UAE base rate rises to 3.90% on 17 September 2026: what it adds to a Dubai mortgage

UAE base rate rises to 3.90% on 17 September 2026: what it adds to a Dubai mortgage

The UAE Central Bank raised its base rate by 25 basis points on 16 September 2026, from 3.65% to 3.90%, effective 17 September. The move followed the US Federal Reserve's own 25 basis point increase to its Interest Rate on Reserve Balances, which the UAE regulator tracks closely because of the dirham's peg to the dollar.

Figures

The base rate sets the floor for overnight money market rates in the UAE. The rate for short-term borrowing from the central bank's own window stays at 50 basis points above the base rate. On a mortgage of AED 1,500,000 over 25 years, the increase adds roughly AED 210 to AED 215 a month. Banks apply the new rate on the reset date stated in the mortgage offer letter, not on the announcement date.

Two days before the rise, ADCB agreed a fixed rate of 3.49% with Dubai Holding for buyers at Palm Jebel Ali, The Acres and Nad Al Sheba Gardens once 50% of the purchase price is paid.

Read the full article on Doment: UAE base rate rises to 3.90% on 17 September 2026: what it adds to a Dubai mortgage

Originally published on Doment, Dubai property intelligence.

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