EIBOR

EIBOR (Emirates Interbank Offered Rate) is the average rate at which major UAE banks lend to each other, published daily by the UAE Central Bank. Most variable-rate UAE mortgages are priced as 'EIBOR + a fixed bank spread,' so a buyer's monthly payment moves whenever EIBOR resets.

• —Off-plan buyers rarely need a mortgage during construction — the developer payment plan replaces mortgage drawdown — but EIBOR becomes relevant at handover if a completion mortgage is taken.
• —Non-resident buyers are typically capped at lower loan-to-value ratios than residents, and may face a wider EIBOR spread.
• —EIBOR tracks the US Federal Reserve rate closely because of the AED/USD peg — useful context when comparing financing costs against other currency markets.

Explore Dubai / Abu Dhabi.