Dubai is a city of elevated luxury and visual arts. Almost everything can be made available at home in the Emirate, including banking services. Apart from being one of the most populous cities, Dubai is also a major commercial and financial hub. So, if you are an expatriate planning on an extended stay, then you need to open a bank account in Dubai to administer your financial prerequisites.
In this guide, we will explain how you can open an account in a Dubai Bank, the documents you will need for the process, and the services you can avail as an account holder in the Emirate.
Banking sector in the UAE
The central bank established in 1980 regulates and supervises the banking sector in the United Arab Emirates. There are several domestic and international banks currently operating in Dubai which include celebrated giants like HSBC, Standard Chartered Bank, Mashreq Bank, Dubai Islamic Bank, Emirates NBD, and Abu Dhabi Commercial Bank.
The banks in Dubai are known for their robust capital levels and liquidity shields which ensures stability in the overall banking system. Moreover, they follow global standards like the International Accounting Standards and the International Financial Reporting Standards and offer services in both English and Arabic language.
Benefits of opening a bank account in Dubai
Establishing a bank account in Dubai can be an advantageous move for individuals as well as companies. Here are the reasons why
- Ease of doing business A local account simplifies business transactions within the UAE as well as the Middle East region. This saves you the time and money that you usually spend on international transfers.
- Tax advantages It is a worldwide known fact that Dubai has a tax-friendly environment. It imposes zero taxes on personal income and limited taxes on corporate income. Hence, for businesses planning to open a business bank account in Dubai, it can be a significant advantage.
- Reputational benefits A bank account in Dubai enhances the reputation and credibility of the individual as well as the business, especially while dealing with international clients. It represents the company as a global player, thus helping in the expansion of the business.
- Competitive Currency Exchange Rates Many banks in Dubai offer competitive currency exchange rates, which facilitate conversion between UAE currency and other currencies.
- Investment Options Many banks in Dubai allow customers to open investment accounts alongside business accounts. This enables their business capital to potentially grow while it sits in their account.
- Flexibility and Security The banking system in Dubai is eminent for the stability and security it provides to its customers. Entrepreneurs can diversify their finances and have access to a secure banking system that holds a strong reputation on a global level.
- Lifestyle Considerations If you wish to simplify your everyday transactions in Dubai, it is vital to have a local account. It provides easy access to your funds while living in Dubai.
- Quick processing The processing of account opening applications is quick in Dubai. The banks believe in efficiency and therefore, strive to make the process seamless and time-effective.
- Online banking facilities The Internet banking facilities provided by Dubai banks are another key benefit of starting a bank account in Dubai. It enables customers to access their accounts with ease and convenience, manage their finances, view transactions, and make payments effortlessly anytime, anywhere.
- Debit card flexibility Account holders in Dubai can enjoy the flexibility of using a debit card for both domestic and international transactions. They can use their cards to withdraw cash from ATMs, make purchases, and for travel-related purposes. This enables a hassle-free management of finances.
- Multiple currencies A bank account in Dubai facilitates multiple currency transactions. Dubai banks understand the need for flexibility in global transactions, and therefore allow hold and convert funds into different currencies. This makes it convenient for businesses engaged in international dealings and reduces currency conversion costs.
Steps to open a bank account in Dubai
To open a bank account in Dubai, the applicant has to follow a defined procedure that involves several steps
Research and pick a suitable bank
Carry out extensive research of all the banks in Dubai and the offers and services they provide. In addition, reflect on various aspects like minimum balance requirements, account features, online banking options, and fees before making a final decision.
Arrange the documents
Once you have selected a bank, assess their documentation requirements and arrange them accordingly. The documents may be related to your company, shareholders, and signatories. Further, present these documents before the bank officials either in person or via their official website. Nevertheless, if you plan to open a business bank account in Dubai, you will have to make a personal visit to the bank.
Submit the application form
Collect an account opening application form and input accurate information as required by the bank. For a business account, provide details about the business and its owners.
Wait for verification and due diligence
Upon submission of the application form and documents, the bank will conduct due diligence checks in order to validate its compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. This particular process may involve verification of documents, background checks, and confirmation of the source of funds.
Get the account activated
After verification, if the bank is convinced with the application, it will approve and notify the applicant to activate the account. For this step, the applicant may have to transfer an initial deposit to meet the minimum balance requirement of the bank.
Open a bank account in Dubai – Documents required
The specific documents required for the process may vary depending on the bank you choose. However, the general requirements include the following:
- Trade License copy
- Certificate of Registration/Incorporation
- Copy of Memorandum of Association (MOA)
- Copy of Articles of Association (AOA)
- Passport copies with visa pages of all shareholders and directors
- Emirates ID copies
- Lease agreement or tenancy contract
- Utility bills (water, electricity) as proof of business address
Types of bank accounts in Dubai
The different types of available bank accounts cater to both residents and non-residents in the Emirate. The most common ones are:
Current account
- For regular transactions and frequent withdrawals
- Comes with debit cards and chequebooks
- May require a minimum balance to set up
Savings account
- To save money for emergencies and future
- Offers interest on the bank balance
- May have restrictions on withdrawals
Business account
- Meets specific banking needs of businesses
- Offers facilities like multiple signatories, online banking services with advanced features, international trade services for overseas transactions, etc.
- May impose a specific amount as minimum balance
Investment account
- Allows investment of funds in various financial tools like stocks, bonds, and mutual funds
- May require a higher minimum balance
- Best suited for individuals or businesses focusing on capital growth
Offshore account
- Offered by limited banks
- Specifically designed for international clients
- Offer benefits like tax advantages and confidentiality
- May have stricter eligibility requirements and regulations
Contact Shuraa Today
Thus, opening a bank account in Dubai can be an efficient way to streamline financial transactions and manage funds. It not only simplifies transactions but also enhances the reputation of the company and provides access to a secure and stable financial system. Hence, to ensure a smooth and hassle-free bank account setup in Dubai, it is recommended to seek consultation from the banking experts of Shuraa.
Shuraa Business Setup has a highly dedicated team of banking professionals who will provide invaluable guidance and assistance throughout the process, thereby helping you open a business bank account in Dubai tailored to your specific needs.
So, get ready to explore the opportunities this business capital city has to offer. Take the next step towards your business goals with Shuraa.
