Finance deal for Bahrain housing project finalised

13 January 2015

Finance deal between two local banks for government housing projects

The local Ithmaar Bank has signed a financing agreement with Eskan Bank for the Isa Town mixed use development in Bahrain.

The project being developed by Eskan Bank comprises 15 six-storey buildings featuring 316 apartments along with offices, retail outlets and showrooms.

Under the agreement, Bahraini citizens will be offered government-subsidised financing through Ithmaar Bank as part of a national housing scheme.

The Social Housing Financing Scheme allows citizens to finance their first homes through Ithmaar Bank by paying 25 per cent of their monthly income towards the property, with the rest subsidised by the Housing Ministry through Eskan Bank.

This comes at a time when, The Shura Council postponed a vote on amendments to Bahrain’s housing law, which has been in place since 1976. The vote for amending the housing law has been pending for four years.

The adjustments included providing social housing for single women and mothers, as well as raising the salary cap for applicants.

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