DEFINITION of 'Emirates Interbank Offered Rate - EIBOR'
The interest rate charged by banks in the United Arab Emirates for interbank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates.
BREAKING DOWN 'Emirates Interbank Offered Rate - EIBOR'
Similar to the London Interbank Offered Rate (LIBOR), EIBOR futures contracts are available for trade and there are various EIBOR offered rates depending on the life of the loan.
Many Islamic banks use EIBOR rates as benchmarks for determining the rental rates for special leasing agreements called Ijara.