The short answer
Dubai developers selling off-plan must route buyer payments into a project escrow account and have a RERA-approved auditor report on each account every year. The audit covers money in and out, reconciles withdrawals to certified construction progress and checks the balance against costs still to come.
What does a developer escrow audit cover?
Each project's escrow account: every buyer payment in, every withdrawal out, whether withdrawals match the construction progress an independent engineer certified, and whether the remaining balance covers outstanding costs (Kayrouz & Associates, on Dubai developer obligations). Funds cannot move between projects or pay general company costs, so the audit also looks for leakage between accounts.
What happens if the escrow audit is late or wrong?
RERA can investigate, freeze the account, suspend sales or revoke the developer's licence (Kayrouz & Associates). The practical risk is cash: a frozen escrow account stops construction payments. We schedule the audit around the developer's reporting calendar and reconcile monthly, so the year-end report has no surprises.
How is revenue recognised on off-plan sales?
Usually over time, as construction progresses, where the contract and local law give the developer an enforceable right to payment for work done. That judgement drives the developer's profit, its corporate tax at 9% above AED 375,000 of taxable income (Cabinet Decision No. 116 of 2022) and its covenant tests with lenders. We test the contract terms, cost-to-complete estimates and the engineer's progress certificates behind the percentage used.
Do brokers and property managers need audits too?
Often. Brokers handling client money, property managers running owners' service charges, and investors with rental portfolios all need reliable accounts, and many need audited ones for their bank or regulator. Brokers are also designated businesses under anti-money laundering rules, so we combine the audit with an AML review where it helps.
Frequently asked questions
Who can audit a developer escrow account?
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An audit firm approved by RERA. Check the approval before appointing.
Is the escrow audit the same as the annual financial audit?
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No. The escrow report covers each project account; the financial statement audit covers the whole company. They are usually planned together.
Do you audit owners associations?
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Yes, as a separate engagement. See our strata audit page.
Sources
- What must a developer do before selling off-plan in Dubai? (escrow accounts and annual escrow audits) — Kayrouz & Associates. Checked 17 October 2026.
- Cabinet Decision No. 116 of 2022 on the annual Taxable Income subject to Corporate Tax (AED 375,000) — UAE Ministry of Finance. Checked 16 October 2026.