For your personal or business requirements in the UAE, it is crucial to have a complete comprehension of the financial situation and your banking choices to ensure a successful start.
The banking system in the UAE
The UAE’s rich tapestry of banking services can be categorized as follows:
- Retail banking for general public
- Business banking for small and medium-sized enterprises
- Corporate banking for large enterprises and multinational corporations
- Elite/Prestige banking – for individuals or corporation with significant amounts however less then in Private
- Private banking for high net worth individuals
- Islamic banking which provides Islamic financing, Takaful (insurance), and investment solutions.
- International banking provides tax-efficient structures and access to international financial markets to foreign-owned businesses.
Do you need a bank account in the UAE?
Here are the circumstances under which you may require a UAE bank account:
- Doing business in UAE
- Having a holding or headquarter structure in UAE
- Employee Payroll
- Local or international transactions
- Access to financial services
- Investments
Need to know before you open a bank account in the UAE
Before opening a bank account in the UAE, there are some important considerations to make:
- Choose the right legal structure for your business.
- Familiarize yourself with UAE banking regulations, including anti-money laundering (AML) and Know Your Customer (KYC) requirements.
- Different free zones in the UAE have varying rules and regulations.
- Banks in the UAE often require a minimum deposit to open an account, e.g. if you need a personal manager for you or your company it would be from AED 500,000, depending on the bank and account type.
- Understand the types of accounts available, such as: business current account, savings account for business, multi-currency account, Islamic business account, high-interest business account, business term deposit account, merchant services cccount, offshore business account, business investment account, escrow account.
- Evaluate the online banking platforms and services offered by the bank.
Where you can open bank account in UAE
There are 56 members that currently make up the UAE Banking Federation (UBF). Among them are 19 national banks (commercial and Islamic), 29 foreign banks, and 8 special status members, all licensed by the Central Bank of UAE.
The most popular traditional nanks:
- Emirates NBD: As one of the largest banks in the UAE, Emirates NBD is popular among foreign-owned businesses for its comprehensive business banking solutions. They offer various account types, including multi-currency accounts, and provide online banking services, trade finance, and investment opportunities.
- First Abu Dhabi Bank, the UAE’s largest bank and one of the world’s largest and safest institutions, offers an extensive range of tailor-made solutions, and products and services, to provide a customised experience. Through its strategic offerings, it looks to meet the banking needs of customers across the world via its market-leading Corporate and Investment Banking and Personal Banking franchises.
The most popular neobanks:
- WIO: WIO is regulated by the Central Bank of the UAE and shareholders are Abu Dhabi Development Company ADQ, Alpha Dhabi Holding and First Abu Dhabi Bank (FAB).
- Liv by Emirates NBD: Liv is a popular neobank known for its user-friendly mobile banking app. It caters to tech-savvy businesses and individuals, offering digital account opening, real-time expense tracking, and personalized financial insights.
- Mamo Pay: Mamo Pay is a digital wallet and payment platform with a focus on simplifying financial transactions. It’s favored by startups and small businesses for its ease of use and flexibility in managing funds.
- YAP: YAP offers a range of digital banking services for businesses and individuals. It provides a user-friendly mobile app for account management, and it has gained popularity for its hassle-free account opening process, multi-currency account options, and efficient digital banking solutions.
How to open a bank account in the UAE as an expat
Process of opening a bank account:
- Select a bank,
- Gather documents (see the list below) and visit the bank (or apply online for retail segment),
- Fill out the bank’s account application forms depending on the customer profile. Pay attention to this step because if you don’t match your initial profile the account may be closed,
- The bank will review your documents, which may take some time,
- Be prepared to make the required minimum deposit,
- The bank will conduct KYC and AML checks,
- Upon successful verification, the bank will provide you with your account details.
Typical documents’ requirements:
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- Passport with a valid UAE visa (however it is possible to open non resident account as resident it would be much simpler to open it),
- Proof of address (utility bill or rental agreement),
- Residence visa and Emirates ID (for expatriates),
- For businesses, relevant legal documents like certificate of registration, trade licenses and Memorandum of Association,
- Minimum initial deposit (varies by bank and account type),
- Proof of income or employment (for personal accounts).
Still have questions about opening a bank account in the UAE? Book a free call with YouReg Manager and we’ll help you to choose the bank/neobank online now!
