Suhail Al Mazrouei: The Government is working to facilitate the financing of housing loans in cooperation with the national banks
Friday, May 27, 2022
HE Suhail Al Mazrouei, the Minister of Energy and Infrastructure, revealed that the Cabinet endorsed the new police for financing the Government Housing Loan Programs.
According to the new policy, the housing loans amounts shall be financed through the collaboration with “Sheikh Zayed Housing Program” (SZHP) and national banks, with the aim of sustainable funding sources, meeting the current and future housing requirements, and boosting the partnership between t eh Government and Private Sectors, as well as facilitate the process of financing housing loans for the Nationals benefiting from the Program.
His Excellency stated that: “According to the new Housing Policy, the national banks shall assume full responsibility for the process of loans funding for the Nationals, where (SZHP) shall fund the interests resulting from the loans on behalf of the Nationals, which in return contribute to doubling the number of decisions to be issued annually for the loans, particularly during the upcoming five years, as well as the sustainability of funding through a partnership with the Private Sector”.
HE Al Mazrouei went further and added: “The new Policy aims to combine efforts to serve the Nationals benefiting from the (SZHP), by the provision of bank facilities of the housing financing, looking for efficacious solutions that would mitigate the financial burdens on the Beneficiaries.
Al Mazrouei praised the role carried out by the national banks in enhancing the stability of the National families, supporting the welfare system and quality of life, and contributing to meeting the current and future housing requirements, as well as reducing the National journey time to obtain adequate housing, covering all the accumulated requests, and raising the efficiency of loan financing”.
The Minister delivered his speech in the briefing organized by the Ministry of Energy and Infrastructure, represented by (SZHP), in its premises located in Dubai, to elaborate on the new Policy for financing the loans of the Government Housing Program, identifying the housing targets for the upcoming years, the action plans that supporting the aspirations of the UAE Government, rules and regulations for entitlement to housing support for the UAE Nationals, and the future orientation of the housing, which is considered as one of the main pillars that our wise leadership focusing at, combined with the pat of qualitative and ambitious achievements, updates to the laws and regulations that would enhance cash flows and governance of housing subsidy loans accordingly.
During the briefing, which was attended by the Undersecretaries and Ministry’s Representatives, as well as representatives from media corporations, HE elaborated that: “
“In light of the Cabinet’s adoption of the new housing policy, the Ministry of Energy and Infrastructure, in coordination with the Ministry of Finance, has identified financing options with the financing banks and the guarantees required to be provided by the federal government, and determine the cost and implementation mechanism according to the best possible conditions.”
The number of the decisions to be issued, within the following five years (2022 – 2026) is (13000) decisions, with a total cost of (11.5 Billion Dirham). The national banks shall finance the loans by (10.4 Billion Dirham), where the Program shall pay the bank interest rate of (1.1 Billion Dirham). HE pointed out that the focus, during the first three years, shall be mainly on covering accumulated requests.
HE emphasized that, according to the new Policy, coordination between the Ministry of Energy and Infrastructure, represented in the (SZHP), and between the national banks for financing the cost of housing decisions (loans) by the banks, whereby the Ministry shall pay the interests on the value of the decisions on behalf of the Nationals through allocated budgets, and the Beneficiaries shall pay the principal amount to the banks, as previously applied, without any additional costs on the Beneficiary.
H.E. commended the UAE’s attention, led by His Highness Sheikh Mohammed Bin Zayed Al Nahyan, and his brother His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President of the UAE, Prime Minister, and the Ruler of Dubai, their Highnesses the Members of the Supreme Council of the Union and the Rulers of the UAE, in providing state-of-the-art infrastructure and sustainable government housing that attains happiness for the Nationals and quality of their life, all of which reflected by the adoption of enormous budgets for this vital Sector, where the last budget approved by the Cabinet for (SZHP) loans amounted to (12 Billion Dirham), during the upcoming years, as well as projects and initiatives for public facilities, construction of integrated residential complexes with outstanding services that meet the aspirations and future needs of the Nationals.
His Excellency the Minister of Energy and Infrastructure explained that the Cabinet’s adoption of the new housing policy, in addition to its earlier approval of the budget of the Sheikh Zayed Housing Program loans amounting to 12 billion dirhams in the coming years, confirms the extent of the great interest that the Nationals’ housing sector enjoys, and the government’s endeavor To develop and organize it through regulating laws and legislation capable of keeping pace with the development taking place in the UAE in various fields, and to meet the future needs of the sons and daughters of the Emirates, which in all aim to enhance family stability and achieve a decent standard of living, by contributing to meeting the housing needs of Nationals in accordance with specific controls, and embodying the efforts of The UAE government to make Nationals happy, and in a way that accelerates and enhances the program’s steps towards achieving housing stability for Nationals, and supports the state’s goals for the next fifty years, the UAE Centennial 2071 and its aspirations towards global leadership in achieving comfort and prosperity for its people.”
His Excellency pointed out that the efforts of the Ministry of Energy and Infrastructure aim to meet the requirements of Nationals who apply for housing loans, speed up the completion of applications, and-all waiting lists during the coming period, and enable the program to achieve Nationals' happiness in a manner that ensures a decent life for them in response to the visions and aspirations of the rational leadership. By devoting all efforts for the sake of the comfort and happiness of the Nationals.
His Excellency also reviewed the expected positive impact of the new lending policy on the sons and daughters of the Emirates, and its role in achieving family stability by providing adequate housing for Nationals, which comes at the forefront of the wise leadership’s priorities, which always emphasizes the need to build residential communities that meet the aspirations and ambitions of the Emirati family and achieve a decent and secure life to Nationals.
On the future goals of the housing axis, His Excellency explained that the Ministry of Energy and Infrastructure aims to cover Nationals’ needs for government housing, provide multiple financing options and solutions, reduce waiting time for housing assistance, and develop innovative financing solutions that will reduce the financial burden on beneficiaries. Pointing out that the directives of the wise leadership revolve around the necessity of taking into account the social dimension of Nationals and always working to use measures that are in the interest of the Nationals.
His Excellency explained that the Sheikh Zayed Housing Program will work diligently during the coming period to develop the customer's journey, reduce the required documents, facilitate procedures, use modern technologies such as Blockchain, and set advanced urgent plans to develop its services and raise them to distinct levels to achieve customers' happiness and quality of life. Gaining their satisfaction, designing programs and launching ambitious initiatives that enhance the digital transformation of the ministry’s services, and developing its mechanisms to reach the best government model that meets the requirements of the future and reflects positively on customers and society, in line with the standards and requirements of the Emirates Program for Excellence in Government Service.
It is worth noting that the percentage of citizens owning housing in the UAE exceeded 86.3%, which is one of the highest rates in the world. More than 74,504 housing support decisions, with a value of more than 41 billion dirhams, included all regions of the country, and were distributed between loans, grants, and diversified, and between building a new home, completing a home, maintaining a home, adding to a home, buying a home and government housing, and fulfilling a loan.