Banking System in UAE: Complete Guide

The United Arab Emirates is a solid rating sector for investments, optimal for people with a high level of income. UAE banking is developed: about fifty local and foreign banks operate here. The introduction of the latest technology is controlled by the Central Bank of UAE. There is support from the country leaders in the development of the sector.

There are the following types of banks:

• industrial;
• investment;
• commercial;
• islamic.

Banks use the latest developments, and the actions of employees help residents to conduct financial transactions even at home, digital, and mobile banking offer advantages. More than five thousand ATMs operate all over the country, located in shopping malls, other passageways sectors, and alleys. There are no problems with cash withdrawals. The banknotes in denominations of UAE 50 dirhams and above are available. A notable pro is that most of the machines can print out an ATM network card.  

 The biggest banks in UAE

Due to the active development of financial activity in UAE, there are several large reliable banks. The largest bank in terms of assets, First Bank of Abu Dhabi, stands out among the famous banks in UAE. It was formed after the merger of the National Bank of Abu Dhabi with the First Bank of the Gulf. It has a high rating and a huge number of branches all over the country. 

In 1967, a private bank Mashreq began its activities. Today, it is considered one of the first. The number of branches exceeds fifty. The bank provides various types of services.

Another major banking group is Emirates NBD. It has over two hundred branches and more than a thousand ATMs across the country and abroad. The financial institution has pros: it was one of the first to launch an innovative system, positively affecting the timing of money transfers and others. 

It operates according to the high requirements of Islamic banking: the Islamic Bank Dubai, the number of branches in the country reaches up to 100 (the number of customers exceeds 1.7 million). After the acquisition of Noor Bank, it has advantages in terms of the size of assets in UAE. It is a relatively new but successfully developing Islamic bank in Abu Dhabi. The system covers wholesale, retail, real estate, and other services. 

There is a great pros: 26 foreign banks from the USA, France, Britain, the Middle East, North Africa, and South Asia carry out successful banking operations. The institutions offer benefits for individuals and other areas. 

The investment banking services are offered by the following rating companies: Emirates Investment Bank, Morgan Stanley, Shuaa Capital, Bank Julius Baer, and others. 

You can use banking services online, which is one of the big benefits of today. Instant account opening, and transaction management are the advantages of mobile banks such as Emirates NBD, and Neo, which are actively supported by Mashreq. 

Offshore banks are developing in Dubai. A consumer with a valid visa is able to open an offshore bank account with low tax rates at Abbey National Offshore, HSBC Offshore, ABN Amro, and other companies. This system benefits the client who spends most of his time abroad. 

Requirements for the banking system

What services are offered to clients with UAE Golden Visa by the Dubai banking system? Let’s find out more about it below:

1. Opening a UAE bank account. There are benefits for students, youth, joint accounts for family, opening savings accounts (the requirements of the process from one day to a couple of weeks).
2. Credit programs. The opportunity to make a large purchase for all customers of banks in UAE, which is an unquestionable pros.
3. Mortgage. Advantages for foreigners and emigrants.
4. Investment programs. Benefits of investing into the securities market.
5. Internet banking, mobile banking. They give an opportunity to trace the client’s financial activity state.  
6. Money transfers (including between countries). 

The following payment methods are available in the UAE banks: 

• cash for purchases not exceeding 10 UAE dirhams, cab payments;
• checks are used when signing a rental agreement;
• one of the advantages is the most secure method of payment – credit cards;
• direct debit and standing order are used to pay for utilities, communications;
• online payments, mobile payments for online settlements (PayPal and others);
• digital wallets Apple Pay, Google Pay, Samsung Pay are used for instant contactless transactions. 

Dubai banking system is one of the first to introduce digital wallets to facilitate consumer payments. This is due to the high rating of consumption. 

Money transfers

There are local and international money transfers.

Local money transfers are made between the bank account in UAE. The process takes up to couple of days. The banks ask for identity card, passport copy to avoid money laundering. Transactions can be paid and free of charge. 

Due to the residence of people of different nationalities in UAE, international currency transfers have great benefits. The requirements are to open an IBAN (International Bank Account Number), SWIFT or BIC (Beneficiary Identification Code of the bank). 

There are international rating online services:

• CurrencyFair with benefits of the exchange rate;
• Moneycorp performs foreign currency exchange;
• international money transfer provider Wise.

Transaction fees are charged in accordance with the requirements of the UAE Central Bank. 

Security

National authorities pay a lot of attention to banking security. According to Victor Esik, a specialist at Immigrant Invest, significant amounts of money have been invested in informing clients about the types of cyber fraud. Strict penalties and requirements for cybercriminals are in place. 

Reliable rating banks issue payment cards with the advantages of the latest technology. They contain a chip that can not be removed. When you pay for goods or services on the Internet, you are asked for a password which is sent to the client’s phone number.

Improved banking encryption system allows you to protect against counterfeiting checkbooks: a unique code is printed on each sheet.