Digital banking in UAE has become one of the most popular options for opening new accounts. However, foreign non-residents are rarely able to meet account onboarding prerequisites in the UAE.
But, locals in the UAE are adopting digital banking options at a rapid pace. 34% of the entire population was expected to have a digital bank account by the end of 2023, up from 19% in 2022.
In this article, we’re going to look at digital banking in UAE, the options for opening accounts, and answer a few of the most common questions. Of course, we will also drift into the regular opening process, which will be more relevant for foreign non-residents.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Digital Banking in UAE
- Who Can Open a Bank Account in the Emirates?
- Frequently Asked Questions
- Ready to Explore Your Options?
Digital Banking in UAE
Digital banking in UAE consists of traditional banks and new “digital first” market entrants. That said, product and service offering has not changed dramatically between traditional banking and digital banking. Instead, the focus of UAE banks is to deliver branchless banking services to their clients.
Of course, delivering branchless banking solutions requires customers to be connected, technologically savvy, and comfortable with conducting financial transactions digitally. As the growth in digital banking has proven, this is certainly the case in the UAE.
In addition to being branchless and technologically driven, another key factor separating digital banks and large foreign financial institutions active in the UAE is the focus exclusively on local clients. While large UAE banks and many of the foreign banks active in the UAE will still accept foreign clients, digital banks almost exclusively serve domestic clientele.
In the next section, we’re going to look at what this means for foreigners and non-residents looking to bank in the UAE. We’ll also discuss what options exist for them and how to open accounts here.
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Who Can Open a Bank Account in the Emirates?
When it comes to opening accounts in the United Arab Emirates, there is a lot of confusion about who can open and who can’t. This confusion isn’t helped by the fact that most major banks have dedicated “non-resident” account offerings, though (as we’ll discuss) these solutions are for specific clients.
Importantly, the UAE is a sophisticated and relatively open banking jurisdiction. So, most people can open accounts here. This includes non-residents from many different countries. However, challenges start to arise when non-residents look to open accounts in the UAE remotely. Remote opening is generally for individuals who are looking to make sizeable deposits, have strong ties to the region, or have existing relationships with the bank.
With this in mind, if you are looking to open accounts in the UAE, it’s important to understand the account opening requirements before applying. To this end, use the article first linked above to uncover all the secrets about opening accounts in the UAE.
Frequently Asked Questions
Below are two of the most common questions we receive from people looking into digital banking in the UAE. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Many Digital Banks Are in UAE?
There are over ten digital banks in the UAE, including both traditional banks and new digital market entrants. In most cases, individuals looking to open new bank accounts will consider one of the digital account options from the traditional banks that they already have accounts with. That said, Wio could be an interesting digital native option to consider as it is 65% owned by the Abu Dhabi sovereign wealth fund.
Why Is Digital Banking Becoming Popular in UAE?
Digital banking is becoming popular in the UAE in part because the government has emphasized the importance of driving innovation across the economy. As a result, all major UAE banks have taken steps to launch their own digital banking solutions, including Emirates, Mashreq, RAK Bank, and Abu Dhabi Islamic Bank.
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