Banking System in Dubai
Updated on Thursday 16th February 2017
Rate this article 1 reviewsbased on
The United Arab Emirates (UAE) developed as a regional financial center in the Middle East during the last years. Among all the Emirates, Dubai is presently the most advanced when we are talking about the quality financial services offered to clients. There are over 20 local banks and about 30 foreign banks working in Dubai through branch offices. Dubai’s status as a banking center is based on the monetary infrastructure and economic strength. Our accountants in Dubai can offer proper information and guidance about the banking system in the city. The auditing firms in Dubai can also provide you with assistance and counsel if you open a business in Dubai and you need accounting services.
The Banking Law in Dubai
The main legal framework regulating financial operations in Dubai is the Banking Law, while the main controlling authority is the Central Bank of the UAE. Other legislation leading the banking system in Dubai is:
• the Commercial Law;
• the Islamic Banking Code.
Furthermore, the Dubai International Financial Centre (DIFC) is the most significant free region in Dubai offering strategic conditions to overseas investors setting up financial societies in the UAE. Our accountants in Dubai can offer more information about creating a financial institution or an investment business. Also, you can receive guidance and assistance regarding the banking system in Dubai.
Opening a financial company in Dubai
The Central Bank of the UAE allows businessmen to register financial enterprises in the country, in order to ensure the growth of national economy of the state. Resolution no. 58/3/96 and Resolution 165/06/2004 cover all the requirements about the actions financial institutions may assume in Dubai, such as:
• allowing personal loans;
• issuing stocks, bonds, and deposit certificates;
• opening credit lines and issuing warranties;
• admitting commercial loans to businesses in Dubai.
35 million AED is the minimum share capital for opening a financial company in Dubai, and the 60% of the total agreed capital needs to be retained by a UAE resident.
How to open a bank account in Dubai
Opening a bank account in Dubai is an easy process, even though conditions vary from bank to bank. The accountant in Dubai will offer you proper guidance and information, if you want to open a corporate bank account or a normal one. The main steps for opening a bank account for corporate use in Dubai are:
• legalizing personal and corporate papers;
• ensuring the account opening progress until account distribution and banking package are created;
• completing and signing the bank documents with the help of the related guidelines;
• guiding the entire package to the bank for final approval.
Please feel free to contact our accounting firms in Dubai for any other information about the banking system in Dubai.