His Majesty King Abdullah on Tuesday launched the National Housing Initiative which is expected to see 120,000 housing units built for low- and limited-income citizens in the coming five years.

The housing units will range in area from 100-160 square metres, and the government's provision of land and infrastructure will keep the cost of housing affordable to potential buyers.

Under the first phase of the nearly JD5 billion scheme, the construction of 20,500 units will begin this year, and as of 2009, a total of 20,000 housing units will be constructed annually.

“The initiative seeks to provide housing for hundreds of thousands of low- and limited-income Jordanians, civil servants, the Jordan Armed Forces personnel and civil and military retirees,” King Abdullah told a gathering of more than 2,500 citizens and representatives of all sectors at the King Hussein Convention Centre.

King Abdullah directed the government to implement the scheme as soon as possible by allocating land, embarking on infrastructure work and creating a financing arm to secure the necessary funds.

In his Letter of Designation late November to Prime Minister Nader Dhahabi, King Abdullah urged the new government to focus on socio-economic development.

The King tasked the government with putting in place a Social Safety Net that covers or offsets the cost of housing, education, health care and that enhances the income of civil servants and military and security services personnel.

In his address to the gathering on Tuesday, King Abdullah said studies of the demographic situation in the Kingdom for the five coming years indicated that socio-economic security was imperative, and required the creation of decent housing for many Jordanian families.

Dhahabi said the Kingdom's housing needs are estimated at 45,000 units annually, 66 per cent of which is demanded by the segment whose monthly income is JD300 and below.

This segment, he said, is the target of the initiative.

Elaborating on the plan, the premier said buyers would not be required to make down payments to local banks (whether commercial or Islamic) for the purchase of housing units.

In addition, monthly installments will not exceed one-third of a beneficiary's salary, the premier told the meeting.

Dhahabi said although studies showed a surge in the volume of investments in real estate, most projects have targeted the high- and middle-income brackets.

The prime minister added that the government would contract specialised companies in real estate development and housing to implement the initiative and will extend necessary facilities to these contractors.

Under the plan, investment projects will serve residential areas. They will be managed by a special commission affiliated with the Housing and Urban Development Corporation, and revenues will go to finance future housing plans, Dhahabi said.

Blueprints feature parks and green areas, social and entertainment facilities and medical care institutions, the premier added.