The Emirates Interbank Offered Rate is the benchmark for variable-rate mortgages and home loans in the UAE. When EIBOR moves, your monthly payment moves with it. Live tracker for 1-month, 3-month, and 6-month EIBOR plus the CBUAE Base Rate.
Source: UAE Central Bank EIBOR fixings, Trading Economics. Data as of May 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.
Monthly 3-month EIBOR and CBUAE Base Rate through the full cutting cycle. The 2022–2023 hiking cycle pushed UAE mortgage variable rates above 7%. The data below shows how far they have fallen.
| Month | EIBOR 3M | CBUAE Base | Month-on-month |
|---|---|---|---|
| January 2024 | 5.36% | 5.15% | — |
| February 2024 | 5.34% | 5.15% | -0.02% |
| March 2024 | 5.31% | 5.15% | -0.03% |
| April 2024 | 5.29% | 5.15% | -0.02% |
| May 2024 | 5.27% | 5.15% | -0.02% |
| June 2024 | 5.25% | 5.15% | -0.02% |
| July 2024 | 5.23% | 5.15% | -0.02% |
| August 2024 | 5.21% | 5.15% | -0.02% |
| September 2024 ↓ CBUAE −50bps | 4.82% | 4.65% | -0.39% |
| October 2024 | 4.70% | 4.65% | -0.12% |
| November 2024 ↓ CBUAE −25bps | 4.47% | 4.40% | -0.23% |
| December 2024 ↓ CBUAE −25bps | 4.24% | 4.15% | -0.23% |
| January 2025 | 4.18% | 4.15% | -0.06% |
| February 2025 | 4.14% | 4.15% | -0.04% |
| March 2025 ↓ CBUAE −25bps | 3.96% | 3.90% | -0.18% |
| April 2025 | 3.91% | 3.90% | -0.05% |
| May 2025 | 3.88% | 3.90% | -0.03% |
| June 2025 ↓ CBUAE −25bps | 3.73% | 3.65% | -0.15% |
| July 2025 | 3.71% | 3.65% | -0.02% |
| August 2025 | 3.70% | 3.65% | -0.01% |
| September 2025 | 3.69% | 3.65% | -0.01% |
| October 2025 | 3.69% | 3.65% | 0.00% |
| November 2025 | 3.69% | 3.65% | 0.00% |
| December 2025 | 3.69% | 3.65% | 0.00% |
| January 2026 | 3.69% | 3.65% | 0.00% |
| February 2026 | 3.69% | 3.65% | 0.00% |
| March 2026 | 3.69% | 3.65% | 0.00% |
| April 2026 | 3.69% | 3.65% | 0.00% |
| May 2026 | 3.69% | 3.65% | 0.00% |
Source: CBUAE EIBOR daily fixings compiled to monthly average. CBUAE Base Rate updated at each FOMC-equivalent decision date. EIBOR 3M peaked at approximately 5.55% in late 2023 before the cutting cycle began.
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 |
|---|
The mechanics from rate-setting to bank statement — and what the 2024–2026 cutting cycle actually saved UAE borrowers.
Most UAE mortgages work in two phases. For an initial period (typically 1 to 5 years), your bank fixes a rate. After that period ends, your rate converts to EIBOR plus a margin that was agreed at the time of application. That margin never changes. EIBOR does.
Your variable rate = EIBOR 3M + your contracted margin. If you have a 1.25% margin and EIBOR is 3.69%, your variable rate is 4.94%. When EIBOR drops to 3.40%, your rate automatically becomes 4.65% — no action needed. UAE mortgages typically reset quarterly on the EIBOR fixing date, so a rate change flows through to your statement within one quarter.
| EIBOR level | Variable rate | Monthly payment | vs today |
|---|---|---|---|
| 5.36% (Jan 2024 peak) | 6.61% | AED 8,630 | +AED 1,175/mo |
| 4.47% (Nov 2024) | 5.72% | AED 7,850 | +AED 395/mo |
| 3.69% (today) | 4.94% | AED 7,455 | current |
| 3.40% (if Fed cuts 25bps) | 4.65% | AED 7,260 | -AED 195/mo |
| 3.00% (if Fed cuts 75bps) | 4.25% | AED 7,000 | -AED 455/mo |
Standard annuity, 22-year remaining term. Illustrative. Your balance and margin will differ.
From the table above: a borrower with AED 1.2M outstanding paid approximately AED 1,175 more per month at the January 2024 EIBOR peak than they do today. That is AED 13,740 saved over 12 months. On a AED 2M balance the saving scales proportionately.
If you are currently inside your fixed-rate period, EIBOR changes do not affect you until the fixed period ends. Check your mortgage offer letter for the exact reset date. For products with only a 1-year fixed period, many UAE borrowers moved to the variable phase in 2022–2023 and bore the full weight of that rate cycle. Choosing a 3-year or 5-year introductory fix is the main way to insulate against near-term EIBOR volatility.
Why decisions made in Washington DC show up on UAE mortgage statements within weeks.
The UAE dirham has been pegged to the US dollar at AED 3.6725 per USD since 1997. To maintain this peg, the Central Bank of the UAE must keep UAE rates broadly aligned with US rates. If CBUAE rates diverged significantly below US rates, capital would flow out of AED deposits into higher-yielding USD assets, putting pressure on the peg. So when the US Federal Reserve moves the federal funds rate, CBUAE follows — typically within 24 to 48 hours of the announcement.
EIBOR does not wait for official CBUAE decisions to move. UAE banks adjust interbank lending rates in anticipation of CBUAE action, often repricing EIBOR within days of a Fed announcement. UAE mortgage variable rates typically begin to change within 30 to 60 days of a Fed cut or hike.
The direct consequence for UAE mortgage borrowers: your variable rate is effectively set in Washington. This is different from European or UK mortgage markets, where central bank independence means rates can diverge from US levels for extended periods. In the UAE, the peg removes that divergence almost entirely. When the Fed pauses (as it has since December 2025), EIBOR stabilises. When the Fed resumes cutting, UAE variable-rate borrowers benefit automatically, without refinancing.
Based on current Federal Reserve signals and futures market pricing as of May 2026.
The Federal Reserve cut rates by 150 basis points between September 2024 and June 2025 — 100bps across three decisions in late 2024 and a further 50bps in two decisions through the first half of 2025. EIBOR has been stable at 3.69% since September 2025, with the CBUAE Base Rate holding at 3.65%. The CBUAE Base Rate sits at 3.65%.
Futures pricing as of May 2026 implies one to two additional 25-basis-point Fed cuts before year-end, contingent on US inflation data continuing to moderate. If those cuts arrive, UAE EIBOR would likely drift to the 3.15%–3.40% range by December 2026. On a AED 1.5M variable-rate mortgage at EIBOR + 1.25%, that translates to a monthly payment roughly AED 250–AED 350 lower than today.
Fed cuts to 3.75%–4.00%. CBUAE follows. EIBOR drifts to ~3.20%–3.40%. Variable-rate borrowers see monthly payments fall automatically. Best headline introductory rates likely move below 3.00% as banks compete on margin.
If US inflation re-accelerates, the Fed holds or hikes. EIBOR stays at 3.69% or drifts higher. Borrowers at the end of fixed periods refinance at today's rates. No automatic payment relief for variable borrowers.
For the narrative on how current bank pricing reflects these rate expectations, read the UAE mortgage rate outlook 2026. To model your payment across different EIBOR scenarios for your specific loan balance, use the rate change impact table above or the full mortgage calculator.
Check your eligibility based on CBUAE rules, or compare all 55 products side by side.
For our monthly narrative rate roundup, read UAE Mortgage Rates Today.