Escrow in the UAE means different things in real estate, M&A and trade — and the provider you need changes with the transaction. Here is how the three escrow markets work and what they cost.
By Raqma Editorial · reviewed by Raqma Editorial · Updated 19 October 2026
"Business escrow account" in the UAE is three different products wearing one name — real-estate escrow, transaction escrow (M&A, settlements, asset sales) and trade escrow. The provider, cost and paperwork differ completely between them; the common mistake is asking a bank for "escrow" and being routed to the wrong desk for weeks.
Developer escrow accounts are mandatory under Dubai real-estate law and run at banks approved for the program — the developer does not choose freely, and buyers' off-plan payments legally must land in the project escrow. If your question is about off-plan property as a buyer, this guide is not what you need: the escrow exists already; your check is that the project and account are registered.
For M&A closings, distributor exits, licence transfers and settlement agreements, the corporate desks of the major banks run commercial escrow: a segregated account, a release-mechanics schedule drafted with lawyers, and an escrow agent fee. This is bespoke work — price and timing are negotiated, and a bank will typically only take the mandate for transactions above a threshold size.
For goods transactions where neither side will extend open credit, escrow sits between a letter of credit and cash-in-advance: the buyer funds the account, the agent releases on document proof. Banks offer this, and so do regulated trustees and trade-finance intermediaries — compare on the release trigger and the dispute mechanics, not just the fee.
Escrow is a legal wrapper on a bank account — compare business accounts for the underlying account terms first, then negotiate the escrow mandate on top. For most B2B trade, a staged payment schedule on a normal business account does the same job for free.
Entry package for startups and professional licences: online-only access with no minimum balance and the first 30 days free, backed by a full-service bank.
AED 249/month + VAT (~AED 261.45) after the first 30 days free; no minimum balance requirement. Higher tiers waive the fee at AED 50,000 average balance.
Multi-currency business account (AED, USD, GBP, JPY, EUR) from the UAE’s largest bank — AED 250/month below a AED 10,000 average balance.
AED 250/month applies when the monthly average balance falls below AED 10,000; first cheque book free. Verify the current schedule of charges.
Same digital onboarding as Lite but fee-free when you hold a AED 50,000 monthly average balance — makes sense once cash flow stabilises.
No monthly fee requires maintaining AED 50,000 monthly average balance, else fall-below charges apply.
Conventional-bank business account from a CBUAE-licensed local bank: full branch network plus iBusiness online banking — suits companies that want an established bank relationship over a digital-only account.
Package terms, minimum balance and transaction fees are agreed per business package; public minimum-balance figures vary between packages. Branch visit typically required.
Three different markets: real-estate escrow is mandatory and handled by developer escrow accounts at banks approved by RERA/DLD; M&A and trade escrow is offered by the corporate desks of major banks (Emirates NBD, FAB, Mashreq) and by regulated trustees; and commodity/trade escrow runs through specialized agents. The right provider depends on the transaction type.
Bank escrow for commercial transactions typically runs 0.25–1% of the escrowed amount (often with a minimum fee of a few thousand AED) plus legal/agreement costs. Real-estate developer escrow is regulated — fees are set by the arrangement, not negotiated. Trustee services charge setup plus a per-release or per-period fee.
Rarely — escrow pays for itself only when the counterparty risk exceeds the fee. For ordinary B2B trade, a letter of credit, trade-finance facility or staged payment terms usually cost less. Escrow earns its fee on large one-off transactions: asset sales, agency exits, distributor settlements.
Raqma Editorial · reviewed by 