{
  "id": 8027712,
  "title": "UAE interest rates set to rise but did borrowing get easier when they were low?",
  "url": "https://urgent.news/2026/09/17/uae-interest-rates-set-to-rise-but-did-borrowing-get-easier-when-they",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-17T12:37:41.000Z",
  "source": {
    "name": "The National Business",
    "slug": "the-national-business",
    "url": "https://www.thenationalnews.com/business/money/2026/09/17/uae-interest-rates-set-to-rise-but-did-borrowing-get-easier-when-they-were-low/"
  },
  "original_language": "en",
  "account": "In a move in line with the US Federal Reserve, the UAE Central Bank increased its interest rates by 25 basis points in mid-2026. While this contrasts with last year's rate cuts of 75 basis points, the question arises whether borrowing has become easier following the initial interest rate reduction. According to the Central Bank's first-quarter Credit Sentiment Survey, the answer is more nuanced.\n\nBanks have reported a decline in lending appetite to minus 3.2 percentage points, attributing this to lower risk tolerance, unfavorable economic outlook, and decreased creditworthiness of borrowers. Small and medium-sized enterprises experienced particularly weak interest. Financial expert Carol Glynn clarified that \"cheaper and easier are two different things, and right now they're not moving in lockstep.\"\n\nMortgage costs, however, show a clearer illustration. The lowest available fixed three-year rate is now 3.89 percent, down from 3.99 percent a year ago, although major banks indicate their range remains slightly higher at 3.99 percent to 4.24 percent for a Dh1 million loan, describing it as \"broadly similar\" to a year ago. Mortgage broker Manish Bhaggnari noted that rates have been flat over the past year, so little change has occurred for new mortgages.\n\nThough the process for salaried individuals has become more efficient and streamlined, making it easier for qualified buyers, self-employed borrowers have found the bar for approval slightly lower. Banks are now considering lending to self-employed individuals after just one year of trading instead of two years of audited accounts. However, those who allow their salary to be mandated to the same bank holding their mortgage will receive lower rates, reduced or waived processing fees, and sometimes a reduced follow-on margin, advantages not available to others.\n\nPersonal lending, on the other hand, remains difficult. Personal loans and credit cards are unsecured products that require a proven borrowing history and assessment of the borrower's salary and employer profile. Experts confirm that self-employed individuals and small business owners face the most significant challenges. They often experience a more protracted and cumbersome process with stringent documentation and higher requirements, despite the relatively flat interest rates.\n\nThe UAE borrowing market in mid-2026 is characterized by varied conditions. While the threshold for obtaining a clean approval remains stringent, some borrowers with stable, documented income over two to three years are more likely to secure smoother terms. Banks have tightened lending criteria for new SME borrowers, often requiring personal guarantees, security, and extensive documentation. As a result, borrowers are faced with heavy paperwork and time-consuming processes, making the effort to qualify seem disproportionate to the amount they need.",
  "summary": "The UAE Central Bank on Wednesday raised its interest rates by 25 basis points in line with the US Federal Reserve, which increased its rate for the first time since 2023. Interest rates in the UAE fell last year , with the Central Bank cutting its base rate by 75 basis points throughout 2025. This suggests that borrowing money in the UAE should have become cheaper. But did it get easier? The…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The National UAE",
        "title": "UAE interest rates set to rise but did borrowing get easier when they were low?",
        "url": "https://urgent.news/2026/09/17/uae-interest-rates-set-to-rise-but-did-borrowing-get-easier-when-they-8030249",
        "published": "2026-09-17T12:37:41.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}