BD800m support for housing loans as 11,000 applications completed

TDT | Manama

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The Housing Minister, Her Excellency Amna Al Rumaihi, told Parliament yesterday that BD800 million has been allocated over two years to support government-backed housing loans, with citizens paying 25 per cent of their salary towards repayments.

Answering a question from MP Iman Shuwaiter, H.E. Al Rumaihi said the ministry was relying on “immediate financing” to deal with rising demand, as new households form each year.

“The immediate financing solutions did not come out of nowhere; they were preceded by a number of studies,” she said. H.E. Al Rumaihi said the Ministry of Housing is working through three tracks.

The first is building and development in housing cities, carried out under the Government Programme and within fixed capacity and budget limits.

Track

“This track has a fixed capacity, with clear budgets allocated to it,” she said. “The programmes, budgets and final accounts are sent to MPs, and you know the scale of spending and the volume of work under way.”

But she said applications continue to climb, driven by a young population and rising marriage rates.

“Housing applications continue to rise,” she said. “Bahraini society is young, and new families are formed every year.”

The minister said one response has been to provide subsidised loans funded through the general budget, with state support aimed at easing costs for applicants.

Policy

“A total of 800 million dinars has been allocated to the housing file over two years,” she said. “The citizen pays 25 per cent of their salary, and we are continuing with this policy.”

She said applicants can choose between the subsidised loan and larger options available in the market, including additional borrowing, depending on what they want to buy.

“This is where the citizen’s role comes in, in choosing what suits them,” she said. H.E. Al Rumaihi said the ministry has completed 11,000 applications “during this short period” through the immediate financing track.

“We have now reached 11,000 applications completed, which shows the programme’s success,” she said.

She added that the ministry offers financial advice before applicants choose a route, working with private sector partners to match people with suitable units.

“These budgets were allocated to provide support to the citizen and ease the financial burden on them,” she said. “The housing units offered meet the applicant’s needs.”