Opening a personal bank account in the UAE is a straightforward process. In a nation that has elevated luxury to a fine art, most services are readily available through home delivery. Banking is no exception. Once you have obtained your UAE residence visa, you can simply make a phone call. Then, sit back and wait for a bank representative to come to your home or office to assist you with opening your new personal bank account.
This guide provides comprehensive information about accessing banking services in the UAE. We will explain the steps required to open a bank account in the Emirates, detail the necessary documentation, and outline the process for closing a bank account.
By the end of this guide, you will have a thorough understanding of how to manage your banking needs while living or working in the UAE.
Banking in the UAE
The UAE boasts a robust banking sector that is regulated by a central bank, which was established in 1980. There are approximately 50 local and foreign banks operating within the country. According to the rating agency Moody’s, the UAE banking system is classified as stable, owing to the banks’ resilient capital levels and ample liquidity buffers. Banks in the UAE are primarily funded through deposits, and their strong capital positions provide a significant loss-absorbing cushion.
The UAE banking landscape comprises four main types of institutions:
- Commercial banks
- Investment banks
- Industrial banks
- Islamic banks
In recent years, banks in the UAE have expanded their service offerings to cater to consumers with Islamic financial requirements. There are now eight fully-fledged Islamic banks and 23 Islamic banking windows operated by conventional banks. Collectively, these Shari’a-compliant institutions account for 19 percent of the total banking sector assets.
Banks operating in the UAE have adopted several global standards, including the International Accounting Standard, the International Financial Reporting Standards, and the capital adequacy regulations aligned with Basel III. All banks in the UAE provide services in both English and Arabic.
Do you need a bank account in the UAE?
While it is possible to manage your finances using an overseas bank account, most expatriates living in the UAE find it beneficial to have a local bank account. There are several key reasons why a UAE-based bank account is advantageous:
- Employer requirement: Many employers in the UAE will require you to have a local bank account in order to receive your salary payments.
- Reduced transfer fees: Although the UAE’s banking system is well-connected globally, local creditors may be reluctant to transfer money overseas due to the high fees associated with international transactions.
- Easier access to credit: Having a local bank account can simplify the process of obtaining credit cards, car loans, and home mortgages in the UAE.
Types of bank accounts in the UAE
The UAE offers a diverse range of personal bank account options for both residents and non-residents.
Current accounts
Current accounts are ideal for everyday transactions and fund transfers. They typically come with checkbooks, which can be useful for issuing post-dated rent checks to landlords. Banks in the UAE offer two main types of current accounts – those with salary transfer capabilities and those without. If you are employed, it is often advantageous to open an account with your employer’s bank to ensure timely receipt of your salary payments.
Savings accounts
For those looking to grow their money, savings accounts are available. These typically offer higher interest rates than current accounts, but may have limited withdrawal access and potentially incur penalties for early withdrawals. Savings accounts can be denominated in dirhams, U.S. dollars, euros, or pounds sterling, and can feature either fixed or variable interest rates. While savings accounts can serve as salary accounts, they generally do not include checkbook facilities.
Investment accounts
Banks in the UAE also provide investment services, allowing customers to open investment accounts upon signing an investment agreement. These agreements can range from 12 months to 5, 10, or more years, and cover the management of your funds with a minimum assured annual return of 3 percent to 7 percent. or higher. The minimum investment balance varies across different banks.
Offshore accounts
As an expatriate haven, the UAE hosts representations of offshore banks from jurisdictions worldwide, particularly in Dubai. Residents with valid UAE visas can open offshore bank accounts to facilitate the import and export of funds. Offshore banking is generally considered stable, reliable, and secure, often offering distinct financial and legal advantages, such as lower tax rates.
Offshore banking services in the UAE encompass a range of offerings, including asset protection, private banking, wealth management, portfolio management, tax consultation, inheritance planning, and company formation. Some of the major offshore banks operating in the UAE include HSBC Offshore, Abbey National Offshore, ABN Amro, Dresdner, and Barclays.
Opening a bank account in the UAE as an expat
Establishing a bank account in the UAE is a relatively quick and straightforward process for expats. The time it takes can range from as little as a day or two up to a couple of weeks, depending on the type of account.
Expat residents
As a resident of the UAE, the basic requirements for opening a personal savings or current account include:
- Your original passport plus a photocopy
- A copy of your UAE residence visa page
- A salary certificate from your employer’s HR department
- Some banks may ask for your Emirates ID card, but this can often be provided later if you haven’t received it yet. Alternatively, they may just require a copy of your Emirates ID registration form.
Non-resident accounts
Non-residents can only open savings accounts in the UAE. While you won’t be issued a checkbook, you will receive a debit card for withdrawals. Non-resident accounts also typically have minimum and/or maximum balance requirements.
Additional documents that non-residents may need to provide include:
- Most recent utility bill
- Reference letter from another bank where you hold an account
- Latest 6-month personal bank statements from your home country or elsewhere
- Information on the source of your incoming funds
The bank may also choose to run a background check before approving a non-resident account opening.
Overall, with the right documentation, expats can generally open a UAE bank account within a few working days.
Mobile banking in the UAE
The UAE has embraced cutting-edge technology in many aspects of life, including banking. Two banks now allow residents to open accounts entirely through a smartphone app, without the need to visit a physical branch:
- Liv, offered by Emirates NBD
- Neo, powered by Mashreq
The process is simple – download the app, scan your Emirates ID, and fund the account. Within a day, a local delivery service will bring you a new debit card. These cards are typically accepted internationally and at a wide network of ATMs. Residents also receive IBAN account numbers and SWIFT codes, enabling easy transfers to and from other bank accounts.
Most major banks in the UAE now provide robust internet and mobile banking services, catering to the tech-savvy preferences of the population.
Opening a corporate bank account in the UAE
In the UAE, businesses are required to establish a company before opening a dedicated commercial bank account. Personal accounts cannot be used for business purposes under local regulations.
The typical corporate account is a current account, designed to facilitate a high volume of transactions. The full account opening process generally takes 2-4 weeks to complete.
For expats setting up a business account, an additional set of documentation is required, which may include:
- Company trade license
- Certificate of registration
- Share certificates
- Company memorandum and articles of association
- Board resolution authorizing a company officer to open the account
- Passport and visa copies for shareholders and authorized signatories
The specific document requirements can vary depending on the bank and the type of company being established. It’s advisable to check with the prospective banking institution to ensure all necessary paperwork is prepared in advance.
Opening bank accounts for children in the UAE
According to UAE Central Bank regulations, only individuals over the age of 21 can independently open their own bank accounts. Minors under 21 require assistance from a parent or legal guardian to open an account.
The regulations state that in the UAE, only fathers are permitted to open bank accounts for their children, as they are considered the natural guardians or custodians under Sharia law. Mothers, even if they are the legal guardians, cannot open accounts for their children directly. However, after the father opens the account, he can provide the mother with a Power of Attorney to manage the account on an ongoing basis.
Many banks in the UAE, especially Islamic banks, offer specialized savings accounts and features to encourage children to develop good saving habits. These include money boxes, educational cartoons, complimentary prepaid cards, and welcome packs.
It’s important to note that UAE law prohibits parents from making any withdrawals from a child’s account until the child reaches 18 years of age. Some banks may allow children aged 15 and above to have their own debit cards.
The required documents to open a child’s bank account include:
The child’s original passport and a copy
- The guardian’s (father’s) original passport and a copy
- Copies of the visa pages for both the child and guardian
- The guardian’s salary certificate
- Copies of the Emirates ID cards for both the child and guardian
Dealing with bank account refusals in the UAE
While it is highly unusual for legally resident expats to be refused a bank account in the UAE, banks do reserve the right to deny an account if they perceive the applicant as a potential risk.
Each bank has its own specific customer profile requirements and minimum transaction thresholds that applicants must meet. Banks may refuse to onboard a customer if they cannot provide satisfactory documentation to confirm their identity, employment status, and the nature of their work.
Other common reasons a bank may refuse to open an account include:
- If another bank has previously blocked the applicant’s account due to suspicious activity
- The applicant cannot provide a clear source of funds
- Repeated failure to meet minimum balance requirements or, for corporate accounts, minimum turnover
- If the applicant is on a list of restricted persons, such as a foreign politician or known criminal
All banks in the UAE operate under the regulations of the UAE Central Bank, which has implemented stringent Know Your Customer (KYC) policies to meet international standards. As part of this, banks routinely ask applicants questions and scrutinize account transactions both before and after opening personal or corporate accounts.
While frustrating, applicants who are refused a bank account should request detailed feedback from the bank on the specific reasons for the refusal. This can help identify any issues that need to be resolved before reapplying elsewhere.
Managing your bank account in the UAE
Banks in the UAE cater to customers through a variety of service channels, allowing you to manage your money and finances in the way that best suits your preferences.
In-person banking
While digital and mobile banking have become the norm, many customers still prefer to visit bank branches for certain transactions. Although banks are gradually shifting towards branchless models, many financial institutions in the UAE maintain service counters at prominent malls and other locations across the country to better serve their customers. These in-person services typically do not require appointments.
Online banking
UAE banks offer 24/7 online banking access, allowing customers to manage their accounts remotely. Digital banking is a key feature of most modern banks in the Emirates. Many services and products, including loans, can be accessed and processed entirely online. Some banks even provide live online chat support to assist customers with any issues.
Mobile banking
Mobile and smartphone-based banking has seen significant growth in the tech-savvy UAE market. Many residents now prefer to handle their financial management directly from their mobile devices. Some banks in the UAE are mobile-only, offering all their services exclusively through a dedicated app rather than physical branches.
Through these diverse banking channels, UAE customers can conveniently manage their funds, access services, and make a range of payments – all at their fingertips, whether in-person, online, or on the go.
Read more: How to get a work permit in the UAE?: A complete guide
Bank account fees and charges in the UAE
To protect consumers, the UAE Central Bank has standardized the fees and charges associated with various banking transactions. As of the most recent update in 2018, the key fee caps are as follows (note: AED1 is equivalent to $0.27):
Account opening: No fees
Minimum balance: Maximum of AED5,000
Minimum balance penalty: AED50 per month
Using another bank’s ATM in the UAE: AED2 per transaction
New checkbook: AED25 (first one is free)
Manager’s check issuance: AED30
Account balance letter: AED50
No liability certificate: AED60
Release letter: AED50
Bounced check fee: AED100 (no charge if check was written to yourself)
Account closure: AED100
These standardized fees help ensure financial institutions in the UAE do not overcharge customers for common banking services and transactions. Customers should be aware of these capped rates when managing their accounts to avoid unexpected or excessive charges.
Changing banks or closing accounts in the UAE
When expats need to leave the UAE, they are typically granted a one-month grace period after cancellation of their residence visa to handle their administrative affairs, which is more than sufficient time to close a bank account – a process that usually takes around five days.
It is important to close the account properly to avoid any lingering fees or issues. Simply withdrawing all the funds and leaving the account empty can result in the bank continuing to charge a monthly maintenance fee, which could create an unpleasant surprise upon a future visit or transit through the UAE.
Before closing the account, expats must ensure that all loans, credit card debts, standing orders, and outstanding checks have been fully resolved. It is also advisable to request a confirmation letter from the bank certifying the absence of any outstanding obligations.
When closing the account, the customer should provide written instructions on where to transfer any remaining funds if they are overseas, or indicate if they will be picking up the balance in person at the branch. Account closures may incur a fee, with the maximum being AED100.
Following the proper procedures when changing banks or closing an account in the UAE helps avoid potential complications down the line, especially for those planning to return to the country in the future.
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