Previously, the Dubai Real Estate Regulatory Agency (“RERA”) have directed that before a developer can sell units in a Dubai real estate project on an off-plan basis, (a) the developer must have achieved the 20% completion milestone with respect to the project, or (b) the developer must deposit cash equivalent to 20% of the construction value of the project into the statutory escrow account, or (c) the developer must provide a bank guarantee for an amount equivalent to 20% of the construction value of the project in favour of the statutory escrow account trustee (hereinafter referred to as the “20% rule”).

A few months ago, RERA have revised their view on the 20% rule, and have directed that before a developer can sell units in a Dubai real estate project on an off-plan basis, the developer must have achieved the 50% completion milestone with respect to the project (hereinafter referred to as the “50% rule”).

Recently, as of the end of February 2018, RERA have withdrawn their requirement regarding the 50% rule, and have reinstated the 20% rule.