Lots of non-residents ask us how they can open a bank account in the UAE. In fact, opening an account in the UAE is one of the most common requests we receive from people seeking cross-border financial services and offshore bank accounts.
But, banking in the United Arab Emirates (while popular), is not as straightforward as you would expect. It’s also not as beneficial as many people will have you believe.
In this article, we’re going to share what you need to know, what no one else is telling you, and how to get started opening accounts if you decide the UAE is right for you.
KEY TAKEAWAYS
- There are restrictions for certain non-residents and expats
- Three emirates that attract non-resident customers include Dubai, Ras al-Khaimah, and Abu Dhabi
- UAE bank account options are limited if you don’t plan on obtaining UAE residency
- Most non-residents are restricted from opening checking accounts in the UAE
- Remote opening is possible for non-residents if you know which bank to approach
As the epicenter of stability in an otherwise turbulent Middle Eastern region, several of the emirates provide the type of stable banking options you’re likely looking for.
Opening accounts in the United Arab Emirates, however, comes with restrictions, especially as a non-resident. Opening accounts here is tedious to navigate and in most cases, requires a personal visit. Depending on your client profile, there are other non-resident-friendly banking hubs worth considering, such as Jersey, Panama, The Bahamas, and the Cayman Islands.
We’re going to explore whether the UAE is a suitable banking hub for you by taking a look at the three most important UAE emirates for banking, the account opening process, challenges, and pitfalls, and how to start opening accounts in the UAE today.
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Before diving in, it’s worth noting that the United Arab Emirates is no longer on the EU’s list of non-cooperative jurisdictions. The country was removed in October 2019. Likewise, the country also doesn’t appear on any FATF lists, so it’s not considered a high-risk jurisdiction, nor is it defined as a country under increased monitoring by FATF standards.
This is a good thing! It means that the UAE has taken the necessary steps to become a decently transparent country and has successfully met the international standards imposed by regulators and other quasi-government bodies.
Does it mean the UAE is still a suitable jurisdiction for you and your banking needs?
Well, that’s a big question. The answer depends on your specific financial objectives and reasons for wanting to bank in the United Arab Emirates. Depending on these two factors and the applicant’s financial assets, other jurisdictions could be better matched for account opening, including Switzerland. This is especially true if you’re seeking highly reputable private banking services.
We share an overview of banking in the UAE, followed by the three emirates that are most popular for non-residents to open accounts in.
After that, we share how non-residents open a bank account in the UAE by highlighting some important (and often overlooked) non-resident-specific restrictions and account opening challenges.
Feel free to use the table of contents to continue exploring more information on how to open a bank account in the UAE as a non-resident.
Tables of Contents
- Can Non-Residents Open Bank Accounts in the United Arab Emirates?
- What to Expect When Banking in the UAE as a Non-Resident
- Where to Open a Non-Resident Bank Account in the UAE?
- What Are the Risks of Banking in the UAE as a Foreigner?
- Frequently Asked UAE Banking Questions
- Do You Want to Open a Bank Account?
Can Non-Residents Open Bank Accounts in the United Arab Emirates?
Yes, non-residents can open bank accounts in the United Arab Emirates. There are, however, limited account opening options for non-residents who don’t plan to move or obtain residency in the UAE.
The reason for this is that non-resident accounts are for individuals who have already started the process of obtaining residency or a visa.
Depending on the bank, branch, and banker you approach, there are still several account opening options available for non-residents who don’t intend to establish ties in the United Arab Emirates.
Additionally, there are also several restrictions and limitations that non-residents need to be aware of when opening accounts here. Most non-residents can’t open checking accounts (or current accounts), aren’t allowed to have checkbooks, and sometimes have restrictive minimums and maximum rules for account balances.
Non-residents who are eligible for bank accounts in the United Arab Emirates need to prepare for the account opening process. Below is a list of five general requirements, including specific documents, most banks in the UAE require non-resident applicants to meet when applying to open an account.
Requirements for Opening and Maintaining Accounts With UAE Banks
- Typical personal documentation
- Proof of source of income & wealth
- Bank reference letters
- Minimum deposits apply but amounts vary from bank to bank
- Minimum account activity (e.g. one transaction per quarter)
Restrictions aside, non-residents are still eligible to open a savings account and receive a debit card.
Additionally, a bank account in the UAE does provide multi-currency accounts with most major currencies. Multi-currency accounts, however, aren’t always available at every bank. It’s important to confirm with your chosen bank if they provide your desired currencies before starting the application process.
Another important consideration before applying is understanding the bank’s fee schedule. This includes calculating the fees for international money transfers in certain currencies. Non-residents who plan on converting AED to USD to invest in ETFs in Ireland via their European broker, are likely going to face higher fees if they choose the wrong UAE bank.
Here is a breakdown of the products and services most non-residents have access to when opening a UAE bank account.
Non-Resident Banking Products Offered By UAE Banks
- Savings accounts
- Debit card
- Online banking
- Multi-currency (most major currencies available)
- Remote opening is possible (more on this below)
Bottom line: With the right information, knowing which banks are most open to accepting non-residents, and what their opening quirks are, it’s 100% possible for non-residents to open accounts in the United Arab Emirates without too much hassle.
What to Expect When Banking in the UAE as a Non-Resident?
Banking in the United Arab Emirates is an attractive option for a few different reasons, namely secrecy, stability, and diversification.
It’s important to note that all financial institutions in the UAE comply with FATCA and CRS. The UAE started participating in the automatic exchange of information (AEOI) in 2019. Because of this, non-residents who open accounts here need to expect their information to be automatically shared with tax authorities in their home country or country of residence.
Unfortunately, non-residents are drastically limited in the types of accounts, services, and products they’re able to access in the UAE. These restrictions are negotiable as they are mandated by the Central Bank.
On a positive note, banks in the UAE have IBANs. This means you have the option to manage transactions to and from partners in Europe. Simply having a bank with an IBAN offers huge savings in terms of time and money. IBAN access, therefore, makes the UAE significantly more attractive than other international banking jurisdictions.
Lastly, opening an account in the UAE almost always requires an in-person visit. We discuss this in more detail below, but ultimately, if you’re in search of a remote account opening, there are other jurisdictions worth considering.
Where to Open a Non-Resident Bank Account in the UAE?
The United Arab Emirates is home to seven different emirates. From a banking perspective, however, three emirates attract non-residents and expats, which include:
- Dubai
- Ras al-Khaimah (RAK)
- Abu Dhabi
While financial institutions are regulated nationally by the UAE Central Bank, not all banks are present in every emirate. Many applicants find that the bank selection is better in one emirate over the others.
Additionally, depending on your specific objectives and why you want to bank in the UAE, one emirate is likely going to be more suitable to your financial needs.
We dive into how non-residents open accounts in Dubai, RAK, and Abu Dhabi in greater detail below, starting with Dubai.
How to Open Accounts with Dubai Islamic Banks
When most people ask about opening a personal bank account in the United Arab Emirates for non-residents, they’re really asking about Dubai.
One of the main reasons for this is that Dubai is home to some of the most established free trade zones (FTZs) in the world, making it an ideal place for non-resident entrepreneurs and investors to consider doing business. Though, if you’re just getting started, Ras al-Khaimah is more accommodating and affordable.
Additionally, while not as affordable as Ras al-Khaimah, Dubai is less conservative than Abu Dhabi and is easier to access from a banking perspective.
Respectfully, Dubai is often best suited to an individual and company who do business in the region, have a UAE company, or regularly visit the country.
How to Open a Corporate Bank Account in Ras al-Khaimah (RAK)
Alternatively, Ras al-Khaimah (or RAK), is a popular destination for setting up international companies in a tax-free environment. It’s also an interesting jurisdiction for anyone looking to register a new business or needs a corporate bank account.
Like other popular tax havens known for secrecy such as Anguilla, Bahamas, Cayman, Panama, Seychelles, or Vanuatu, RAK offers entrepreneurs and investors strong privacy. Unlike these other countries, RAK also offers access to relatively stable banking solutions.
Unfortunately, opening an account for RAK companies isn’t as straightforward as most business owners like. Plus, all the typical challenges of opening a UAE non-resident account, still apply. We discuss these in the next section, but first, let’s look at the third emirate that many foreigners consider for banking in the United Arab Emirates: Abu Dhabi.
How to Open a Non-Resident Bank Account in Abu Dhabi
Dubai is the business and shopping center of the United Arab Emirates, whereas Abu Dhabi is a more conservative, more reputable, financial center. It’s no surprise that the process for opening an account in Abu Dhabi is often more difficult than in Dubai or RAK.
Similar to UAE’s other emirates, Abu Dhabi banks often attract non-residents and their UAE companies thanks to the perceived stability of the financial banking sector, and in the case of Abu Dhabi, this reputation is well earned. On several occasions, the Abu Dhabi government had to step in to save Dubai from collapse.
Non-residents who eventually intend on opening a business in the UAE need to understand that Abu Dhabi is a more expensive option than both Dubai and RAK. On the other hand, if you plan on having a true physical presence with meaningful economic substance, Abu Dhabi is worth exploring.
Can Non-Residents Open Bank Accounts in the UAE Remotely?
Unfortunately, opening a bank account online in the UAE isn’t common. Most people still need to visit the United Arab Emirates in person to open a bank account. This requirement is from the UAE’s central bank, which makes the UAE one of a handful of countries where an in-person visit for account opening is almost always necessary.
Online account opening exceptions are made for non-residents who are looking for private bank accounts. This is solely dependent on the bank, branch, and banker you choose.
There are certain situations where some groups open an account online in the UAE without visiting a bank. Such opportunities, however, are very rare and require the applicant to meet specific parameters. We share these options with our premium members, GlobalBanks Insiders.
What Are the Risks of Banking in the UAE as a Foreigner?
There are risks anytime you open a bank account as a foreigner anywhere in the world. The United Arab Emirates is no exception.
Financial institutions in the UAE are particularly susceptible to the economic outcome in the local property market and oil industry, so it’s no surprise that during times of global economic turmoil, bank stability becomes a concern.
During times of economic uncertainty in the past, like the 2008 financial crisis, the UAE government has insured 100% of depositor accounts. That’s certainly one major benefit to having a savings account in the UAE as a non-resident instead of other jurisdictions that offer little to no deposit insurance.
Beyond the economy, there are more basic operational account risks to take into consideration as well. One consideration is that UAE banks sometimes charge high non-resident fees and high penalties if your balance drops below a certain threshold.
Lastly, a warning for anyone who intends to become a resident of the UAE:
Those who plan on acquiring credit cards, lines of credit, car loans, or mortgages, need to be aware of severe penalties for late payments and default. Many foreign non-residents, in fact, have found themselves in prison, literally, for missing credit card payments. It’s important to be careful. Otherwise, you’re going to be parking your Ferrari next to the others left behind by fleeing non-residents at the Dubai airport.
Frequently Asked UAE Banking Questions
Below are three of the most common questions we receive from people exploring how to open a bank account in the UAE for non-residents. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can a Foreigner Open an Account in the UAE?
Yes, a foreigner can open an account in the UAE as long as they choose the right bank, submit the proper documents, and have a suitable client profile. The banks available to foreigners highly depend on the applicant’s banking profile. More specifically, their citizenship, residency, deposit level, and the types of banking services they require.
Is It Difficult to Open a Bank Account in UAE?
Yes, it is difficult to open a bank account in the UAE if you are not well prepared. Bank selection is an important factor to consider when choosing where to open a bank account in the UAE, especially as a non-resident. It’s important to choose banks that accept similar client types, match your banking needs, and offer the banking services you’re after.
What Are the Requirements to Open a UAE Bank Account?
The requirements to open a UAE bank account depend on the bank and the person applying. This is because a bank’s opening requirements vary depending on the person’s citizenship status, residency, financial needs, and deposit level. Generally speaking, most non-resident applicants need to provide necessary documents, including proof of identity, proof of income, and bank reference letters, and make a qualifying deposit.
Do You Want Help Opening Bank Accounts?
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