Opening a corporate bank account in the UAE

Opening a local corporate bank account for a UAE company requires thorough due diligence and expertise. This includes verifying the legitimacy of the company's operations, providing documentation such as contracts or invoices, and meeting compliance requirements set by the bank. Our corporate banking team has excellent relationships with local and international banks in the UAE, and we undertake the necessary banking steps on behalf of our Clients. Golden Fish collaborates with internationally recognized banks such as HSBC, Barclays, Standard Chartered, and Citibank, as well as major UAE banks like Emirates NBD, Emirates Islamic, Mashreq Bank, ADCB, and DIB.

The UAE Corporate Banking Sector

Before setting up a corporate bank account for a UAE company, our Clients should be aware of the following points:

• The UAE is a global financial center with a well-regulated, stable banking system. Historically, the UAE has been seen as 'tax neutral' for capital flows from conflict zones in the Middle East, Africa, West Asia, Russia, and India. 'Tax neutral' means that the UAE imposes minimal taxes on foreign investments, making it an attractive jurisdiction for international businesses seeking to avoid heavy tax burdens. The UAE Central Bank is known for maintaining the stability of the country's financial system. The UAE dirham has maintained a fixed exchange rate with the US dollar since 1980.

• There are no foreign exchange controls in the UAE. Funds movement is unrestricted for several financial operations, including remittances of profits, dividends, debt service, capital, capital gains, branch profits, royalties, and returns on intellectual property or imports. Foreign individuals and companies can also open personal or corporate multicurrency bank accounts.

• The UAE's economy and banking system are vulnerable to:

  • Regional conflict and uncertainty
  • International efforts to combat the financing of terror and money laundering
  • Low oil prices
  • Declining real estate prices in the city
  • Overseas visitors spending money in the city
  • A healthy global economy Banks in the UAE are well-capitalized, comfortably exceeding minimum regulatory requirements.

  According to S&P Global Ratings' UAE Banking Sector 2023 Outlook, UAE banks maintain sufficient liquidity on their balance sheets to sustain loan growth, remaining resilient against unpredictable movements in international capital markets. In 2023, the total assets of banks operating in the UAE experienced an 11% year-on-year increase, reaching a record high of AED 4.1 trillion.

• In January 2024, the UAE's foreign exchange reserves rose to US$184.4 billion, up from US$180.5 billion in the previous month. International credit rating institutions such as Moody's and Fitch Ratings also highly rate the UAE. The government holds a sovereign credit rating of Aa2 from Moody's and an AA rating with a stable outlook from Fitch.

• While deposits in UAE banks are not insured, the government has consistently stepped in to protect depositors' money in the past and is unlikely to let any local bank collapse. For example, during the 2008 global financial crisis, the UAE government provided financial support to local banks to ensure stability (source).

• Dedicated digital banks are emerging in the city, offering services via mobile apps, typically with lower transaction fees and service charges. The UAE banking sector is also shifting towards mobile payments, artificial intelligence, and blockchain-based services.

• UAE banks offer savings, deposits, checking accounts, online banking, currency exchange, foreign currency banking, wire transfers, ATM services, wealth management, loans, letters of credit, treasury services, hedging, and advisory services.

• Even the most minor transactions can be completed in the UAE using local and international debit and credit cards and methods like Apple Pay and other payment gateways. Nearly all ATMs in Dubai accept international cards, many offer withdrawals in US dollars, and some have high daily withdrawal limits of at least AED 5,000.

• Most UAE bank branch staff speak English; correspondence and online banking services are available in English and Arabic.

• The UAE is a signatory to the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA), which are global initiatives to reduce tax evasion.

• All travelers entering the country must complete a declaration when bringing cash amounts equivalent to or higher than AED 60,000.

💙 TIP

Learn how our team of experts guarantee corporate bank account approval.

Considerations When Opening a Business Bank Account in the UAE

The UAE government requires local banks to implement strict 'Know Your Client' (KYC) procedures. Therefore, before opening a bank account, our Client will be required to submit:

• Detailed information on the company's activities (including proof of business in Dubai, such as contracts or invoices).
• Information on the company's Clients and suppliers.
• Background information on shareholders and directors.
• Financial projections.

Our corporate banking team will assist in preparing the necessary company documents to the bank's satisfaction.

Every UAE bank will require our Client to submit legalized and attested foreign company documents before the corporate account can be opened. A local company should budget approximately US$2,000 for attestation fees. A foreign entity opening a corporate bank account in the Emirates should budget around US$5,000 in attestation fees (seven documents at US$800 each). If the foreign company has a complex structure, the Client should budget for over US$6,000 in attestation fees.

Some free zones require the deposit of paid-up share capital. This deposit must be made into a local UAE bank account using the local currency (AED). Once the primary AED account is set up, supplementary accounts can be opened outside the UAE.

In addition to UAE dirham accounts, local banks offer accounts in multiple currencies, including US dollars, euros, sterling, and other global currencies.

UAE banks usually require a minimum deposit and maintenance balance of around US$130,000. A fall-below fee is applied if the account fails to meet this monthly balance requirement.

Banks in the UAE require a face-to-face meeting with the entity's directors and signatories before approving a business bank account application. This requirement ensures that the bank can verify the identity of key individuals involved and assess the legitimacy of the business, thereby reducing the risk of fraud and ensuring compliance with regulatory standards. Therefore, travel is required.

Increasingly, UAE banks may also require the Client to:

• Secure a physical office in the UAE
• Obtain a UAE work/residency visa for the signatory.

If needed, Golden Fish can assist in:

• Identifying suitable office space
• Obtaining UAE visas.

In most cases, UAE banks' legal and compliance departments do not assess the initial due diligence documents before our Client arrives in the UAE. Instead, the front desk officer handles this task. As a result, it is common for banks to request additional documentation at various stages of the account opening process.

💚 On average, UAE banks typically take around eight weeks to issue corporate bank account numbers once a complete application and KYC document set is submitted.

UAE banks do not require foreign companies to possess a local entity to set up an account. However, opening offshore company bank accounts can be difficult and expensive as banks have tightened their requirements.

Table of UAE Business Banking Problems and Solutions

UAE Corporate Banking Problem	Solution
UAE banks require the signatory to be physically present to open a corporate bank account. However, traveling to meet the bank does not guarantee a successful account opening.	Our Firm will seek banks with branches for non-UAE residents. In some cases, this might allow the beneficiary to visit a branch closer to them or in their home country. If travel to the UAE is required, we will 1️⃣ secure in-principal interest prior and 2️⃣ schedule bank meetings with multiple banks as backups.
Since 2019, opening a UAE corporate bank account as an offshore company has become more challenging. This is mainly because offshore companies may lack substance or employees in the UAE, making meeting all bank requirements difficult.	Golden Fish has built quality banking relationships with UAE and global banks. These banks trust and welcome our multinational Clients. A quality business plan is a big help. Additionally, Golden Fish will help our Clients meet UAE economic substance requirements.
UAE banks, like many international banks, often close corporate accounts without providing a reason. Closing a customer's bank account without allowing the bank signatory to explain 'unusual transactions activity in the corporate bank account' is an unfair, unreasonable action that can stress our multinational Clients' businesses.	We recommend that our multinational Clients open multiple backup multi-currency corporate bank accounts with different banks. It is not advisable to open one corporate bank account and have your business depend on one bank.
UAE banks and banking regulations continue to tighten and complete thorough due diligence, ask for stringent compliance, and Know Your Customer (KYC) requirements.	Golden Fish will ensure the timely provision of all necessary documents in compliance with UAE banks and regulatory authorities.
Dubai banks may be particular about onboarding non-UAE registered entities, making the process difficult and costly. They typically prefer customers with a local presence and economic substance.	Golden Fish has developed strong relationships with banks in the UAE. These institutions trust and are receptive to our multinational clients, mainly when supported by a quality business plan.
Dubai banks will ask foreign-registered companies to legalize corporate KYC documents with the UAE embassy in their country of origin. This can be costly, as embassy fees can be as high as US$800 for each document.	As a backup, Golden Fish simultaneously contacts 3-5 banks to minimize the completion timeframe.
The majority of Dubai banks only provide telephone support during Dubai business hours. This is inconvenient for multinational Clients in Asia Pacific or the USA.	Golden Fish staff assist our multinational Clients with bank communication, regardless of time zones. An attested POA will be needed.

How to open a UAE corporate bank account

Our Firm will contact several banks to confirm their interest in our Client's business and arrange a branch meeting.

Golden Fish's Banking Team will complete the multi-currency corporate bank account application forms for our Client's review and signature. We will also collate Know Your Customer (KYC) due diligence documents.

We will draft a quality business plan to improve the chances of securing a multi-currency corporate bank account at the preferred bank.

Our team will support our Clients in Dubai by joining them in in-person meetings with local banks to open multi-currency corporate bank accounts.

Upon completing the above, the bank officer will present a complete potential customer file to the bank's Legal and Compliance Department. This department may require additional documents and information from each bank signatory, director, and UBO of the companies, as well as information about our Client's business and transactions.

Should a bank decide not to onboard our Client's business, Golden Fish will promptly inform our Client and implement alternative banking solutions.

Three weeks following the engagement commencement, we will deliver a summary table to our Client, listing the banks that have preliminarily expressed interest in onboarding them. Four weeks after our Client's trip to the UAE, they may expect to receive their multi-currency corporate bank account numbers.

Internet banking login details usually follow within one to two weeks after bank account numbers are issued. We can also help our clients activate Internet banking facilities.

After getting the corporate bank account numbers, Golden Fish is available to help our Client add new shareholders and directors if necessary. However, approval of these individuals as bank signatories usually depends on a face-to-face meeting with the bank and the subsequent review and approval of their applications.

Other UAE corporate banking services

UAE brokerage account

Many Clients choose a UAE brokerage account as their preferred trading platform in the Middle East. While stock exchanges in the Middle East may not be as advanced as those in Europe, the US, or Asia, interest in UAE brokerage accounts has increased alongside growing trading volumes.

A brokerage account in the UAE also opens doors for trading on European and American stock exchanges.

As investment opportunities grow in cities like Dubai, and Abu Dhabi, setting up a UAE brokerage account becomes a valuable strategy for our Clients to engage with these markets.

Services offered when establishing a UAE brokerage account include equities trading in the Middle East, an optimal cash account, a margin trading account, FX and futures margin trading, securities borrowing, and lending, funds and unit trusts, fixed income investments, research products including daily and weekly updates, company research reports, and sector focus reports.

A UAE brokerage account will be subject to brokerage commissions, data fees, stock transfer charges, real-time price quotes, research tools, interest rates for margin loans, and management fees for discretionary accounts.

Trade finance

UAE banks are willing to provide finance to local companies if the following conditions are met:

• submission of a good business plan
• availability of security
• experience of the business owners
• auditing of the financial statements of the last three years
• availability of a realistic feasibility study
• report of the project's strengths and weaknesses analysis (SWOT)

Trade finance covers several financial instruments, including bank guarantees, letters of credit, finance against trust receipt, and documents against payment and acceptance.

Corporate finance options include loans, overdrafts, or preferential credit terms (e.g., reduced interest rates for loyal customers or extended repayment schedules).

Some multinational Clients seek trade finance to boost working capital, better manage cash flow, benefit from economies of scale by buying in volume, and reduce bankruptcy risks.