SZHP provides decent living to UAE citizens, says Hamdan bin Mubarak

Abu Dhabi, Dec 13th, 2011 (WAM) -- Sheikh Hamdan bin Mubarak Al Nahyan, Minister of Public Works Board Chairman of the Sheikh Zayed Housing Programme (SZHP), has stressed that the Sheikh Zayed Housing Programme, is one of the most prominent achievements of the UAEs federal government, thanks to the support and guidance of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and Vice President and Prime Minister and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Sheikh Hamdan confirmed that SZHP is on direct course to achieve the aspirations and hopes of the UAE citizens for a decent life.

He highlighted the significance of the Memorandum of Understanding between the SZHP and the Central Bank of the UAE, indicating that the signing of partnership agreement with the Central Bank will open new horizons for cooperation with the national banks through provision of financial resources to implement the national strategy for housing.

The move comes in line with the strategic initiatives of the Federal Government to develop more partnerships with the private sector.

Sheikh Hamdan said he had instructed the work teams of the SZHP to build extensive partnerships and fruitful cooperation with the private sector to support the federal strategy for housing, adding that this will allow citizens to get the best building materials with competitive prices and huge reduction of building cost whether for the residential complex or citizens' houses being financed by the SZHP.

The minister said through this initiative the programme had attained distinguished partnership, whose results are the reduction of the percentage of construction cost by 20 to 30 per cent of all the projects.

Earlier Sheikh Hamdan and Sultan bin Nasser Al Suwaidi, Governor of the Central Bank of the UAE, attended the signing ceremony of MoU between SZHP and the Central Bank, on cooperation in easing financing of the residential units for UAE citizens.

The MoU set a mechanism to facilitate participation of the banking sector in financing the residential units for the UAE nationals through handling of secured loans interest by the Sheikh Zayed Housing Programme and the local housing programme, considering these facilities are provided to the public institution and for non profit. In return the SZHP will provide the Central Bank with data and information related to loans.

It is expected that this understanding will contribute to advancing the UAE nationals' housing programmes, meanwhile it will encourage the banks to grant loans and stimulate the economy in the UAE as well.

The signing of this memorandum confirms the keenness of the Sheikh Zayed Housing Programme to facilitate financing of housing units for citizens, which is expected to increase by fourfold.

It also reflects the keenness of the Central Bank to provide appropriate solutions to support the programmes of the federal government.

The SZHP is working with many bodies and authorities, including the Ministry of Public Works, the Mohammed bin Rashid Housing Establishment, Sharjah Housing Department, Housing Loan Authority for citizens and all the states municipalities, in addition to other government departments, and mortgage bank, which is considered as the first operator of the SZHP funds.

The total residential projects implemented by the programme since its establishment in 2000 reached about 25, 264 houses in all the emirates.

The total number of approved housing assistance since 2000 till November 2011 reached about 25, 264 housing assistance, and the total value of housing assistance allocated during the same period reached over AED11.827billion.

The total value of disbursed payments on SZHP projects in 2011 reached about AED890.345million.

The programme also offered a number of initiatives on the reduction of the cost of housing construction, among others, the signing of partnership agreements with the building materials companies to provide discount rates to beneficiaries of the programme at range of 45 percent of the market base value.

The number of construction companies registered in the programme nationwide until the end of November 2011 reached about 2, 955 companies.