Corporate Banks in UAE

Setting up your own corporate bank account is one of the crucial tasks after having set up your new business. It is no more demanding here in the UAE than it is in the rest of the world, as the UAE is home to a large number of highly regarded national and international banking institutions.

For example, Emirates NBD and ADCB or Abu Dhabi Commercial Bank is the largest two banks in the region and they have a wide network of branches throughout the UAE. They, along with Abu Dhabi Islamic Bank, Mashreq Bank, United Arab Bank, Commercial Bank of Dubai and First Gulf Bank offer all the services that you would normally expect from an international bank.

On the international front, you’ll be familiar with big names such as HSBC, Citibank, Standard Chartered and Barclays – all of which offer corporate banking account services for all the locally registered companies.

And before approaching these banks, there are a number of considerations that you need to factor in to ensure that you have checked off all the “To Do’s”. Keeping that in mind, let us guide you through some of the important things that you need to be aware as you prep yourself up for corporate banking in the UAE.

Some key facts corporate banking in the UAE:

• Before opening your corporate bank account, having a business license is a must.
• While some banks require at least one shareholder to have a residency visa, others do not necessarily have this requirement.
• Many of the leading banks in the UAE, require that the accounts require a continuous minimum balance of AED 10,000 and going all the way upto AED 1 Million.
• Depending on the bank you choose, the application process takes anywhere between a week to two weeks.

Phase1: Documents required for corporate banking in the UAE

Most of the corporate account applications will need information on your business activities and that includes in many cases proof of business such as examples of the contracts, the invoices, some information about your clients and your suppliers, etc. You will also be asked to provide details such as your financial projections as well as information about the executive team (In case you have one).

Here are some of the legal documents that you will be asked to sign or provide:

• A corporate account opening form
• The board of directors’ resolution sanctioning the opening of the account and the signatories to the account
• Copy of your company’s incorporation certificate
• Your trade license copy
• Copies of your share certificates
• A copy of your company’s memorandum and articles of association
• Passport copies of all partners in the company
• A residency visa for at least one of the company shareholders (This can be optional for some banks)
• Finally, if your company is owned by another company, then your bank will need all the documents of that particular company as well.

Phase2: The process for corporate banking in the UAE

Once you have finished all the required paperwork, your next step would be to book an appointment with a representative of the chosen bank. We at 10 Zone, have built solid relationships with a number of banks in the UAE and we can advise you on the best one that will suit your needs.

At some point during the appointment process, you will be asked to present some of the key documents as mentioned above. If they are all in order, then the bank representatives will let you know that they can move forward with the setup procedures. While the meeting itself should not take more than 30-60 minutes, the entire application process will take anywhere between 5 to 10 working days.

As for choosing your preferred bank that will be the best fit for your company, look at both personal preferences as well as the restrictions that may make it impossible for you to go ahead with a certain kind of bank. As for the latter, for example, like we mentioned at the outset some of the banks may require a minimum balance or maybe an upfront paid capital, which you might be unable to maintain or provide.

Personal preferences are of course very individualistic in nature, and that could include anything from how important the online banking experience, number of branches, ATMs and whether they are easily accessible, and so on. So do check around within your contact network to find out as much information as you can about what it is like to bank with various institutions.

Overview of Banks in the UAE

• The UAE Central Bank is the primary financial regulatory body in the country.
• There are over 23 local and 26 foreign banks in the UAE.
• The Larger banks dominate the country’s banking industry, with the top five biggest banks accounting for nearly 60% of the sector’s assets.
• Islamic banking in the UAE include 8 full-fledged Islamic banks and 23 Islamic windows set up by conventional banks, these collectively account for around 19% of the total banking sector assets.

There are basically 4 different types of banks in UAE:

• Commercial banks
• Industrial banks
• Merchant banks
• Islamic banks

The UAE banking system is considered to be stable, due to the banks’ resilient investment levels and their liquidity buffers.