Manama: One of the pioneering Shari’a-compliant banks in the Kingdom, Al Salam Bank-Bahrain and UAE-based private real estate investment and development company, Eagle Hills Diyar, signed a partnership by launching a real estate development escrow account model in the Kingdom for Marassi Al Bahrain, Bahrain’s distinguished urban waterfront project. This arrangement is set up in accordance with Law no. 28 of 2014 and the Central Bank of Bahrain’s Resolution no. 20 of 2016. Under the new legislation developers are required to establish an escrow account with a local bank for each real estate development project intended to be sold off-plan. This will ensure protection for stakeholders, especially end-buyers, by utilizing funds only for the development they have invested in.
Present at the signing ceremony were Mr. Anwar Murad, Deputy Group CEO – Banking at Al Salam Bank-Bahrain and Dr. Maher Al Shaer, Managing Director of Eagle Hills Diyar.
“We are pleased to sign this partnership agreement with Eagles Hills Diyar that makes Al Salam Bank amongst the first Escrow Agent Banks in the Kingdom. Adding a product such as the real estate development escrow account to our portfolio of property financing models is part of our continued commitment to be one of the leading banks in exploring new and innovative Shari’a-compliant products and services tailored specifically to meet the changing needs of the market place and real estate industry,” Mr. Anwar Murad, Deputy Group CEO – Banking, said.
“It is forward-thinking of the Central Bank of Bahrain and the Government to introduce the new legislation that will strengthen the market and increase investors’ confidence. We look forward to facilitating the process for other real estate developers as they seek to obtain their real estate development license,” Mr. Anwar added.
Eagle Hills Diyar launched sales of its Marassi Residences earlier this year, Marassi Al Bahrain’s state-of-the-art development directly situated on the main 2 km beachfront promenade, a two-minute walk to world-class hotels The Address Marassi Al Bahrain and Vida Marassi Al Bahrain and the landmark shopping and entertainment destination, Marassi Galleria; offering convenient access to extensive retail, restaurants and café options.
“The introduction of the ancillary regulations to the real estate development law, bringing the escrow requirements, are the first of their kind in Bahrain, and are precautionary measures for the buyer, aimed at aligning local development practices with international protocols. We wanted to be ahead of the curve in responding to these requirements, and have therefore been working with Al Salam Bank-Bahrain to structure an escrow account product that can subsequently be offered to other developers, raising the bar for the market,” Dr. Maher Al Shaer, said.
“Marassi Al Bahrain as a project has stringent self-governance practices in place, which will lead to an increase in consumer confidence for our buyers to have complete faith both in us as a developer and in the yields of their investments for the future. We proactively sought to work with a progressive financial institution who could innovate a first-to-market product, and Al Salam Bank-Bahrain has fulfilled more than our expectation.”
Piling works recently began on Marassi Al Bahrain, with the project on track for delivering a unique master-planned urban development, offering 875,000 sqm of waterfront residential, hospitality, retail and entertainment space. Financing agreements are also in place with Kuwait Finance House (KFH) Bahrain, to provide mortgage financing for customers buying in the first phase of the project. Buyers will be able to avail of Musharakah ownership with Ijara for up to a 20-year period. Marassi Al Bahrain currently has two waterfront properties available – Marassi Residences and Marassi Shores – which have received excellent interest from investors and end users alike.
