The UAE has waived more than Dh834 million (about 27 million) in accrued loan interest owed by 2,339 low-income Emirati retirees, in a federal initiative directed by President Sheikh Mohamed bin Zayed Al Nahyan and overseen by Vice President and Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan (per The National and Khaleej Times).
How the waiver works
The relief is being delivered through the Defaulted Debts Settlement Fund in cooperation with several national banks. Under the arrangement, participating banks will cancel future interest and profit charges on the targeted loans, while beneficiaries continue repaying the principal amounts under facilitated repayment schedules (per Zawya and Trade Arabia).
Eligibility is limited to Emirati retirees aged 50 and above with limited income. Officials have framed the move as part of broader efforts to strengthen the financial stability of older citizens and support family welfare in line with the Year of the Family 2026 (per Sharjah24 and Khaleej Times).
Which banks are taking part
According to figures published by The National and Gulf Today, Abu Dhabi Commercial Bank is contributing the largest share at roughly Dh655 million, followed by First Abu Dhabi Bank at Dh150 million. Abu Dhabi Islamic Bank is waiving about Dh18.5 million, while Emirates NBD Group and Emirates Islamic together account for around Dh6.7 million.
Dubai Islamic Bank, Commercial Bank of Dubai, Sharjah Islamic Bank and the National Bank of Ras Al Khaimah are also participating, with contributions ranging from several hundred thousand to a few million dirhams each (per Zawya).
Part of a wider relief push
The waiver follows other federal and local measures aimed at easing financial pressure on citizens and residents. Earlier this year, the National Debts Settlement Fund cleared about Dh401 million in debts for 1,277 Emirati citizens around UAE National Day commemorations (per Economy Middle East).
For those benefiting from the latest package, banks will recalculate balances so that only the principal remains, with no further interest accrual on the cleared portion. Officials say the structured repayment plans are designed to keep monthly obligations within the means of retirees living on fixed incomes (per The National).
The initiative is one of the largest single retiree-focused debt relief actions announced in the UAE banking sector in recent years and underscores Abu Dhabi's continued use of targeted financial support to bolster long-term household stability for Emirati families.
