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 stabilityand the country's prestige
No inflation, absolute stability of the bankingsystem, trusted jurisdiction not included on any the OECD or FATF blacklists
Integrated into theinternational financial system
Large international financial institutions arelocated in the UAE, and branch offices of UAE banks can be found all over the world
Settlements in anyworld currency without conversion
It is possible to open an account and conductsettlement transactions in dollars, euros, pounds, yuan, etc. including within the UAE
Simplified KYC forsettlements in the national currency
Bank verification procedures cater forsettlements in the local currency (dirham) with minimal oversight requirements
Freedom ofsettlement for offsetting transactions
Payments for third parties in the day-to-daybusiness of the company are common practice and freely accepted by UAE banks
Tax informationexchange does not apply to residents
According to the Central Bank's policy, UAEbanks do not exchange information about financial transactions on accounts (CRS)
Advantages of the UAE banking system
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.
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.
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 ($137) as a representative example.
Savings on currency conversion
Since the US dollar is permanently pegged to the local currency (dirham) and the exchange rate is fixed by law, it is not subject to fluctuations. 1 US$ = 3.67 AED.
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.
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
Low-cost banking services
Following the signing of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the state undertook to participate in the open exchange of data on the accounts of non-residents of the UAE, both personal and those in which they act as beneficiaries or signers. However, this does not apply to UAE tax residents.
Types of bank accounts
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
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
8 full-fledged Islamic banks
First Abu Dhabi Bank - the largestpublic joint stock bank in the UAE
20 large local banks
Terms for opening an account
Handling money in accordance with Sharia law is gaining in popularity despite the fact that the share of Islamic banks in the global financial system is currently less than 1%. Experts predict that Islamic banks will own at least 1/5 of all global assets in time. The constantly growing number of Islamic banks around the world is not only the result of Muslim migration, but also the desire of people of other faiths to protect their money from a multitude of risks.
When opening a bank account in the UAE, you will need the following SORP solutions
Incorporation of an onshorecompany 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 preparationfor 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 abank check
Confirming that a real physical officeexists when opening a bank account by renting an office area in the SORP business center
Support for workingwith the bank
Ensuring that communications withbank representatives for account inquiries flow smoothly as would be expected of a well-run business
Rationale for bankingtransactions
Agreements and contracts drawnup to justify some transactions, and audit reports in order to confirm the economic feasibility of transactions
Proof of tax residentstatus
Passing procedures and fulfilling alllegal requirements for tax residency to protect against automatic exchange of tax information (CRS)
SORP Group provides our clients with guaranteed professional support in dealings with UAE banks and financial institutions. This specialized service is highly valuable when opening a bank account and subsequent interaction with the bank for account transactions. Our close cooperation with leading UAE banks, understanding the compliance procedures of financial institutions, and the vast business experience of our experts, underpins our competence and capabilities in this area.
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.
SORP offers comprehensive support for acquired companies and their shareholders: from licensing, maintaining Bank accounts to obtaining the status of a tax resident of the country
Your requirements are unique. That is why we treat every business individually to tailor the right services to achieve your priorities.
15 years of successful work
We have helped thousands of clients acquire, build and develop businesses in the UAE
Assistance in choosing a bank that is suitable for your purposes, support with bank accounts opening and passing KYC procedures (know your customer).
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.