Things to know About Bank Accounts

Very often money related administration is the top priority of any ex-pat in a new country. The Gulf banking division is home to individuals with huge financial gains. However, many new millennial ex-pats in the UAE are still unfamiliar with the guidelines they need to follow in order to open a bank account in Dubai. The residence visa will permit you to open an individual or business bank account. Expats without a resident visa can only open an investment account, to which numerous banks issue an ATM card that facilitates them to pull back cash.

In the past Dubai has been acknowledged as a "tax-free" nation, but with changing times the locals have gotten familiar along with wealth and bank accounts now to the new tax systems. People from across the world rush to the gulf countries to either work for an organization that has its mark already or to set up one of their own. It is in no way astonishing that these ex-pats save more money compared to their own home countries because of no tax implication on their income in the Gulf.

As simple as it may seem, understanding some of the tax schemes in UAE can be complicated but, opening a bank account in Dubai is much simpler. In most banks’ scenario, you will only need to present your passport, visa, and letter from your employer stating your salary. In UAE you will find numerous options of banks when opening an account but the majority carries the basic requirement of a minimum deposit. The account holder can be strictly penalized if the balance drops a certain low.as a new working ex-pat starting with financial administration in the country here are a few points that one must know about:

Types of Banks in the UAE

The prime rule on how to open a bank account in the UAE is tricky to manage. The governing bodies and local laws make confirm that any non-resident who wishes to open a bank account should be physically present in the bank with the required documentation. In some cases, international banks that are functional in UAE facilitate the user with online bank account opening services they hire financial officers on their behalf the account holder can only visit the branch nearest in their country. To understand bank account opening in the UAE one must be familiar with the banking system of the country. There are 4 types of banks in the UAE:

1. Commercial Banks: local or international banks that offer commercial banking services; provides money for commercial activity, commercial loans, and managing accounts of individuals and enterprises.

2. Industrial Banks:  Such banks provide loans to individuals and businesses, can include a loan needed to start a business

3. Merchant/investment Banks:  This type of banks is engaged in buying and selling of stocks

4. Islamic Banks: These banks adhere to Sharia laws and practices

Non-resident bank account

Once in UAE, opening a non-resident bank account is easy though till you get your residence visa the only account type you can open is a savings account. There are only a few documents to be provided and it’s done. The process of opening a savings account might seem less complicated but takes longer than opening a bank account otherwise. So do not expect to have access to your savings account right away. Also, this account type is generally with an ATM card and checkbook and the users can withdraw money through the card till the residency visa arrives.

Some terms and conditions may vary but generally, the basic requirements of the UAE banks are the same for all non-residents that include:

• A passport with the UAE entry stamp (original and copy), a passport-sized photo, a completed application form.
• A proof that your residency visa, or Emirate ID card, is under process, a document stating your employer’s name, you’re your salary details, a letter of recommendation from the previous bank (if any, this is usually optional) and letter of no objection from either your Visa sponsor or employer.

Terms and conditions may vary from bank to bank, but the standard required documents to open a bank account are your passport with your UAE residency visa (original and copy),your Emirates ID card (original and copy),documentation of residency in the UAE (this can be a rental agreement, utility bill, or letter of employment)and either a salary letter from your employer, an original trade license if you are self-employed, or your spouse’s labor card/work ID (original and copy) if you are on their sponsorship.

Along with this, banks also require you to deposit a certain amount to open an account. On average, banks in the UAE will require between 3,000–5,000 AED (820–1,360 USD). The personal bank account is quick and easy. Unlike the savings account, you can get access to the account within a few hours.

Online bank account facility

Islamic bank Dubai loan facility is offered by some banks too, where you do not have to go but create a request for an officer from the bank to visit you though not all banks do that check with the ones you wish to partner with. As an ex-pat, you can also open a business bank account in the UAE. These accounts are meant if you plan to open an onshore or offshore company enterprise mainly salaried individuals often do not consider this as an option. For business account rules are tougher some banks may require a high minimum balance and the account will be treated as ‘non-resident,’ and therefore carries certain limitations. 

However, a bank account opened for a local company or a company which is a free zone provides you all the benefits and can be opened in any UAE bank. Once you decide the type of bank account and get hold of your residence visa, it would be very easy to manage all things. Well, the choice of a bank is totally your personal choice and you can visit the site of a bank.

About This Author

Mary J Friedman A Professional Article writer. Joined: March 11th, 2020