The official EIBOR fixing published by the Central Bank of the UAE on 3 September 2026 stood at 4.00% over three months, the rate most widely used to reset mortgages.
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As of 3 September 2026, the official EIBOR (Emirates Interbank Offered Rate) fixing published by the Central Bank of the UAE stood at 3.81% over one month, 4.00% over three months, 4.11% over six months and 4.34% over twelve months. EIBOR is the rate at which UAE banks lend to one another; it is the benchmark underpinning the cost of variable-rate mortgages across the Emirates, in Abu Dhabi as in Dubai. The 3 September fixing is a valuable reference point just days ahead of a rate move expected in mid-September.
The essentials
- As of 3 September 2026, the EIBOR published by the Central Bank of the UAE stood at 3.81% (1 month), 4.00% (3 months), 4.11% (6 months) and 4.34% (12 months).
- The 3-month EIBOR, at 4.00% on 3 September 2026, is the maturity most commonly used to reset variable-rate mortgages in the United Arab Emirates.
- EIBOR is set daily by the Central Bank of the UAE based on submissions from the panel banks.
- A variable-rate mortgage in the Emirates is generally expressed as the reference EIBOR plus a fixed bank margin.
- In the United Arab Emirates, individuals pay no income tax, no tax on rental income and no capital gains tax on property.
How EIBOR feeds into a monthly repayment
The rate on a variable-rate mortgage in the Emirates breaks down into two blocks: the reference EIBOR, which moves, and a fixed bank margin, negotiated when the offer is made. On 3 September 2026, a borrower indexed to the 3-month EIBOR started from a base of 4.00%; their bank's margin is added on top to reach the effective rate. Each reset — quarterly for the most widely used maturity — recalculates the monthly repayment from the new fixing.
The choice of reference maturity is therefore far from neutral. On 3 September 2026, the gap between the 1-month EIBOR (3.81%) and the 12-month EIBOR (4.34%) reached 53 basis points. A loan reset every month tracks the market more closely, both down and up; a loan indexed to the 12-month rate offers more visibility between resets.
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A benchmark to read before the mid-September rate move
EIBOR closely follows US monetary policy, because the dirham is pegged to the dollar: the Central Bank of the UAE traditionally aligns its policy rates with those of the Federal Reserve. The 3 September 2026 fixing therefore captures the cost of credit just before the rate adjustment that took place in mid-September. That is precisely what makes it a useful point of comparison: it locks in a "before" against which to measure the "after".
For a buyer financing a property in Abu Dhabi, reading EIBOR shapes three decisions: the size of the down payment, the choice between an initial fixed rate and a variable rate, and the timing of any refinancing. A base of 4.00% over three months carries a different weight depending on whether you expect rates to ease or climb in the months ahead.
What it means for investors
For our clients financing an acquisition with a mortgage, EIBOR is the first figure we look at before structuring a case. On 3 September 2026, the 4.00% three-month base gives an order of magnitude for the cost of refinancing a variable-rate loan; the rate actually paid then depends on the bank margin, the borrower's profile and the reference maturity chosen. We promise no future rate level: EIBOR moves with monetary decisions, and one fixing says nothing about the next.
In Abu Dhabi, the calculation is above all a question of net yield. The structural advantage remains fiscal: in the United Arab Emirates, individuals pay no tax on rental income and no capital gains tax on property, which protects cash flow against the cost of credit. Rent collected free of tax leaves more room to absorb a rise in monthly repayments than a taxed rental income would.
Our method is to model several EIBOR scenarios before purchase, compare offers from several banks and build in a refinancing clause where it makes sense. Lucretia supports you in investing in Abu Dhabi, weaving together financing, choice of neighbourhood and exit strategy, without ever isolating the rate from the rest of the wealth equation.
Source: mortgease.ae — 2026-09-03
This article is part of our guide
Abu Dhabi Property Investment Guide: Buy, Let and Resell with Confidence
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