Published 10 June 2026 · Updated 10 June 2026

1-month EIBOR rate in the UAE: what it is and when it matters

By David Chen, Market Research Analyst · 6 min read

The 1-month EIBOR matters to you only if your mortgage uses it as the reset benchmark. Most do not, but some do, and the difference changes how quickly your payment reacts when rates move. This page explains what the rate is, how it differs from the 3-month, and what a monthly reset means in practice.

What the 1-month EIBOR is

EIBOR is the Emirates Interbank Offered Rate, the rate at which UAE banks lend dirhams to one another. The Central Bank publishes it daily across several tenors: overnight, 1 week, 1 month, 3 months, 6 months, and 12 months. The 1-month EIBOR is the rate for one-month interbank lending. It is the shortest tenor that any meaningful number of mortgages use as a reset benchmark.

Because it covers a shorter period, the 1-month rate generally sits just below the 3-month rate when the market expects rates to hold or fall. The gap is usually small, often only a few basis points, but it widens when expectations for future rate moves shift.

Today's 1-month EIBOR reading

As of June 2026, the 1-month EIBOR is in the region of 3.6%, a touch under the 3-month reading of 3.69%. We quote it as indicative because the rate is fixed daily and the precise figure changes every business day. For the exact reading, check the Central Bank of the UAE directly or our EIBOR tracker. The two firm anchors we track are the 3-month EIBOR at 3.69% and the CBUAE base rate at 3.65%.

How the 1-month EIBOR differs from the 3-month

The two rates are set the same way and move together, but they are not identical, and the difference matters for a mortgage in one specific way: how often your rate resets.

• Reset frequency: a 1-month benchmark reprices your mortgage every month. A 3-month benchmark reprices it every quarter.
• Speed of pass-through: when EIBOR falls, a 1-month product passes the saving to you sooner. When EIBOR rises, it also passes the increase to you sooner.
• Stability: a 3-month reset gives you a slightly steadier payment, because the rate is locked for three months at a time rather than one.
• Level: the 1-month rate is usually marginally lower than the 3-month, though the margin your bank adds matters far more than this small gap.

When your mortgage uses the 1-month rate

Most UAE banks reset variable mortgages on the 3-month EIBOR, so the 1-month rate will not apply to you unless your offer letter says so. A smaller set of products, and some short-term or bridging facilities, use the 1-month rate. The only way to know is to read the reversion clause in your offer. It will name both the benchmark tenor and the fixed margin, for example "1-month EIBOR plus 1.50%".

If your contract does use the 1-month rate, your reversion rate today would be roughly 3.6% plus your margin. At a 1.50% margin, that is about 5.1%. Compare that to a 3-month product at 3.69% plus the same margin, which is 5.19%. The headline difference is small. What changes is that the 1-month product will adjust that figure every month.

How the 1-month EIBOR is set

The mechanism is the same across all tenors. A panel of UAE banks submits the rate at which each will lend for one month. At the daily fixing at 11:00 UAE time, the Central Bank removes the two highest and two lowest submissions and averages the rest. The result is published, with a short delay before it applies. Like every EIBOR tenor, the 1-month rate ultimately tracks the CBUAE base rate and the US Federal Reserve, because the dirham is pegged to the dollar.

What a monthly reset means for your payment

A monthly reset cuts both ways. In a falling-rate environment, you start saving sooner, because your rate drops at the next monthly fixing rather than waiting up to three months. In a rising-rate environment, your payment climbs sooner for the same reason. If you value a predictable payment and dislike frequent changes, a 3-month reset suits you better. If you want the fastest possible benefit from rate cuts and can absorb more frequent moves, a 1-month reset has an edge.

Either way, model the reversion rate, not just the introductory rate, before you commit. Use the mortgage calculator to see what your payment looks like at EIBOR plus your margin, and compare products on the rate comparison page.

Frequently asked questions

What is the 1-month EIBOR today?

As of June 2026 the 1-month EIBOR is in the region of 3.6%, slightly below the 3-month rate of 3.69%. It is fixed daily by the Central Bank of the UAE, so check the live figure on the CBUAE site or an EIBOR tracker for the exact reading on any given day.

Is the 1-month EIBOR lower than the 3-month?

Usually, yes, by a small margin, when the market expects rates to hold or fall. The gap is often only a few basis points. It can narrow or widen as expectations for future rate moves change, and in unusual conditions the order can flip.

Does my UAE mortgage use the 1-month or 3-month EIBOR?

Most UAE mortgages reset on the 3-month EIBOR. A minority use the 1-month rate. Your offer letter states which benchmark applies in the reversion clause, along with the fixed margin your bank adds.

Why would a bank reset my rate monthly instead of quarterly?

A monthly reset passes rate changes through to your payment faster in both directions. It benefits you sooner when rates fall and costs you sooner when they rise. A quarterly reset gives a steadier payment because the rate is locked for three months at a time.

What to do next

Read your offer's reversion clause to confirm which EIBOR tenor your mortgage uses. Then compare products on the rate comparison page and model your loan with the calculator. For the daily reading across every tenor, keep our EIBOR tracker bookmarked. Today's 3-month EIBOR anchor: 3.69% (CBUAE, June 2026).