Zayed Housing Fund defends housing loan payments despite presidential decree

The FNC insisted a presidential decree has raised the amount to be loaned to Emiratis for housing is Dh800,000. The Zayed Housing Fund says that amount is a top limit, not a minimum.

Government housing in Madinat Zayed. The Zayed Housing Fund has defended the amount of grants paid. Christopher Pike / The National

ABU DHABI // A presidential decree to increase housing loans is not being carried forward by the Zayed Housing Fund, an FNC member said on Tuesday.

On National Day in 2013, President Sheikh Khalifa issued a decree to raise housing assistance from Dh500,000 to Dh800,000.

But Hamad Al Rahoomi, of Dubai, said some Emiratis were still receiving Dh500,000.

Abdullah Al Nuaimi, Minister of Public Works and head of the fund, said the decision meant assistance could reach Dh800,000, but not every Emirati applicant would be given a loan for that amount.

He said that while some were given the higher amount, others received only Dh500,000.

Mr Al Nuaimi said that before the decree, not all Emiratis received Dh500,000. Some were given Dh300,000 or less. Mr Al Rahoomi said the presidential decree was unambiguous.

He said those who received less than Dh500,000 in the past used it for maintenance and renovation, not to build a home.

“I, as an FNC member and an Emirati, what I understand is that it is now Dh800,000 and not Dh500,000,” he said. “It is not clear to me why this hasn’t happened yet.”

He said the FNC had fought for years to increase the loans.

“This is a loan and not a grant. That means Emiratis will be paying this back,” he said.

Mr Al Nuaimi said the cost of building a home was closer to Dh1 million. He reminded the member that the loans provided were only meant as assistance.

“The President’s decision was to raise housing support, it did not mention a minimum,” he said.

Mr Al Nuaimi asked that a recommendation be sent to the Cabinet to force the housing fund to ensure the housing minimum was Dh800,000.