Sharjah's New
Escrow Law
Explained

Sharjah's escrow law was officially launched on 21 January 2026 at ACRES 2026 (Sharjah Real Estate Exhibition), organised by the Sharjah Chamber of Commerce and Industry (SCCI) and the Sharjah Real Estate Registration Department (SRERD). The law mandates that all off-plan project payments be deposited into a dedicated, bank-managed escrow account. Developers may only withdraw funds progressively as independently verified construction milestones are reached. This brings Sharjah's buyer protections broadly in line with Dubai's system (Law No. 8 of 2007) and international best practices.

Your payments are legally ring-fenced in a project-specific bank account managed by a SRERD-approved financial institution. Key protections include:

• Funds cannot be diverted to other projects or used for the developer's general operating costs.
• Creditors of the developer cannot seize escrowed funds — they are held in trust for buyers.
• If a project is cancelled or abandoned, remaining escrow funds are returned to buyers.
• The bank acts as an independent trustee — it is not an agent of the developer.

No system eliminates 100% of risk, but the escrow law significantly reduces the likelihood of fund misuse or developer insolvency impacting your capital.

All developers selling off-plan properties in Sharjah — including government-linked entities and private developers — must comply with the new escrow regulations. Before any sale, the developer must register their project with SRERD and open a dedicated escrow account. This applies to all property types: residential apartments, villas, townhouses, commercial units, and mixed-use developments. Projects already underway may have transitional compliance timelines — verify the escrow status of any existing project with SRERD directly.

Always verify directly before signing a Sales and Purchase Agreement (SPA) or paying any deposit. Steps to take:

• Ask the developer for the SRERD project registration number and escrow account details.
• Contact SRERD directly at their Sharjah office to confirm the project's registered status.
• Once the Aqari digital platform is fully live (2026–2028 rollout), buyers will be able to check project escrow and construction status online in real time.
• Ensure your SPA explicitly references the escrow account number, the SRERD project registration, and the payment milestone schedule.
• Work with a RERA-licensed real estate broker or a licensed UAE property lawyer when purchasing off-plan.

Under the escrow law, if a project is cancelled or a developer enters financial difficulty, the escrow mechanism protects you as follows:

• Funds held in the escrow account are legally protected from the developer's creditors — they cannot be seized to pay off developer debts.
• SRERD has authority to step in when projects stall, ordering corrective action or initiating project cancellation procedures.
• In the event of cancellation, remaining escrow funds are returned to buyers based on the amount in the account and proportional entitlements.
• Always confirm that the developer's land is free of encumbrances before purchasing — a legal check through a UAE-licensed property lawyer is recommended for purchases above AED 1M.

Yes. The escrow law protects all buyers equally — UAE nationals, GCC nationals, and foreign buyers alike. Foreign nationals may purchase in SRERD-designated freehold projects such as Aljada, Maryam Island (Al Khan), Al Mamsha (Muwaileh), and other approved developments. Additional notes for foreign buyers:

• Ownership must be registered with SRERD to be legally valid — ensure your title deed is SRERD-issued.
• Properties valued at AED 2M+ (mortgage-free) are eligible for UAE Golden Visa sponsorship, with supporting documentation from SRERD.
• Transfer fees in Sharjah are typically 4%, reduced to 2% during ACRES annually. Closing costs (cash purchase) run approximately 6–7.5% of property value.
• Mortgage rates for foreigners in Sharjah in 2026 range from approximately 4%–5.75% (EIBOR-linked).

Aqari is SRERD's new integrated digital real estate services platform being rolled out under Sharjah's Digital Transformation Strategy 2026–2028, in cooperation with the Sharjah Digital Department. It will serve as the unified hub for all property-related services in Sharjah, including:

• Online project escrow status and construction milestone tracking.
• Digital title deed issuance and ownership verification.
• Streamlined property registration and documentation for both buyers and developers.
• Faster transaction processing — reducing waiting times for registration services.
• Integration with planning, survey, and municipal departments for seamless property map updates.

The Sharjah Consultative Council formally emphasised Aqari's development in its March 2026 SRERD recommendations, affirming it as a priority for enhancing customer satisfaction and investor confidence.

As of early 2026, buyers should budget for the following:

• Transfer Fee: 4% of property value (standard). Reduced to 2% during the annual ACRES exhibition — potentially saving AED 20,000–80,000 on a AED 1M–4M property.
• Total Closing Costs (cash purchase): Approximately 6%–7.5% of property value, including transfer fee, registration, and administrative charges.
• Total Closing Costs (with mortgage): Approximately 8%–10%, adding mortgage registration and bank processing fees.
• Service Charges: AED 8–18 per sqft per year in Sharjah's newer freehold communities.
• Mortgage Rates (2026): 4%–5.75% for foreign buyers, EIBOR-linked with a bank margin.