Do you want to open a bank account in UAE but are clueless about where to start?
If this is your key concern, then this blog post is for you.
Continue reading!
It can be challenging to open a business bank account in the UAE because the UAE Central Bank requires you to go through a number of strict compliance steps.
This doesn’t have to be the case if you hire professional consultants in the UAE. With that in mind, expert business consultants of Bizstart offer bank account opening services in the UAE.
Our experienced consultants guide you through the entire process so that you open a bank account in UAE effortlessly.
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In this guide, we tell you everything you need to know about banking in the UAE, such as how to open a bank account and what documents you need.
Banking in the UAE
The UAE has a strong banking system, which is overseen by a central bank that was set up in 1980.
According to a report, the UAE banking system remains stable in the economy.
This is because the banks have strong levels of capital and liquidity buffers. Most of the money in UAE banks comes from deposits. Also, their high levels of capital give them a big loss-absorbing buffer.
In the UAE, there are four different kinds of banks, which are:
- Business banks
- Industrial banks
- Investment banks
- Islamic banks
In the past few years, banks in the UAE have added Shari’a banking services to meet the needs of customers who follow Islamic financial rules.
Bank account types in the UAE
Banks in the UAE provide a variety of personal accounts for citizens and non-residents equally, just like in other countries.
● Current accounts
These work well for transfers and transactions on a daily basis.
They also provide checkbooks, which you will require to give your landlord post-dated rent cheques.
Banks in the UAE typically provide two types of current accounts: ones that accept salary transfers and those that don’t.
If you have a job, it makes perfect sense to open a bank account with the bankers of your company. In this way, you will get the salary as soon it is transferred. When using a different bank, transfers can take an extra day or two.
● Saving accounts
Ask about a savings account if you want your money to work for you. These often have greater interest rates than current accounts, but there may be restrictions on how much money you may withdraw and potential fees.
Fixed or variable interest rates are available for savings accounts. They can be worth dirhams, US dollars, euros, or pounds sterling, at your discretion.
● Offshore accounts
Offshore banks worldwide offer representation in the UAE, particularly in Dubai, as a shelter for foreigners.
To import and export money, anyone in the UAE with a current residency visa can create an offshore bank account.
Many offshore accounts also come with particular financial and legal advantages, such as lower tax rates, and offshore banking is often regarded as solid, dependable, and secure.
● Investment account
UAE-based banks also provide investment services. You can open an investment account when you sign an investment contract with the bank.
These agreements may last anywhere from one year to five, ten, or even more years.
How can you open a bank account in the UAE?
Setting up a banking relationship in the UAE is easy and quick. Depending on the type of account, the process usually takes anywhere from a day or two to a couple of weeks.
Different accounts require different documents.
In the UAE, foreigners can open bank accounts in a couple of business days. As a resident, here are the most important things you need to do to open a personal savings or current account:
- Your original passport and its copy
- A copy of the page of your visa that shows you live in the UAE.
- A salary certificate, which you can get from the HR department of your company.
- Some banks may ask for your Emirates ID card, but if you do not have it yet, you can usually get it later. Instead, they might just ask for a copy of the form you filled out to get your Emirates ID.
People who do not live there can only open savings accounts. You would not be able to ask for a chequebook, but you will be given a debit card that you can use to get cash.
Also, people who do not live there may be asked for the following papers:
- Latest utility bill
- A letter of recommendation from a bank where the applicant already has an account.
- The applicant’s most recent personal bank statement from the country where they were born or from anywhere else in the world.
- Details about where the money is coming from
Open a bank account in UAE without any hassle
If you want to live and work in UAE, you need to know how to open a bank account. This helpful guide makes it easy to open a bank account and keep track of your money.
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