Dubai has become a particularly attractive business location in recent years. This is partly due to the low taxes, the openness to innovation and the stable banking system. As a result, more and more people are interested in opening an account in Dubai. Both privately and for business.
This comprehensive guide explains everything you need to know about opening a bank account in Dubai, both for expats 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 One major point is definitely stability and security. There has not yet been a single bank failure in Dubai. In Germany, Austria and Switzerland, however, there have been a few. Security is sometimes the most important criterion 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 great conditions. On the one hand, almost all banks offer a fixed interest rate of around 5% on call money accounts. This is many times higher than on a savings account or building society savings account in Europe. On the other hand, the charges are extremely low. This applies both to the monthly amount (only a few dirhams) and to the charges incurred for national and international transfers (0 to a few dirhams per transaction)
- User friendliness The online banking of numerous local banks in Dubai, including apps, is particularly easy to use. The high level of user-friendliness allows numerous transactions to be completed via smartphone. This starts with opening an account, which is 100% digital, as well as with numerous fintech banks that many people appreciate.
- Multi-currency Dubai is an international business location and banking hub. Accordingly, all banking services offer multi-currency accounts with native IBAN. EUR, USD, AED, GBP and many other currencies are included in the basic package as standard. Definitely a big plus point for traveling 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 mileage hunters.
Prerequisites
The requirements for opening an account in Dubai are different for private customers than for business customers. However, one basic requirement for both is the possession of a valid Emirates ID, which is linked to the VISA, which is usually obtained by setting up a company or buying real estate.
One
Private account
The requirements for opening a private account are generally lower than those for a business account. The following documents and information are required.
- Emirates ID / VISA
- Address in Dubai (but no proof)
- Salary information
- Details of the employer / entrepreneur
- Source of funds (without proof only indication)
- UAE phone number
Business account
Many new expats and entrepreneurs in the UAE fail to open a business bank account. This is because the banks have become much stricter due to numerous legal requirements. Accordingly, you should be well prepared, as a failed opening can lead to you being blocked by the bank. You should always have the following documents and information to hand.
- Founding documents
- Address / Lower frame seat
- Internet presence (website, LinkedIn etc...)
- Business Plan Light / Description of the company
- Emirates ID / VISA from General Manager
- Source of funds (indication)
Open a Dubai bank account without residency
You definitely do not need to be a resident to open an account in Dubai. It is sufficient if you have an active VISA and Emirates ID. However, if you do not have this, as you are rarely or never in Dubai, the requirements are higher, but it is not impossible. In principle, banks therefore require the following conditions for non-residents:
- 100,000 USD minimum deposit
- Proof of salary 6 months
- Proof of origin of assets
- Proof of employment
- Valid passport
- Current place of residence including proof
Opening an account - procedure
How do you 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 what you actually need an account for and which bank is best suited for this. Not every bank is suitable for everyone. As a general rule, you should also consider choosing the bank that you also use for business. That makes things a lot easier.
Apart from the services that different banks can offer you, you also need to know and be able to meet the minimum requirements and opening criteria.
Application (via app)
In many cases, it is now possible to apply to open a bank account via the app. Of course, this assumes that you have an Emirates ID and a VISA. If this is not the case, you need to contact the bank directly, which can also be done via an agency.
The onboarding process in the app usually consists of KYC and selection of the product at the bank. KYC means that you have to provide the above-mentioned information and documents.
Opening and receiving the card
As a rule, you will receive confirmation that the account has been opened after a few days. If this is not the case, the bank usually requires more documents or information, which you should provide if necessary. If the opening of the account is finally approved, you will receive the card by post.
This card will then be delivered to the current place of residence in Dubai (can also be a hotel or airbnb). Upon receipt of the card, the Emirates ID and fingerprints are scanned. The card can then be activated in the app and you have a fully functional bank account.
Account management
On an ongoing basis, it is crucial that you keep the account clean and do not violate the TOS. This is because every bank has the right to close the account permanently. It is important to observe the following basic rules:
- No high 5 - 6 digit transactions from crypto exchanges
- No transactions in prohibited jurisdictions
- Do not use the account only as a transfer account
The best banks in Dubai
Which bank should you open an account with now? There is no general answer to this question, as different banks offer different conditions. However, the following banks offer similar and attractive conditions for most investors and users. Both in the private and business sectors.
ENBD
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 one of the largest banks in the UAE. The good infrastructure and modern online banking make this bank very popular.
One of the main reasons is the credit cards such as the Infinite Skywards Credit Card or the Marriot Bonvoy World Elite Card, which are great for earning miles and points. Almost a must-have for travelers.
Mashreq
The oldest bank in the UAE is Mashreq Bank and trust in this bank is correspondingly high. Mashreq is also based in Dubai and the infrastructure for expats living in Dubai is correspondingly good. Mashreq is particularly popular due to its low transaction fees with Quick Remit function, as you can transfer money abroad in real time.
The Mashreq Gold program is also available for wealthy customers. This enables better support at the bank, lower charges or better FX rates and higher interest on deposits. As a rule, this starts at AED 100,000.
FAB
One of the largest banks in the UAE is FAB, short for First Abu Dhabi Bank. Headquartered in Abu Dhabi, the bank is also very popular in Dubai and has several branches in Dubai. FAB is basically suitable for everyone, although the FAB Elite program is very attractive for wealthy customers thanks to special benefits such as lower charges, higher interest rates and much more. Of course, this includes a minimum deposit.
Business accounts are rather difficult to obtain here if you run a freezone company. As a rule, the requirements are high and you have to reckon with a 6-digit minimum deposit.
Wio
Fintech is also on the rise in the UAE and the best fintech solution on the market is currently Wio. The subsidiary of FAB is a purely digital banking solution and impresses with state-of-the-art online banking and complete processing purely via the app. The fees are also very low and onboarding works without any problems for most people.
ADCB
The third largest bank in the UAE is Abu Dhabi Commercial Bank. As the name suggests, its headquarters are in the Emirate of Abu Dhabi and its target group is primarily (mainland) companies. As a rule, free zone companies cannot open a business account with ADCB. However, private accounts are certainly possible.
Summary
Opening a bank account in Dubai is generally possible for both residents and non-residents. However, you need at least an Emirates ID and a VISA. If this is not the case, a minimum deposit of USD 100,000 and other requirements must be expected. It is possible at any rate. There are numerous banks that offer banking solutions at attractive conditions, including ENBD, Mashreq, FAB and Fintech Wio.
