The Importance of a UAE Bank Account for Non-Residents & Residents

One of the very first steps after registering for your business license in Dubai is to open a bank account. Residents in Dubai will need personal or corporate accounts as per their specific needs. Given the rules and regulations of a foreign country, opening a bank account in Dubai for foreigners can seem daunting.

Banking in the United Arab Emirates is regulated by a Central Bank that has rolled out stringent compliance procedures. It is for this exact reason that you will need banking experts walking you through the entire process of opening your bank account, seamlessly and hassle-free.

Four Main Categories of Banking Institutions in UAE:

Commercial Banks

Investment Banks
Industrial Banks
Islamic Banks

Why Should UAE Entrepreneurs Open a Bank Account in Dubai?

Businesses in UAE have a lot of operational expenses that are time and speed sensitive. From making payments & transactions, releasing salaries, paying fees, trade expenses, research and development, pretty much all aspects of modern trade have an element of money in them. Opening a corporate bank account in Dubai allows you to:

  • Make relevant trade decisions.

  • Gain access to funds when needed.
  • Invest in your business.

The lack of a proper bank account can affect your business in several ways. Not only can it reflect poorly on your professional competencies, but it can also hinder your dealings with your international clientele. As UAE’s workforce comprises mostly of expats, this can be a particularly significant concern.

There are additional benefits of a UAE bank account, including:

  1. Being able to benefit from UAE’s stable economy.
  2. Diverse service offerings (savings account, current account, credit cards, personal and business loans, etc.).
  3. Ability to operate multi-currency accounts.
  4. Globally accessible online banking services.
  5. Beneficial interest rates.
  6. Access to easy financial relief like personal & business loans and mortgages.

How to Open a Bank Account in Dubai?

The process of opening a bank account in Dubai for foreigners begins by compiling and submitting a list of documents requested by the banks. Depending on the kind of banking services you need, expats can open personal and/or business bank accounts.

  1. Passport, plus copies
  2. Passport Images
  3. Sponsor or employer issued NOC
  4. UAE Resident Visa Copy
  5. Salary Certificate with  Company Name
  6. Emirates ID
  7. Rental/Utilities Contract
  8. Home Country Bank LOR
  1. Trade License of the Business
  2. Registration Proof of Company
  3. Share Certificates
  4. Company Memorandum & Article of Association
  5. Board authorised company officer as account holder
  6. Passport & visa copies of shareholders and signatories

It is not necessary that all these documents be required at the time of bank account opening. Depending on the bank that you approach and the kind of account you want to open, banks can ask for more or less documents. Additional documents can include information about the stakeholders, previous years’ banks statements, business plan, audit reports, compliance reports, financial forecasts, etc.

Banking Application Process in the UAE

Once you have all the relevant documents in hand you can go to the nearest bank branch, submit them. Your bank account will be up and running in no time. Additionally, banks in the UAE are known for their exceptional customer service. You can also avail home services or digital bank account opening in the UAE.

Corporate Bank Account Opening in Dubai

Here are some important points that business owners in the UAE need to consider when they want to open a bank account in Dubai. First, it is recommended to open a business bank account, because UAE laws do not allow to conduct business transactions from a personal account. Second, current accounts are the preferred account category as they can process transactions in bulk. Current business banking accounts can take up to one month to be operational.

Challenges of Opening a Bank Account in Dubai for Foreigners

Dubai’s population consists primarily of expats from across the world who arrive as either employees or business owners. In both cases, they will need to open either a personal bank account or open a business bank account in Dubai. This comes across as a challenge to most as the banking process of the UAE might differ vastly from their home country. Some of the biggest challenges foreigners face when opening a bank account in Dubai are:

  1. The process can take upto three months, especially for business bank accounts.
  2. You might have to submit an exhaustive amount of documentation
  3. Some UAE Banks have special eligibility criteria for applicants
  4. Choosing the right bank & right account type from multiple options in the UAE
  5. UAE has extremely strict banking regulations & compliance thresholds
  6. Applicants may have to submit detailed information on their business activities and financial history.
  7. Anti-Money Laundering (AML) regulations can require audit reports from businesses.
  8. Some banks require a background profile assuring credibility of the owner.
  9. Sometimes free zone companies can face issues with banks if they don’t have office space.
  10. Failure to meet minimum balance requirement 

It is at these checkpoints that reliable banking agents like Fikra Banking Consultants come in handy. What is the point of starting a business in Dubai while being unable to open a bank account there? You need someone who has a deep understanding of UAE’s financial laws and regulations, as well as how it is influenced by international standards.