The Emirates Interbank Offered Rate is the benchmark for variable-rate mortgages in the UAE. When EIBOR moves, your monthly payment moves with it.
Source: Trading Economics. Data as of 24 March 2026.
3-month EIBOR over the past 5 years.
A plain-English guide to the rate that affects every variable mortgage in the UAE.
EIBOR (Emirates Interbank Offered Rate) is the rate at which UAE banks lend to each other. It's set daily by CBUAE based on submissions from major UAE banks. The 3-month EIBOR is the most common benchmark for mortgage pricing.
Variable-rate mortgages are priced as EIBOR + a margin (typically 1.5% to 2.5%). If EIBOR is 3.69% and your margin is 2%, your variable rate is 5.69%. When EIBOR drops, your payment drops. When it rises, your payment rises.
Most UAE mortgages have a fixed-rate introductory period (1-5 years) then revert to EIBOR + margin. The rates shown on our comparison pages are for the fixed period. After that, EIBOR determines your payment.
The CBUAE Base Rate (currently 3.65%) tracks the US Federal Reserve rate because the AED is pegged to the USD. When the Fed cuts rates, CBUAE follows, and EIBOR typically drops within days to weeks.
See how a 0.25% change in EIBOR affects your annual payment on different loan amounts.
| Loan Amount | Current Payment (4.50%) | If +0.25% | If -0.25% | Annual Difference |
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