FX.co ★ UAE Raises Benchmark Rate to 3.90% as Monetary Policy Tightens Further

The United Arab Emirates has increased its key interest rate to 3.90%, up from the previous level of 3.65%, according to data updated on 16 September 2026. The move marks a further tightening of monetary conditions in the country.

The 0.25 percentage point hike signals a continued effort by UAE monetary authorities to adjust borrowing costs in line with evolving economic and financial conditions. The higher rate will influence funding costs across the banking sector and may affect lending rates for businesses and consumers.

Market participants will be watching closely to assess how the new 3.90% level shapes credit demand, investment plans, and broader economic activity in the months ahead.