• Deputy Prime Minister says the agreement is the result of the strategic Alliance between the two sectors.

  • Ministry of Housing purchases 3,100 residential units for BD 276 million from Diyar Al Muharraq to be enrolled in the Ministry's Social Housing Programme.

  • Diyar begins construction of Project on 1.2 million square meters of land in October 2015

  • Units to be handed over to Housing Ministry in December 2018.

  • Deputy Prime Minister calls on "Housing" and the private sector to form active partnerships to meet increasing demands

  • Minister of Housing: Residential units will be priced in line with finance amounts set forth by participating banks

  • Dr. Al Shaer: This agreement heralds a new era of cooperation between the public and private sectors with regards to Housing Projects

Manama, Bahrain, 22nd March 2015

The Ministry of Housing and Diyar Al Muharraq, one of the leading urban developers in the Kingdom of Bahrain, signed a major agreement, under which the Ministry will purchase 3,100 residential units from Diyar Al Muharraq at a cost of BD 276 million, to be enrolled in the Ministry's Social Housing Programme.

Under the Patronage of the Deputy Prime Minister and Chairman of the Ministerial Committee for Construction and Infrastructure, His Excellency Shaikh Khalid bin Abdulla Al Khalifa, the signing ceremony took place on Sunday, 22nd March 2015 at the Project site.

The agreement was signed by the Minister of Housing, H.E. Basim Al Hamer, and the Chief Executive Officer of Diyar Al Muharraq, Dr. Maher Al Shaer, in the presence of the Chairman of Kuwait Finance House (Bahrain), Mr. Ahmed Alaiban and top officials from both parties and invited guests.

The site dedicated to the Social Housing residential units is located in the South side of Diyar Al Muharraq with a total land area of 1,175 million square meters, in close proximity to Diyar Homes. This location is considered to be an ideal residential area with integrated community service centers and recreational green park lands. Diyar Al Muharraq will undertake financing all construction works for the project, its associated primary and secondary infrastructures and community centers with due support from Kuwait Finance House (Bahrain); key shareholders in Diyar Al Muharraq Project. Work on the site is due to begin in October this year with the target date for the handover of the residential units being December 2018.

In this regards, H.E. Shaikh Khalid bin Abdulla affirmed that an agreement of this stature between the public and private sectors; two major players for achieving sustainable development, paves the way for similar partnerships in the near future with more property development companies who seek to be active participants in efforts towards the realization of visions set by His Majesty King Hamad bin Isa Al Khalifa and the government of Bahrain under the leadership of the Prime Minister His Royal Highness Prince Khalifa bin Salman Al Khalifa and the care of the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, His Royal Highness Prince Salman bin Hamad Al Khalifa. Those visions aspire to provide suitable Housing for Bahraini citizens, while focusing on speeding up the process of meeting the maximum number of Housing services demands in order to reduce the waiting time for citizens to avail suitable Housing services.

"It is indeed a pleasure to witness the signing of this agreement today which reiterates the high priority the government has given to Housing concerns in the Kingdom, through providing unprecedented innovative solutions for Housing services via the Social Housing Programme. This partnership affirms the private sector's willingness to take on the responsibility of participation in the development of the local communities in which they operate," His Excellency added.

On this occasion, H.E. Shaikh Khalid called on the Ministry of Housing to form more strategic alliances with the private sector, to meet the increasing demands for Housing services. He confirmed that the Ministry of Housing also welcomes such alliances with the banking sector in the Kingdom to finance such projects and other property development firms willing to invest in this type of commercial activities that create continuous movements in the real estate sector in the Kingdom and other associated sectors.

The Social Housing Programme is one of the latest initiatives launched by the Ministry of Housing in collaboration with the private sector to provide Social Houses for citizens whose names are on the Ministry's waiting lists.

Under the programme, after having met all the qualifying conditions, citizens who are already on the waiting list, may purchase a residential unit through availing finance from one of the participating banks, while being supported by the government in the way of subsidized financial monthly installments. Hence, if the monthly installments exceed 25% of the beneficiary's monthly income, the Ministry of Housing will cover the remaining balance of the installment for the full duration of the finance loan.

From his side, the Minister of Housing, H.E. Basim Al Hamer, said:"This is indeed a very important agreement as it is the largest agreement of its type for cooperation between the private and public sectors and will surely have far-reaching positive consequences for all the citizens of the Kingdom. Under this agreement, the Ministry of Housing will purchase 3,100 residential units from Diyar Al Muharraq which will be included in the Social Housing Scheme. Citizens who are already on the Ministry's waiting lists to benefit from its Housing services, will have the opportunity to purchase those units through this programme in accordance with the pre-set terms and conditions, thus reducing the time they have to wait for their turn to avail Housing Services."

H.E. the Minister of Housing stressed that these residential units in Diyar Al Muharraq will be offered for sale within the Social Housing Programme at a cost in accordance of finance amounts granted by banks participating in this scheme. These units will be constructed according to the standards and technical specifications applied by the Ministry in all its housing projects. The Project will also include all the related infrastructure and necessary utilities and community service centers.

"This agreement is in accordance with the Ministry's direction towards increasing the options of Social Housing Units available within the programme for those who wish to benefit from it, due to the success the programme has achieved within a short period of time," he added.

The Minister of Housing expressed his deep appreciation and gratitude to the wise leadership and government of Bahrain for continually supporting and addressing Housing concerns, in order to achieve the task of constructing 40,000 residential units as ordered by His Majesty the King, and for their partnering initiatives within the private sector. The Minister of Housing also extended his sincere appreciation to H.E. the Deputy Prime Minister Shaikh Khalid bin Abdulla Al Khalifa for his continuous support to all Housing initiatives.

The specifications of the villas that are to be built will include thermal insulation, large living areas to allow more natural lighting, car park for two cars and provisions for future expansions. The Project design also provides a sense of neighbourhood communities whilst maintaining the privacy element at the same time.

The Project site also enjoys a strategic location as it is in close proximity to schools, shopping malls, public beaches, walkways, cycle paths, parks, recreational facilities, mosques, medical clinics, public transport and Bahrain International Airport.

Speaking on this momentous occasion, the Chief Executive Officer of Diyar Al Muharraq, Dr. Maher Al Shaer said:"It is with immense pleasure that we at Diyar Al Muharraq announce the signing of this significant agreement; significant as an immeasurable amount of good is destined to come out of this. This major agreement will undoubtedly encourage further cooperation between the public and private sectors to create and promote more housing projects in Bahrain. Therefore, this partnership plays the crucial role of assisting the Housing Ministry in attracting more real estate development firms to expand their possible scope of work, increase the available Housing options and encourage more citizens to opt for this Housing Services alternative to speed up the waiting process for those on the lists of Housing Services beneficiaries at the Ministry of Housing."

"We take this opportunity to extend our deepest gratitude and appreciation to the Government of the Kingdom of Bahrain for making Housing concerns one of its top priorities in order to provide dignified and innovative Housing solutions for Bahraini Families, under the directives of the Prime Minister His Royal Highness Prince Khalifa bin Salman Al Khalifa and the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, His Royal Highness Prince Salman bin Hamad Al Khalifa," he added.

-Ends-

 

© Press Release 2015