Banking in Dubai Steps to Open a bank account in UAE

The UAE has a solid banking structure monitored by a central bank. The central bank came into effect in 1980. The country has almost 50 foreign and local banks. As per the rating of Moody’s, the country’s banking system is stable with tenacious liquidity buffers and capital levels. The banks are funded with deposits and their capital level provides a loss-absorbing buffer.

What are the different bank types in the UAE?

The UAE has four different bank types including,

a) Commercial Banks

b) Islamic Banks

c) Investment Banks

d) Industrial Banks

The banks in UAE enhanced their services to meet Islamic financial needs with Shari’a banking services. The country has 8 full-fledged banks and twenty-three Islamic windows. It accounts for almost 19% of the complete banking percentage in the country.

From the beginning, the country has adopted global standards in banking. Moreover, all the banks offer services in Arabic and English.

What is the purpose of having a bank account in Dubai?

Today, most transactions are done online. So, it’s vital to have a bank account in the country.

Regarding 2023, UAE offers online and mobile banking systems for endless transactions. Besides, you have to choose the best bank in UAE.

Benefits of opening a bank account,

a) No foreign exchange control – easy international transaction

The UAE banks follow an IBAN system where clients get free payments from Europe. Apart from that, UAE has no legal restrictions on withdrawing money abroad.

b) High-security

The UAE banks are highly-secure and listed as the top in the international credit rating. As per the Fitch sovereign rating, UAE holds a stable outlook in third place.

c) Account maintenance

The banks provide free maintenance for accounts with no minimum balance or frequent top-ups. European banks generally charge for maintenance.

d) Interest on deposits higher than inflation

The interest rate is up to 2% whereas inflation is less than 1%. The average annual inflation over the past five years is negative in the range of -2 to 2%.

e) No income tax

The country’s residents are free from many taxes. So, it’s not necessary to pay several taxes such as inheritance, luxury, dividends, royalty, and gifts.

To become a tax resident, you have to apply for a resident visa in UAE. ‘

What are the different types of accounts in UAE banking?

Unlike other countries, UAE offers different bank types based on the needs of residents and foreigners.

The different types of bank accounts include,

a) Current account

A current account allows everyday transactions and amount transfers. The account provides checkbooks. You can use the cheque to issue a rent cheque. The UAE banks offer two types of current accounts based on salary transfers. If you’re employed open a bank account with company bankers. So, you get the salary immediately after the transfer. If it’s another bank, the salary may delay up to one or two days.

b) Savings accounts

Savings accounts offer high-interest rates compared to current accounts. The account has restricted access to funds. Moreover, you are supposed to pay penalties for withdrawals. The savings account offer variable or fixed interest rate. It also works as a salary account with a checkbook.

c) Investment account

The banks operating in UAE offer investment services. Open an investment account by signing an agreement with the bank. The contracts usually run from 12 months to 5 or 10 years. Investment agreements manage your funds with assured returns of 3 to 7 % per year. The least investment balances vary from bank to bank.

d) Offshore accounts

Being a haven for entrepreneurs and employees, offshore banks from all jurisdictions offer their representation in UAE. Any person with a valid residence visa can open an offshore account to export or import funds. Offshore banking is a stable and reliable account with financial and legal advantages.

Steps to open a bank account in Dubai – an overview

As a first step, you have to get a residence visa and submit proof of stay. Next, you have to select the bank for account opening.

You have to submit the following documents for account setup,

If you’re an employee of Dubai company, provide NOC or no objection certificate

Original passport and its copy

Dubai residence visa copy

Salary certificate

Few banks may ask to submit proof of residential address like a rental contract, etc.

While opening a bank account, the account holders receive a debit card, checkbook, and credit card. It depends on the type of account.

How to open a bank account as a non-resident?

Non-residents or people outside Dubai can open current or savings accounts without too many conditions. But once they have to deposit a small amount, they have to follow the rules.

In the case of documents, you have to submit the original passport and its copy if the person is not situated in Dubai. As per the bank, you may have to share additional information. Also, it depends on the nationality of the client.

If you’re a foreign citizen who lives in Dubai temporarily, you have to submit the following documents,

a) Utility bill indicating the address of the applicant

b) Personal profile or resume to check the professional background of a client

c) Bank reference letter from another bank where have an active account

d) Information on the source of funds

In certain cases, you have to maintain a minimum balance in the account to keep it active. The amount depends on the selected bank.

Most UAE banks don’t impose fees for transactions. But, some banks demand a minimum balance of AED 3000.

How Flybiz helps in a bank account opening in Dubai?

Bank account opening differs from bank to bank. But, our experts at Flybiz help you cover all the steps with proper guidance.

As a team, we assist in,

a) Validating the corporate and personal documents

b) Complete all the bank forms and forward them for your signature with relevant guidelines.

c) Submit for final authorization.

d) Check for the account distribution

Flybiz business setup firm evaluates the risk factors and provides the best banking solutions in Dubai.

We help you choose the best bank and ensure high-quality account opening services.

Want to know more? Call us and share your requirements. We serve you the best!