Abu Dhabi: The
Ministry of Finance
and Industry will help establish a Dh16 billion fund from banks
operating in the UAE to build homes for UAE nationals, a top official
said.
The move is part of the expansion of the Khalifa
Housing Programme which received Dh1.28 billion in the 2008 federal
budget, up from Dh640 million in 2007.
"The ministry is trying to find the best alternative to finance the
remaining part of the project through banks loans. The ministry will
guarantee UAE nationals in their endeavours to secure housing loans
from banks as well as the interest due.
"The citizen
will get a settlement period that extends to 20 years," said Dr.
Mohammad Khalfan Bin Kharbash, Minister of State for Finance and
Industry.
The announcement came during
yesterday's meeting between ministry officials and representatives of
the banks and financing companies to discuss a suitable mechanism to
fund the housing programme.
Appraisal
The programme is being carried out under the instructions of His
Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and
Prime Minister of the UAE and Ruler of Dubai, who commissioned the
construction of 40,000 homes for Emiratis over the next four years.
"The banking sector is one of the major pillars for the progress of the country and its economic development," Kharbash said.
He added that the Shaikh Zayed Housing Programme will carry out the
necessary appraisals of housing applications according to the
established rules and criteria, and will accordingly allocate the funds
to the selected beneficiaries.
The remainder will be financed through loans from the banks.
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