Crown Prince grants Emiratis Dh7.5bn in housing loans to raise living standards

A Dh7.5 billion housing loan fund will be distributed among Emiratis in Abu Dhabi as part of government efforts to give citizens decent living standards.

Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, late on Tuesday ordered the distribution.

It is the first phase of an annual package of loans for 5,000 houses in the capital that was announced this month. Zero-interest loans are granted to Emiratis in Abu Dhabi for building, expanding or renovating a home.

The government also gives Emiratis the land on which they build their homes. Those who earn a lower income are granted land with houses already built. These are plots of land in government housing projects such as Al Falah and Riyadh City.

The Abu Dhabi Housing Authority says Emiratis seeking to build their own homes on granted plot of land are provided a loan of between Dh500,000 and Dh2m.

The 25-year loan is to be repaid on monthly or easy instalments, as specified by the authority.

The 2,500 housing loans will be made up of 1,300 construction loans at a total value of Dh2.4bn; up to 700 loans, valued at Dh1.2bn, for renovation of homes; 75 loans valued at Dh133 million for demolishing or rebuilding; 100 loans worth Dh89.8m for maintenance and expansion; and 325 other loans costing worth more than Dh382m.

On Tuesday, Sheikh Mohammed also approved the allocation of 696 residential plots and 798 government houses at a total value of Dh1.6bn, in addition to 163 loans worth Dh195.6m, for citizens to buy established houses in different areas of the emirate.

He sanctioned projects to build government houses in various areas of the capital, including 204 units in Sweihan, and ordered an expansion programme with 588 houses in Al Dhafra Ranches, at a total value of Dh1.5bn.

Abu Dhabi’s new housing plans will push the country towards 70 per cent private home ownership among Emiratis by 2020, which would make it number one in the world for the rate of citizens possessing their residences.

At 69 per cent, the UAE has the second highest amount of residence ownership after Singapore.

But Sheikh Mohammed said this month that Abu Dhabi would double the number of housing loans and reduce waiting times for property allocation.

Abu Dhabi’s plans will push the country towards 70% private home ownership among Emiratis by 2020