Regulatory

CBUAE

Central Bank of the UAE

CBUAE: The UAE's central bank, which regulates UAE banks including mortgage rules, LTV caps, and the DBR ratio.

What is CBUAE?

The Central Bank of the United Arab Emirates (CBUAE) is the federal regulator of all UAE banks, exchange houses, and financial intermediaries. For Dubai property buyers, CBUAE's most relevant role is mortgage regulation — it sets the LTV caps by buyer profile (85% for UAE nationals first property, 80% for expat residents, 50% for off-plan), the Debt Burden Ratio (50% cap on all monthly debt), and the mortgage stress test (rate + 3 percentage points). CBUAE rules apply uniformly across all UAE banks; individual banks can be more conservative but cannot exceed CBUAE limits. CBUAE also publishes EIBOR (Emirates Interbank Offered Rate), the variable-rate benchmark used by most UAE mortgages. CBUAE was established in 1980 and is headquartered in Abu Dhabi.

Example

A bank cannot exceed CBUAE's 80% LTV cap on an expat-resident first property, even if the borrower has substantial savings. The bank must verify the borrower's DBR is under 50% and apply the rate + 3% stress test.

FAQ — CBUAE

Does CBUAE set Dubai mortgage interest rates?+

No — banks set their own rates. CBUAE sets the EIBOR benchmark (which influences variable rates) and the policy rate (which influences AED cost of funds), but actual mortgage rates are bank-specific.

Is CBUAE different from the DFSA?+

Yes. CBUAE regulates UAE-onshore banks. DFSA (Dubai Financial Services Authority) regulates the DIFC free zone. FSRA (Financial Services Regulatory Authority) regulates ADGM. Each has its own jurisdiction.