The UAE’s Ministry of Finance (MoF) has announced signing a memorandum of understanding (MoU) with the Sheikh Zayed Housing Programme (SZHP) and Emirates Development Bank to provide housing loans to UAE citizens.
“The agreement has been signed to support HH President Sheikh Khalifa bin Zayed Al Nahyan’s vision to ensure quality living conditions for members of the UAE community, in order to help them flourish in a healthy family environment and in turn promote community cohesion and social stability,” a statement by the MoF highlighted, adding that this step comes in line with the UAE vision 2021 as well as Vice President and Prime Minister of the UAE, and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum’s initiative to ensure that UAE citizens own a home within two years of submitting an application.
Through the MoU, the MoF is offering AED five billion over the next five years for financing housing loans and residential complexes, through the development of innovative financial solutions. According to the statement, the agreement will provide the required funding for 10,000 applications, added to 17,000 applications financed by the Sheikh Zayed Housing programme, from the government’s annual resources.
The total number of applications to be implemented over the next five years is therefore expected to reach 27,000 applications.
Emirates Development Bank will be responsible for financing up to 65% of the total value, under the condition that the owner’s land is approved for development, which the SZHP will manage with the concerned authorities. The MoU also includes a clause, which stipulates that the borrower must start repaying the loan from the application approval date.
It is worth noting that this MoU is a result of joint efforts to strengthen the relationship between government institutions, achieve the hopes and aspirations of citizens, as well as speed up the process of obtaining housing assistance for UAE families.
“The MoU stipulates the programme’s commitment to issue annual approvals as per the standards and regulations of housing grants, in accordance with the programme’s annual financial allocations from the approved budget. The agreement also features terms and conditions for the benefits offered by the housing loan programme. Beneficiaries should have a salary of AED 20,000or above, must own land and accept a monthly deduction of 16.6% of their salary once the housing loan is approved,” the MoF’s statement noted.
“The agreement has been signed to support HH President Sheikh Khalifa bin Zayed Al Nahyan’s vision to ensure quality living conditions for members of the UAE community, in order to help them flourish in a healthy family environment and in turn promote community cohesion and social stability,” a statement by the MoF highlighted, adding that this step comes in line with the UAE vision 2021 as well as Vice President and Prime Minister of the UAE, and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum’s initiative to ensure that UAE citizens own a home within two years of submitting an application.
Through the MoU, the MoF is offering AED five billion over the next five years for financing housing loans and residential complexes, through the development of innovative financial solutions. According to the statement, the agreement will provide the required funding for 10,000 applications, added to 17,000 applications financed by the Sheikh Zayed Housing programme, from the government’s annual resources.
The total number of applications to be implemented over the next five years is therefore expected to reach 27,000 applications.
Emirates Development Bank will be responsible for financing up to 65% of the total value, under the condition that the owner’s land is approved for development, which the SZHP will manage with the concerned authorities. The MoU also includes a clause, which stipulates that the borrower must start repaying the loan from the application approval date.
It is worth noting that this MoU is a result of joint efforts to strengthen the relationship between government institutions, achieve the hopes and aspirations of citizens, as well as speed up the process of obtaining housing assistance for UAE families.
“The MoU stipulates the programme’s commitment to issue annual approvals as per the standards and regulations of housing grants, in accordance with the programme’s annual financial allocations from the approved budget. The agreement also features terms and conditions for the benefits offered by the housing loan programme. Beneficiaries should have a salary of AED 20,000or above, must own land and accept a monthly deduction of 16.6% of their salary once the housing loan is approved,” the MoF’s statement noted.
Source:
Mubasher
