The Abu Dhabi Executive Council, under the directives of UAE President Sheikh Mohamed bin Zayed Al Nahyan, has approved a sweeping AED82.7 billion ($22.5 billion) investment in new housing initiatives aimed at enhancing family stability and social cohesion across the emirate.
Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Executive Council, ratified plans for 14 integrated housing projects. These will deliver 35,000 housing benefits over the next five years, including 26,000 residential units for UAE nationals and 9,000 residential land plots. The programme marks a transformative step in Abu Dhabi’s long-term vision to strengthen the real estate sector and improve citizens’ quality of life.
Innovative Housing Loan Reforms Unveiled
Alongside the large-scale development projects, Sheikh Khaled also approved a series of impactful reforms to the housing loans ecosystem. These enhancements are designed to relieve financial pressure on Emirati families and ensure wider accessibility to high-quality homes.
Key among the new measures is a community support subsidy of AED250,000 ($68,000), which will now be automatically and retroactively applied to all housing loans totalling AED1.75 million ($476,500), in accordance with the 2023 housing benefits policy.
Further easing monthly financial burdens, loan repayment periods have been extended to a maximum of 30 years, while monthly instalments will now be flexibly adjusted based on a recipient’s income and evolving financial conditions.
Additionally, a new deferred-payment home purchase loan has been introduced for low-income citizens aged 25 to 45, enabling greater access to a wider range of housing options. Citizens aged above 45 will now qualify for ready-built home grants, enhancing inclusivity across age demographics.
To facilitate smoother exchanges between families, land plot swap fees will be waived, provided swaps are mutually agreed. This initiative supports tighter community bonds and streamlines residential planning.
Officials Applaud Visionary Housing Strategy
Mohamed Ali Al Shorafa, Chairman of the Board of Directors at the Abu Dhabi Housing Authority, expressed appreciation for the leadership’s ongoing support:
“We extend our sincerest gratitude to His Highness Sheikh Mohamed bin Zayed Al Nahyan and to His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, for their generous directives and continued commitment to the wellbeing of Emirati citizens.”
Hamad Hareb Al Muhairi, Director-General of the Abu Dhabi Housing Authority, highlighted the long-term significance of the reforms:
“These directives will have a lasting positive impact on the lives of Emirati families, aligning with the goals of the ‘Year of Community’ initiative, which promotes social cohesion and underscores the importance of quality housing in building a strong and tight-knit society.”
He added that the AED250,000 community support subsidy will be automatically applied to all eligible housing loan recipients. Meanwhile, the new monthly deduction policy—capping payments at 10% of total income or AED10,000 maximum—will apply to all housing loans issued after 2015. The policy will officially take effect in September 2025.
A Future-Focused Approach to Housing and Social Development
Through a combination of expansive housing developments and thoughtful reforms, Abu Dhabi is reinforcing its long-standing commitment to social welfare, while future-proofing its urban planning and infrastructure. These initiatives serve as a blueprint for sustainable, citizen-first governance and are expected to significantly elevate housing accessibility, affordability, and community wellbeing across the emirate.
