If you are considering living in Dubai and accessing its real estate market, opening a local bank account is an essential step. Indeed, to pay your rent, the use of checks issued by a Dubai bank is required. Checks from foreign banks, such as Société Générale or another international institution, are not accepted for these payments.

Contrary to popular belief, it is not necessary to pay your rent in one annual payment. Although the rental contract is established for one year, payment can be split into several checks. Most landlords offer a payment option that allows up to six checks per year, providing flexibility and allowing payments every two months instead of a single annual transaction.

By opening a bank account in Dubai, you can not only pay your rent smoothly and conveniently but also open a savings account for your future projects. Additionally, your account will be denominated in dirhams (AED), with an indicative exchange rate of 100 € for 420 AED.

Therefore, opening a local bank account is crucial for effective financial management in Dubai, especially for paying your rent and handling your daily activities in this dynamic city.

The savings account in Dubai is designed for those who want to securely save money. This type of account allows you to deposit funds at your own pace, while earning interest based on the conditions provided by the bank. You will generally receive a debit card linked to your account, allowing you to withdraw money or make payments, but you will not be able to exceed the available balance.

For non-residents, the savings account is the only available option. It is a simple and accessible way to manage your finances in Dubai, while benefiting from interest rates often higher than those offered in Europe. For example, Mashreq Bank offers a savings account with no minimum deposit and an annual return of 2.4% for its Easy Saver Account, a rate much higher than many European banks offer.

The current account is designed for daily banking operations, such as receiving salaries, paying bills, or making online purchases. Upon opening this type of account, you will receive a debit card and, depending on the terms, may request credit cards and/or a checkbook. However, it is important to note that current accounts are reserved exclusively for residents of the Emirates.

To open a current account in Dubai, some banks require a minimum salary of 3000 AED (approximately 276 EUR), although this requirement may vary from one institution to another. For example, HSBC imposes a minimum monthly deposit to keep the account active, while many local banks have no such requirements. Banks like Emirates NBD, Dubai Islamic Bank, or Wio may offer more flexible terms, making it easier for residents to access a current account.

If you do not plan to live in Dubai but wish to open a bank account there, here's what you need to know before getting started:

It is important to note that a bank account in Dubai for non-residents is generally a debit card, not a credit card. Therefore, it is not possible to take out a loan or have an overdrawn balance on the account. Additionally, a checkbook is not provided.

Here is a list of documents that are generally required to open an account in Dubai as a non-resident:

- Copy of your passport

- Tourist stamp upon arrival in Dubai

- Passport-sized photo

- Bank statement: You will need to provide 6 months of bank statements, translated into English or Arabic, depending on the bank.

- Letter from your bank: This document must mention: The available balance on your account, a statement of good relations with your bank, the origin of the funds you wish to deposit.

- Proof of source of funds: Banks often require proof of the source of funds to ensure that the deposited money comes from legal sources.

- Your CV: A CV may be requested to complete the KYC (Know Your Customer) process, which is required for banking regulations compliance.

- Proof of residence: A proof of address, such as a lease contract or utility bill, may also be required.

- Reasons for opening the account: You will need to explain why you wish to open an account in Dubai. This may include managing future investments or starting a business.

- Minimum deposit amount: Between 100,000 and 150,000 USD.

- All documents must be translated into English or Arabic.

- You must physically visit Dubai to open your account.

- The account opening time is approximately two weeks.

- You will need to maintain a minimum balance in the account.

- You will receive a debit card, but no credit card.

As a resident, the minimum balance varies from one bank to another. For example, at Emirates NBD, you will be required to maintain a minimum balance of 3,000 AED to avoid monthly fees. This amount is specific to each bank, so it is essential to check directly with the bank you choose.

- Copy of your passport

- Your residence visa

- Passport photo

- Bank statement: You will need to provide 3 to 6 months of bank statements, translated into English or Arabic, depending on the bank

- Letter from your employer: Some banks may require a letter from your employer to confirm your position and salary.

- Proof of the source of funds: This can include salary statements or employment contracts.

- Your CV: Some banks may also ask for your CV as part of the KYC (Know Your Customer) process.

- Proof of address: This may include a utility bill or a rental contract. This document may also need to be translated.

- Reasons for opening the account: You will need to explain why you are opening this account, such as to receive a salary or to cover local expenses.

For entrepreneurs who wish to open a business bank account in Dubai, here are the steps to follow.

Business accounts usually require a higher minimum balance than personal accounts. This amount varies depending on the bank and the services needed for your business. It is therefore important to compare options to choose the best solution for your business needs.

- Passport and residence visa of the shareholders

- Emirates ID card of the shareholders

- Emirates phone number

- Company documents (business license, company bylaws, office lease agreement, certificate of incorporation)

- Bank statement: Bank statements for the last 6 months, translated into English or Arabic.

- Bank reference letter: A letter from your current bank stating your balance and confirming your good banking relations.

- Proof of the source of funds: Documents demonstrating the source of the company’s funds, such as business contracts or invoices.

- Your CV: Business owners or directors may need to provide a CV for the KYC process.

- Proof of address for the company: This can include an office lease agreement or a commercial lease agreement validated by EJARI.

You will need to justify the opening of the account, such as to manage the company’s finances, facilitate payments and commercial transactions, or receive payments from clients.

It is essential to properly separate personal and business finances to avoid confusion and facilitate financial management of the company. This also allows you to present clear information to potential investors or business partners.

At Diwan Consulting, we bring our expertise to help you with the opening of your bank accounts, whether for personal or business accounts. Our team guides you through each step to ensure that all legal and administrative requirements are met. Whether you are a resident or non-resident, we offer tailored assistance to make this essential process easier for your project in Dubai.