How to open a Non-Resident Bank Account in UAE

Arabic bank accounts and cards offer a plethora of opportunities for Russians: you can conduct international transactions without currency control, and the interest rates on deposits exceed inflation. In this article, we'll delve into how to open an account and the advantages bestowed by a bank card.

Yes, non-residents can open a bank account in the UAE. You need to personally visit the bank, submit documents, and undergo a brief interview. However, in practice, this can be quite challenging: banks fear violating Federal Law No. 4 on combating money laundering. To protect themselves, creditors may refuse non-residents, increase the minimum balance requirement, or require opening an investment account or deposit for several years.

Pros and cons of opening an account in the UAE  

Pros:  

• No need to carry large sums or exchange currency in advance.
• Bank cards are accepted at all shops, restaurants, hotels, and other establishments in the UAE.
• Convenient internet banking.
• Stable exchange rate of the dirham to the dollar. 
• Bank branches of the UAE in other countries, no currency control.

Cons:  

• The full range of banking services is available only to residents. 
• Personal presence is required for non-residents to open an account.
• Thorough screening of Russians and organizations from Russia and CIS countries.

Bank verification of non-residents  

During verification, the bank will request copies of necessary documents and a completed application. Each organization determines its own deadlines, but on average, the process takes 1-2 weeks. After approval, the creditor will send you an official email containing your account details and instructions for using internet banking.

Types of cards that can be opened  

Several types are available in the UAE:

• Debit – for those who want to use their own funds.
• Credit – for those who need credit funds. The bank will issue a card after checking your credit history and income. 
• Prepaid – a card with prepayment, which can be topped up with a certain amount and not spend more than necessary.

Top 3 best banks in the UAE  

Commercial Bank Dubai  

Commercial Bank Dubai was founded in 1969 at the initiative of Sheikh Rashid bin Saeed Al Maktoum, a prominent historical ruler. According to Middle East Forbes magazine, the bank ranks 28th among the top lenders in the UAE, with assets exceeding $10 billion. Commercial Bank Dubai is also listed on the Dubai Stock Exchange index.

Abu Dhabi Commercial Bank was established as a public joint-stock company in 1985. The government of Abu Dhabi and the sovereign wealth fund Abu Dhabi Investment Authority control 65% of ADCB shares. The bank's total assets amount to $70 billion.

Emirates NBD  

Emirates NBD emerged in 2007 from the merger of Emirates Bank International and National Bank of Dubai. The new organization merged the second and fourth largest banks in the UAE and today operates 220 branches and 900 ATMs, with assets totaling $190 billion.

How to open a bank account for individuals  

To open an account, you must be at least 18 or 21 years old, depending on the specific organization. The bank is more likely to accommodate you if you have a monthly income of at least $3,800 and a balance of no less than $7,400. The account can be opened in dirhams or a foreign currency of your choice – dollars, euros, or pounds.

Documents:  

• Emirates ID;
• income certificate or employment contract; 
• bank account statement from the country of residence for the last 6 months; 
• utility bills for the last 3 months, indicating the payer's name and address in the UAE;
• personal resume explaining the purpose of opening the account.

How to open a company bank account  

All registered foreign and local companies in the Emirates can open a corporate account. In the UAE, there are free economic zones with special tax regimes. Non-resident companies can only operate within these free zones, while this restriction does not apply to resident organizations. In the free economic zones, there is no VAT, customs duties, or corporate tax for a period ranging from 15 to 50 years after business registration. The majority of free zones are located in Dubai.

Documents:  

• residence visas and Emirates ID of all shareholders and directors;
• validated legal address of the company; 
• authorization for opening the account: power of attorney or resolution of the general meeting of shareholders appointing a director; 
• organization's bank statement; 
• organization documents: certificate of registration, license, articles of association, memorandum of association.

Different types of companies  

In the Emirates, accounts can be opened for offshore and onshore companies. Here are the nuances:

Offshore

Offshore companies can only conduct business outside the UAE and are fully exempt from taxes. You are allowed 100% foreign ownership of the company. To register an offshore entity and open an account, it takes 2-4 weeks. Cost starts from $5,800.

Onshore or Mainland

Onshore or mainland companies have the right to conduct business within the UAE. If you have an onshore company, you can obtain a resident or sponsor visa, open a corporate account for the company, or for yourself. Registration of an onshore entity and opening an account takes 4-8 weeks. Cost starts from $12,000.

To be able to make payments in shops, restaurants, and other establishments in the UAE, you'll need a local bank card. Russian cards – Visa, Mastercard, or Mir or UnionPay systems – do not work here. Always carry cash with you in case your tourist card is not accepted. The application process takes up to 5 days.

Documents:  

• passport;
• copy of visa;
• completed bank application form.

Reasons for rejection  

UAE banks may reject politically exposed persons – individuals holding government positions, high-ranking positions in international companies, politicians, and their family members. Another group often denied account opening are those involved in oil product trading. Another reason for rejections is a poor compliance result or suitability check: you may be rejected if you choose not to answer the bank's questions or fail to provide additional documents. The only solution in all these situations is to apply to multiple banks and be prepared to be honest.

Conclusion  

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