Bank Account in UAE

A Comprehensive Guide to Opening a Bank Account in the United Arab Emirates for Entrepreneurs

The United Arab Emirates (UAE) is a rapidly growing destination for individuals looking to relocate, attracting newcomers around the globe. It offers a diverse blend of oceanic beauty, bustling city life, and much more, all in one place.

However, if you plan to move to the UAE, having a bank account is essential. Multiple bank accounts can simplify the process of managing your finances and conducting transactions in your new home.

To assist you, we’ve prepared a concise guide on how to open a bank account in the UAE. Let’s explore everything you need to know about the UAE’s diverse banking services!

Most UAE banks rely heavily on deposits to fund their operations, providing a strong financial cushion against potential losses. The UAE’s banking landscape encompasses four primary categories of banks:

1. Commercial banks
2. Investment banks
3. Industrial banks
4. Islamic banks

Types of Bank Accounts Available in the UAE

Before embarking on the process of opening a bank account in the UAE, it’s important to familiarize yourself with the various types of bank accounts available, catering to both residents and non-residents.

1. Current Accounts:
Offered by Emirates Islamic, these accounts are designed for daily transactions and come with checkbook and debit card facilities. Two types of current accounts are available: those with salary transfers and those without. Salary transfers ensure quicker access to your income.

2. Savings Accounts:
Ideal for maximizing savings, these accounts typically offer higher interest rates than current accounts. However, they may have limited access and penalties for withdrawals. Savings accounts operate on either variable or fixed interest rates, with the option to denominate funds in various currencies.

3. Investment Accounts:
UAE residents can enter into an investment agreement with banks to open investment accounts. Investment periods usually range from 12 months to 10 years, providing a minimum assured annual return on investment (ROI) between 3 to 7%.

4. Offshore Accounts:
The UAE offers offshore banks, especially in expat-centric locations like Dubai. Offshore banking services encompass asset protection, wealth management, portfolio management, private bank accounts, company formation, and inheritance planning.

How to Open a Bank Account in the UAE

Opening a bank account in the UAE is a straightforward and efficient process, typically taking a few days to a couple of weeks. Here’s what you’ll need:

For UAE Residents (Current or Savings Accounts):

1. Original passport and a copy
2. Copy of your UAE resident visa
3. Salary certificate
4. Emirates ID card or copy of the registration form (if not yet received)

For Non-Residents (Savings Accounts):

Non-residents can open savings accounts, but they won’t receive chequebooks. They will, however, receive a debit card.
Background checks are often required, and additional documents may be requested, such as a recent utility bill, reference letter from your home bank, and bank statements proving consistent funding sources.

Opening an Account via Mobile Banking:

Some banks in the UAE offer mobile account creation through their mobile banking apps. Examples include Wio and Neobiz.
To open an account through a mobile app, download the application, and scan your Emirates ID.
Follow the on-screen instructions for account setup, add initial funds, and await delivery of your debit card.
These debit cards are internationally accepted and come with Swift codes and IBAN account numbers for easy transfers.

Corporate Accounts:

If you plan to conduct business in the UAE, you must open a corporate bank account as personal accounts are not permitted for business purposes.
Corporate accounts are typically current accounts to handle a high volume of transactions.
The process takes two to four weeks, and additional documents may be required, including your company trade license, registration certificate, share certificates, articles of association and memorandum, and authorization letter from the board.