"Central": "EIBOR" among banks records a further decline in all terms

Interest rates on loans in the UAE are the most attractive in the region

Local banks offer attractive offers with interest rates of up to 2.5% on loans.

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Interest rates on interbank dirham transactions (EIBOR) recorded a further decline, which has increased the attractiveness of the lending market in the UAE since the beginning of 2021.

The latest data issued by the UAE Central Bank, yesterday, shows a decrease in EIBOR prices over all periods, foremost of which is the one-year term, in addition to the six-month term, as it decreased on the first to the level of 0.497%, and on the second to 0.436%, as well as Setting interest rates over the remaining terms, according to what is shown in the Central Bank's circular.

In light of the continuous decline in EIBOR prices in the country, local banks are making attractive offers to individuals and institutions, with an interest rate of 2.5% on loans provided to some segments of customers.

These attractive rates of interest on loans are considered the most attractive in the Arab Gulf countries and the Middle East, reflecting the availability of a large surplus of liquidity in the UAE banking system, which is classified as the strongest in terms of solvency in the region.

It is noteworthy that the continued decline in interest rates on transactions in dirhams between banks (EIBOR) came after the decision taken by the US Federal Reserve earlier to keep interest rates at their levels unchanged, which prompted the UAE Central Bank to simulate this decision, given that The exchange rate of the dirham is linked to the dollar.

The availability of a large surplus of liquidity in the UAE banking system.

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