Bank account in the UAE: an attribute of a successful business
Find out about all the advantages and benefits, unique banking tools and solutions that you will receive by opening an account in the Emirates, the largest financial hub in the region.
The banking system of the United Arab Emirates is developing rapidly thanks to the large inflow of capital, the reliability of the banks and the financial stability of the country. The level of taxation is minimal - international activities are fully exempt from tax and there is only 5% VAT on a small number of domestic categories. Free capital inflow and outflow is legally secured with no currency controls. Bank secrecy is tight with absolutely no disclosure of information about bank account owners to third parties.
Why you need to open a corporate account with a UAE bank
Economic stability and the country's prestige
No inflation, absolute stability of the banking system, trusted jurisdiction not included on any the OECD or FATF blacklists
Integrated into the international financial system
Large international financial institutions are located in the UAE, and branch offices of UAE banks can be found all over the world
Settlements in any world currency without conversion
It is possible to open an account and conduct settlement transactions in dollars, euros, pounds, yuan, etc. including within the UAE
Simplified KYC for settlements in the national currency
Bank verification procedures cater for settlements in the local currency (dirham) with minimal oversight requirements
Freedom of settlement for offsetting transactions
Payments for third parties in the day-to-day business of the company are common practice and freely accepted by UAE banks
Tax information exchange does not apply to residents
According to the Central Bank's policy, UAE banks do not exchange information about financial transactions on accounts (CRS)
Advantages of the UAE banking system
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Financial asset protection
The safety of depositors' funds is protected at state level and by law. In addition to the regulations of the Banking Law No. 14 of 2018, the UAE is a party to the Basel Convention (III, II) on banking supervision.
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Hi-tech
Banks use advanced technologies and guarantee the efficiency of transactions. Transaction automation, ATM systems, POS terminals, digital solutions and personal data protection are provided by the latest and most up-to-date systems that are implemented by all of the country’s financial institutions.
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Savings on transactions
Banking transaction costs are among the lowest in the world. Also, in most cases, banks in the UAE do not charge a service fee. You pay instead for using the internet banking service. At Noor Bank that amounts to 500 dirhams per year ($137) as a representative example.
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Savings on currency conversion
Since the US dollar is permanently pegged to the local currency (dirham) and the exchange rate is fixed by law, it is not subject to fluctuations. 1 US$ = 3.67 AED.
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Banking system stability
According to this indicator, the UAE ranks first in the region. This indicates high financial solvency, which is guaranteed by the country’s open economic and financial policies. Moody's, S&P and Fitch have assigned the Emirates ratings of Aa3, AA- and AA, respectively.
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State stability
Diversification of the economy along with many initiatives aimed at strengthening the country's financial and political position in the world, as well as a “soft power” strategy - a course for the development of the UAE in all sectors at international level without political pressure - form the basis for prosperity and a guarantee of well-being.
Largest local banks of the United Arab Emirates
Opportunities that are unlocked for you by opening a bank account in the UAE
Account in the national currency
Financial products
Banking secrecy
No risks
High-yielding deposits
Low-cost banking services
Types of bank accounts
When opening a corporate account, banks require:
The real office of the company conducting banking operations in the UAE
The bank needs to validate the location of the company’s center of management and control from where banking transactions are carried out.
Confirmation of the resident status of the account signatory
Verification of tax affiliation so as to exclude automatic exchange of banking information.
Mandatory set of supporting documents as part of the KYC procedure
Confirmation of the source of funds, submission of the business profile of the company and the CV of the account signatory.
Among the largest foreign banks with branches in the United Arab Emirates, we can single out:
Take full advantage of the UAE jurisdiction for the success of your business
Save time and effort by entrusting the support of business issues to SORP professionals. You will receive an optimal solution for your company and a guaranteed result.
Additional opportunities offered by UAE financial institutions
Investment activities
There are no restrictions on this activity in the UAE. All financial institutions, including banks, provide opportunities to invest funds both locally (on the domestic stock market, for example) and internationally.
Traditional financial instruments
Financial institutions and banks in the UAE offer their clients ready-made and secure solutions for entering the financial markets (leveraged products, bonds, stocks), and also assist in utilizing trading platforms through the development of secure strategies.
Islamic financial vehicles
In addition to classic banking products, there is an alternative that emerged from the principles of Islamic Banking - these are secure investment solutions such as Sukuk (Islamic bonds), Mudaraba (partnership), Musharaka (equity partnership) and Salam (advance payment).
International banks in UAE financial centers
Facts on Islamic banking in the UAE
Protecting the interests of investors
Special products
Sharia principles
Wide representation
8 full-fledged Islamic banks
First Abu Dhabi Bank - the largest public joint stock bank in the UAE
20 large local banks
Terms for opening an account
When opening a bank account in the UAE, you will need the following SORP solutions
Incorporation of an onshore company in the UAE
Incorporation of a local (mainland) or free zone company to enable a corporate account to be opened and conduct banking transactions
Comprehensive preparation for opening an account
Collating all the documentation, preparing for the KYC procedure, accompanying the customer to a meeting with a bank officer
Providing an office for a bank check
Confirming that a real physical office exists when opening a bank account by renting an office area in the SORP business center
Support for working with the bank
Ensuring that communications with bank representatives for account inquiries flow smoothly as would be expected of a well-run business
Rationale for banking transactions
Agreements and contracts drawn up to justify some transactions, and audit reports in order to confirm the economic feasibility of transactions
Proof of tax resident status
Passing procedures and fulfilling all legal requirements for tax residency to protect against automatic exchange of tax information (CRS)
SORP Group will become your reliable long-term working partner in the UAE
Leading consulting group providing a full range of services for the incorporation, support and management of business in the UAE and beyond. We have an impeccable reputation, broad capabilities and a deep asset base.
Successful business setup and support in the UAE
We provide legal tax optimization advice, guidance on investments, help in obtaining tax residency status and provide a wide range of outsourcing services.