Leading Omani bank Sohar International (formerly Bank Sohar) has introduced escrow accounts for the country's real estate sector as part of its efforts to boost investor confidence whilst facilitating financial services for developers.
The regulations under Escrow help control and provide confidence to the buyer, especially for those investing in under-construction projects. The developer, too, is ensured of such comfort.
With several commercial, tourist and residential projects underway and in-pipeline in the sultanate, escrow is an essential tool to provide stimulus to the burgeoning sector, as it protects the public by minimizing the risk prevalent in any real estate purchase, said the statement from Sohar International.
This financial solution comes in line with a royal decree promulgating the law on escrow account for real estate development and decision issued by the Ministry of Housing and Urban Planning.
Chief Retail Banking Officer Khalil Al Hedaifi said: "Keeping pace with recent intricate and sophisticated development of Omani real estate sector and supporting the government’s efforts in regulating the sector, our new financial product aims at enhancing confidence of real estate developers, investors, as well as vendors, whilst protecting their interests."
According to him, an escrow account with Sohar International can be opened in few easy steps. "Once the account is active, it can then be communicated to the potential investors by the developers which will not only enhance the investors’ confidence, but will also regulate and ensure the developers are paid on time which will enhance the overall experience," he stated.
"As the country witnesses key legislative reforms with new laws and regulations, as well as the introduction of strict measures to ensure implementation of good governance, Sohar International is keen to contribute and support the government’s efforts in providing impetus to the real estate sector,' remarked Al Hedaifi.
"The introduction of escrow account is key to this objective, as it protects deposits of investors following the purchase of real estate developments within the country," he added.-TradeArabia News Service