Thousands of Bahraini families are set to benefit from a recent decision to cut the maximum monthly instalment for beneficiaries of the Mazaya social housing finance programme from BD527 to BD427, saving some BD100.
Housing and Urban Planning Minister Amna Al Romaihi said the new instalments will apply to all beneficiaries, easing long-term financial pressure on thousands of Bahraini families.
According to ministry figures, Mazaya has benefited more than 13,000 citizens to date.
Studies conducted ahead of the decision showed that 77 per cent of beneficiaries pay an average monthly instalment of BD173, while the average government support for this segment stands at BD345 per month. This group alone accounts for 67pc of total government support under the programme.
Launched in 2014, Mazaya was Bahrain’s first housing finance programme implemented in partnership with the private sector. Under the scheme, participating banks provide housing finance of up to BD81,000 to eligible citizens with monthly incomes ranging between BD600 and BD1,200, for the purchase of ready-built homes.
Responding to a parliamentary question submitted by Strategic Thinking Bloc spokesman MP Khalid Bu Onk, the minister said the move was grounded in ‘comprehensive financial and social studies’ and reflects the government’s commitment to balancing housing support with household affordability.
“The decision to reduce the maximum monthly instalment was not arbitrary,” Ms Al Romaihi stressed. “It was based on extensive financial modelling, budget impact studies and an assessment of the real burden faced by beneficiaries, particularly those with limited incomes.”
The programme caps a beneficiary’s monthly contribution at 25 per cent of income, with the ministry covering the difference between that amount and the bank-set instalment. Since its launch, the maximum instalment had stood at BD527.
Ms Al Romaihi explained that the newly-approved reduction of BD100 will mean beneficiaries who previously reached the ceiling will now continue to receive additional monthly government support of BD100 throughout the repayment period, without further adjustments even if their income increases.
“This measure ensures greater stability for families and removes uncertainty linked to future income reassessments once the instalment reaches BD427,” she said.
The cumulative financial impact of the scheme, including the enhanced support resulting from the new ceiling, is estimated at BD825 million, prompting the ministry to prepare additional budgetary allocations for 2025-2026 beyond its approved envelope.
“The Cabinet’s approval of this decision reflects the leadership’s clear directive to protect citizens from excessive financial strain, particularly in essential areas such as housing,” Ms Al Romaihi noted, referring to the decision endorsed by the Cabinet chaired by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister.
Addressing concerns about fairness, the minister confirmed that the reduced ceiling applies to all Mazaya beneficiaries, not just those who had reached the previous maximum instalment.
On monitoring and performance, Ms Al Romaihi said the ministry relies on multiple indicators, including sustained demand for Mazaya financing, periodic customer satisfaction surveys, and weekly reports from the national complaints and suggestions system, Tawasul.
“We continuously monitor social and economic impacts to ensure our policies remain responsive and humane,” she said.
“Special consideration is also given to exceptional cases, such as beneficiaries forced into early retirement beyond their control.”
She revealed that solutions have already been implemented for two such cases, including instalment rescheduling and increased government support.
Ms Al Romaihi reaffirmed the ministry’s commitment to close co-operation with Parliament. “We value constructive oversight and will continue to provide transparent data and studies to support informed decision-making that ultimately serves Bahraini families.
“The Mazaya adjustment is widely seen as one of the most significant affordability measures in Bahrain’s housing sector in recent years, offering long-term relief, while reinforcing the state’s social safety net.”
mohammed@gdnmedia.bh
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