UAE business banking

How to open a bank account in Dubai

verified by : Elena Ovchinnikova

02 Jan 2024

Dubai has become a well-recognized global center of business and banking. Thanks to the advancing economy, influx of foreign workforce, and multiple other factors, there is no shortage in the demand for bank services. Whether you’re a specialist working for a company in the Emirates or an entrepreneur running your own business, you’ll need an account in a local bank to manage your personal or corporate finances. Luckily, the UAE is home to around 50 local and international banks for you to choose from, all of them provide services in both Arabic and English, the bank account opening process is fairly simple, and the UAE banking system is considered stable and reliable.

UAE banks adhere to various worldwide standards, such as the International Financial Reporting Standards and the International Accounting Standard, and the country’s banking system is continuously adapting to the most recent international trends and regulations in this field, making it an integral part of the global financial framework. This guide will give you a comprehensive understanding of the services offered by UAE banks and the steps you’ll be required to take to open a bank account with regard to your needs.

Why do you need a bank account in Dubai?

There are several reasons why it might be necessary or beneficial to have a bank account in Dubai for both individuals and business entities. Here are some key ones to consider:

Residence Visa Requirement

If you are a resident of Dubai, it is often a prerequisite to have a local bank account to obtain or renew a residence visa.

Salary and Payments

If you are employed in Dubai, your salary is typically deposited into a local bank account. Many employers prefer to transfer salaries directly to a bank account in the UAE.

Convenience of Transactions

Having a local bank account enhances the convenience of your day-to-day financial transactions. You can effortlessly administer your finances, settle bills, and make local payments.

Access to Local Services

Some local services may necessitate a local bank account. Such services encompass, for example, utility bill payments, leasing agreements, and an array of others that commonly mandate payments via a UAE bank account.

Business Operations

If you own or plan on starting a business in Dubai, a local business bank account is crucial. It enables smooth transactions, efficient payroll processing, and effective management of other financial aspects of your business.

Credit Facilities

A local bank account can be a prerequisite for applying for credit cards, loans, or other financial products offered by local banks.

Currency Exchange and International Transactions

If you frequently deal with different currencies or engage in international transactions, a local bank account can provide more favorable currency exchange rates and reduce transaction costs.

Government Services

Some government services may require a local bank account for processing transactions or fees.

Property Ownership

If you own property in Dubai, having a local bank account is often required for managing property-related transactions, such as mortgage payments and service charges.

Investments

If you are contemplating investing in the UAE market, possessing a local bank account can streamline the process of administering and transferring funds for investment purposes.

When it comes to corporate banking services, UAE banks offer a lot of advantages for businesses as well, including:

  • Full repatriation of corporate capital and profits
  • Stable currency rate
  • International trade instruments
  • Fast transfers within 2-3 days to any place in the world
  • Online banking
  • Debit cards

Types of bank accounts

When it comes to personal bank accounts, UAE banks offer the following options:

Current accounts

These are ideal for day-to-day transactions. If you’re an employee of a local company, it is advisable to establish an account with your company's bankers, as it will ensure that you receive your salary promptly upon transfer. With a different bank, transfers can be delayed by a day or two.

Savings accounts

Savings accounts generally provide higher interest rates than current accounts, however, they instead come with restricted access to funds and possible penalties for mopey withdrawals. Such accounts offer a choice of fixed or variable interest rates and can be designated in different currencies, including dirhams, euros, and US dollars.

Investment accounts

Investment services are also offered by banks in the UAE. To start an investment account, you need to sign an investment agreement with the bank. The agreement will cover the administering of your funds, guaranteeing a minimum annual return of 3 to 7% or more, and can be signed for a duration of 12 months to 5 or even 10 years.

Offshore accounts

Opening an offshore bank account enables the transfer of funds between jurisdictions and is accessible to anyone with a valid UAE residency visa. Additionally, offshore accounts offer notable financial and legal benefits, including reduced tax rates.

Depending on the residency and jurisdiction factor, a bank account in UAE banks can be opened in the following categories:

Personal Accounts for UAE Residents 

The easiest and most straightforward category is personal residential accounts. Any UAE resident becomes eligible for such a bank account. 

It is typically opened within 1-3 days at any bank with simple documents: a passport and visa, Emirates ID, and salary letter.

Personal Accounts for Non-Residents

Non-residents can also open a bank account in the UAE. This requires a personal visit to the bank and provision of mandatory documents such as: a passport, a utility bill for proof of address, a comprehensive CV detailing their personal and professional background, and a personal bank statement from their home country.

Such an account is typically opened within 4-6 weeks. It should be noted that if any income is received in the UAE non-resident’s bank account, it may be subject to declaration and taxation in the account holder's home country.

Corporate Accounts for Local Companies 

This is one of the most in-demand categories. The following types of UAE companies are eligible for a Dubai bank account:

The shareholders of the company are typically designated as account signatories. To open an account, the banks will request the following documentation:

1. Incorporation documents of UAE business setup

2. Passports of the shareholders

3. Utility bills as address proof

4. CVs with relevant experience

5. Personal bank statements of the shareholders - proof of funds

6. Documents of any other existing business (if applicable)

7. Bank statement of another existing business (if applicable)

8. Business profile

9. Expectations on annual turnover and initial deposit to the newly opened account

The timeframe for opening a UAE company account varies depending on the type of the company. It can range from 2 weeks to 2 months.

Mainland and free zone companies in Dubai typically receive account approval more quickly compared to UAE offshore companies, which tend to experience longer wait times.

Corporate Accounts for International Businesses

Businesses registered outside of the UAE are also eligible to apply for a bank account within the country. This category of applicants is considered the most complex, and the approval rate for such accounts is notably low.

If you wish to open a UAE account, you must legalize all the incorporation documents of your foreign entity through the UAE Embassy in the country where your business is registered. After that, they need to be attested by the Ministry of Foreign Affairs in Dubai. The process is quite costly - it will take around $ 800 per document. You will require approximately five corporate documents in total:

  • Certificate of good standing
  • Certificate of incumbency
  • Memorandum of Association
  • Certificate of registration
  • License (if available)

Accounts for international companies in the UAE often go through a lengthy approval process. This is due to the compliance procedures required for overseas companies. Such businesses are classified as "high risk" and therefore banks are often hesitant to onboard them. In practice, banks tend to disregard applications for opening accounts for foreign companies.

If you want to open a corporate bank account, we recommend registering a company in the UAE or opening a subsidiary here.

Business consultants in Dubai will help you create the best solution to account for the needs of your business.

Opening a personal bank account in the UAE

Opening a bank account in Dubai involves several steps. The specific requirements and processes may vary slightly between banks, but here is a general guide:

Choose a Bank

Research and select a bank in Dubai that matches your requirements. Take into account aspects such as the available account types, charges, and offered services.

Check Eligibility and Requirements

Review the eligibility criteria and document requirements set by the chosen bank. Generally, a valid residency visa is necessary to initiate a personal bank account opening.

Visit the Bank

Visit the bank branch in person. While some banks may offer an online application process, typically a visit to the branch is necessary to finalize the application.

Bring Required Documents

Prepare and bring the necessary documents. These typically include:

  • Passport with residence visa page
  • Emirates ID
  • Proof of address (such as a utility bill or rental agreement)
  • Salary certificate or employment contract (for personal accounts)

Complete Application Form

Complete the bank's account application form. This can be done either at the branch or online, according to the bank's procedures.

Submit Application and Documents

Submit the completed application form together with the necessary documents to the bank representative who will check the information and documents.

Attend an Interview (if required)

Some banks may require an interview if additional verification is needed. Be prepared to answer questions about the purpose of the account and the source of funds.

Wait for Approval

After submitting the application, you may need to wait for the bank to review and approve your account.

Receive Account Details

Once your account is approved, you will receive your account details, including the account number and other relevant information.

Activate Your Account

Activate your account by depositing the initial mandatory amount, if necessary. Some banks may impose minimum deposit prerequisites.

Collect Your Debit/Credit Cards

If you requested a debit/credit card during the application process, collect them from the bank.

Set up Online Banking (if applicable)

If the bank offers online banking services, set up your online account for convenient management of your finances.

Opening a corporate bank account in the UAE

Starting a business in Dubai is the first step of getting a UAE corporate bank account. The rest of the steps in this process are basically the same as with personal accounts with differences mostly in the list of required paperwork and other details specific to aspects such as the legal structure and jurisdiction of the company.

If you have any preferences regarding certain banks, get in touch with business consultants in Dubai for guidance on the prerequisites and procedures required for opening an account. Business setup advisors can help you register a company with the local banks of your choice in the most suitable way.

The following factors will be considered:

  • Nature of your business
  • Place where the business will be conducted
  • Nationality and background of the shareholders
  • Who will be the clients of the business
  • Existing companies abroad
  • Wealth source of the business owners
  • Profit and turnover expectations
  • Physical presence of the business

With this in mind, our business consultants will work with you to develop a solution that meets the needs of both your business and the compliance departments of the banks. Review the available options along with their respective advantages and disadvantages now.

Local banks overview

If you are considering opening a bank account in Dubai, we suggest that you concentrate on local government banks. International banks situated in the UAE rarely open corporate accounts for UAE entities unless they are significant global corporations.

The local banks most suitable for UAE companies are:

Emirates NBD

One of the largest national banks. Corporate account approval can be time-consuming. Strict compliance requirements apply: a physical office space and high balances are necessary for most businesses.

First Abu Dhabi Bank - FAB

Major bank of the Government of Abu Dhabi. Takes a long time for account approval and requires high balances to be maintained.

Mashreq bank

A large semi-government bank. Welcomes all types of businesses. Accounts can be approved quickly if all documents are provided. Reasonable minimum balance requirements.

Emirates Islamic Bank

A subsidiary of Emirates NBD. Has slightly fewer balance requirements and a quicker approval process.

RAK BANK

The bank of the Ras Al Khaimah Government. Focuses on small and medium businesses. The minimum balance is not high and the account approval process is relatively fast.

Dubai Islamic Bank

The bank of the Dubai Government. Offers medium-range balance requirements and relatively quick approval of the accounts.

Other popular UAE banks include WIO Bank, Sharjah Islamic Bank, National Bank of Fujairah, National Bank of Umm Al Quwain, Ajman Bank, and Bank of Sharjah.

UAE bank account benefits

  • Dirham - stable currency
  • Full repatriation of funds
  • Online banking
  • Easy withdrawals
  • Quick transfers

Open bank account in Dubai today

FAQ about bank account in UAE

  • How long does it take to open a bank account in Dubai?

    The timeframe depends on the type of business and background of the shareholders. Mainland companies get their accounts opened faster, offshore companies normally wait longer. The approval period can vary from 2 weeks to 2 months.

  • What do you need to open a bank account in Dubai?

    For any type of bank account in Dubai, the following will be required:

    • Personal presence
    • Original passport
    • Financial documents (proof of funds)
    • Proof of residency (utility bill)
    • Business description for corporate accounts
    • CVs of the owners
  • What is the best bank in the UAE to open an account?

    There is no best bank as such. Every business has different capabilities and requirements, so there is no one bank for all.

    The most recognized UAE banks are the following: Emirates NBD, First Abu Dhabi Bank, Emirates Islamic Bank, Mashreq, RAK BANK, and Dubai Islamic Bank.

  • Can a foreign company open a bank account in the UAE?

    It can, but the approval process will be very long and the account can easily be rejected. It is advisable to open a local UAE company and apply for a bank account using that company for quicker results.

    • What are the requirements to open a business bank account in Dubai?

      Generally, the requirements are the following:

      • Personal presence
      • Corporate documents
      • Bank statements of the owners
      • Utility bills and CVs of the owners
      • Expectations on the turnover
      • Business plan

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