When we think of the United Arab Emirates, the first thing that comes to mind are those cities, especially Dubai and Abu Dhabi, where modernisation is at the highest level. 

As we talk about modernisation and technological advances, we must also take into account the banking system of the country we are referring to, as it is precisely the legislation in this area that drives the economic growth of a country. 

In the UAE, the procedure for opening and maintaining a bank account is generally simple, fast and secure, earning the country the nickname of "the Switzerland of the Middle East" for some people, with confidentiality, efficiency and effectiveness being its main pillars. 

The country's banking system is regulated by the Central Bank, which is also basically responsible for preventing the UAE's economy in general from collapsing, as well as regulating some financial institutions and businesses operating within the country. 

The Central Bank is generally responsible for regulating the following sectors: 

-Commercial banks (locally established or branches from foreign banking institutions)

-Investment banks

-Islamic banks (ruled by the Sharia Law)

-Industrial bank accounts

-Moneychangers

-Financial and monetary intermediaries

-Financial investment companies

-Finance companies.

However, most of this article will be based on the first 3 types of banks, from commercial banks to Islamic bank accounts. They are generally the most commonly used, as well as possessing a large amount of financial value within the country. 

Islamic banks have gained exponentially in popularity in recent times as the Muslim community in the Middle East is very large, and some Muslim individuals from European countries are interested in doing business in the commercial epicentre of the Islamic world. 

Considering how turbulent the Middle East region can be, it is important to consider the advantages that the UAE offers in terms of banking, especially for ex-pats. Some of these advantages include: 

-Banks in the UAE offer confidentiality of your personal information.

-Simple and reliable deposits and withdrawals of capital.

-Secure online and phone banking system.

-Access to international banks and all their services.

-Almost all kinds of currency exchange options are available.

-Access to the facility of personal, business and car loans.

-Credit card with unrestricted purchase options.

-Good interest rates.

-Multiple currency accounts.

-Joint account option.

-ATM services.

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Types of Bank accounts in the UAE

As in most countries in the world, there are different types of bank accounts in the UAE banking system. It is up to the customer to decide which type of account best suits his or her needs and conditions. 

Current accounts: Commonly used for daily transfers, there are also two types of current accounts, those that are opened with a salary and those that are not. Normally, people open this account with the bank of the company they work for to speed up salary deposits. 

Savings account: This account is for people who want their money to make more money. This account offers higher interest rates but the access to the money maybe a little more complex than a current account. 

Investment accounts: UAE banks also offer investment services where contracts are established between client and bank from 12 months to 10 years where the bank guarantees a return of up to 12% on investment. 

Offshore accounts: These types of accounts are opened particularly in the emirate of Dubai, they can be used to deposit or withdraw money from a bank account abroad, but the client must comply with all the requirements of the bank.

How to Open a Bank Account for a Foreigner

The legal process of opening a bank account in the UAE could be described as an efficient, fast and secure process, usually taking no more than two weeks and could even be completed in two days, depending on the type of account to be opened, as some types of accounts differ from others in terms of the documents required. 

As a foreigner, you could open a bank account in two working days in a commercial bank, and if you are a legal resident of the country and want to open a personal current or savings account you will need: 

-Original and copy of your passport. 

-A copy of the visa page proving that you are a resident of the country.

-Proof of income. 

Some banks might require your Emirates ID Card, however, if you don't yet have one, you can simply bring a copy of the Emirates ID Card form. 

If you are not yet a resident, you will be able to open a savings account with a minimum and a limit of funds set by the bank, without the option of a chequebook. However, you will be able to have a debit card and the option to withdraw and deposit money into the account. To open an account as a non-resident, you will need: 

-Most recent utility bill 

-An original bank reference

-The applicant's most recent 6-month bank statement from the home country

-Detailed information about the source of the money to be deposited into the account. 

The good news is that in the UAE, these banking institutions do not require a lot of time to complete the account opening procedures after having provided the relevant documents they require. As we have said before, efficiency, security and speed are the pillars of this system. 

Corporate Bank Account 

The process to open a corporate bank account usually takes 2 to 4 weeks, however, to opt for this type of account it is necessary to have a company already registered and approved by the relevant institutions. Since a company requires a large number of transactions, you should opt for a current account. 

For foreigners, the documents required for opening this type of bank account are a little more stringent, such as the following: 

-Company trade license

-Certificate of registration

-Share certificates

-Company memorandum and articles of association

-Board resolution empowering a company officer to open the bank account

-Passport and visa copies of all shareholders and authorised signatories

Generally, this process takes no longer than mentioned above, and UAE institutions do not put many obstacles in the way of such procedures it is in their best interest to streamline them to attract foreign investment.

In the UAE, managing your bank account can be done in person, via mobile phone or online. In recent years, the world has been trying to move beyond the stage where the norm was to go to the bank's head office to manage the account, and it can still be done, but countries like the UAE have tried to migrate towards the digital world. 

The advantage of digital management is that it is available 24 hours a day without any inconvenience, you just need an internet connection. All banking services can be found within your bank's website, from loans to credit card applications and other things. 

Or you can simply download the bank's app on your mobile phone and manage your account, which is getting easier all the time. 

At MUNDO, we can provide you with the best banking assistance in the world, especially in the United Arab Emirates, so do not hesitate to contact us if you have any questions or if you wish to open a bank account in this country. 

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