{"id":"580","slug":"uae-banks-lift-deposit-returns-after-base-rate-hike-loan-deals-stay-competitive","url":"https://devodubai.com/article/2026-09-25/uae-banks-lift-deposit-returns-after-base-rate-hike-loan-deals-stay-competitive","json_url":"https://devodubai.com/api/article/uae-banks-lift-deposit-returns-after-base-rate-hike-loan-deals-stay-competitive.json","title":"UAE banks lift deposit returns after base-rate hike; loan deals stay competitive","headline":"UAE banks lift deposit returns after base-rate hike; loan deals stay competitive","excerpt":"After the Central Bank's 25-basis-point hike, UAE deposit returns are rising toward 4.5% to 5.5%, while many personal-loan offers remain competitive.","body":"Banks in the UAE are lifting deposit returns after the Central Bank raised the base rate by 25 basis points, while many personal-loan offers stay competitive, Emirates 24/7 reported on 25 September 2026.\n\nThe hike is the first in more than three years and followed a similar move by the US Federal Reserve. The dirham's dollar peg means UAE policy rates usually track Fed moves. Deposit pricing moved first: returns of about 4.5% to 5.5% on fixed deposits, depending on tenure, were quoted after the Saturday implementation, the report said.\n\n## Loans still on offer\n\nFinancing rates have not jumped in lockstep. Several banks are still marketing personal loans from a fixed 2.5%, with grace periods before the first instalment of three to seven months. One large Abu Dhabi bank offers citizen customers a grace period of up to 12 months, according to Emirates 24/7's bank survey.\n\nBanking expert Ahmed Youssef said a higher base rate does not force an immediate, uniform rise across every loan. Pricing still depends on funding costs, reference rates, product type, tenor, risk and competition. Deposits matter more in a higher-rate setting, he added, so banks improve savings and time-deposit returns to attract and keep liquidity.\n\n## What borrowers and savers should watch\n\nFor mortgage clients, the effect depends on the contract. Fixed-rate deals usually stay unchanged through the fixing period. Variable-rate loans can reprice when the contract's review date arrives.\n\nBanker Tamer Abu Bakr said competition still shapes the final package: fees, repayment periods, loan-to-value, salary-transfer rules and approval speed can matter as much as the headline rate. He expects the hike's impact to show more clearly as variable loans reprice and banks review funding costs, especially if rates rise again before year-end.\n\nPractical takeaway for residents: compare deposit tenors if you have spare cash, and do not assume every loan price moved overnight. Read whether your facility is fixed or variable, and when the next repricing date falls.","category":"business","category_url":"https://devodubai.com/category/business","author":"Editorial Team","author_url":"https://devodubai.com/editor/editorial-team","published_at":"2026-09-25T03:53:17","updated_at":null,"reading_time_minutes":2,"cover_image":"https://cms.devo.co/assets/30b97e9b-d5c2-437c-b01c-02f33d6fa2bb","source_count":3,"sources":[{"title":"UAE interest rate hike 2026: Deposit returns rise to 5.5% but personal loan offers stay competitive from 2.5%","source":"Emirates 24|7","link":"https://www.emirates247.com/uae/uae-interest-rate-hike-2026-deposit-returns-rise-to-55-but-personal-loan-offers-stay-competitive-from-25/6021","domain":"emirates247.com"},{"title":"UAE interest rates rise to 3.9%. What it means for mortgages, loans and savings","source":"Gulf News","link":"https://gulfnews.com/business/banking/uae-interest-rates-rise-to-39-what-it-means-for-mortgages-loans-and-savings-1.500677352","domain":"gulfnews.com"},{"title":"UAE loan rates to stay high after Fed hike: What it means for mortgages, auto loans and savings","source":"khaleejtimes.com","link":"https://www.khaleejtimes.com/business/uae-loan-rates-to-stay-high-after-fed-hike-what-it-means-for-mortgages-auto-loans-and-savings","domain":"khaleejtimes.com"}],"citation":{"text":"Devo Dubai. \"UAE banks lift deposit returns after base-rate hike; loan deals stay competitive\". Published 25 September 2026. https://devodubai.com/article/2026-09-25/uae-banks-lift-deposit-returns-after-base-rate-hike-loan-deals-stay-competitive","canonical_url":"https://devodubai.com/article/2026-09-25/uae-banks-lift-deposit-returns-after-base-rate-hike-loan-deals-stay-competitive","json_url":"https://devodubai.com/api/article/uae-banks-lift-deposit-returns-after-base-rate-hike-loan-deals-stay-competitive.json","usage_info":"We encourage citation of this page, including by AI assistants and research tools — quote or summarize it freely, and we appreciate a link back to the canonical URL so readers can trace the source. Republishing it in full requires permission."},"seo":{"title":"UAE banks lift deposit returns after base-rate hike; loan deals stay competitive","description":"After the Central Bank's 25-basis-point hike, UAE deposit returns are rising toward 4.5% to 5.5%, while many personal-loan offers remain competitive."}}