“The US Federal Reserve’s interest rate decisions directly influence the UAE economy due to the UAE dirham’s peg to the US dollar. The Central Bank of the UAE (CBUAE) aligns its monetary policy with the Fed to maintain this peg. On July 30, 2025, the CBUAE kept its key interest rate unchanged, mirroring the Fed’s decision to hold rates steady. This synchronization ensures currency stability but affects borrowing and investment. Personal loan rates are unlikely to see significant changes in the near term, offering predictability for borrowers. However, UAE savers can continue to capitalize on high fixed deposit (FD) rates offered by banks, supported by robust liquidity in the financial sector.The UAE’s economy is well-positioned to withstand high interest rates, thanks to its strong non-oil sector growth.”
US Federal Reserve Decision Impact on UAE : Comments by Century Financial
