The banking system in the UAE is well known across the world due to its stable economy, zero-tax policy, low-interest rates, and robust protection. Expats from all around the world come to Dubai for work and business purposes. Having a bank account in Dubai is very beneficial because it provides a variety of functionality and facilitates transaction requirements both locally and internationally.
The UAE Central Bank is the country’s leading finance regulatory organization. In the United Arab Emirates, there are 23 local and 26 international banks. The country’s banking industry is run by larger banks, with the top five accounting for approximately 60% of its resources. Islamic banking in Emirates consists of 8 substantial Islamic banks and 23 Islamic windows established by conventional banks, contributing to 19% of total bank capital.
The UAE Banks Federation represents 52 domestic and international banks operating in the country, maintaining a robust financial sector. There are 22 national banks among them to open a bank account in the UAE.
The UAE Central Bank controls new business, develops new technologies, and manages all country’s banking activities.
There are four bank categories in Dubai:
- Commercial banks
- Industrial banks
- Merchant banks
- Islamic banks
Types of bank accounts In the UAE
Banks in the UAE, and banks in other countries, provide a variety of personal accounts for residents and non-residents. You can choose any of these as per your preference and requirements:
Banks in Dubai typically offer two types of current accounts – those that allow salary transfers and those that don’t. If you’re working, it’s a good idea to open a bank account with the bankers who represent your business. It ensures that you receive your paycheck as soon as possible after its transit.
These accounts usually pay higher interest rates than current accounts, but they may have limited access to funds and withdrawal fees. Savings accounts may be used as salary accounts, and they usually come with a checkbook. You have the luxury of making transactions in various currencies like Dirham, US Dollar, Euros, and British Pounds Sterling.
You can also enjoy Investment services in the UAE banks. By signing an investment agreement with a bank, you can open an investment account. These agreements will last from a few months to five or ten years or more.
Offshore banking is recognized as safe, accessible, and stable. Furthermore, many offshore bank accounts give distinct financial and legal benefits, such as lower tax rates and hassle-free daily banking facilities. Moreover, investment security, private bank accounts, wealth management, portfolio management, tax consultation, inheritance planning, and business formation are the prominent banking categories of offshore banking in the UAE.
Requirements for opening a bank account in the UAE as a resident
In today’s world, having a bank account is a requirement for living everyday life. It also relates to residents that want to move to another nation. Monetary transactions such as renting an apartment in the UAE require payment in advance and you’ll need a bank account to settle these payments.
There are three types of banking systems in the Emirates, and all are monitored by the Central Bank. Each bank has its own set of requirements that the customers must meet to open an account. Opening a bank account in Dubai is quick and straightforward. The process can take a day or two to complete based on the type of account. Furthermore, the paperwork and documentation also vary from bank to bank and the type of account you wish to open.
Residents can open a bank account in the UAE by following the standard procedure The following are the basic documents required to open a bank account in the UAE as a resident:
- A copy of your original passport
- A copy of your visa page confirming that you are a UAE resident
- A salary certificate (from the company’s human resources department)
- Some banks may request your Emirates ID card, but you can provide it later if you haven’t received it yet
- A copy of your Emirates ID registration form (in the absence of the card)
Requirements for opening a bank account in the UAE as a non-resident
Non-residents can primarily open a savings account in the UAE. While you can’t request a checkbook, you would be provided a debit card to withdraw funds. Non-resident accounts are also available at reasonable and maximum balance requirements. The banks usually conduct a background check before opening your bank account in Dubai.
The documents you’ll need to open a bank account as a non-resident depends on the bank, but in general, these are the ones you’ll need:
- Original and copy passport with the UAE entry stamp
- Passport size photo
- Complete application form
- Emirates ID (or proof that your ID card or residency visa has been processed)
- A document that includes your employer’s name and salary information
- Previous bank’s letter of recommendation
- NOC is required from either your sponsor or your employer
You may be required to keep an equal or maximum balance as a non-resident. Keep this in mind because you’ll face issues, and relevant penalties might be imposed if the amount goes below the established limit. It takes less time to open a savings account with a residency visa than it would open a bank account without one. Furthermore, you might have to wait a while before you can access your savings account as a part of the compliance process.
The advantages include excellent service quality, progressive remote account management via e-banking, and end-to-end assistance. You can open a bank account in Dubai for personal maintenance, carry out business operations locally, and for conducting international trade too. Always remember that the Central Bank has executed a compulsory presence of account holders to open any account-whether private or corporate and is consistent across all the banks in Emirates.
Several documents and approvals are required by non-residents to open a bank account in the UAE. If you’re considering moving to the UAE, it’s a great idea to organize your paperwork and know about the UAE’s banking before you make the transition. You can always get in touch with the legal advisors who’ll help you with the same.
Consult with Shuraa
If you’re unaware of the documents required to open a bank account in the UAE or don’t know the process to submit your request, consult with Shuraa Business Setup. We’ll help you open your bank account in Dubai by providing the necessary assistance related to paperwork, legalities, documents, and more. The business experts at Shuraa hold prolific experience in this domain and do all the heavy lifting for you. So, what’s the wait for? Get in touch with our consultants today.
To know more about bank accounts in the UAE, connect with us by calling at +971 44081900 or send a WhatsApp message on +971 50 777 5554. For email assistance, you can write to us at info@Shuraa.com.