Abu Dhabi: A flat administration fee of 1 per cent has been set for the funding of commercial buildings in Abu Dhabi.
The decision was issued by General Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, amending some provisions of Law No. 1 of 2005 regarding commercial building finance.
The decision was issued in line with the directives of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, to drive forward urban development in the emirate and ensure the well-being of citizens.
It stipulates that the Department of Finance will oversee loans in the emirate, following an approval from the Abu Dhabi Executive Council. Accordingly, the department will collect an administration fee of 1 per cent of the value of loans that were approved since January 1, 2008. The fee will be deducted following the first loan withdrawal. The percentage of administration fees can only be altered upon a resolution from the Executive Council and based on a proposal from the department.
The resolution is aimed at achieving the Abu Dhabi Government’s strategy for providing suitable government financing sources that help develop the real estate sector in a positive manner, thus boosting its activities that would eventually help support the emirate’s economy.
The commercial buildings law for 2005 was issued in an initiative by the wise leadership to fulfil the aspirations of citizens to ease procedures for acquiring loans needed by Emiratis build their properties.
Administration fees were previously collected in various rates based on the value of the loan and were connected to the interest rate set by the UAE Central Bank. Those who previously applied and received loans will not be entitled to another loan before the lapse of 20 years from the previous and fully paid loan.