Opening a bank account is not a lengthy or complicated procedure, provided that you present all the required documents, which are more or less standard among most UAE banks.

However, as the UAE has a large number of expatriates and tourists, strict steps are necessary for the sake of security.

Expatriate residents can open accounts in UAE banks with the correct documents, which for most major banks means the original passport containing a valid residence visa, as well as an additional piece of official identification, such as a labour card or driver's licence, and a salary certificate from your employer.

Salary transfer

Those who wish to open a salary transfer account will require a no-objection letter from the employer addressed to the appropriate branch. Most human resources departments would be aware of the requirement and have template letters.

Dependents on a husband's or father's visa who want to open accounts need their original passports which verify the sponsorship of the father or husband.

Banks will also be willing to offer accounts to those newcomers whose residence permits are under processing provided that they either provide a letter from an employer certifying their employment, or a letter of introduction or verification from a bank with which the applicant has an account in his or her home country.

You might also find advantages in banking with your employer's bank, such as fast salary transfers and quick loan approvals. Banks often offer special packages to those employed including the waiving of minimum balance requirements, special interest rates and free credit cards for the first year.

Internet banking

For security reasons, some banks will require you to visit your branch for even minor changes to your account details such as a phone number or address. Other banks, however, offer phone and internet banking.

The degree of functions of a phone or internet banking plan differ from bank to bank, so it would be wise to find out if you like processing your transactions over the phone or the internet.

Some banks only allow you to pay bills and transfer funds to other local banks or its different branches online or over the phone.

Foreign currency

Most major banks offer customers the option to open accounts in major currencies such as US dollars, British pounds, euros and even yen for some.

Expatriates who regularly send money home often prefer to have foreign currency accounts at local banks. Those who travel frequently or tend to shop on the internet tend to prefer US dollar credit card accounts.

Most UAE banks also accept cheques in major currencies, which usually has a charge starting at Dh100 and can take 30 to 45 days.

Enticing public

Those who have recently moved to the UAE might be surprised to find themselves being regularly contacted by banks offering loans and credit cards in their first months of employment.

Two of the popular types of loans are personal loans and auto loans. Personal loans can be taken out for ten to 27 times your salary, depending on how long you've been working at the company. Loans during probation periods, if approved, usually have a significantly lower maximum limit, of about ten times your salary.

Those seeking to buy a vehicle on credit can choose between an auto loan and personal loan. Auto loans, which have fewer requirements and are easier to approve, have lower interest rates, fewer requirements, and a lower maximum limit than personal loans. Vehicles purchased through auto loans are co-owned by the bank and cannot be exported until the entire loan amount is paid.

Requirements for car loans usually include a salary certificate from an employer and a blank check for insurance purposes and a security, or post-dated cheque if the applicant does not have an account at the bank.

Personal loans often require you to have an account at the bank you're applying for the loan at. Further, your employer must be 'listed' as an approved client of the bank for a personal loan application to be accepted.
courtesy of Gulfnews, reported today