Dubai: The UAE will facilitate the housing loan profits on behalf of Emiratis as part of a strategy to provide high living standards for citizens.
The government will pay the interest rate of the housing loans up to Dh800,000 while citizens will pay the original amount of housing loans, according to the Ministry of Energy and Infrastructure.
According to Suhail Al Mazrouei, the Minister of Energy and Infrastructure, the UAE Cabinet approved the new housing policy within the Sheikh Zayed Housing Programme, and a housing loan financing programme worth Dh11.5 billion, benefiting 13,000 Emirati families.
“The ministry in cooperation with the Ministry of Finance set financing options for housing loans with national banks. The loans shall be financed through collaboration with the Sheikh Zayed Housing Programme and national banks, with the aim of sustainable funding sources,” said Al Mazrouei at a press conference held at the ministry headquarters in Dubai on Thursday.
The new policy is in line with the current and future housing requirements, and will boost the partnership between the government and private sectors, as well as facilitate the process of financing housing loans for citizens benefiting from the programme.
“There will be 13,000 decisions to be issued between 2022 and 2026.The national banks shall finance the loans by Dh10.4 billion and the programme shall pay the banks interest rate of Dh1.1 billion. The focus, during the first three years, shall be mainly on covering accumulated requests by citizens,” the minister added.
According to the ministry, the percentage of Emiratis owning housing in the country is more than 86.3 per cent, which is one of the highest rates globally.
The new policy will be doubling the number of annual decisions for the loans.
Al Mazrouei said that Sheikh Zayed Housing Programme will work diligently to develop the customer’s journey, reduce the required documents and facilitate procedures by using the latest technologies such as Blockchain.
He added that the Cabinet’s orders for the new housing policy in addition to its earlier approval of the budget of the Sheikh Zayed Housing Programme loans amounting to Dh12 billion in the coming years, shows the great interest in the Emirati housing sector to meet the future needs of the sons and daughters of the UAE.
“The target is to enhance family stability and achieve a decent standard of living to support the UAE’s goals for the next 50 years, the UAE Centennial 2071 and its aspirations towards global leadership in achieving comfort and prosperity for its people.”
Al Mazrouei, praised the role of the national banks in enhancing the stability of Emirati families, supporting the welfare system and quality of life, and contributing to meeting the current and future housing requirements, as well as reducing the time to obtain adequate housing, covering all accumulated requests, and raising the efficiency of loan financing.
The Sheikh Zayed Housing Programme issued more than 74,504 housing support decisions, with a value of more than Dh41 billion since its establishment in 1999.