Real interest rate | UAE

The Real interest year-end rate of UAE in 2024 was 4.40%. The end-2023 rate was  5.40%. This is the first year of decline after a period of growth. The lowest real interest rate in UAE was recorded in 2021, with a value of  0.15%. The highest rate was in 2023, when it achieved 5.40%. Real Interest Rate ≈ Nominal Interest Rate - Inflation Rate. If the nominal interest rate on a loan is 9%, and inflation is 6%, the real interest rate is 3%. This means the lender effectively gains 3% in purchasing power, while the borrower pays 3% in real terms.