Opening a bank account in the UAE has never been easier with the introduction of mobile banking it is now possible to open and access your bank account from your smartphone which makes it all the more convenient for residents. In this article we will be discussing the different types of bank accounts you can open in the UAE , as well as the steps and procedures that are required to open these accounts.
Types of Bank Accounts in the UAE
The UAE offers 4 different types of personal accounts which can be opened by both residents and non-residents:
1. Current Accounts
Current accounts are usually used for everyday transactions and transfers. UAE banks usually offer 2 kinds of current accounts, with or without salary transfers.
2. Saving Accounts
Saving accounts offer higher interest rates than current accounts, however they may limit your access to funds and you might be subjected to penalties for withdrawals. Different savings accounts in the UAE can offer either a fixed or variable interest rate and you can choose to denominate them in dollars ,euros, pounds or dirhams.
3. Investment accounts
Banks in the UAE also offer investment services. You can open an investment account by signing an investment agreement with the bank. Contracts usually last from 1 year to more than 10. Different banks have agreements in place that cover the management of your funds with a minimum assured return of 3 to 7% per year and in some cases this may be higher. Different banks have minimum investment balances.
4. Offshore Accounts
Offshore banks from all over the world offer representations in the UAE especially in Dubai. People with a valid UAE residence visa can open an offshore bank account to import and export funds. Offshore banking services in the UAE includes numerous different services such as asset protection, private bank accounts, wealth management, portfolio management, tax consultation, inheritance planning and company formation .
Now that we have covered the different types of accounts in the UAE, we can now talk about how exactly we can open a bank account in the UAE as an expat.
Opening a bank account in the UAE can be convenient and quick. The process usually takes up to 1 or 2 working days but can also take up to a couple of weeks, however this depends on the type of account.
As a resident, the basic requirements and documentation for opening a personal current or savings account are:
– Your original passport + a passport copy
– Emirates ID Copy
– A copy of your visa page which proves you are a UAE resident
– A salary certificate or NOC letter from sponsor
– Trade license copy (for a company)
– Additional requirements may apply on case to case basis
Non-residents are only allowed to open a savings account. They will not be able to ask for a checkbook however, they will be given a debit card that they can use to withdraw money . non-residents are also subjected to a minimum and/or maximum balance. A bank may also decide to run a background check before you are allowed to open the account .
Most Emirati banks require non-residents to hold a monthly average balance of around $USD100,000. This is due to the federal government deciding to impose tighter regulations around its financial system . The UAE mandates the applicant is present to open the account.
If ou are from a country where the official language isn’t English, it’s best to get all of your documents translated. The Central Bank in the UAE issued a Know Your Customer (KYC) policy for all banks . This is done to ensure that they remain compliant with international standards. Therefore Bank tellers or other representatives may ask you questions about transactions before or after opening the account .
Non-residents may be also asked for the following documentation:
– Latest utility bill
– An original reference letter from another bank where the applicant has an account
– The most recent six-monthly personal bank statement from the applicant’s county of origin or anywhere in the world
– Information on the source of incoming funds
Opening a corporate bank account in the UAE
If you need a bank account for commercial reasons , you’ll need to establish a company first then open an account. UAE regulations don’t allow you to do business through a personal account. In general , your corporate account will need to be a current account in order to facilitate the high volume of transaction. The process usually will take about two to four weeks.
Expats in the market for business accounts require an additional set of documents. While these vary according to the bank and type of company, they might include:
– Company Trade license
– Certificate of registration
– Share Certificates
– Company memorandum and articles of association
– Board resolution empowering a company officer to open the account
– Passport and visa copies for shareholders and authorized signatories
Mobile banking in the UAE
There are two banks in the UAE that offer residents the opportunity to open accounts over the internet via a smartphone app:
– Liv, supported by Emirates NBD
– Neo , supported by Mashreq
These work via a mobile app which asks you to scan your emirates ID to verify your identification. Once this is done, a local delivery service will contact you and deliver your new debit card to you doorstep. These cards are then valid to be used at a range of ATMs. Residents are also given IBAN account numbers and swift codes so transferring money to and from different bank accounts are possible .
Children’s Bank Account
Banks in the UAE even offer services which allow you to open bank accounts for your children. The UAE Central Bank only allow fathers to open bank accounts for their children, as they are their natural guardians according to Sharia Law. Mothers, even if they are legal guardians, are not able to open accounts for their children.
However, this can be worked around by the mother being provided a Power of Attorney by the father which allows the mother to manage the account without the need of the father being present. Parents are not allowed to make any withdrawals until the child reaches the age of 18 . However , if you wish to allow your child to have access via a debit card, some banks are able to provide a debit card for children above the age of 15.
These are the documents that are required to open a bank account for a child:
– The child’s original passport + a passport copy
– The guardian’s original passport plus a copy
– A copy of the visa pages for both the child and their guardian
– The guardian’s salary certificate
– Emirates ID card copies for both
Laws that discuss the banking regulations of the UAE include :
“Decretal Federal Law No. 14 of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities” and “Federal law No. 6 of 1985 regarding Islamic banks, financial institutions and investment companies”
Managing your bank account in the UAE
UAE banks cater to customers in a variety of way. You are now able to choose how to manage your money and finances with Emirati banks, whether via counter services or remotely
1. Face-to-Face
2. Online Banking
3. Mobile Banking
As discussed, it has never been this easy to open and manage a bank account here in the UAE, with the wide range of banking services and methods made available to the public it has never been this convenient before and you can manage your account from anywhere at anytime .
Sources
– https://www.expatica.com/ae/finance/banking/how-to-open-a-bank-account-in-the-united-arab-emirates-71466/
– https://u.ae/en/information-and-services/business/running-your-business/running-a-business-on-the-mainland/opening-a-bank-account
