How to open a bank account in the UAE

In the UAE, you can open both personal and corporate (business) bank accounts. Personal accounts are available to residents as well as non-residents of the Emirates. It is much easier for holders of a residence visa to open an account; you will need a passport, Emirates ID, and a salary certificate, bank statements, or proof of the source of funds in the case of an investor visa. For non-residents, it will be more challenging. You must visit the bank in person, provide more documentation, and the waiting time will be significantly longer. Additionally, the risk of being denied an account is higher in this case.

To open a corporate bank account, you must register your business in the UAE. You can set up a company in a free zone or on the mainland, an offshore company, or register as a freelancer.

What documents are needed to open a bank account?

Depending on your residence status and the type of account, the list of required documents will vary.

For residents:

• Passport and its copy
• Residence visa
• Emirates ID
• Salary certificate

For non-residents:

• Passport and its copy
• Utility bill as proof of residence
• Personal bank statements for the last 6 months as proof of funds
• CV 
• Information about sources of income

Corporate account:

• Business registration details in the UAE (license, incorporation certificate, shareholder certificates, articles of association, and memorandum of association of the company)
• Passports and visas of all shareholders, utility bills to confirm residential address, CVs with relevant work experience, personal bank statements of shareholders
• Certificate of incumbency
• Documents confirming any other existing businesses (if applicable) + bank statement of such businesses
• Description of your business activity
• Annual turnover projections and information about the initial deposit for the new account

Types of accounts: resident, non-resident, and corporate bank account

Residents of the UAE can open current and savings accounts.

Non-residents can only open savings accounts. To open a current account, one must obtain a UAE residence visa.

Corporate, or business accounts are opened for companies registered in one of the following UAE jurisdictions: offshore, in free zones, or on the mainland. Foreign companies registered outside the UAE can also apply for a bank account, but this process is quite costly, as it requires the legalization of all documents of the foreign company, with each document costing around $1000, and the approval rate for such applications is low.

Comparison of resident and non-resident bank accounts

Cost and timelines for opening bank accounts in the UAE

Bank accounts in the UAE can be opened in dirhams, US dollars, euros, and British pounds. The dirham exchange rate is pegged to the US dollar: 1 USD = 3.6725 AED.

Banks do not charge a fee for opening an account. However, fees are charged by business consultants who provide the service of opening a bank account.

There are two types of corporate account services: with a dedicated relationship  manager and without a dedicated manager. For clients classified as high-risk, it is recommended to opt for the tariff with a relationship manager. In this case, the bank may require maintaining a deposit from 250,000 to 500,000 dirhams, depending on the financial institution and the specific situation.

UAE residency options for opening a bank account 

To obtain a resident visa in order to open a bank account in the UAE, you have several options:

1. Purchase property: Buy property worth at least 750,000 AED. The visa validity ranges from 2 to 10 years.
2. Open a company in the UAE: Register a company with minimum expenses around 18,000 AED. The visa validity is 2 years.
3. Freelancer license: Obtain a freelance permit and get a freelance visa with minimum expenses of approximately 15,000 AED. The visa validity is 2 years.
4. Investor visa (Golden visa): Investors, entrepreneurs, company executives, scientists, outstanding students, and artists can qualify for a Golden visa by making investments totaling at least 2,000,000 AED. The visa validity is 10 years.
5. Other options: You can also obtain a visa as a pensioner, provide sponsorship for family visas, get a digital nomad visa, obtain a visa by enrolling in a university in the UAE, or by securing employment in the UAE and getting a work permit.

Each of these options has its own requirements and benefits, tailored to different circumstances and investment levels.

International transactions

You can use personal and corporate accounts in the UAE banks to transfer any amount of money to other countries and to receive funds from other countries, except those under sanctions in the UAE. However, all transactions must fulfill compliance requirements.

Compliance procedure

All accounts opened in the UAE banks undergo a compliance procedure.

After submitting an application to open a bank account, the bank creates a client profile and conducts initial compliance checks. As part of this process, the client must provide statements from other banks where they hold accounts for the past 6 months. This allows the bank to draw a picture of the client's financial transaction history. Additionally, the bank may request information regarding anticipated fund movements into the UAE account, including amounts and sources of funds. It is crucial that actual transactions on the account subsequently match the information provided in the application. Otherwise, the bank may change the status of the account into “dormant” until the situation is clarified.

There is also an annual compliance review when the bank selects several transactions for the year and requests documentation such as invoices, bills of lading, contracts, or other supporting documents for these transactions.

Significant money transfers from a known source to the client’s account in the UAE typically do not raise any questions from the bank. However, if a large sum from an unknown source is deposited into a client's bank account, the bank may request justification for such funds.

It is important to retain all supporting documents for transactions conducted on any type of account—whether personal or corporate. Note that business transactions are prohibited on accounts held by individuals, whether residents or non-residents, in the UAE.

Choosing a bank in the UAE to open an account

In the UAE, there are both local and foreign banks.

Local banks are divided into conventional and Islamic banks. When choosing a bank, it is important to note that Islamic banks operate according to Sharia law. The main principles of Islamic banking include risk-sharing, profit-sharing, and the prohibition of interest-based transactions such as loans and deposits, which are considered usury. Instead, Islamic banks provide interest-free installment schemes or become co-investors, sharing in the profits of businesses they finance. For this reason, Islamic banks do not engage in high-risk ventures. They are also prohibited from investing in businesses involved in alcohol, tobacco, pork, weapons, gambling, and adult entertainment industries.

Local banks that are well-suited for opening an account include:

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

FAQ

What is needed to open a bank account in the UAE?

• Personal presence
• Passport and its copy
• Financial documents (proof of funds)
• Proof of residence (utility bill)
• Business description
• CVs of the shareholders

Can a non-resident get a debit card in the UAE?

Yes, debit cards are issued for both current and savings accounts. Residents of the UAE can open both types of accounts, while non-residents can only open a savings account.

Can an account be opened for a minor child?

Only individuals over 21 years old can open accounts in the UAE. From 18 years old, it is possible to open an account if the applicant works for a government or semi-governmental organization in the UAE. To open an account for a minor, the involvement of a father or male guardian is required. Money cannot be withdrawn from the account until the child reaches 18 years old. Some banks issue debit cards to children starting from 15 years old.

Which bank in the UAE is the best for opening an account?

The most well-known banks in the UAE are Emirates NBD, First Abu Dhabi Bank, Emirates Islamic Bank, Mashreq, RAK BANK, Dubai Islamic Bank.

Is a residency visa required to open a bank account?

It is easier to open a bank account in the UAE if you have a residency visa. Besides, residents have more benefits than non-residents. Residents can open a current account with a checkbook. Non-residents can only open a savings account. Typically, the bank requires justification for opening an account, and the balance must be at least $138,000 USD.

How quickly can an account be opened?

A resident's account is usually opened within 1 day.

Typically, the card is delivered within 3-5 working days after the account is opened.

A non-resident account is opened within 1 to 15 days (depending on compliance).

Opening a corporate account takes 1-3 months.

Can an account be opened without visiting the UAE?

Personal presence and having a local phone number are mandatory for opening an account.

How to transfer a large sum of money to the UAE?

For transactions over $100,000 USD, we recommend opening a premium account with a dedicated relationship manager. Such an account must maintain a minimum average monthly balance of $138,000 USD.

Will my account be closed if I do not renew my residency visa?

The account will be converted to non-resident savings status, and a compliance procedure will be initiated. There is a risk that the account may be closed.

Why might a bank refuse to open an account?

A bank in the UAE may refuse to open an account if the applicant has not provided comprehensive information about their business activities, the source of funds, or if financial documentation does not match the profile.