Business accounts with banks in the United Arab Emirates (UAE) are a crucial aspect for expats setting up a new company in the UAE. The banking sector in the UAE is highly regulated, offers high standards of security and service and is also attractive to foreign entrepreneurs. However, not every bank and account is equally suitable for all business needs. In this article, we take an in-depth look at the different banking options for expats with new businesses in the UAE, the key requirements and the best banks for different needs.

1. overview of the banking system in the UAE

The banking system in the UAE is considered one of the most stable and secure in the entire Middle East region. There are both local and international banks offering a variety of business accounts. Some of the major local banks include:

• Emirates NBD
• Abu Dhabi Commercial Bank (ADCB)
• First Abu Dhabi Bank (FAB)
• Dubai Islamic Bank (DIB)
• Mashreq Bank

There are also numerous international banks operating in the UAE, including HSBC, Citibank, Standard Chartered and others. For expats looking to open a business account in the UAE, it is important to know the differences between these banks and the services they offer.

2. requirements for opening a business account

Opening a business bank account in the UAE can be a challenging task, especially for expats, as banks carry out rigorous due diligence. The basic requirements include:

• Company licenseIt is not possible to open a company account without a valid business license. Depending on the type of business and the license, this can be either a mainland license or a free zone license.
• Shareholders' agreement and articles of incorporationBanks usually require the submission of documents confirming the establishment of the company.
• Passport copies and visaThe banks require copies of the passports and valid residence visas of the managing directors and shareholders.
• Business plan and financial statementsSome banks require detailed information on the planned business activities and, if applicable, financial reports.
• Letter of referenceIn some cases, banks may require a letter of reference from another bank or business partner.
• Minimum balance requirementsMany banks have requirements for the minimum balance that must remain in the account to keep it active.

It is important to know that the requirements may vary from bank to bank. Some banks may require additional documents or guarantees, especially if the company is still new.

3. the best banks for expats with new businesses in the UAE

3.1 Emirates NBD

Emirates NBD is the largest bank in the UAE and offers a wide range of services for business customers. For expats with a new company, Emirates NBD is a popular choice as it offers flexible account packages. Benefits include:

• A well-developed online banking system that is available in both English and Arabic.
• Special account packages for small and medium-sized enterprises (SMEs), which are often tailored to the needs of start-ups.
• A high level of customer service, with special contacts for business customers.
• Extensive branch network and numerous ATMs.

Emirates NBD is particularly suitable for companies that have high transaction volumes or work a lot with international markets.

3.2 Abu Dhabi Commercial Bank (ADCB)

The Abu Dhabi Commercial Bank (ADCB) is also one of the leading banks in the UAE and offers solid services to expats. The bank is known for its strong security protocols and international connections. Benefits for expats and new businesses:

• A comprehensive online banking system with tools for financial planning and management.
• Various packages specially developed for newly established companies and free zone companies.
• A simple account opening procedure for free zone companies.
• Competitive fee structures and relatively low minimum balance requirements.

ADCB is an excellent choice for companies looking for a balance between local presence and international banking.

3.3 First Abu Dhabi Bank (FAB)

First Abu Dhabi Bank (FAB) is the largest bank in Abu Dhabi and one of the largest banks in the UAE. It also offers a range of business accounts tailored to different company sizes and industries. Advantages:

• FAB offers special business accounts for free zone companies as well as for companies with a Mainland license.
• A strong presence in international banking, which makes it easier to interact with foreign partners.
• High flexibility when opening an account, even for companies that are still in the starting blocks.

FAB is particularly recommended for companies that do a lot of business abroad or are planning international expansion.

3.4 Dubai Islamic Bank (DIB)

For entrepreneurs who are interested in an Islamic banking model, the Dubai Islamic Bank (DIB) offers a range of Sharia-compliant business accounts. The benefits include:

• All products are Sharia-compliant, which is a must for some companies.
• Competitive account fees and services tailored specifically to SMEs and start-ups.
• DIB also offers a range of Islamic financing options for new businesses.

DIB is particularly suitable for companies that prefer Islamic banking practices and need access to financing solutions that follow these principles.

3.5 Mashreq Bank

Mashreq Bank is one of the oldest banks in the UAE and is known for its innovative strength. It offers a wide range of services for business customers, including digital solutions for account opening and management. Benefits for expats:

• Mashreq offers a fully digital account opening process for companies in certain free zones.
• Very competitive fees and low minimum balance requirements.
• A powerful digital banking system that enables entrepreneurs to manage their finances from anywhere.

Mashreq is particularly well suited to digital nomads and tech-savvy entrepreneurs who are looking for a bank with a strong focus on innovation and user-friendliness.

4. important factors when choosing a bank

When choosing a bank for your business account, there are some important factors to consider:

• Minimum balanceSome banks require higher minimum balances than others, which can be problematic for start-ups with limited capital.
• Online banking functionsIt is particularly important for expats that the online banking system is user-friendly and available in English.
• Fee structureFees for transactions, transfers and account management can vary considerably depending on the bank.
• Customer serviceFor expats, it can be beneficial to choose a bank that offers multilingual customer service and supports expats well.
• Branch networkBanks with a dense branch network or many ATMs can be more advantageous for companies that need to carry out physical transactions.

Conclusion

Choosing the right bank for a business account in the UAE depends heavily on individual business needs and preferences. Emirates NBD, ADCB and FAB offer comprehensive services and flexibility for new businesses, while Mashreq Bank stands out for its innovative digital solutions. Dubai Islamic Bank is ideal for businesses that prefer an Islamic banking solution.

Expats should check the specific requirements and benefits of each bank before making a decision to ensure that the account they choose best suits their needs. In any case, it is advisable to obtain comprehensive information and, if necessary, legal advice to find the best banking options for your company.