Newly-Born Rakia Rera Attracts Rak DevelopersTuesday, June 30, 2009
More than 12 developers have registered with the new Rakia Rera, the Ras Al Khaimah Investment Authority's property regulation arm. Rakia Rera will first oversee the implementation of the escrow account law for freehold projects. There are currently a minimum of 100 developers in Ras Al Khaimah presiding over the same number of projects, said Wahid Atalla, board member of Rakeen, which is developing Al Marjan Island, Gateway City and RAK Financial City among others. The Emiri decree was issued around eight months ago to establish a real estate regulatory authority in Ras Al Khaimah, but has "taken time" to set up regulations, Atalla told Gulf News. It joined Dubai's Real Estate Regulatory Authority (Rera) and Ajman's Real Estate Regulatory Agency in an attempt to make the UAE's overall property market more transparent and investor safe.
Other laws to come will follow those already existing in Dubai's Rera, Atalla said. Rakia real estate developments have a combined value of Dh6 billion. Developers may only register with Rakia Rera when the project design has been approved, which will allow them to open an escrow account and start selling properties. Rakia Rera will also check construction plans and progress by sending engineers to inspect projects, a move to prevent disputes between developers and investors - something that has plagued Dubai real estate transactions. "The escrow account has been implemented to prevent mishandling of construction funds and ensure that investors' money is spent according to the master plan of the project," Yahia Kambris, general manager of Rakia Rera, said.Source: Gulf News