MANAMA, BAHRAIN – 01 August 2016 – Bahrain citizens will be offered government-subsidised financing through Ithmaar Bank to help them buy their first homes in a new development in Seef district as part of a national scheme designed to address the Kingdom’s housing challenges.
The announcement follows the signing of a Memorandum of Understating (MoU) between Ithmaar Bank and Eskan to provide government-subsided financing for the Danaat Al Seef development, a 10 building, four-storey, 164 apartment housing project. Covering a total area of 12,881 square meters, the development is in walking distance of one of Bahrain’s key commercial areas which includes shopping malls, luxury hotels, and restaurants as well as banks and both private and public sector offices. The development offers various three and four-bedroom apartment options ranging in size from 159 to 232 square meters, as well as parking facilities for 355 cars.
The MOU was signed by Eskan Bank General Manager, Khalid Abdulla and Ithmaar Bank Chief Executive Officer, Ahmed Abdulrahim in the presence of Ithmaar Chief Operating Officer, Ravindra Khot, General Manager Banking Group, Abdul Hakim Al Mutawa, Head of Business Development, Fayza Hassan, Eskan Chief Business Officer and Deputy General Manager, Ahmed Tayarra and Head of Sales and Marketing, Parween Ali. It is the latest such agreement to follow an announcement last year that Ithmaar Bank had formally partnered with the Bahrain Ministry of Housing and Eskan Bank to help address the Kingdom’s housing challenges through the Social Housing Financing Scheme. The scheme allows eligible citizens to finance their first homes through Ithmaar Bank by paying 25percent of their monthly income towards the property’s monthly instalment with the rest being paid for by the Ministry of Housing through Eskan Bank.
“The Social Housing Financing Scheme brings together the public and private sector to help citizens overcome the financial challenges of buying their first homes,” said Eskan Bank General Manager, Khalid Abdulla. “As part of this Scheme, citizens between 35 and 45 years old may buy any home up to a value of BD120,000 and receive subsidised financing of up to BD90,000 through Ithmaar Bank or any bank participating in the Scheme. The Bank will deduct 25percent of the beneficiary’s income towards the monthly instalment, and the remaining amount of the instalment will be paid by Eskan Bank,” he said.
“The scheme was introduced by the Ministry of Housing in collaboration with the private sector to provide social housing for citizens listed on the Ministry’s housing waiting lists,” said Abdulla. “The idea is to assist beneficiaries to purchase a housing unit by obtaining financing from a participating bank, in addition to providing government financial support equivalent to the difference between the monthly instalment paid by the beneficiary, and the required instalment amount by the participating bank,” he said.
“As a pioneering Islamic retail bank, Ithmaar recognises the important role it must play in the local community,” said Abdulrahim. “We are delighted to be working in partnership with the Ministry of Housing and Eskan Bank to help realise this ambitious scheme and provide the necessary support to customers looking to buy their first homes,” he said.
“The scheme effectively allows housing applicants to purchase residential units immediately from the private sector without having to stay on the housing services waiting list,” said Abdulrahim. “It gives the applicant the choice of purchasing a housing unit developed by an accredited developer or any housing unit approved by the Ministry,” he said.
“Ithmaar Bank is committed to playing a real and meaningful role in the community, and we are privileged to be able to participate in the scheme,” said Abdulrahim. “We are confident that, working in partnership with the Ministry of Housing and Eskan Bank, Ithmaar Bank will be able to help our customers overcome the challenges of purchasing their first home,” he said.