Many GCC countries provide interest-free home loans to their residents to strengthen family conditions, provide adequate living space, and alleviate the heavy financial expenditures associated with the construction process.
The value of loans granted by the GCC governments to their residents varies by country. The average amounts range from $150,000 to $330,000 and are repaid through simplified methods and in short payments.
Qatari Loans
Qatar provides housing loans to its residents through the Ministry of Administrative Development, Labor, and Social Affairs, in collaboration with the Qatar Development Bank.
The Qatar Development Bank provides four categories of loans, the first of which is to finance the construction of a house, with a maximum loan value of $330,000.
The second loan is issued to fund the acquisition of a house with a maximum value of $330,000, and the third is a grant for the installation of houses with a maximum value of $274,000 from the Gulf state. Qatar provides this grant to eligible individuals to dismantle and rebuild specified installation dwellings.
The fourth loan, with a maximum value of $330,000, provides finance for the demolition and reconstruction of the current residence.
Loans to Omani citizens
Oman, for its part, grants different loans, most notably the housing unit program, which aims to build and develop housing complexes for citizens with limited income.
Many basic amenities and services, such as a mosque, stores, craft centers, a school, and modern roadways, are available in these complexes.
Oman also offers interest-free housing loans to low-income residents whose monthly income is between $782 and $1,040.
It’s worth mentioning that the maximum loan amount is $52,000, with monthly payments that do not exceed 25% of the borrower’s total income.
According to the Omani government’s electronic services portal, precedence in eligibility for housing loans is given to cases where the home has been entirely or partially destroyed by fire or natural disasters, as well as any other cases determined by the government.
From its establishment to the end of 2020, Oman Housing Bank provided 46,605 housing loans totaling more than $3 billion.
Bahraini support
Since launching the Ministry of Housing in 1974, Bahrain has provided housing services to its residents, such as homes, apartments, and building loans for low-income citizens.
The Ministry of Housing offers a social housing finance program called “Mazaya,” a housing service represented by the Ministry’s assistance in getting bank financing from a partner bank to purchase a house.
The loan holder pays 25% of his monthly salary as a monthly installment. At the same time, the government, through the Ministry, is committed to providing government financial support that covers the rest of the monthly installments with the bank.
Emiratis Loans
The UAE provides interest-free loans to its inhabitants to create houses. The Sheikh Zayed Housing Program was founded in 1999 to provide low-income individuals with loans to be repaid over 25 years.
The Emirates provides loans through several schemes, with orphans, widows, the aged, and persons of exceptional cases receiving precedence.
The UAE Cabinet authorized a budget for house loans in late February at the cost of $3.2 billion over the next three years. The UAE national banks and banks handle the entire process of financing residents’ housing loans, as long as the Sheikh Zayed Housing Program pays the interest on the loan on their behalf.
It’s worth mentioning that the Sheikh Zayed Housing Program has made over 74,504 housing support decisions totaling more than $11 billion since its establishment, covering all parts of the country.
Saudi Arabia Loans
Saudi Arabia provides housing loans to its residents through various programs and institutions, most notably the Ministry of Municipal and Rural Affairs and Housing, which provides the “Sakani” program to create a vibrant environment for Saudi families.
The “Sakani” program provides Saudi citizens with the option of a discounted mortgage loan to enable them to own their first house by selecting one of the program’s under-construction units on its website or by using the subsidized loan to acquire ready-made apartments.
So far, Saudi Arabia has awarded its residents house loans of $133,000.
Kuwait’s housing loans
Kuwait assures the right to housing for the Kuwaiti family by providing them with interest-free housing loans up to $228.3 thousand, repayable for up to 60 years.
The loan is offered by the Credit Bank, a government bank founded in the 1960s to provide loans to eligible individuals for housing care to build, purchase, or restore residences.
According to its director, Salah Al-Mudhaf, in a statement last January, the bank needs up to $16 billion to finance housing loans until 2035.