In recent years, Dubai has become a particularly attractive business location. This is due, in part, to low taxes, an openness to innovation, and also a stable banking system. Consequently, an increasing number of people are interested in opening an account in Dubai, both for personal and business purposes.
This comprehensive guide explains everything about opening a bank account in Dubai, for both emigrants and non-residents.
Advantages of an account in Dubai
The advantages of accounts and banks in general in Dubai are extremely diverse. Here are the most important aspects that make banks in Dubai so attractive for entrepreneurs and investors.
- Stability A major point is definitely stability and security. In Dubai, there haven't been any bank failures so far. In Germany, Austria, and Switzerland, however, there have been several. Security is among the most important criteria when it comes to entrusting your own money to a bank.
- Terms and conditions The next aspect that stands out in an international comparison is the excellent terms and conditions. On the one hand, almost all banks offer a fixed interest rate of around 5% on instant access savings accounts. This is many times higher than on a savings account or building society account in Europe. On the other hand, the fees are extremely low. This applies both to the monthly charge (just a few dirhams) and to the fees incurred for domestic and international transfers (0 to a few dirhams per transaction).
- User-friendliness The online banking services offered by many local banks in Dubai, including their apps, are particularly easy to use. Their high level of user-friendliness makes it possible to carry out a wide range of transactions via smartphone. This starts with opening an account, which is done entirely online, just as it is with many fintech banks that are popular with many people.
- Multicurrency Dubai is an international business location and banking hub. Accordingly, all banks offer multi-currency accounts with a native IBAN. EUR, USD, AED, GBP and many other currencies are included as standard in the basic package. Definitely a big plus for travellers and internationally active entrepreneurs.
- Credit cards For some, this aspect is more important than for others, but banks in Dubai do have attractive credit cards. For example, the Skywards Infinite Credit Card or Marriott Bonvoy World Elite Mastercard are absolute must-haves for mile hunters.
Prerequisites
The requirements for opening an account in Dubai differ for private and business customers. However, both have one fundamental requirement: possession of a valid Emirates ID, which is linked to a visa, usually obtained through company formation or property purchase.
Personal account
The requirements for opening a personal account are generally lower than those for a business account. The following documents or information are required.
- Emirates ID / Visa
- Address in Dubai (but no proof)
- Salary information
- Employer / Contractor Details
- Source of Funds (declaration only, no proof required)
- VAE Phone number
Business account
Many new expatriates and entrepreneurs in the UAE fail to open a business account. This is because banks have become considerably stricter due to numerous legal requirements. Therefore, one should be well-prepared, as a failed application can lead to being blacklisted by the bank. The following documents and information should definitely be kept ready.
- Founding documents
- Address / Registered Office
- Online presence (website, LinkedIn etc…)
- Business Plan Lite / Company Description
- General Manager's Emirates ID / VISA
- Source of Funds (details)
Open a Dubai account without residency
You definitely don't need to be a resident of Dubai to open an account there. Having an active VISA along with an Emirates ID is sufficient. However, if you don't have either of these, perhaps because you are rarely or never in Dubai, the requirements will be higher, but it's not impossible. Generally, banks therefore require the following from non-residents:
- £100,000 minimum deposit
- 6 Months Payslips
- Proof of origin of assets
- Proof of employment
- Valid passport
- Current place of residence with proof (every bank requires at least an address)
Account opening – Procedure
How does one open an account and what is the exact procedure? Below is a step-by-step guide to opening an account.
Bank selection
The first step is to be clear about why you actually need an account and which bank is best suited for it. Not every bank is suitable for everyone. In principle, you should also consider choosing the bank privately with which you also do business. This makes things much easier.
Apart from the services that different banks can offer you, you also need to know and be able to meet the minimum requirements or opening criteria.
Application (via app)
In many cases, it is now possible to apply to open a bank account via an app. This, of course, assumes that you have an Emirates ID and a VISA. If this is not the case, you will need direct contact with the bank, which can also be done through an agency.
The app's onboarding process typically consists of KYC and selecting the product with the bank. KYC means providing the information and documents mentioned above.
Opening and retention of the card
Usually, you receive confirmation that the account has been opened after a few days. If this is not the case, the bank will likely require further documents or information, which you should provide if necessary. Once the account opening is ultimately approved, you will receive the card by post.
This card will then be delivered to your current place of residence in Dubai (this can also be a hotel or Airbnb). Upon receiving the card, your Emirates ID will be scanned along with your fingerprints. Subsequently, you can activate the card in the app, and you will have a fully functioning bank account.
Account management
It is crucial to maintain your account cleanly and not to breach the terms of service. Every bank has the right to permanently close an account. The following basic rules are important to observe:
- No high 5- to 6-figure transactions from crypto exchanges
- No transactions in prohibited jurisdictions
- Don't just use the account as a transfer account
The best banks in Dubai
It's not possible to give a definitive answer to the question of which bank to open an account with, as different banks offer different terms and conditions. However, the following banks offer similar and attractive conditions for most investors or users, both for private and business purposes.
Emirates NBD
One of the most popular banks is the local bank ENBD, short for Emirates National Bank of Dubai. This bank is headquartered in Dubai and is among the largest banks in the UAE. Its good infrastructure and modern online banking make this bank very popular.
One of the main reasons, among others, is also the credit card such as the Infinite Skywards Credit Card or the Marriot Bonvoy World Elite Card, with which you can collect miles or points very effectively. Almost a must-have for travellers.
Mashreq
The oldest bank in the UAE is Mashreq Bank, and as such, the level of trust in this bank is correspondingly high. Mashreq is also headquartered in Dubai, and the infrastructure for expats living in Dubai is accordingly good. Mashreq is particularly popular due to its low transaction fees with the Quick Remit function, as it allows for real-time international money transfers.
However, for affluent customers, there is also the Mashreq Gold Programme. This allows for better support at the bank, lower fees or better FX rates, and higher interest rates on deposits. As a rule, this starts from 100,000 AED.
Great
The sometimes largest bank in the UAE is FAB, short for First Abu Dhabi Bank. The bank, headquartered in Abu Dhabi, is also very popular in Dubai and has several branches in Dubai. FAB is generally suitable for everyone, with the FAB Elite programme being very attractive for wealthy customers due to special benefits such as lower fees, higher interest rates, and much more. This naturally includes a minimum deposit.
Business accounts are rather difficult to obtain here if you operate a free zone company. Generally, the requirements are high and you can expect a minimum deposit of six figures.
And
Fintech is also on the rise in the UAE, and the best fintech solution on the market is currently Wio. The FAB subsidiary is a purely digital banking solution and impresses with state-of-the-art online banking and complete processing solely via the app. The fees are also very low, and most people manage the onboarding without any problems.
ADCB
The third-largest bank in the UAE is the Abu Dhabi Commercial Bank. As the name suggests, its headquarters are in the Emirate of Abu Dhabi and its target market is primarily (Mainland) companies. Generally, Freezone companies cannot open a business account at ADCB. However, personal accounts are certainly possible.
Summary
Opening a bank account in Dubai is generally possible for people residing there and those who don't. However, you will at least need an Emirates ID and a VISA. If you don't have these, you must expect a minimum deposit of 100,000 USD and further conditions. It is possible, but only under certain circumstances. There are numerous banks offering banking solutions at attractive rates, including ENBD, Mashreq, FAB, or the fintech Wio, among others.
