An escrow account is generally a third-party medium that holds the money transferred from the buyer until the merchant fulfills the escrow agreement. A failure to fulfill this agreement from the merchant results in the money being refunded to the buyer.
An escrow account in the UAE real estate market has a very specific function. According to escrow account laws, the developers of different projects have to open an escrow account for every project. Doing so allows for better regulation of the funding that project developers receive from their buyers for project construction.