The Central Bank of the UAE (CBUAE) has confirmed that Nafis payments and related incentives are temporary and conditional, and therefore cannot be considered guaranteed income for loan eligibility. Banks may consider these payments on a strict case-by-case basis, but they do not meet the regulatory definition of stable, verifiable, and long-term income required for personal loans.
Impact on Emirati Private Sector Employees
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, explained that Nafis primarily functions as government support to encourage Emiratis to join the private sector. However, because the programme’s top-ups are structured and time-limited, they fail to satisfy the CBUAE’s criteria for consistent income under Article 2 of the 2011 personal loans regulation.
This clarification affects the calculation of the Debt-Burden Ratio (DBR), which limits borrowers’ total monthly loan and credit card payments to 50% of their verified income. Many lenders exclude Nafis top-ups entirely from income calculations, lowering total recognized income and making it harder for beneficiaries to meet the DBR threshold. Consequently, Emiratis in the private sector may face more difficulty accessing loans compared with peers in government positions.
Understanding Nafis and Its Role
Launched in 2021 as part of the “Projects of the 50” initiative, Nafis aims to increase Emirati employment in the private sector, targeting 75,000 positions by 2026 and supporting a mandated 2% annual increase in private-sector Emiratisation. The programme is funded with AED 24 billion ($6.53 billion) and includes several incentives:
- A salary top-up of up to AED 7,000 per month for bachelor’s degree holders for up to five years
- Pension contribution subsidies for low-to-medium-income employees
- Child allowance of AED 800 per child (up to AED 3,200 monthly)
- Unemployment benefits for involuntary job loss
While the programme remains central to the UAE’s Emiratisation goals, CBUAE guidance ensures that temporary incentives do not artificially inflate borrowers’ perceived income. Banks are expected to issue detailed internal guidance soon, and regulators will monitor implementation for consistency across the sector.
