Mohamed bin Zayed amends some provisions of bylaws of commercial buildings finance law

His Highness General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the U.A.E. Armed Forces and Chairman of the Abu Dhabi Executive Council, has issued a decision amending some bylaws of law No. 11 of 2005 on financing of the commercial buildings. The move follows the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan. It also reflects the wise leadership of the UAE President to ensure decent living and welfare for all citizens. According to the decision, the Department of Finance, after approval of funding by the Executive Council and allocations, will charge 1 per cent administrative charges on all loans in effect since 1st January 2008. The charges will be calculated from the date of the first withdrawal of loan. According to the resolution, the rate of the administrative fees instructed by the Executive Council could be changed at a suggestion from the Department of Finance. The decision aims at continuing the urban development in the Emirate of Abu Dhabi in line with the strategy of Abu Dhabi government through provision of appropriate government funding to sustain the growth and development of the property sector to support the Abu Dhabi Emirate economy. The administrative fees before the issuance of the resolution were charged at different rates based on the value of granted loan and interest rate stated in the Central Bank. It is worth noting that the commercial buildings financing law of 2005 met aspirations of the citizens upon the directives of the leadership to facilitate the property funding. The Abu Dhabi government continues to finance the commercial buildings allocated for Emiratis to support those who own commercial plots and seek to invest them. The funding provision mechanism for commercial buildings allocated to citizens is based on the law No. 11 of 2005. The bylaw has specified the loan would not exceed AED70 million unless through an approval from the Executive Council of the Emirate of Abu Dhabi. The law regulating the financing process of commercial buildings stipulates a number of conditions, notably, an applicant should have not obtained a loan from the Emirate, or an applicant should spend a period not less than 20 years since the last financing loan, and had fully paid the loan installments. An applicant must prove that he owns the plot, which is conflict-free. Citizens who own the commercial and investment plots in the Emirate of Abu Dhabi and looking forward to building the commercial buildings as per the laid regulations, are the beneficiaries. In addition, those who own dilapidated buildings and need to demolish and rebuild them are also entitled to the funding.