The UAE Central Bank has increased its base rate by 25 basis points, from 3.65 per cent to 3.9 per cent, with the change taking effect on 17 September.
Existing fixed-rate mortgages, car loans and personal loans should generally remain unchanged during their agreed fixed periods. Borrowers with variable-rate products could face higher instalments when their rates are next reviewed.
New mortgages, vehicle finance and personal loans may also become more expensive, although individual banks will determine their own pricing.
Savers could benefit if banks increase returns on savings accounts or fixed deposits, but any adjustment will depend on the institution and product.