the developers to finalise and open their accounts."

Al Barguthi told this newspaper last week that developers and master developers failing to meet the May 1 deadline on registration will not be able to sell their properties off plan, and will be considered to be in violation of the Ruler's Decree. "Anybody failing to register with us before May 1 will be considered to be operating in violation of the Emiri decree and will face penalties from Dh100,000 onwards. There will also be a criminal part to it such as selling a 'fictitious project'."

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.