UAE credit card interest rates are back in the news. A lot has moved in the UAE money landscape since the summer: interest rates have risen for the first time since 2023, the Central Bank has reported on its relief package for borrowers, the big banks are posting record numbers, and a fresh wave of credit cards and payment features has arrived. Here is what happened, and more importantly, what each development means for you as a cardholder.

1. UAE interest rates are rising again

On 17 September 2026, the Central Bank of the UAE (CBUAE) raised its Base Rate by 25 basis points, from 3.65% to 3.90%. The move followed the US Federal Reserve lifting its target range to 3.75% to 4.00%. Because the dirham is pegged to the US dollar, the UAE moves its rates in step with the Fed, usually announcing its decision on the same day.

What comes next. The Fed meets on 27 and 28 October, with its decision due on Wednesday 28 October. As of late October, markets were pricing a pause as the most likely outcome, with roughly a one in ten chance of another hike. At its September meeting, the typical Fed official expected one more increase before the end of 2026, which puts the 8 and 9 December meeting in focus. Fed Chair Kevin Warsh has stepped away from giving advance signals, so a surprise cannot be fully ruled out.

What this means for UAE credit card interest rates

Most UAE credit cards charge a fixed monthly interest rate set by the bank, so a Base Rate change does not automatically reprice the card in your wallet. However, higher rates raise the cost of money for banks. That usually shows up first in EIBOR linked products such as mortgages and personal loans, and can then filter through to balance transfer offers, instalment plans and new card pricing.

If you carry a balance from month to month, this is a good moment to compare your current rate with what else is on the market. If you pay your statement in full every month, interest rates barely touch you, and rewards, fees and benefits are what really decide which card is right for you.

2. The Central Bank relief package: what has been delivered

In March 2026, after the regional conflict that began on 28 February, the CBUAE launched its Financial Institutions Resilience Package. Among its measures, affected individuals and businesses could defer loan repayments for up to six months without being classed as in default, with interest and fees suspended on affected facilities.

On 5 October, the CBUAE gave an update: around 155,970 bank customers had benefited, with deferrals and fee waivers covering Dh15.9 billion of loans up to the end of August. Roughly 148,681 individual customers received repayment deferrals worth about Dh2.3 billion.

What this means for you

If your income has been affected, speak to your bank before you miss a payment, not after. Ask whether relief is still available for your situation, and confirm in writing how interest, fees and your credit record will be treated during and after any deferral. A deferral postpones payments; it does not cancel them.

3. UAE banks are strong and lending hard

The same CBUAE update showed a healthy banking sector at the end of August 2026. Bank assets were up 12.9% year on year, total loans up 18.8% and deposits up 13%, while the ratio of loans in difficulty fell to 2.6%.

Bank results tell the same story. On 21 October, Emirates NBD reported record income of Dh42.2 billion for the first nine months of 2026, up 15% on last year, with third quarter net profit of Dh6.4 billion. The bank also highlighted the launch of a Rewards Hub inside its ENBD X app.

What this means for you

Banks with strong balance sheets compete hard for customers, and that competition usually arrives as bigger welcome bonuses, richer cashback and new partner cards. It is a good time to shop around, but read the conditions: welcome offers often require a minimum spend within a set period and have firm end dates.

4. New credit cards in the UAE and payment features worth knowing

Mashreq Aura credit cards with Alshaya

On 1 October, Mashreq, Alshaya Group and Mastercard launched three cobranded cards linked to the Aura loyalty programme: the Mashreq Aura Credit Card, the Aura World Credit Card and the Aura World Elite Card. Cardholders can get up to 25% off and earn up to 12% back in Aura points at Alshaya brands such as Starbucks, H&M and Shake Shack, plus up to 5% cashback on groceries.

Our take: cobranded cards are only as good as your spending at the partner. If Alshaya brands are a regular part of your month, these cards deserve a look. If not, a general cashback card will likely serve you better. Always check how and where points can be redeemed and when they expire.

Wio Bank turns on Click to Pay in the UAE

On 8 October, Wio Bank became the first UAE issuer to switch on Mastercard Click to Pay automatically for its cards. At participating online stores, customers can check out without typing their card details. The feature relies on tokenization, which replaces your real card number with a digital token, and on device biometrics such as fingerprint or face recognition.

Our take: fewer typed card numbers means less exposure if a website is ever compromised. It only works where the merchant supports Click to Pay, so keep an eye out for the logo at checkout.

New corporate cards from United Arab Bank

On 5 October, United Arab Bank launched two Mastercard corporate cards for UAE businesses: a World Corporate card aimed at senior executives and frequent travellers, with lounge access and travel insurance, and an Executive Corporate card for everyday operating spend such as procurement, supplier and government payments.

Coming soon: Jaywan on a credit card

In July, Al Etihad Payments, a subsidiary of the CBUAE, and Mastercard announced the world’s first credit card to carry both the UAE’s domestic Jaywan network and Mastercard. As Jaywan expands from debit and prepaid into credit, expect more banks to add it to their card range.

5. Your checklist for this month

Carrying a balance? Compare your card’s monthly rate and look at balance transfer or instalment offers before the December Fed meeting.
Paying in full? Focus on rewards and fees. Make sure your card pays you back where you actually spend.
Tempted by a new partner card? Total up your yearly spend with that partner first. If the numbers are small, the card probably is not worth an annual fee.
Shopping online? Turn on tokenized checkout features such as Click to Pay or your mobile wallet if your bank offers them.
Under financial pressure? Contact your bank early and get any relief terms in writing.

Key dates to watch

Date	Event	Why it matters
28 October 2026	US Fed rate decision	The CBUAE typically matches the Fed’s move, usually on the same day.
9 December 2026	US Fed rate decision with new projections	The meeting most officials pointed to for the next possible hike.

Frequently asked questions

Will the CBUAE rate hike increase my credit card interest rate?

Not automatically. Most UAE credit cards charge a fixed monthly rate set by the bank. Higher Base Rates raise banks’ funding costs, which can affect loan pricing, balance transfer offers and instalment plans over time.

What is the current CBUAE Base Rate?

The Base Rate has been 3.90% since 17 September 2026. The next possible change comes with the US Fed decision on 28 October 2026.

Why does the UAE follow the US Federal Reserve?

The dirham is pegged to the US dollar, so the CBUAE moves its Base Rate in line with the Fed to keep the peg stable.

Should I move my balance to another card now?

If you carry a balance, compare your current monthly rate with balance transfer offers on the market, including any fees and how long the offer rate lasts. If you pay in full each month, rewards and fees matter more than the interest rate.

Can I still get a payment deferral from my bank?

Ask your bank directly. Relief depends on your situation and your bank’s terms, so confirm how interest, fees and your credit record are treated, and get the terms in writing.

How CardsMatcher can help

Rates, offers and card features change quickly. CardsMatcher compares UAE credit cards side by side and matches you to cards that fit how you actually spend, with your personal match delivered within 3 business days. To see how we assess cards, read How We Compare Cards in our FAQ.