Dh2bn housing plan for Emiratis to support UAE's 'rapid growth'

The UAE delivered more than Dh2 billion in housing support for Emiratis in the first half of the year under a long-term drive to raise the living standards of its citizens and provide for a booming population. The key funding approved by the UAE Cabinet, included 1,987 home loans valued at Dh1.597 billion, an average of Dh805,000 per applicant. A further 631 grants valued at nearly Dh431 million were also agreed from January to the end of June, state news agency Wam announced this week. “The UAE government prioritises the housing sector, which constitutes a critical strategic axis of the federal government's work in co-ordination with local governments and relevant authorities,” Wam reported. “This effort aims to provide all means of support and factors of social stability, most notably adequate housing.” The Wam statement underlined the importance of strong planning and integrated investment in housing to support the country's “rapid growth”. The UAE Cabinet, chaired by Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, has made significant investments in housing policies in recent years to help lay down firm foundations for the country's citizens. It is part of a sustained effort to provide good quality of life and stability for Emiratis – who account for about one million of the UAE's population of close to 10 million – and comes as the government embarks on family growth programmes in both Abu Dhabi and Dubai. In January, Sheikh Mohammed launched a Dh208 billion strategy aimed at doubling the number of Emirati families in Dubai within a decade. Sheikh Mohammed set out plans to increase housing standards, health care and quality of life for citizens. He said residential developments for Emiratis would be established to deliver “the best living conditions in the world”. Abu Dhabi is also seeking to strengthen the family unit with a raft of initiatives aimed at young Emiratis. The Rental Assistance for Newlyweds initiative, announced this week, offers financial support of up to Dh75,000 annually for two years, renewable for a maximum of four years, to support renting a house. It is aimed at Emiratis from Abu Dhabi who receive a monthly salary of no more than Dh50,000 and do not already own a property. It was one of three strategies unveiled by the Abu Dhabi Housing Authority. Repayment deductions will be offered to Emiratis who have had a housing loan request approved by the authority, according to the number of children in the family. Deductions include Dh30,000 for a fourth child, Dh30,000 for a fifth and Dh40,000 for a sixth, without altering the original repayment period of the loan. The Extending Housing Loan Repayment Period initiative will allow Emiratis to extend their repayment period by up to nine years, thereby reducing their monthly outgoings. In May 2023, Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi , approved a Dh85.4 billion community master plan to build 76,000 homes and residential plots for citizens in the capital in five years. The UAE established the Sheikh Zayed Housing Programme (SZHP) in 1999 to help Emiratis, particularly those on low incomes. Relief provided by the organisation includes funding applications for house construction, completion, purchase, maintenance and upgrades. Progressive policies to help Emiratis to move up the housing ladder – to be overseen by SZHP – were unveiled in October. The changes allow beneficiaries of housing assistance to apply for a mortgage transfer from one property to another. It will also allow citizens to apply for the sale and reconstruction or purchase of new houses. The cabinet also approved a decision that provides the ability to reduce the value of house financing through a “flexible loan”. It allows citizens to benefit again from the reduced house financing difference within a period of no more than four years. In June 2022, President Sheikh Mohamed ordered Dh2.3 billion of grant applications made to the SZHP to be finalised. Suhail Al Mazrouei, Minister of Energy and Infrastructure, said all pending applications for funding assistance will be processed in five years.

Dh2bn housing plan for Emiratis to support UAE's 'rapid growth'

The UAE Cabinet has approved more than 2,500 housing loans and grants in first half of 2024