Skip to content Skip to Search
Skip navigation

Gulf central banks follow US Fed by lifting key rates 

GCC interest rates WAM
The UAE central bank lifted its base rate on the overnight deposit facility to 5.40% from 5.15%

Most GCC central banks have increased their interest rates in line with the US Federal Reserve decision to hike rates by a quarter of a percentage point.

The Fed raised its rate by 25 basis points (bps) on Wednesday, the highest US central bank policy rate in 16 years due to elevated inflation.

The central banks of Saudi Arabia and the United Arab Emirates mirrored the Fed move.

The Saudi Central Bank (Sama) increased its repo and reverse repo rates to six percent and 5.5 percent, respectively.

The Central Bank of the UAE lifted its base rate on the overnight deposit facility to 5.40 percent from 5.15 percent from Thursday. It also decided to maintain the rate applicable to borrowing short-term liquidity through all standing credit facilities at 50 bps above the base rate.

Qatar raised its key lending interest rate to 6.25 percent, deposit rate to 5.75 percent and repo rate to six percent. 

Bahrain raised the one-week deposit rate to 6.25 percent and the overnight deposit rate to six percent.

The Central Bank of Kuwait raised its discount rate to 4.25 percent from four percent.

The Federal Reserve’s rate hike is the 11th in its last 12 meetings, setting the benchmark overnight interest rate in the 5.25-5.50 percent range, indicating another possible increase.

Latest articles

Flooding in Dubai affected many people's homes. Emaar has promised .free repairs for its residents, and an upgraded sewerage system is planned

Emaar promises free repairs as Dubai launches sewerage system

Emaar Properties is offering free repairs to residents whose homes were damaged during this week’s extreme flooding, as Dubai also announced an AED80 billion ($22 billion) sewerage system. The developer announced on Friday that it would repair all homes in its communities affected by the historic levels of rain, “at no cost to residents”. Emaar’s […]

Construction work in Kuwait. Nurseries, schools and shops are being built for the new residential district of Al Metlaa

Kuwait signs $140m contracts for Al Metlaa development

Kuwait’s Public Authority for Housing Welfare (PAHW) has signed two contracts worth KD42 million ($140 million) to construct public buildings in Al Metlaa, a new residential district north of Kuwait City. Nurseries, stores, schools and shops will be included, state news agency Kuna reported. Electricity connections have been provided for 109 buildings in the district, […]

Iraq gas oil

Iraq to auction 30 oil and gas projects this month

Iraq will auction 30 new oil and gas projects in two licensing rounds before the end of April. The bidding round will be held on April 27, Reuters reported, citing an oil ministry statement. Last October Iraq passed a long-awaited oil and gas law, which will help the country attract more international investments into the hydrocarbon industry and boost government revenues.  Ali Metwally, an […]

Workers at Cano Limon oil field in eastern Colombia. Oil is one of the country's largest exports

UAE strikes Colombia deal to strengthen Latin American links

The UAE has strengthened trade relations with Latin America after signing a comprehensive economic partnership agreement with Colombia, just days after a Cepa deal was struck with Costa Rica. Officials from the UAE and Colombia put pen to paper on an agreement that will cut tariffs and remove trade barriers between the two countries. UAE […]