How to Instantly Open a Bank Account in UAE
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The UAE is deemed the [unofficial] financial center of the Middle East; so, opening a bank account here is a no-brainer. Once you receive your residence visa and Emirates ID, consider obtaining access to almost all services. And by all services, we mean that you can even procure a trade license and carry out Dubai business setup!
The UAE Central Bank was established in 1980 to administer the growth of other banks and issue regulatory guidelines as the primary financial regulatory authority. At present, the UAE houses 23 local and 26 foreign banks. But nearly 60% of the total banking industry is held by five major banks and a total of 19% of the banking industry is run by Islamic Banks, which offer services that are compliant with the Islamic Shari’a.
All banks in the UAE can be compartmentalized into 4 main divisions:
- Commercial Banks
- Industrial/Investment Banks
- Merchant Banks
- Islamic Banks
Why you Need a Bank Account in the UAE
The main reason why — as an expat — you need a bank account is that you can enjoy far more benefits from having a bank account in the UAE rather than in foreign banks (not to mention how it is one of the first steps in free zone company formation). But that still doesn’t curtail your options, for you can still have a bank account overseas while living in the UAE.
The second reason is only natural: local creditors in the UAE will be less willing to transfer their money overseas because of the immoderately-high transfer charges. This also happens to be a common hindrance when scouting for a local sponsor for business setup in Dubai.
Thirdly, a local account — irrespective of the country it is operated in — eases the process of obtaining credit cards and procuring loans.
Before Opening a Bank Account in the UAE
You will have no trouble withdrawing cash from ATMs in the UAE with a non-UAE debit card. But the withdrawal charges can be high, as some ATMs charge up to AED 25 for each transaction. And as an expat, if you are out to procure, say, a freelancer visa, no doubt you would have a hard time compensating the ATM charges.
If you have landed a job in the UAE but do not have a bank account in the UAE, your employer will hand your emolument in cash, preferably through a bank cheque. However, there are ways to open a bank account in the UAE before deplaning, but that typically entails high minimum balance requirements. So, it is best to wait until your residence visa gets stamped on your passport before opening a bank account.
Types of Bank Accounts in the UAE
Like most countries, the UAE offers several types of both personal and business bank accounts for residents and non-residents.
Current Account
Most businesspersons who perform bank transfers on a daily basis — who, majorly happen to be expats carrying out a business setup in Dubai — use a Current Account. The current account typically comes with a chequebook, which comes in handy when issuing post-dated rent cheques. If you are employed and want to open a current account, then it is prudent to open a current account that comes with salary transfers (the other type of current account is the one without salary transfers). The same advice applies to freelancers who are looking to procure a freelancer Visa. The advantage of opening a bank account with your company’s bankers is that your salary will be credited instantly, unlike with other banks, which typically take one or two business days.
Savings Account
A Savings Account is one of the easiest accounts to open and maintain, but is not without limitations. Some of its limitations are higher interest rates than current accounts, limited access to funds, penalties, etc. A major chunk of savings accounts are used as salary accounts. It is up to the bank to provide you a chequebook upon the opening of your savings account.
Investment Account
The way to go on about opening an Investment Account is by signing an investment agreement with a bank of your choice. Such contracts can easily last more than 10 years. These accounts come in real handy for businesspersons who have carried out business setup in Dubai. Contracts like these encapsulate the management of your funds with a surety of at least 3–7% annual returns. The minimum investment balance differs from bank to bank.
Offshore Account
Offshore Banks around the world acknowledge the heavily lopsided expat-native ratio and are sagacious enough to offer their services in the UAE. If one wants to import or export funds to acquire a legal document like a trade license, all they would need is possess a valid residence visa. Historically, offshore accounts have often shown high stability, high reliability, and low volatility.
Some of the most prominent offshore banking corporations in the UAE are ABN Amro, Barclays, HSBC Offshore, and Dresdner. These banks facilitate services such as tax consultation, company formation, private bank account, trade license renewal, e-trader accounts, etc.
How to Open a Bank Account in UAE as an Expat
Most of the judicial procedures in the UAE are straightforward and efficient; opening a bank account is no different. Typically, opening a bank account takes anywhere from 1–2 days to a few weeks, depending on the type of bank account. But normally, it should take just a couple of days for an expat to open a bank account. It is common knowledge that different bank accounts require different documents. For example, if you — as an entrepreneur — are opening a current account, some banks require you to produce a trade license of your company.
As a resident, you are required to produce the following documents to open a personal savings or current account:
- Original passport along with a copy of the same.
- Copy of the visa verifying your residence.
- Salary Certificate (your company’s HR department should be able to provide it).
- Emirates ID Card — this prerequisite is not mandatory in many banks. If you do not have an Emirates ID, you may submit the Emirates ID Registration Form.
Non-residents can apply only for a savings account. This savings account will not include a chequebook but will come with a debit card. Additionally, non-resident savings accounts have a minimum/maximum balance criterion and might also require a background check before being granted to its applicant.
Non-residents of the UAE may be asked to produce the following documents in order to open a Savings Account:
- A copy of the most recent utility bill
- A reference letter from the bank the applicant has an account in
- A bank statement that spans the last six months from the applicant’s country of origin
- A copy of your Curriculum Vitae (CV) that encapsulates your professional achievements and endeavours
Some of the aforementioned documents might also require verification from the Ministry of Foreign Affairs in the UAE.
Now that we know how to go on about opening a bank account in the UAE, here is a list of banks you must consider opening an account in:
- Emirates NBD
- National Bank of Abu Dhabi
- Abu Dhabi Commercial Bank
- First Gulf Bank
- Dubai Islamic Bank
- Mashreq Bank
- Abu Dhabi Islamic Bank
- Union National Bank
- Commercial Bank of Dubai
- RAKBank
Ask the Experts
While you can promptly follow the banking procedures and instantly open a bank account in the UAE, it sometimes boils down to business setup consultants to ensure that there arises no shortcoming when carrying out a massive venture like, say, business setup in Dubai.
A new business setup in Dubai is no cinch and — if wanted to be accomplished expeditiously — would demand the expertise and acumen of the best business setup consultancy in Dubai — Cross Link International. We accomplish your business setup in Dubai (or any other Emirate in UAE) in the most efficient of ways. Our Dubai business setup services accommodate all services that entail a business setup, including but not limited to free zone company formation, freelance visa, trade license, LLC company formation, PRO services & license renewals. Call us today at +971 4321 6631 / +971 55 744 6445 for Dubai business setup or fill-in your details here to get a call-back from us.
