Banks are advertising savings returns of up to 6.25% as lending grows faster than deposits. The funding squeeze is sharpening competition for customer money ahead of repayments to the central bank.
In September, the Central Bank of the UAE raised its benchmark rate by 25 basis points to 3.9%, following the US Federal Reserve. Some banks are now advertising savings rates well above that level as they compete for deposits to fund expanding credit.
Mashreq's advertised rate reaches 6.25%. Abu Dhabi First Bank and Emirates NBD have also launched limited-time offers for eligible new deposits.
The top rate is not available to every depositor. Offers vary by bank and account, with eligibility rules and promotional periods that can narrow who qualifies. Competition is intensifying as lenders face strong loan demand and prepare to repay central-bank funding used to support cash reserves. Bloomberg reported on October 12 that UAE lenders were raising deposit rates amid faster credit growth and liquidity pressure.
Rates and conditions
According to Bloomberg, Abu Dhabi First Bank, the UAE's largest lender by assets, offered 5.6% on new money placed in savings accounts from September through December 2026. UAE residents could qualify without a minimum balance or withdrawal restriction. Emirates NBD, Dubai's largest bank, advertised rates of up to 5.5% on some large new deposits in a promotion running for three months between October and December. Mashreq offered 6.25% on savings accounts.
These are commercial offers, not changes to the official policy rate. A central-bank benchmark guides the cost of money in the banking system; it does not cap what a bank can offer savers. Promotional rates can exceed it, but apply only to specified accounts or new funds. The UAE dirham is pegged to the US dollar, linking exchange-rate stability closely to the Federal Reserve's policy path. The Central Bank of the UAE publishes the country's monetary and banking information.
The advertised returns of 5.5% to 6.25% sit 1.6 to 2.35 percentage points above the 3.9% benchmark. That comparison does not make the offers interchangeable: terms differ, and the highest rate may not be available to every customer.
Funding meets loan demand
Earlier reporting put the UAE banking system's loan-to-deposit ratio at about 80%, up from approximately 77.7% in 2025. Newer Central Bank of the UAE data show gross lending rising by 72.4 billion dirhams, or 2.6%, in August to 2.8714 trillion dirhams. Deposits increased by 25 billion dirhams to 3.5348 trillion dirhams. Based on those published totals, the gross loan-to-deposit ratio reached about 81.2% at the end of August, compared with 79.7% in July. This is a calculated comparison, not an official liquidity requirement.
Deposits grew 0.7% in August. Resident deposits rose 1.0% to 3.2293 trillion dirhams, while private-sector deposits increased 0.7% to 2.3615 trillion dirhams. Government deposits rose 3.5% to 461.1 billion dirhams. The overall deposit base is still growing, but banks are seeking more customer funds as credit demand rises.
By the end of August, gross bank credit exposure was up 18.8% year on year, against 13% growth in deposits. Total banking assets increased 12.9%. The non-performing loan ratio fell to 2.6%, or 1.2% after provisions.
The Central Bank of the UAE also reported that banks' overnight balances and deposits at the central bank rose 66.9% to 156.1 billion dirhams. The monetary base increased 4.2% to 825.9 billion dirhams. Credit was expanding alongside higher central-bank balances, rather than against a complete disappearance of available liquidity.
Fitch's assessment of the first seven months of 2026 put UAE bank lending growth at roughly 18% year on year, compared with 14% deposit growth. The agency also said liquidity in the banking sector during the first half was supported by inflows of nearly $80 billion from Gulf governments and related entities. Those regional inflows help explain how banks maintained liquidity while credit grew faster than deposits.
Edmund Christou of Bloomberg Intelligence said competition for new deposits was significant as central-bank liquidity support announced in September at the start of the war approached its end. Banks that used the facility to cover up to 30% of their cash-reserve requirements must repay the financing they received. That makes other funding, including customer deposits, more important.
Strong credit demand gives banks another reason to protect their funding pipeline. Monica Malik, chief economist at Abu Dhabi Commercial Bank, has pointed to demand for loans from government-related entities continuing infrastructure and other projects. Banks are chasing deposits while borrowers seek new credit.
The wider regional banking landscape also includes changes in how lenders serve businesses. Emirates NBD Egypt's corporate digital services are covered in its digital banking rollout. That Egyptian development is separate from the UAE deposit offers.
What the offers reveal
For savers, the headline rate tells only part of the story. Abu Dhabi First Bank's promotion specifies new funds and a set offer period. Emirates NBD's top rate applies to some large new deposits. The advertised maximum should not be treated as a universal rate or assumed to extend beyond the stated promotion.
For banks, deposits fund lending, while the approaching repayment of central-bank support adds pressure to attract customer money. The latest calculated loan-to-deposit ratio, about 81.2%, is above the earlier reported 80% figure, but it is not a regulatory liquidity threshold.
Deposit offers reflect individual banks' funding conditions. The UAE dirham is pegged to the US dollar, and domestic policy broadly follows the Federal Reserve's rate environment.
