May 27, 2024

Bank Nizwa Commences Escrow Services Boosting Transparency In REP

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Bank Nizwa launches escrow services, which isdesigned to fortify trust and transparency in real estate dealings
As an escrow agent, Bank Nizwa assumes the pivotal responsibility of accepting, holding, and disbursing funds in accordance with the terms of the escrow agreement. Image Courtesy: Bank Nizwa

In response to the Sultanate of Oman’s flourishing real estate landscape, Bank Nizwa, the leading and most trusted Islamic bank in the nation, recently announced the launch of escrow account services. 

Industry sources added that designed to boost trust and transparency in real estate dealings and projects (REP), this strategic initiative aligns with governmental directives outlined in Royal Decree 30/2018 and Ministerial Decision 72/2019 from the Ministry of Housing and Urban Development which mandates that all real estate developers must direct funds related to projects with off-plan sales into Escrow accounts.  

Industry sources further added that as real estate transactions become increasingly complex, stakeholders seek the security of holding funds or assets in escrow until project completion. Developers are required to establish a bank account in the project’s name at a licensed bank within the Sultanate, while buyers or project financiers are obliged to deposit payments into it.

Industry sources also added that to meet this requirement for efficient facilitation, there is a strong call for escrow service providers, and Bank Nizwa, which is known for its excellence and integrity, stands well-poised as the trusted partner throughout this process.

Industry sources confirmed that as an escrow agent, Bank Nizwa assumes the prime responsibility of accepting, holding, and disbursing funds under the terms of the escrow agreement. Acting as a reliable intermediary, Bank Nizwa focused on streamlining real estate transactions, enhancing security, and contributing to the growth and stability of Oman’s real estate sector. Supported by a team of seasoned professionals, the bank pledges efficiency at every juncture, delivering a hassle-free experience for all stakeholders while upholding the highest levels of excellence in its services. 

Mr. Khalid Al Barwani, Chief Wholesale Banking Officer, at Bank Nizwa

Emphasizing the transformative role of the new Escrow account service, Mr. Khalid Al Barwani, Chief Wholesale Banking Officer, at Bank Nizwa, stated, “Our escrow services go beyond being a compliance measure; it serves as a cornerstone of confidence, ensuring the protection of all stakeholders’ interests. With a plethora of new projects dotting Oman’s horizon, these services will catalyze holistic growth within the real estate ecosystem.”

Mr. Barwani also stated “By providing a secure framework for funds management, we aspire to bolster investor confidence, nurturing a conducive environment for sustainable development. Beyond property transactions, our initiative resonates as a pivotal contributor to the overarching economic goals, harnessing the sector’s vitality to attract both domestic and international investors.”

Industry sources further voiced that aligned with the national agenda, with the provision of escrow services, Bank Nizwa reaffirms its dedication to powering the nation’s progress, driving Oman’s real estate sector to unparalleled heights of prosperity and resilience.

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