12-month EIBOR rate UAE 2026: what it is and how it affects your mortgage
- The 12-month EIBOR is the longest of the 6 standard EIBOR tenors and typically sits 10 to 30 basis points above the 3-month rate.
- As of June 2026 the 3-month EIBOR stands at 3.69% and the CBUAE base rate is 3.65%, with the 12-month rate above both.
- Very few UAE residential mortgages use the 12-month tenor; most reset on the 3-month rate, which adjusts quarterly.
The 12-month EIBOR is the Emirates Interbank Offered Rate for one-year lending, published each business day by the Central Bank of the UAE. It is the longest of the 6 standard EIBOR tenors and typically sits 10 to 30 basis points above the 3-month rate. As of June 2026, the 3-month EIBOR stands at 3.69%. The 12-month rate sits above that. For the live figure, check the CBUAE website or our EIBOR tracker. Very few UAE residential mortgages use the 12-month tenor. Most use the 3-month rate, which resets quarterly.
Most UAE mortgage borrowers never need to think about the 12-month EIBOR. Their variable-rate products reset on the 3-month benchmark, which adjusts every quarter. But if your offer letter mentions a 12-month reset or an annual repricing date, understanding this tenor matters. It determines how long your rate is locked between adjustments and how quickly you see the benefit (or feel the pain) of any CBUAE rate moves.
What the 12-month EIBOR is
EIBOR stands for Emirates Interbank Offered Rate. The Central Bank of the UAE publishes it each business day for 6 tenors: overnight, 1 week, 1 month, 3 months, 6 months, and 12 months. The 12-month tenor is the rate at which UAE banks indicate they are willing to lend dirhams to one another for a full year.
Each morning, a panel of UAE banks submits its offered rates. At the 11:00 UAE time fixing, the CBUAE drops the top 2 and bottom 2 submissions and averages the rest. The result is published shortly after. Like all EIBOR tenors, the 12-month rate tracks the CBUAE base rate over time, which in turn follows the US Federal Reserve because the dirham is pegged to the dollar at a fixed rate.
Today's 12-month EIBOR
The 12-month EIBOR changes every business day. For the live figure, go directly to the Central Bank of the UAE website or bookmark our EIBOR tracker, which shows all 6 tenors. As a reference in June 2026, the 3-month EIBOR is 3.69% and the CBUAE base rate is 3.65%. The 12-month rate sits above those readings by a margin that reflects market expectations for future rate movements.
How the 12-month EIBOR compares to shorter tenors
The EIBOR term structure normally slopes upward: shorter tenors are priced slightly lower and longer tenors slightly higher. The 12-month rate is the ceiling of the standard set. The table below shows the approximate relationship between tenors as of June 2026.
| Tenor | Approx. relationship to 3M | Typical mortgage reset | Repricing frequency |
|---|---|---|---|
| 1 month | Slightly below 3M | Monthly | 12 times per year |
| 3 months | 3.69% (June 2026) | Most variable products | 4 times per year |
| 6 months | A few bps above 3M | Some products | 2 times per year |
| 12 months | 10-30 bps above 3M | Rare in residential lending | Once per year |
The spread between the 3-month and 12-month rates varies. In a period where markets expect rates to stay flat, the spread narrows. When a rate cut or rise is anticipated, the 12-month rate moves ahead of the 3-month as markets price in the expected change.
Which UAE mortgages use the 12-month EIBOR
Very few UAE residential mortgages reset against the 12-month EIBOR. The standard for home loans is the 3-month tenor, which reprices quarterly. The 12-month benchmark shows up more often in commercial property lending, developer finance arrangements, and some specialist products for high-value borrowers.
To find out which tenor your mortgage tracks, read the "reversion rate" or "variable rate" section of your offer letter. The clause will name the benchmark tenor and the fixed margin your bank adds. A typical wording is "12-month EIBOR plus 1.25% per annum, reset annually on the anniversary of drawdown". If the tenor is not explicitly stated, contact your bank to confirm before assuming it is 3-month.
What an annual reset means for your payments
With an annual reset, your rate is set once a year. On your reset date, the bank reads the 12-month EIBOR and adds its contracted margin. That sum is your rate for the next 12 months.
Two things work differently compared to a 3-month reset:
- Payment certainty: you know exactly what you will pay for the next year, which makes budgeting straightforward. There are no quarterly surprises.
- Speed of pass-through: if the CBUAE cuts rates, a 12-month product takes up to four times longer than a 3-month product to pass that saving to your payment. On the flip side, if rates rise, you are insulated for up to a year before the higher rate applies.
In a stable-rate environment, the choice between a 3-month and 12-month reset is largely a matter of preference: quarterly adjustments versus annual ones. The gap becomes more significant when rates are moving in a clear direction. If you expect cuts, a 3-month reset delivers savings faster. If you expect rises, an annual reset gives you more time at the lower rate.
Why the 12-month EIBOR tracks the Federal Reserve
The UAE dirham has been pegged to the US dollar at AED 3.6725 per dollar since 1997. This peg means the CBUAE base rate moves in step with US Federal Reserve decisions. When the Fed raises or cuts its target rate, the CBUAE typically does the same, and all EIBOR tenors, including the 12-month rate, follow over the next few days. This is why UAE mortgage rates have moved in line with global rate cycles over the past decade.
How to find the current 12-month EIBOR
Three sources publish all EIBOR tenors daily:
- CBUAE website: the Central Bank publishes a daily rate bulletin covering all 6 tenors. Search "EIBOR rates" on the CBUAE site to find the current fixings.
- MortgageCompare.ae EIBOR tracker: our EIBOR tracker displays the key tenors alongside a short-term chart.
- Your bank: most UAE banks display current EIBOR readings on their mortgage product pages or will confirm the applicable tenor if you call.
Frequently asked questions
What is the 12-month EIBOR today?
The 12-month EIBOR changes every business day. For the live figure, check the CBUAE website or our EIBOR tracker. As a reference, in June 2026 the 3-month EIBOR is 3.69% and the CBUAE base rate is 3.65%. The 12-month rate sits above both.
Is the 12-month EIBOR higher than the 3-month?
Usually, yes, by around 10 to 30 basis points in a stable environment. The gap can widen significantly when the market expects rate changes, because longer tenors price in anticipated moves that have not yet happened.
Do any UAE mortgages use the 12-month EIBOR?
Very few residential mortgages do. The standard for UAE home loans is the 3-month EIBOR. The 12-month tenor appears more in commercial lending and specialist products. Check your offer letter to confirm which tenor applies to your loan.
What does an annual EIBOR reset mean for my mortgage?
Your rate is locked for 12 months at a time. At each anniversary, the bank reads the 12-month EIBOR and adds its margin. That sets your payment for the next year. Compared to a 3-month reset, you get more stability but slower adjustment when rates change.
What to do next
Check your offer letter's reversion clause to confirm which tenor your mortgage uses. For the live 12-month EIBOR reading, visit our EIBOR tracker. To see how any EIBOR-linked rate affects your monthly payment at your loan size, use the mortgage calculator. To compare all rate types across UAE banks, see the rate comparison page.
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