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UAE offers loan relief in response to flood damage

Abandoned cars on a flooded road in Dubai Reuters/Amr Alfiky
Abandoned cars on a flooded road in Dubai
  • Six-month break for customers
  • Instruction from central bank
  • No extra fees or interest

The UAE central bank has instructed banks to defer personal and car loan installments for six months for customers affected by last week’s flooding. 

The deferral will come without additional fees, interest or profits, and won’t increase the principal amount of the loan for the deferral of the repayment of installments, the UAE state-run Wam news agency reported, citing a central bank statement.

The UAE experienced its heaviest rains in 75 years last Tuesday. The downpour turned main roads, particularly in Dubai, into waterways.

Motorists were left stranded and widespread damage was caused to commercial and residential properties. 

The central bank said that damages to vehicles and homes from heavy rains will be covered if a comprehensive insurance policy exists. The insurance companies shall be considered responsible for indemnification, the statement added.

The announcement is part of a number of initiatives announced in the wake of the extreme weather conditions.

Dubai property developers were ordered by the emirate’s Crown Prince to restore “normalcy” to communities at no additional charge to tenants.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, who is also chairman of Dubai Executive Council, called on the Dubai Land Department and the Real Estate Regulatory Agency to coordinate recovery efforts.

Emaar Properties announced on Friday that it would repair all homes in its communities affected by the historic levels of rain at no cost to residents.

The UAE’s president, Sheikh Mohamed bin Zayed Al Nahyan, has already ordered an urgent review of the country’s infrastructure, calling on authorities “to quickly work on studying the condition of infrastructure throughout the UAE”.

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