Off-plan escrow in Dubai and Abu Dhabi: AED 500,000 fines for early marketing and EOIs only through Madhmoun
In June 2024 the Dubai Land Department fined three developers AED 500,000 each for marketing projects before registration and escrow. Since 16 February 2026 Abu Dhabi takes off-plan EOIs only through ADREC’s Madhmoun platform and a government escrow. What it means for buyers.
The riskiest money in off-plan property is the money paid before a project officially exists: the booking fee, the "priority slot", the deposit to get into the first release. The project is not yet registered, no escrow account is open, and the cash has already gone. Over the past two years both of the UAE's main markets have been closing that gap — Dubai with fines, Abu Dhabi with a digital platform.
Dubai: marketing before registration is an offence
Under Dubai's escrow law (Law No. 8 of 2007), a developer may sell or advertise off-plan units only once the project is registered with the Land Department and an escrow account is open with an accredited bank. Buyers pay into that account, and funds are released to the developer against certified construction progress.
In June 2024 the Land Department showed the rule has teeth: three developers were fined AED 500,000 each — AED 1.5m in total — for promoting projects without completing registration. The companies were not named. The regulator used the occasion to remind buyers of two rules: check the project's registration and escrow in the Dubai REST app, and never pay outside the escrow account.
Talk to a licensed broker: 📲 +971 50 120 32 64 on WhatsApp, @dubai_oleg on Telegram
For a buyer, the point is practical. If a project is never registered, money paid "pre-launch" has no escrow protection; getting it back depends on the goodwill and solvency of the company. How escrow works, and where it stops protecting you, is explained in our escrow guide.
Abu Dhabi: EOIs only through Madhmoun
Expressions of interest were a fixture of the capital's big launches: buyers paid deposits to secure a place in the first wave. On 16 February 2026 the Abu Dhabi Real Estate Centre (ADREC) brought that stage under regulation:
- every developer launching a new project must register buyers' EOIs digitally through the Madhmoun platform;
- EOI money is paid into a preparatory escrow account under direct government supervision, not to the developer or a broker;
- applications run through government portals with UAE Pass identity, every step is logged, and refunds are processed electronically;
- the first project to register EOIs through the system was Manchester City Yas Residences by Ohana on Yas Island.
What to check before you pay
| Question | Dubai | Abu Dhabi |
|---|---|---|
| Is the project registered? | Dubai REST app | ADREC register / DARI |
| Where does the deposit go? | only the project escrow account | EOI to government escrow via Madhmoun |
| Unlicensed marketing? | an offence, developer fined | an EOI outside the platform is not registered |
If you are asked for a "booking" in cash, by transfer to an agency, or to a company account that is not the project escrow, stop — whatever the discount. Registration is not a delivery guarantee either; the questions to ask beyond it are in our note on developer due diligence.
For the market as a whole the change is neutral to positive. Pre-launches in Abu Dhabi will continue, but the money in them is now protected, and the noise around "sold-out" launches becomes measurable.
If you are watching a launch in the capital, start with our Abu Dhabi market overview and check any project against the register before placing an EOI.
Video on this topic
The same subject on the English channel — each clip has a written version of its own.
15:37Abu Dhabi property investment: Saadiyat Island and the Aldar launch numbers16 February 2023
1:38Binghatti Hills at Arjan: the volume play, examined10 September 2025
1:31Binghatti Haven in Dubai Sports City: cheap for a reason, or cheap for a good reason?9 September 2025
28:23Peninsula Four The Plaza by Select Group: what you are actually buying2 March 2025
8:01Island Park at Dubai Creek Harbour: an Emaar tower that is almost finished9 August 2024
In the news
Other write-ups on the site about the same thing.
Abu Dhabi property market 2026: AED 117bn in six months and a run of ADREC records
ADREC data: AED 117bn of transactions in H1 2026 (+112%), AED 86.1bn of sales and AED 13.8bn of foreign direct investment (+309%, more than all of 2025). Full-year 2025 was a record AED 142bn. What sits behind the numbers.
UAE Golden Visa through property in 2026: mortgages, off-plan and how Dubai, Abu Dhabi and RAK differ
The threshold is AED 2m everywhere, but it is not measured the same way. Since January 2024 Dubai counts a mortgaged home at its full DLD valuation; Abu Dhabi wants AED 2m of your own equity. Mortgages, off-plan, three emirates and what the visa gives beyond residence.
Reportage Properties: high volume across two emirates, and what to verify
A developer running a large affordable-segment pipeline in both Abu Dhabi and Dubai. What working across two emirates changes, and the checks that matter in the volume model.
Aldar buys 2.3m sqm of land on Yas and Saadiyat: 3,000 homes worth AED 23bn
In February 2026 Aldar added more than 2.3m sqm on Saadiyat, Yas and next to Yas for about 3,000 homes with a GDV near AED 23bn ($6.26bn). That averages AED 7.7m per home — what it says about the launches to come.
Lulu Island Abu Dhabi: Eagle Hills takes on 400 hectares off the Corniche — what is known in September 2026
Eagle Hills has confirmed it is developing Lulu Island, a 400-hectare reclaimed island 500 m off the Corniche. No masterplan or prices yet, but machinery is on site. What is known, what is not, and why early "reservations" are not purchases.
Escrow in Dubai: where an off-plan payment actually sits, and how to check it
Off-plan money does not go to the developer. It goes to an account opened for one project, at a bank, under supervision, and is released against verified construction. What escrow protects against — and the three risks it leaves entirely with you.





