How Dubai Protects Jointly Owned Property Funds

Under Law No. (6) of 2019, responsibility for holding and managing the funds of jointly owned property (JOP) owners' associations sits with approved real estate management companies operating through bank escrow accounts, rather than with developers — a change intended to increase transparency and governance.

Dubai Land Department's Mollak system enables these escrow accounts, allowing owners' association funds to be deposited directly with an approved trustee bank, independent of developer involvement. Nine banks are appointed as trustees under RERA's supervision: Abu Dhabi Islamic Bank, United Bank Limited, Commercial Bank of Dubai, Abu Dhabi Commercial Bank, Arab Bank for Investment & Foreign Trade, Dubai Islamic Bank, Emirates NBD, First Abu Dhabi Bank and Mashreq Bank.

Trustee banks cannot alter account terms without RERA approval, may only execute payments against authorised documentation or RERA's written approval, cannot disburse amounts beyond approved limits without RERA consent, and must provide periodic financial statements to RERA on request.