Home loans at last for Egyptian expats in the UAE: NBAD launches new mortgage scheme
NBAD is targeting Egypt because of the considerable amount of development, especially in New Cairo. (Shutterstock)
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National Bank of Abu Dhabi (NBAD) on Monday launched a programme for Egyptian expats residing in the UAE, to purchase properties in Egypt using loans from the bank. The programme is designed to finance up to 70 per cent of the finished unit value.
Egyptian households must earn a minimum of Dh25,000 to be able to acquire loans. The repayment of the loan is up to 10 years maximum. Customers will be allowed to repay loans either on a fixed or a variable interest.
During a panel discussion, representatives from the bank said that they expect the property market to grow in Egypt as more purchases happen in New Cairo. “Egypt is our target because we have the largest retail in it [the country]. There is a considerable amount of development in Cairo, particularly. But also there is still significant demand in Egypt by expats,” said Suvrat Saigal, Managing Director and Head of Global Retail at NBAD.
Customers will be offered an approved list of developers to choose from them. However, they may also purchase from developers who are not listed, as long as these developers meet the criteria.
“The criteria revolves around any registered unit that is easy to finance within a positive area,” said Ahmad Emam, NBAD Egypt’s Managing Director and Head of Retail. Emam explained that positive areas are usually located within New Cairo. He said properties that are based in New Cairo but are not registered will be treated based on a third party agreement until they become registered.
According to Emam, Egyptian expats can apply for loans in Egypt; however, it is difficult to get approved as their salaries are paid by employers outside Egypt. According to him, banks in the UAE cannot give loans on properties, hence, expats will have to take personal loans, which have a higher interest rate.
“The need to buy a property in Egypt is important to expats,” Emam said. According to him the need for Egyptians to finance their property investment in Egypt has not been met yet. The bank said that they have additional features to enhance their current product once it becomes available.
NBAD also offers loans to UAE Nationals who wish to purchase a property in Egypt. The household should earn a minimum of Dh20,000 to be able to apply for the loan. “It is an opportunity for UAE nationals to invest in Egypt,” said Saigal.
Egypt aims to attract $60 billion (Dh220.2 billion) of foreign direct investments over the next four years.
By Omnia Ibrahim
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