An escrow account is that which acts as a third-party funding medium wherein the merchant receives access to the transferred money (by the buyer), once an escrow agreement has been fulfilled. If the agreement is not fulfilled by the merchant, the fund is then returned to the buyer.
In UAE’s real estate market, an escrow account has a very particular function. The developers of the various projects have to open different escrow accounts for every project, as per the Escrow Account Law in UAE. It protects the buyers funds and regulates the funding that the developers receive from the buyers in order to construct the projects.