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Banks and accounts

Banks and accounts

The UAE Central Bank is the main component of the entire UAE banking system. This system includes local and foreign banks. The Central Bank has the basic functions of the entire economy of the country, it can be advising, supporting the Government of the UAE, issuing the national currency, monitoring the activities of all banks and financial organizations operating in the country.

The United Arab Emirates are famous for their solid and safe banks, which have a wide range of services for individuals and legal entities. This is because the issuance of a banking license in the local market is accompanied by very strict requirements and control of the Central Bank.

Also, on the territory of the United Arab Emirates, there are banks with a limited license. As a rule, these are commercial and investment banks. For example, investment banks cannot accept money on deposits for less than 2 years, and also, the investments of local and foreign banks are closed to them.

The main difference between banks with a license from the Central Bank and banks without a license is that the latter do not have the right to open deposits in local currency (dirhams). Banks with a license grant loans only to residents and citizens of the country.

Distinctive features of the UAE banking system.

The UAE successfully operates the “The Hawala System”. With the help of it, the rules for conducting financial calculations are regulated. We can say that this system applies to all states in the Middle East. The main purpose of the Hawala system is to transfer money to foreign workers. The Hawala System makes banking operations available via phone banking, fax or email.

Pros of UAE banks.

More and more pressure from the state is experienced by many offshore jurisdictions. Many banks can no longer 100% guarantee their customers the confidentiality of data, even banks located in Switzerland.

Against the general background of non-guaranteed data confidentiality, UAE banks stand out very much. Due to their independence and strong economy, banking institutions are the best alternative to date. The popularity of UAE banks is growing every year, attracting foreign businessmen and investors.

What do you get if using UAE banks?

•  no control over the currency from the state;

•  a growing and stable economy;

•  security of banking institutions.

We suggest you seek the advice of professionals who are able to find the most suitable option for you if you are interested in opening a corporate account in UAE banks.