The Ras Al-Khaimah Investment Authority (Rakia), the body overseeing the emirate's growth, has created a property regulator to safeguard investors and ensure construction funds are not misused.

Rakia Real Estate Regulatory Authority (Rera) will oversee the implementation of the escrow account law for freehold property under Rakia, the government body said in an e-mailed statement.

Developers will have to register with Rakia Rera and open an escrow account in order to start selling property units.

Rakia's property portfolio is valued at Dh 6 billion ($1.63 billion).

The authority will also monitor the progress of construction by sending inspectors to project sites to make sure contracts are adhered to, the statement said.

Ras Al-Khaimah, the most northern of the seven emirates comprising the United Arab Emirates, saw its property market pick up in the last few years, launching large-scale projects worth billions of dollars.

Despite not witnessing a boom the size of its sister-emirate Dubai, Ras Al-Khaimah saw its share of projects delayed or scrapped as the global financial crisis hit the country, producing a line of disgruntled investors.

More than half of the construction projects in the United Arab Emirates, worth $582 billion, have been put on hold, Dubai-based market research firm Proleads said in February.

The creation of Rakia Rera will help 'prevent mishandling of construction funds and ensure that investors' money is spent according to the masterplan of the project', said the authority's general manager Yahia Kambris in the statement.

Dubai had created a real estate regulatory authority in July 2007 to oversee activity in its then-booming property sector. - Reuters