Short answer: yes, if you pay the right way. Under Dubai Law No. 8 of 2007, a developer selling off-plan must open an escrow account for each project with an approved escrow agent. Your instalments go into that account, can be used only to build that project, and cannot be claimed by the developer’s creditors. Pay only into the project’s escrow account, never to a personal or agent account.
Checked against the text of Law No. 8 of 2007 on the Dubai Legislation Portal on 18 Oct 2026. Reviewed by the Vidabricks advisory team. Not legal advice.
What the law requires
| Protection | What it means for you | Law No. 8 of 2007 |
|---|---|---|
| Permission to sell | A developer needs Dubai Land Department approval before advertising off-plan units | Article 5 |
| Escrow account per project | Buyers’ and financiers’ payments go into an account in the project’s name, held by an escrow agent | Articles 6–7 |
| Ring-fenced funds | The money can be used only for building that project, and the developer’s creditors cannot attach it | Article 9 |
| Access to records | Depositors can see their own account records and ask for copies | Article 12 |
| 5% retention | After completion, 5% stays in escrow until one year after units are registered to buyers | Article 14 |
| If the project stops | The escrow agent, after consulting DLD, acts to complete the project or refund depositors | Article 15 |
| Developer must start building | A developer that does not start within six months of sale permission without an acceptable reason can be struck off | Article 17 |
Five checks before you pay
- The reservation form and SPA name the project’s escrow account and bank.
- Every payment, including the booking amount, goes to that escrow account or through DLD-approved channels.
- The project is registered with DLD: check it in the Dubai REST app or on the DLD website.
- After signing, the developer registers your purchase with DLD (Oqood) and you receive the certificate.
- Your broker is RERA-registered. Vidabricks’ office number is ORN 24316; verify our licence.
What escrow does not cover
- Delays: escrow protects the money, not the timetable. Read the SPA’s delay and compensation clauses.
- Price risk: the value at handover may be higher or lower than you paid.
- Payments outside escrow: money paid to anyone other than the escrow account is not protected by this law.
Frequently asked questions
Is my off-plan payment safe in Dubai?
Dubai law requires developers selling off-plan to open a dedicated escrow account for each project. Buyer payments go into that account, can be used only to build that project, and cannot be seized by the developer's creditors.
What happens if an off-plan project is cancelled?
Under Law No. 8 of 2007, if a project cannot continue, the escrow agent must, after consulting the Dubai Land Department, act to protect buyers by completing the project or refunding them. Refund terms in practice follow DLD and RERA procedures for cancelled projects.
How do I check a project's escrow account?
Ask for the escrow account details on your reservation form and SPA, pay only to that account, and check the project's registration and progress with the Dubai Land Department (Dubai REST app or DLD website).
Does the developer get all the money at completion?
No. After the completion certificate, the escrow agent keeps 5% of the account for one year after units are registered in buyers' names (Article 14).
