Once your Dubai company setup is complete the next step to consider is the corporate banking options that are available to you and your company. Opening a UAE corporate bank account can be stressful for shareholders and company owners. New implemented guidelines, ever-changing compliance regulations, international banking protocols combined with expectations required from the banks over the recent years can make it very time consuming.
Business owners might find the task of getting corporate banking much more tedious than the form filing and compliance checks that was required for their Dubai company setup. Banking in the UAE may differ from what you are used to in your home country.
The good news is that once you’ve selected the right company structure you can easily overcome the major banking hurdles and have the ability to be eligible for UAE corporate banking and enjoy the benefits of no corporate or personal tax.
UAE BANKING FACTS
- There are four (4) types of banks in the UAE: commercial, industrial, merchant and Islamic.
- All banks are regulated by the Central Bank of United Arab Emirates, which is tasked with ensuring the financial soundness of each type of banking institution.
- Nov 2018, assets of UAE conventional banks amounted to AED2.275 trillion, accounting for 79.7 per cent of total banking assets.
- Larger banks lead the country’s banking industry, with the five biggest banks accounting for about 60% of the sector’s assets.
- Islamic banking includes 8 full-fledged Islamic banks and 23 Islamic windows set up by conventional banks in the UAE, collectively accounting for 19% of the total banking sector assets.
The UAE Central Bank is the financial regulatory authority for the country. Currently the commercial banks are divided into two (2) categories:
Locally incorporated banks
Currently there are twenty three (23) local banking institutions and the majority of local banks are listed as Private Joint Stock Companies.
Branches of foreign banks
There are twenty six (26) different foreign branches established in the UAE.