Bank Account Opening in the UAE

BANK ACCOUNT OPENING IN THE UAE

Bank Account Opening in the UAE

UAE has become one of the most popular countries hosting around 200,000 newcomers each year. Home to a fast-paced life in the city, coupled with amazing ocean views, UAE has everything you could ask for in one place. If you’re shifting to the UAE, you’d need to have at least one bank account to move the money around and pay for services and goods in the country. To help you through the process, we’ve covered a complete guide for you about bank account opening in UAE. Let’s have a look at everything in detail.

Banking in the UAE: An Overview

Before we head into the process of bank account opening in the UAE, let’s have an overview of the UAE’s banking sector. The central bank is responsible for regulating the banking system. Other than UAE’s central bank, the country has around 50 local and international banks spread across the country. Because of the flexible capital levels and liquidity buffers, the banking system in the UAE is relatively stable. Most of the UAE banks get funded through deposits. A higher buffer is offered by these strong capitals, absorbing the losses. Talking about the bank types in the UAE, you have four main types that are as follows.

Investment banks
Commercial banks
Islamic banks
Industrial banks

Islamic banks have remained the most popularly used banks in recent years. This is because of the expansion of services using Islamic financial requirements by the UAE banks for their consumers. This tends to be essential for the Islamic citizens who live in the UAE. In the nation, there are currently 23 Islamic bank windows along with 8 fully functional Islamic bank operating systems, making up almost 20% of the banking sector of UAE. Banks other than Islamic banks operate in the nation for international and foreign customers, adopting different international regulations. These banks offer their services in English and Arabic.

Why Do You Need a Bank Account in the UAE?

Most ex-pats think that opening a business bank account UAE is a good option even though it is possible to manage money with an overseas account. There are a few reasons for this. Firstly, some employers may ask for a local account, so you may need one. Secondly, with the high fees, some local creditors may not be willing to send money overseas, even with the well-connected baking system of the UAE. Thirdly, having a local bank account in the UAE makes it easy to get a home mortgage, car loans, and credit cards. You may need to have a bank account in UAE for these reasons.

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Types of UAE Bank Accounts

There are many personal bank accounts for residents and non-residents in UAE. Here are the four types of bank accounts in the UAE.

1. Current Accounts

These are suitable for daily transactions and transfers. This bank account comes with checkbooks that are ideal for giving your Landlord the rent checks. The UAE banks typically open two different current account types, one with and the other without the option of salary transfers. If you are employed in the UAE, it's best to open your account at your employer’s bank, ensuring that you receive your salary faster. With other banks, it may take longer.

2. Investment Accounts

Investment services are also offered by the banks operating in the UAE. To open a UAE investment account, you will have to sign an investment agreement with the bank, allowing you to open this account. The investment period is usually between 12 months to 10 years or even longer. You can get a minimum assured return of around 3-7% or higher every year with this investment agreement. Investment accounts have a minimum balance, which can vary based on the bank.

3. Savings Accounts

People who want to get the most from their money tend to use the savings account option in the UAE. These accounts offer a higher interest rate than other accounts with only limited funds access. Penalties can also be given for withdrawals.
Saving accounts may work with a fixed or variable interest rate. You can select the currency for your funds. Saving accounts may also function as salary accounts, but it may get inconvenient for such use because of the absence of a checkbook.

4. Offshore Accounts

The UAE, an ex-pat haven, gives offshore banks from jurisdictions worldwide. This is true in Dubai, where ex-pats often work and live.
In the UAE, anyone with a valid residence visa can open an offshore account for importing and exporting funds. This is seen as a reliable, stable, and secure way to move money. It also has lower taxes when compared with the other options.
Offshore banking in the UAE covers different services, including private link accounts, portfolio management, inheritance planning, tax consultation, asset protection, wealth management, and company formation.

How to Open a UAE Bank Account

The process of opening a bank account in the UAE is straightforward and stringent, requiring certain paperwork. This is different for every bank. Dubai bank offers standard banking services, including savings, current, offshore, and deposit accounts.

It is necessary to mention the Corporate bank accounts in the UAE process because it tends to vary for each bank. The bank opening process can take some time because these compulsory application steps need to be completed. We think it’s best to get help from professionals who can guide you in this process. To get a general awareness about opening a bank in UAE, you can read the guide below.

Current Requirements to Open a Bank Account Online UAE

As per UAE financial institutions’ legal procedures for bank account opening, it’s necessary for you to be personally present. Without this, the process will be illegal. Being present is necessary because your personal identity confirmation and signature of documents are needed to allow the opening of your company bank account opening in the UAE.

Requirements for Opening a Bank Account

Below, we have covered the list of documents needed for opening different UAE bank accounts.

UAE Resident Sole Proprietorship Co. Corporate Bank Account Opening

Your trade license
Partnership Agreement
Every partner’s passport copy
Power of Attorney – if the Power of Attorney holder opens and runs the account s
POA, the court should have issued the notarized document.

Offshore Company (RAK IC, AFZA, JAFZA) Corporate Bank Account Opening

Certificate of Incorporation
Memorandum of Article of Association
Shareholder(s) passport copies – original passport of signatory will be seen
The Share certificate if the AOA or MOA doesn’t mention the share percentage
Ultimate beneficiary’s passport copy (if possible)
Visa copy in the case of a Dubai resident, and passport entry stamp page of the signing authority when the person had come to UAE last
The tree diagram of the company structure on the company letterhead
Partner’s CV
Business or company profile
Power of Attorney/Board Resolution in the authorized signatory’s favor to operate, open, and close a bank account in the company’s name.
Any other required document for verification that the bank requested for

UAE Free Zone Company Corporate Account

Trade license or incorporation certificate
Share certificate – if the AOA or MOA doesn’t mention the share percentage
All partner’s passport copies (if any), signatory signed. (Only the signatory’s original passport will be seen)
Article and Memorandum of Association
Board of Resolution (in possible)

If there is any amendment or change in the original company documents, the same has to be attested and notarized by the relevant free zone.

FOREIGN COMPANY, Corporate Bank Account, Opening

A foreign company can open a bank account in Dubai as well. A foreign company has been registered outside the United Arab Emirates, regardless of whether it is an onshore or offshore company in any jurisdiction worldwide. For opening a bank account, you need all the documents attested and legalized from the embassy of UAE in the country of origin and later from Dubai’s ministry of foreign affairs. The process is, however, expensive.

Article and Memorandum of association
Certificate of incorporation
Passport copies of every partner (Signatory’s original passport will be seen)
The share certificate – if the AOA or MOA doesn’t mention the share percentage
Ultimate beneficiary’s passport copy (if any)
Shareholder’s documents are needed after notary, legal, and MOFA stamping if the case is of corporate shareholdings structure
Tree diagram of the company structure on the letterhead of the company
CVs of each partner
Business or company profile
Any document required by the bank for record verification

All documents need to be notarized and attested by the UAE consulate/Embassy from the origin country and UAE’s ministry of foreign affairs. If this seems challenging, no need to worry, we are here to help you with the process.

British Virgin Islands (BVI) Corporate Bank Account Opening

Articles and memorandum of association
Certificate of incorporation
Power of attorney/board resolution in authorized signatory’s favor to operate, open, and close the bank account in the company’s name
Shareholder and signing authority’s (if any) passport copy
The bank statement for the recent three months for signing authority
Company’s share certificate (if there is any)

All documents need to be notarized and attested by the UAE consulate/Embassy from the origin country, and later by the UAE’s Ministry of foreign affairs.

Personal Bank Account Opening for Non-Resident

Copy of the passport with entry page
Bank statement of previous 6 months from home country
Reference letter from the Bank
Utility bill
The client must invest in products like bonds, investments, insurance (USE 500 minimum) and receive a zero balance account
Or Maintain a 200,000 AED average balance

It is important to consider that the bank may ask for any additional information concerning the international practice to meet the regulations and establish the principle of “Know Your Customer.”

You can use an online account opening in UAE with your mobile services. We are here for your assistance.

Top Commerical Banks in the UAE

Want to open a bank account in Dubai? Here are the top UAE commercial banks that you need to consider.

Emirates Islamic Bank

Emirates Islamic bank is the Emirates NBD’s subsidiary. It is one of the best commercial banks in the UAE that support a quick approval process with minimum balance requirements. Its services include corporate banking, business banking, and personal banking.

Emirates NBD

Emirates NBD is a merged version of the national bank of Dubai and the Emirates Bank International, making it one of the most significant UAE projects. With its headquarters in Dubai, the bank offers different services like wholesale banking, retail banking, Islamic banking, credit cards, investment banking, credit cards, and mortgages.

Mashriq Bank

Mashreq bank has its headquarters set in Dubai, operating since 1976 as one of the oldest UAE banks. It offers multiple services like commercial banking, retail banking, Islamic banking, investment banking, assessment management services, and brokerage services.

Dubai Islamic Bank

Dubai Islamic Bank has the best services in UAE, and also it has established its headquarters in Dubai. It has several banking segments, including corporate baking, consumer banking, treasury, and real estate development.

First Abu Dhabi Bank

First Abu Dhabi Bank is the largest bank in the UAE, being a merger of two banks. Its headquarters in Abu Dhabi offers multiple banking services, including corporate, private, retail, and Islamic banking. Their services include debit and credit cards, insurance, loans, accounts, and savings.

Rak Bank

Rak Bank was established in 1976. Now it has headquarters in Ras Al-Khaimah in the UAE. It offers commercial and retail banking services and operates through five segments, including wholesale banking, retail banking, insurance banking, treasury, and business banking.

ADCB Bank

ADIB bank

Ajman Bank

CBI Bank

Citi Bank

Standard Chartered Bank

CBD NOW Bank

Service Fees for UAE Bank Account Opening

In the UAE, banking transaction fees follow standardized rates to prevent overcharging by financial institutions. Here are the service fees for opening a bank account in the UAE.

Service Type	Timeframe and Fee
Personal Resident Bank Account	Takes 3 to 7 working days Starting cost 925 AED
Personal Non-Resident Bank Account	Takes around 5 to 10 working days Starting cost 3,699 AED
UAE Free Zone/LLC Company Corporate Bank Account	Takes around 3 weeks Starting cost 7,500 AED
UAE Offshore company in UAE Corporate Bank Account Opening	Takes around 4 weeks Starting cost 9,200 AED
Individual/Corporate Bank Account Closing	Takes 4-10 working days Starting cost 1,850 AED
General Consultation on Bank Account	Costs per hour Starting cost 1,850 AED
Bank Account Opening Assistance (complete guidance on opening UAE bank account)	Cost per hour Starting cost 1,850 AED

How Idea Bizone Can Help You Open a UAE Bank Account?

Opening a bank account in the UAE, regardless of which one, can include a series of complex steps and processes that may hard to deal with on your own. Idea bizone offers unique and specialized services for you, helping you open your personal or corporate bank account.

With our strong reputation and 100% customer satisfaction, we are your one-stop-shop for all your needs. We promise you the best pricing, services, and quality, giving you objective and realistic information about the services, fees, and timelines to help you make the best decisions for yourself.

Being one of the best consultants in the UAE, we assist our valuable customers in opening their bank accounts. Contact us and get your consultation today!