Here's why it's now cheaper to take out a loan in the UAE

Taking out a loan is now cheaper as the UAE Central Bank has cut the benchmark interest rate.

It’s after the US Federal Reserve lowered its rates for the first time in more than a decade.

Bahrain and Saudi Arabia also followed suit as the currencies of these Gulf countries are pegged to the US dollar.

For consumers this means lower cost of borrowing for loans and mortgages.