BANK ACCOUNT OPENING IN UAE
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Face-to-Face Application:
To complete the application process, it is necessary to schedule an in-person meeting with a bank representative. During this meeting, you will have the opportunity to personally meet with the bank representative, physically sign the application form, and provide the necessary documents
Remote Application:
If you are located outside of the UAE, you can begin the bank account opening process online. Your participation will be necessary either through a phone call or a virtual meeting. Upon approval of your application, the bank will request your presence in the UAE to complete the account opening process by signing the necessary forms
The typical processing time for digital applications is around 14 days. For in-person applications, it can take 25 working days or longer, with the exact duration depending on the complexity of the application.
Account opening
Client assessment process:
Our team will thoroughly evaluate your company’s activities, operational structure, anticipated annual revenue, and initial financial resources available for establishing the account. Using this data, our team will propose the most appropriate bank for your business.
Coordinating with the bank:
If the bank requests additional information or procedures, we will handle communication with them and help you fulfill any extra requirements. In certain situations where you can’t meet with the Contact Point Verification Agent, we can also serve as your representative.
Document preparation:
We will help you gather and organize the necessary documents as requested by the bank, which may include.
- Officially verified company registration papers.
- Authenticated passport copies of all shareholders.
- CVs for all shareholders.
- Company profile.
- Bank statements for personal and business accounts of all shareholders for the last 6 months.
- A copy of your Ejari certificate or proof of your UAE residential address.
- A copy of the Emirates ID and residence visa of the designated signatory at minimum.
Guide for Entrepreneurs: Opening a Bank Account in the UAE.
The UAE is a highly attractive destination, with around 200,000 newcomers annually. It offers a unique blend of coastal beauty, vibrant urban living, and diverse experiences all in a single location.
When relocating to the United Arab Emirates, it’s essential to have a bank account. Maintaining one or multiple bank accounts will facilitate money transfers and the payment of goods and services in your new homeland.
For your convenience, we’ve prepared a concise guide on the process of opening a bank account in the UAE. Let’s explore and discover everything you should be aware of regarding the extensive banking services available in the UAE.
An Overview of Banking in the UAE
Before we dive into how to open a bank account in the United Arab Emirates, let’s take a minute to talk about the banking sector. The UAE has a banking system that’s regulated by a central bank.
In addition to the central bank, there are approximately 50 international and local banks established across the country. The UAE’s banking system is generally deemed stable, primarily due to the banks’ robust liquidity buffers and resilient capital levels.
The majority of banks in the UAE rely on deposits for their funding. Their substantial capital levels serve as a significant safeguard against potential losses.
The UAE features four distinct types of banks. These bank types comprise:
- Islamic banks
- Commercial banks
- Investment banks
- Industrial bank
Islamic banks have gained popularity in the UAE. In recent years, UAE banks have made efforts to broaden their banking services to cater to consumers adhering to Islamic financial principles. This is particularly significant for the sizable Islamic population residing in the country.
Currently, there are 23 Islamic bank windows and 8 fully-fledged Islamic banks operating in the country. Together, they constitute nearly 20% of the UAE’s banking sector.
In addition to Islamic banks, banks in the UAE also serve foreign and international customers. They adhere to various international regulations and provide all their banking services in both Arabic and English languages.
Some of the international regulations that UAE banks adhere to include:
- IAS – International Accounting Standard.
- IFRS – International Financial Reporting Standards.
- Capital Adequacy Regulations as per Basel III Framework.
Different Types of Bank Accounts Available in the UAE. Current Accounts:
An Emirates Islamic Current Account is a transactional account that offers a checking feature to the account holder. It includes Debit card facilities, a checkbook, and numerous other banking benefits.
This type of current account is well-suited for everyday transfers and transactions. Your current account will be equipped with a checkbook, which proves useful for issuing rent checks to your landlord.
In the United Arab Emirates, banks typically offer two types of current accounts. One type is designed for salary transfers, while the other is not.
If you are employed in the UAE, you can open an account at your employer’s bank to receive your salary more quickly. If you opt for a different bank than your employer’s, it may take several days for your salary to be credited.
An Emirates Islamic Current Account can be opened in various major currencies, including USD, GBP, AED, Euro, Yen, Saudi Riyal, Kuwaiti Dinar, Canadian Dollar, Qatari Riyal, Bahraini Dinar, and Omani Riyal. However, if you opt for a different currency, the account may not offer debit card and checkbook facilities.
When establishing a Current Account, there is a minimum balance requirement of at least AED 3,000 that must be maintained in the account. However, when your salary is regularly transferred to the Current Account, the minimum balance requirement is typically waived.
Savings account:
In the UAE, many individuals opt to open savings accounts to maximize their savings. These accounts typically offer higher interest rates compared to checking accounts but come with limited access to funds and potential penalties for withdrawals.
Savings accounts often come in two interest rate variations: variable or fixed. You can also select the currency in which you want to denominate your funds within your savings account.
While savings accounts can double as salary accounts, they typically do not include a checkbook feature. This lack of a checkbook can make them somewhat less convenient for salary-related transactions.
When opening a savings account, selecting the right bank is crucial. Interest rates, minimum deposit requirements, and fees associated with your savings account can vary significantly from one bank to another. Although these differences may seem minor, they can accumulate over an extended period and potentially impact your savings by costing you money. Therefore, it’s wise to compare and choose a savings account that aligns with your financial goals and preferences.
Investment accounts.
When opening a bank account in the UAE, another service worth considering is an investment account. In the UAE, you have the option to enter into an investment agreement with a bank, which enables you to open an investment account.
These investment accounts typically have investment periods ranging from 12 months to 10 years, although longer terms are also available. The investment agreement often guarantees a minimum annual return on investment (ROI) ranging from 3% to 7%.
It’s important to be aware that investment accounts typically come with minimum balance requirements, and these requirements can vary depending on the specific bank you choose to partner with.
Offshore Accounts.
The UAE is a preferred destination for expatriates, and it accommodates offshore banks from various international jurisdictions, especially in cities like Dubai, where many expats reside and work.
In the United Arab Emirates, individuals holding valid residence visas are eligible to open offshore accounts, facilitating the movement of funds both domestically and internationally. This approach is regarded as a secure, stable, and reliable means of managing money and often involves favorable tax considerations compared to other banking options.
Offshore banking in the UAE encompasses a wide range of services, including:
- Inheritance planning
- Company formation
- Portfolio management
- Private bank accounts
- Wealth management
- Asset protection
Here are the steps to open a bank account in the UAE:
Armed with this information, you’re well-prepared to initiate the process of opening a bank account in the UAE. This procedure is generally efficient and can usually be completed in a matter of a few days to a few weeks.
To open either a current account or a savings account, UAE residents will typically need to provide the following documentation:
- Your original passport along with a copy.
- A copy of your UAE resident visa.
- Your Emirates ID card or a copy of your registration form if you haven’t received it yet.
- A document confirming your salary
If you’re a non-resident, you’ll generally be limited to opening a savings account in the UAE. While you won’t typically receive a checkbook, you will be issued a debit card for cash withdrawals.
To open a savings account as a non-resident, many banks conduct background checks and request the following documents:
- The most recent six months’ worth of bank statements from your home bank
- A recent utility bill
- A reference letter from your home bank
- Documentation demonstrating a consistent source of funds
These documents are essential to verify your financial capacity to maintain a bank account in the UAE. Opening a non-resident savings account may require additional time due to the extra documentation involved.
Initiating the Account Opening Process on a Mobile Device.
Mobile banking is a crucial aspect to consider when opening a bank account in the UAE. In a tech-savvy society that prioritizes the latest technology, it’s no surprise that some banks offer the convenience of opening an account directly through their mobile banking apps.
While most banks provide mobile banking features for tasks such as money transfers and balance checks, it’s important to note that not all of them offer the option to apply for new accounts directly through their mobile banking apps.
Mobile account creation is possible with select banks like Liv (supported by Emirates NBD), Neo (operated by Mashreq), and YAP (the UAE’s first independent digital banking platform).
To open an account with one of these banks, begin by downloading their mobile application and then proceed to scan your Emirates ID for verification.
Subsequently, you’ll receive step-by-step guidance through an account opening process resembling online applications. After successfully opening the account, you’ll be required to make an initial deposit to activate it.
Once your account is funded, you’re all set! Within a day or two, a local delivery team will reach out to schedule the delivery of your new debit card.
These banks’ debit cards are globally accepted and can be used at various ATMs. Additionally, your bank provides you with a Swift code and IBAN account number for convenient fund transfers using your newly opened account.
Corporate Accounts
If you intend to conduct business in the UAE using your bank account, you must open a corporate bank account. This is because UAE regulations prohibit conducting business transactions through a personal account.
Corporate accounts are typically structured as current accounts to accommodate a high volume of transactions. The process of opening a current corporate account in the UAE typically takes around two to four weeks.
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When opening a corporate bank account, it’s crucial to be aware that you’ll need several additional documents. The specific requirements may vary depending on your chosen bank and the type of company you have, but typically include:
- Official license granting authorization for your company to engage in business activities.
- Share certificates
- Official documentation verifying the registration of your company as a legal entity.
- The official documents outlining the company’s internal rules, structure, and objectives
- Official board letter authorizing a company officer to open and manage a corporate account.
- Visas and passports from all shareholders
How to Choose the Right Bank Account in UAE
As an expatriate, opening a bank account in the UAE can be an anxious process. Concerns may arise about the availability of necessary services due to foreign status.
Fortunately, with approximately 85% of the UAE’s population being expatriates, banks are well-acquainted with catering to your requirements. They possess the necessary resources to ensure you receive the support you need when opening your account.
Regardless, there are several inquiries you can pose to ensure that you are choosing a reputable financial institution when opening a bank account. Here are some essential questions to consider:
- What is the minimum balance requirement, if any?
- What charges and potential penalties apply to this account?
- What is the maximum monthly withdrawal allowance?
- What are the fees associated with ATM cards, debit cards, and ordering a new checkbook?
- Do you provide international transfer services, and if yes, what are the destination options and typical processing times?
- What is the ATM network size, and where are the ATM locations?
- What is the procedure if I have an active loan with the account and face job loss?
Obtaining responses to these queries will assist in evaluating if this bank aligns with your requirements.
Additionally, it’s advisable to inquire whether your employer has a banking relationship with the selected institution, which can facilitate salary payments.
Furthermore, consider seeking feedback from colleagues, friends, and reviewers to gain insights into the banking experience with this institution.
Credit Cards for Business in UAE
Business credit cards are specialized credit tools tailored to assist entrepreneurs in making small purchases on credit. They are intended exclusively for covering business expenses and should not be used for personal purposes. Although they can serve as a backup for emergency funds, the primary objective of obtaining a business credit card is to establish and enhance the credit score of your business. Your business credit score is a crucial financial metric that significantly impacts the financial well-being of your enterprise.
It’s crucial to dedicate time to find the most suitable credit card in the UAE for your business, given the numerous options available from various banks. To acquire a credit card from a UAE bank, specific eligibility criteria must be met. Eligibility hinges on multiple factors, such as age, income, and providing evidence of a valid trade license.
Effortlessly Handle Your Finances in the UAE.
Understanding the Process of Opening a Bank Account in the UAE is Vital for Life and Work in this Stunning Nation. This Informative Guide Makes Opening an Account Simple and Empowers You to Manage Your Finances.