What Guarantee Do I Have That My Development in Dubai Will Be Completed?

Short answer

In Dubai, developers are required to place funds for the project in an escrow account regulated by the Dubai Land Department (DLD).

These funds can only be used for the construction of the project, providing protection for investors. Additionally, developers must meet specific progress milestones and obtain DLD approvals, ensuring transparency and accountability throughout the construction process.

What protects your money

Escrow

Every payment goes to the project's escrow account, which may be spent only on building that project

Dubai Law No. 8 of 2007 on escrow accounts

of the escrow account stays blocked after completion and is released a year after the units are registered to buyers

Dubai Law No. 8 of 2007 on escrow accounts

Refund

if the project is not completed, the escrow agent has it finished or returns the buyers' money

Dubai Law No. 8 of 2007 on escrow accounts

If the buyer stops paying: what the developer may keep

Construction done	What the developer may do
Over 80%	Keep the contract and claim the balance, ask DLD to sell the unit at auction, or cancel and keep up to 40% of the price
60–80%	Cancel and keep up to 40% of the price
Under 60%, works started	Cancel and keep up to 25% of the price
Not started, not the developer's fault	Cancel and keep up to 30% of what was paid, refund the rest within 60 days

First DLD gives the buyer 30 days' notice to pay. The buyer can still go to court.

Figures to know

DLD fee on an off-plan sale: by law 2% from the developer and 2% from the buyer; in most sale contracts the buyer pays all 4%, and some launches waive it

Dubai Land Department: register the initial sale (Oqood)

62.6%

of all Dubai sales in 2025 were off-plan: 134,623 deals worth AED 293 billion

Bayut: Dubai off-plan market report 2025 (DLD data)

50%

the most a bank may lend against an off-plan home under the Central Bank rules; buyers usually pay instalments in cash and take the loan at handover

The National: Central Bank mortgage cap rules

Terms in this answer

Escrow account: A bank account for one project. Buyers' instalments go there, and the developer receives the money stage by stage as construction is confirmed. It protects buyers if the project stops.
Dubai Land Department (DLD): The government body that registers property in Dubai. When a purchase is registered, the buyer pays a 4% fee plus an admin charge; off-plan purchases are registered too.