Legislators are seeking to raise the ceiling of government-backed housing finance to BD120,000.
The proposal is being spearheaded by MP Jalal Kadhem Al Mahfoodh, who said the move is intended to protect low- and middle-income families from accumulating additional debt as property prices continue to rise.
The amended draft law seeks to add a new Article to the Housing Law Decree-Law No 10 of 1976, stipulating that the amount of financing for the purchase or construction of a home through Eskan (Housing) Bank be determined according to the applicant’s monthly income, based on a financing schedule prepared by the ministry, with a maximum cap of BD120,000.
Currently, eligible citizens may receive housing finance of up to BD70,000, increasing to BD80,000 in exceptional circumstances. “Today, the reality of the property market no longer matches the current financing limits. Families are forced to seek additional loans from commercial banks to complete their homes, which places them under long-term financial strain,” he said.
“This proposal ensures that housing finance is realistic, fair, and aligned with market prices, while reducing the debt burden on the head of household.”
The revised proposal removes the minimum financing threshold and focuses only on setting the upper cap at BD120,000.
The legislative and legal affairs committee confirmed the draft is constitutionally sound.
Meanwhile, the financial and economic affairs committee said the proposal could ease financial obligations on beneficiaries by limiting their need to resort to other funding sources, suggesting Eskan Bank could develop suitable solutions in co-operation with Bahrain’s financial sector.
However, Housing and Urban Planning Minister Amna Al Romaihi expressed reservations in the preliminary response to the public utilities and environment affairs committee.
The minister argued that the objective of the proposal may already be addressed under Law No (1) of 2024, which grants the housing minister broader powers to introduce or amend financing services through ministerial decisions. She also pointed to existing schemes introduced under Ministerial Decision No (868) of 2022, including Tas’heel and the New Mazaya Category, noting that minimum and maximum financing values have already been increased as part of ongoing support.
The minister warned that fixing financing limits in law could create additional financial burdens on the allocated budget, potentially reduce the number of beneficiaries, and lead to longer waiting lists for housing services. She stressed that service criteria are reviewed periodically through continuous studies.
Mr Al Mahfoodh acknowledged the minister’s concerns, but insisted the proposal provides necessary legislative clarity.
“Citizens need legal guarantees that financing will keep pace with real estate values. This amendment provides that assurance,” he said. “The goal is family stability. Housing is not a luxury, it is a foundation for social and economic security.”
The committee’s report highlighted four key principles behind the proposal: supporting family stability for limited-income households, responding to increased demand for financing services, reducing debt burdens, and aligning financing with market property prices.
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