Mazaya on Rera's active firms' index

Al Mazaya Holding, a regional real estate developer, said yesterday it has been listed on the active real estate companies' index by the Dubai's Real Estate Regulation Authority (Rera).

Al Mazaya, in partnership with Al Mashriq Bank, Dubai, has opened 52 current and 52 escrow accounts in which to deposit earnings of each project. This step represents the company's compliance with the legislations issued by Rera, including Law No. 8, which aims to regulate the business of registered real estate companies who undertake on-site selling.

According to Law No. 8, each project on the map must be registered with the Rera, while two bank accounts, a current and escrow account respectively, must be opened with an Emirati bank. In addition, a consultant certified by Rera must approve project-related costs such as plot values, foundation costs, project management costs, and marketing and sales costs (the funds of which can be drawn from in case of presenting a bail bond).

Speaking about Al Mazaya's move, Omar Hajjaj, Executive Vice-President of Finance and Administration at Al Mazaya Holding, said: "The accountant will submit the statements of each current account, separately, to Rera and to the real estate developer as well. A statement of accounts will also be submitted to the real estate funders and buyers, showing how the accounts are moving. All these accounts are checked by external entities assigned by account inspectors, who in turn are assigned by the real estate developer and a government inspector."

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