Debt amounting to more than Dh475 million ($129.3 million) is to be wiped out from the financial burden of 1,435 Emiratis in a government agreement with 19 national banks and financial institutions.
Under a directive from President Sheikh Mohamed, the Defaulted Debts Settlement Fund will offer financial relief to cover humanitarian and medical cases, low-income borrowers, the deceased, low-income retirees and senior citizens.
The announcement was made in honour of the UAE's National Day, Eid Al Etihad, on December 2.
Settlements with banks are carried out according to strict legal and regulatory criteria related to the nature and purpose of each loan, with priority given to essential and necessary expenses.
The initiative, reported by state news agency Wam, seeks to reduce pressure on the defaulted and help them regain financial stability, while contributing to broader social development.
In a separate agreement, Sheikh Mohamed has approved the disbursement of Abu Dhabi's third housing benefits package of this year.
Valued at Dh4 billion, the new package will benefit 3,310 UAE citizens across the emirate.
The package includes housing loans worth Dh2.27 billion, benefiting 1,768 citizens, along with the provision of housing grants and ready-built homes valued at Dh1.51 billion.
It also includes loan repayment exemptions for limited-income senior citizens, retirees and families of the deceased, as well as housing loan reductions for citizens under the Emirati Family Growth programme, worth Dh208 million, to benefit 204 citizens.
The latest package takes the total value of housing benefits disbursed to Abu Dhabi citizens in 2025 to Dh15.384 billion, offering financial support to 10,718 citizens.
The announcement coincides with the 54th Eid Al Etihad celebrations, reflecting the leadership's commitment to enhancing the well-being and social stability of citizens.
“As we mark Eid Al Etihad, we express our pride and deep appreciation for our leadership, which continues to prioritise the well-being and stability of Emirati citizens,” said Mohamed Ali Al Shorafa, chairman of the board of directors of the Abu Dhabi Housing Authority.
“This new housing package underscores the leadership’s dedication to enhancing quality of life for Emirati families and fostering a spirit of unity and giving that defines our society.”
