Benchmark Interest Rate (EIBOR)
EIBOR (Emirates Interbank Offered Rate) is the reference rate at which UAE banks lend to each other, serving as the benchmark for variable-rate mortgages and commercial loans.
| EIBOR Tenor | Use |
| 1-month EIBOR | Short-term lending |
| 3-month EIBOR | Most common mortgage benchmark |
| 6-month EIBOR | Medium-term facilities |
| 12-month EIBOR | Annual reset mortgages |
| Published daily | UAE Central Bank publishes rates |
| Typical spread | UAE Central Bank publishes rates |
| EIBOR Levels (Indicative) | Rate |
| Current 3-month EIBOR | 5% to 5.5% (varies with Fed rates) |
| Historical low (2020) | 0.5% to 1% |
| Historical high (2008) | 5% to 6% |
| Correlation to US rates | AED pegged to USD, tracks Fed Funds |
| Borrower impact | 1% EIBOR increase = AED 400/month per AED 1M loan |
| Fixed vs floating decision | Fixed premium 0.5% to 1% above EIBOR |
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