Interest-free home loans lined up for 13,000 Emirati families

People living in the Northern Emirates can apply for a loan of up to Dh800,000

A family receives the keys to their government-funded home in an Abu Dhabi development built in 2012. Sammy Dallal / The National

Thirteen thousand Emirati families living in the Northern Emirates will be able to receive interest-free home loans under a new government plan, it was announced on Thursday.

A total of Dh11.5 billion ($3.1bn) will be given to select families in Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah in the first phase of the plan, which will take place between 2022 and 2026.

Emiratis must submit requests to the Ministry of Energy and Infrastructure to obtain housing loans through the country’s Sheikh Zayed Housing Programme.

The project was announced by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, on May 9.

Having a home is a priority, it is not owning a fancy car and people need to get their priorities right

Suhail Al Mazrouei,
Minister of Energy and Infrastructure

To be eligible, the main earning member of the household should have a monthly income of at least Dh15,000. Those eligible can apply for a loan of up to Dh800,000 but the monthly loan instalment should not exceed 16 per cent of the applicant’s salary.

Several local banks will disburse the loans, though it is not currently known which are on the list.

Borrowers pay the principal loan amount of Dh10.4 billion but the government will cover the interest rate of Dh1.1bn.

They can also buy construction materials at discounted prices after the ministry reached an agreement with a number of suppliers. The list of these suppliers will be released at a later date.

Suhail Al Mazrouei, Minister of Energy and Infrastructure, pictured at a previous event, said ensuring every Emirati family has a good quality home is a priority. AP

“The revised policy will help to clear the backlog of applications from previous years,” said Suhail Al Mazrouei, Minister of Energy and Infrastructure.

“A smart system will analyse the data and assess the circumstances of applicants based on the information they provide about their financial, social and housing conditions.”

This data will help the ministry to prioritise urgent cases.

“Having a home is a priority, it is not owning a fancy car and people need to get their priorities right,” Mr Al Mazrouei said.

Ministry employees will visit the homes of senior citizens and disabled people who may face difficulty in submitting online requests.

“After the programme was approved by the UAE Cabinet, we met with the Ministry of Finance to identify sustainable financing options in co-operation with local banks,” Mr Al Mazrouei said.

“The new programme will focus on the Northern Emirates — Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain and Fujairah.”

He said local authorities in Abu Dhabi and Dubai will provide separate housing financing for their citizens.

Approved designs for Emirati homes — in pictures

The Abu Dhabi Housing Authority has released 58 new housing designs for Emirati housing loan recipients to choose from. Illustration courtesy Abu Dhabi Housing Authority

The designs were released as part of the Bayti [my home] initiative, to simplify the process of buying and building homes for Emiratis. Illustration courtesy Abu Dhabi Housing Authority

Homes will be available in Abu Dhabi, Al Ain and the Western Region and can be built within two years. Illustration courtesy Abu Dhabi Housing Authority

Costs depend upon the design. For example, a 715-square-metre two-storey five-room house with terrace is priced at Dh1.9 million and a 1,024 sq m two-storey six-bedroom house is Dh3m. Options are also available for those who wish to build a house to their own design. Illustration courtesy Abu Dhabi Housing Authority