How non-residents can open a bank account in the UAE: A complete guide

Dubai: If you are looking to tap into the UAE’s lucrative property market, invest in the local stock market, or access the country’s stable and secure banking system to safeguard your funds but are not yet ready to move to the UAE or have no immediate plans to do so, you can still open a non-resident bank account. 

However, experts who spoke to Gulf News highlight that there are specific requirements and restrictions you may encounter. Whether you are an investor, a business owner, or someone managing finances in the UAE, understanding the process and prerequisites can save you time and effort. Here’s what you need to know to get started.

Why non-residents open bank accounts in the UAE

The UAE is renowned for its world-class banking services, offering multi-currency accounts, international debit and credit cards, and robust online banking platforms. These features make it highly convenient for global transactions. 

Maryia Vinahradava, head of corporate services at Virtuzone, explained non-residents with economic interests in the UAE often seek non-resident bank accounts. Here are some common reasons:

• Property investments: Investors who own and lease properties in the UAE often need bank accounts to receive payments from property management companies or tenants.

• Business dividends: Passive investors in UAE-based businesses require bank accounts to collect their dividends.

• Local stocks investment. Non-residents interested in investing in the UAE stock markets, such as the Dubai Financial Market (DFM) or Abu Dhabi Securities Exchange (ADX), often require a local bank account to facilitate trading and manage funds for investments.

• Interest in the Middle East market: The UAE serves as a gateway to the broader Middle East region, making it an ideal location for investors exploring opportunities in emerging markets. Having a local account helps streamline investments in the GCC.

“The UAE is an attractive banking destination due to its economic and political stability, friendly international relations, and absence of restrictions on capital movement. Additionally, UAE banks offer competitive interest rates, making them appealing for savings. However, holding funds in a UAE bank account does not provide tax benefits unless the account holder is a UAE tax resident,” Vinahradava further elaborated. 

Can non-residents open a bank account in the UAE?

“Non-residents can open bank accounts in the UAE, but only a limited number of banks (around four to five banks) offer this service.  The process for non-resident accounts generally takes longer than for resident accounts due to additional checks on foreign documents,” she noted. 

The process for opening a non-resident account generally takes longer than that for residents due to additional checks on foreign documents.

How long does it take?

The time frame depends on various factors, including the applicant’s profile, the selected bank, and the type of banking (retail or private). Approvals can take anywhere from three weeks to six months, according to Vinahradava. 

“Non-resident accounts are considered higher risk by banks and require additional compliance checks. As a result, banks typically expect a higher value of relationship from applicants. Clients may need to place a significant deposit, starting from Dh250,000, and demonstrate interest in the bank’s investment products,” she added.

Requirements for non-resident accounts

Vinahradava highlighted that non-residents must undergo additional bank approvals and ensure they meet all criteria. To open a non-resident bank account, applicants must provide the following:

1. Justification for opening the account

Banks require a valid reason for opening an account, ensuring that the intentions are legitimate and unrelated to money laundering or tax evasion. Supporting evidence is necessary, such as proof of engagement with a real estate agency for property purchases.

2. Proof of source of funds

• Six months’ worth of bank statements.

• For employees: Salary account statements.

• For business owners: Personal bank statements reflecting dividends and business account statements.

3. Additional documents

• A CV.

• Proof of foreign address (utility bill or bank reference letter).

• A copy of the passport.

“These are the minimum requirements. After an initial compliance review, banks may request additional information based on the individual’s profile. Physical presence in the UAE is mandatory to open an account,” she explained.

Types of accounts available for non-residents

Sarah Negga, relationship manager at Luxe Incorporations, outlined two main personal account options for non-residents:

1. Savings account

Non-residents can open a savings account with a minimum balance requirement of Dh30,000.

“The process can be challenging due to compliance regulations, security checks, and documentation requirements. However, if you are well-prepared, the process should be smooth,” Negga advised.

2. Priority banking account

This option requires maintaining a minimum balance of Dh500,000.

“We recommend this to non-residents as it significantly simplifies the approval process, offers additional services such as credit cards and investment opportunities, and is generally faster,” she added.

Challenges and limitations for non-residents

Remco Coerman, Partner at SeventyTwoNinety FZ LLC and a former accountant specializing in international tax structures, explained to Gulf News that non-residents face certain restrictions when opening a local bank account. Without an Emirates ID, individuals are limited to opening a savings account, rather than a full current account.

“This means you won’t have access to essentials like a cheque book or a debit card. While this may seem minor, it’s a major inconvenience as many financial transactions in the UAE still rely heavily on cheques,” he said. 

This limitation can make paying bills, managing transactions, or handling financial matters difficult. “Before making any financial commitments in the UAE, it’s crucial to assess how these restrictions might impact your financial flexibility," Coerman said.

Should non-residents use a local or international bank?

Coerman who relocated to the UAE from the Netherlands in 2022, shared his experience.

“If you don’t have an Emirates ID, it comes with a lot of limitations - think no debit card, no cheque book, and a heavy reliance on outdated systems. Instead, I’d recommend skipping the traditional options altogether (both UAE and European traditional banks) and looking at the newer, more flexible players like Revolut, Wise, or N26. These digital banks are designed for global use, with fewer restrictions when it comes to international transfers and spending in different countries,” he advised.

Banking considerations for Golden Visa applicants

For those planning to invest in UAE property and obtain a Golden Visa, there is an added incentive to open a local account.

“A non-resident can open a UAE bank account if they are in the process of obtaining residency, such as a Golden Visa, which requires a fixed deposit of Dh2 million in a local bank,” Jade Wong senior sales manager at Sovereign PPG UAE, explained. 

Similarly, for company bank accounts, the General Manager must hold UAE residency to open the account. Once residency is obtained, individuals can choose between a local or international bank account.

“Many residents prefer local bank accounts for handling UAE transactions. The dirham is pegged to the US dollar, providing stability. However, some individuals may still opt to maintain their accounts with an international bank,” Wong added.

For those unable to fund the Dh2 million deposit for the Golden Visa, an international bank may be the preferred option.