How to open a bank account in Dubai and the conditions required

The bank account is considered one of the essential necessities of modern life for individuals residing or engaged in certain businesses in a country, as it serves as the individual's banking identity through which they manage and execute their financial transactions in many different areas of life.

Many daily financial transactions nowadays are exclusively linked to bank accounts in various countries around the world. Therefore, many individuals, when coming to a country to work or reside, open a bank account to carry out many important financial procedures.

The United Arab Emirates, including the Emirate of Dubai in particular, is among the countries with an advanced informational and technological infrastructure regarding the regulation, control, and legal follow-up of financial transactions within the country for all individuals. The government imposes a streamlined yet mandatory financial system that requires everyone to follow the procedures of various financial operations exclusively through official bank accounts.

Overview of the Banking Sector in Dubai

In light of the comprehensive renaissance achieved by the United Arab Emirates over the past two decades in various investment fields within the country, and as the country has become one of the most important investment destinations in the world, Dubai has especially distinguished itself during this boom, topping the list of emerging investment cities regionally and internationally. The banking sector in Dubai has enjoyed a significant share of this comprehensive renaissance, thriving with strong financial liquidity and economic power, making it one of the most profitable banking sectors worldwide. Statistical data in 2022 showed that the profit rate of banks in Dubai exceeded 48%, while official data for the current year indicated that the total financial assets of the banking sector in the United Arab Emirates reached one trillion US dollars.

The banking sector in general, and the banking sector in the Emirate of Dubai in particular, is characterized by its advanced technological infrastructure, providing the latest computerized banking systems in the world, and being among the most secure and protected from cyberattacks and theft. In addition, the systems and regulations allow all investors to deposit their funds and open bank accounts easily in any bank operating legally in Dubai, with the ability to earn profits from depositing these funds in various accounts and programs offered by these banks to investors.

The Reality of Islamic Banking in Dubai

The United Arab Emirates is the first country in the world to establish a bank fully operating under an Islamic banking system. Dubai Islamic Bank, founded in 1975, was the first Islamic bank to operate with a financial and banking system compatible with the principles of Islamic Sharia.

Based on this, the Emirate of Dubai has been a pioneer globally in establishing an Islamic financial and banking system, making Dubai a primary destination for bank deposit inflows from Muslim investors worldwide.

The Islamic banking sector in Dubai was strengthened by Federal Law No. 6 of 1985, concerning Islamic banks, financial institutions, and investment companies, which is considered the first law in the world of banks and financial institutions to adopt the term "Supreme Sharia Board." This board monitors the banking transactions of Islamic banks and ensures their continued compliance with Islamic Sharia principles.

The Islamic banking sector in the United Arab Emirates, including the Emirate of Dubai in particular, achieved significant growth rates. Official data in the country showed that the assets of Islamic banks amounted to 25% of the total banking financial assets overall.

Accordingly, the Emirate of Dubai is considered one of the most important centers of Islamic finance and banking in the world. After Dubai pioneered the establishment of the first Islamic bank in the world, it continues to develop its Islamic banking system, which is considered one of the best Islamic banking systems regionally and internationally.

The Most Famous Banks Operating in Dubai

• Dubai Islamic Bank

The first Islamic bank established in the world, founded in 1975, Dubai Islamic Bank is a pioneer in developing the global Islamic finance sector, being the largest Islamic bank operating in the United Arab Emirates and the third largest Islamic bank globally.

• Emirates NBD

The largest bank in the United Arab Emirates, established in 2007 as a result of an investment agreement that led to a merger between National Bank of Dubai and Emirates Bank International.

• Commercial Bank of Dubai

Ranked seventh among the largest banks operating in the United Arab Emirates based on the total value of financial assets, with total financial assets amounting to 23 billion US dollars.

• Emirates Islamic Bank

One of the well-known Islamic banks in the Emirate of Dubai and the United Arab Emirates, established in 2004, offering various banking services under the Islamic banking system.

• Emirates Investment Bank (PJSC)

One of the oldest and most established banks operating in Dubai and the United Arab Emirates, founded in 1976 by three of the most prominent Emirati families working in trade and investment.

• Mashreq Bank

The oldest privately owned bank operating in the United Arab Emirates, founded in 1967, it was the first bank to install ATMs in the country and the first to issue debit and credit cards.

Types of Bank Accounts Offered by Banks in Dubai

All banks operating in Dubai offer different types of bank accounts available to both citizens and expatriate residents in the United Arab Emirates. These accounts come under various names and with attractive promotional incentives, but generally, the types of bank accounts offered by banks in Dubai for individuals or companies are as follows:

• Current Accounts

The most common type of bank account, used to keep funds within the account for individuals, companies, or various institutions. These funds are managed through transfers, receipts, and payments. This type of account falls under demand bank deposits.

• Savings Accounts

Accounts based on an agreement between the bank and the party depositing a certain amount of money in one of the savings accounts offered by the bank as a banking service under specific terms, such as the deposit period, the possibility of withdrawing all or part of the funds before the agreed period ends, and the profit rates or fixed returns for the depositor.

• Business Accounts

Bank accounts dedicated to business activities arising from companies or various institutions. These accounts serve to separate the personal funds of the business owner from the financial flows of their commercial activities and company investments. They also allow for tracking and managing various company financial operations, such as paying employee salaries according to approved payrolls, making adjustments, paying due debts, and other operations.

How to Open a Bank Account in Dubai for Residents and the Conditions

The federal laws in the United Arab Emirates allow expatriate residents to open bank accounts in the country, and these regulations apply to the Emirate of Dubai and its banks.

The conditions and procedures for opening a bank account for foreigners in Dubai are as follows:

• Having a valid legal residence permit in the country.
• Receiving a regularly paid salary.
• Depositing a minimum amount in the account to activate it, with the amount and related conditions varying according to each bank's policies.

Required Documents to Open a Bank Account in Dubai

To open a bank account in one of the banks operating in the Emirate of Dubai, expatriates are required to provide the following documents:

• Original passport + a copy.
• A copy of the resident ID card issued by the Federal Authority for Identity, Citizenship, Customs, and Port Security.
• A salary certificate or a no-objection letter from the employer or sponsor.

Can You Open a Bank Account in Dubai Online? How?

You can open a bank account in one of the branches of banks operating in the Emirate of Dubai through the bank's website or mobile application, but under the same announced conditions for opening bank accounts for expatriate residents.

Can You Open a Bank Account in Dubai from Abroad?

Yes, this is possible if the client has a special account with an international bank that is dealt with by one of the local banks operating in Dubai, or if there is a bank account with an international bank that already has branches operating in Dubai.

Can Non-Residents Open a Bank Account in Dubai?

Citizens of the Gulf Cooperation Council countries (Qatar, Saudi Arabia, Kuwait, Oman, and Bahrain) can open bank accounts in one of the banks operating in Dubai without having a valid residence permit in the country. Special government exceptions are also available for investors and businessmen.

Edited by: Imtilak Global Real Estate©