Sheikh Mohammed approves housing loans for 2,000 citizens

Vice President orders Dh1.6bn in payouts through Sheikh Zayed programme

Sheikh Mohammed announced the loan approvals on Twitter. Photo: Dubai Media Office

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has approved housing loans for 2,000 Emiratis under the Sheikh Zayed Housing Programme.

He said the total value of the loans approved was Dh1.6 billion ($435m).

“The programme, named after its esteemed founder, continues to achieve the goal for which it was established,” Sheikh Mohammed said, writing on Twitter.

“We recall his quote that wealth and life fade away, but working for the nation endures and is immortal.”

The Sheikh Zayed Housing Programme was established in 1999 and provides interest-free loans repayable over a 25-year period to citizens with low incomes.

Those who most need support are given grants and non-reimbursable assistance.

The programme gives priority to orphans, widows, the elderly and people with special needs.

In July, the Central Bank of the UAE increased the debt burden ratio of beneficiaries of housing loans under the programme which allowed more borrowers to obtain financing.

The DBR – the ratio of a borrower’s monthly outgoing payments to their total income – was raised to a maximum of 60 per cent from 50 per cent.

In May, President Sheikh Mohamed ordered financial assistance for low-income Emirati farm owners in the form of electricity subsidies.

The President directed the Ministry of Community Development and Etihad Water and Electricity, which primarily serves the Northern Emirates, to provide the monthly subsidies from July with the allocation of an annual amount of Dh8,400 per beneficiary, which is equivalent to a maximum consumption of 2,500 kilowatt hours per month.