Daijiworld Media Network – Abu Dhabi
Abu Dhabi, Dec 10: The Central Bank of the UAE has officially clarified that Nafis incentives are temporary government support and will not be treated as stable income when assessing eligibility for personal loans.
Minister of State for Financial Affairs, Mohamed bin Hadi Al Hussaini, explained that although Nafis encourages Emiratis to work in the private sector, it does not fulfill the regulatory requirements of continuity and consistency needed for loan repayment.
As a result, banks may exclude Nafis support while calculating income for a loan application, which affects the Debt-Burden Ratio (DBR) and limits the borrowing capacity of Emiratis in private employment.
The clarification has raised concerns as many private sector nationals depend on Nafis salary support to balance income differences between public and private sector roles. Excluding this support from income calculations makes it difficult for them to secure major loans for housing and business purposes.
Launched in 2021 under the UAE’s “Projects of the 50” initiative, Nafis aims to boost Emirati participation in the private sector by offering salary support, pension subsidies, and allowances. The programme remains central to the nation’s Emiratisation goals, even as the banking regulator ensures financial stability in loan assessments.
Banks are expected to follow the Central Bank’s guidance and update their internal policies accordingly.