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UAE: Equal housing aid for all citizens, advocates Federal National Council member

Those building homes outside allocated areas receive Dh400,000 less in housing aid than those who choose to build within those communities

A member of the Federal National Council (FNC) on Wednesday advocated for Emiratis building homes outside government-allocated residential complexes.

Those building homes outside allocated areas receive Dh400,000 less in housing aid than those who choose to build within those communities.

"Why is there a distinction between these two groups?", FNC member Walid Al Mansouri asked the Minister of Energy and Infrastructure, noting that the cost of constructing a house today far exceeds the allocated amount of Dh800,000.

Sheikh Zayed Housing Programme recently increased the housing aid for beneficiaries building homes within designated residential compounds to up to Dh1.2 million, whereas those building homes outside these complexes are limited to Dh800,000.

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In a written response to the council, Minister Suhail Al Mazrouei, explained that a 2021 cabinet decree capped housing aid at Dh800,000 for all types of financial support. This limit was established to meet current and future housing needs within the framework of annual budgets and the financial model approved by the Ministry of Finance.

However, an exception was made for current residential complexes under a cabinet decision issued last year. The increase to Dh1.2 million applies exclusively to homes designed, built, and completed before the 2021 revisions made to housing aid policies. The exemption ensures fairness among beneficiaries within the same residential communities, explained the minister. Future residential complexes would be designed to align with the existing allowance cap of Dh800,000 per unit to maintain financial sustainability, he added.

Al Mansouri argued that the current housing aid system is insufficient for citizens building homes independently. "When the decision to raise the housing aid ceiling to Dh1.2 million was announced, it was welcomed by the community. However, when implemented, it was limited to residential complexes," he said.

He explained that the minimum cost of building a house in such complexes is now Dh1.2 million, with the government absorbing the additional costs. Meanwhile, citizens constructing private homes must rely on loans to cover the shortfall beyond the Dh800,000 aid limit.

"The cost of building a house today is far higher than the allocated aid. We hope the decision to raise the aid limit to Dh1.2 million will be extended to cover all beneficiaries, ensuring equality with those in residential complexes," he concluded.

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