UAE Central Bank Eases Borrowing Standards and Expands Debt Ratio Eligibility for Sheikh Zayed Housing Scheme


This means that UAE nationals who benefit from the funding will be able to obtain additional funding provided they are able to repay it.

The debt-to-income ratio (DBR) is the ratio of an individual’s total monthly outgoing payments (including installments to loans and credit cards) to total income. This number is used by banks to calculate eligibility for loans and credit cards.

Banks are allowed to increase the DBR for retirees and senior UAE nationals by 30% to 50% after checking their repayment capacity.

In addition, the contribution of SZHP housing loan borrowers of 15% in the down payment for housing loans whose profits/interest are guaranteed and paid by the federal government, has been waived, subject to the following conditions: The property to be built/purchased by financing is the first home for the UAE national and to be used for his personal residence.

If the amount of the loan exceeds the amount of loan profit/interest guaranteed and paid by the Federal Government, the UAE national will be liable to pay, from his own resources and not from other loan sources, the difference in the 15 percent deposit payable ratio required by regulation.

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John A. Bogar