In UAE, the Central bank governs the banking laws. It regulates commercial banks, investment banks, Islamic banks, money changers, financial and monetary intermediaries, financial investment companies, finance companies, and commercial banks. The banking laws in Dubai also govern locally established banks or branches of foreign banks. These establishments are offering commercial banking services in the country. The locally established banks are licensed in accordance with the provisions of Federal laws while the branches of foreign banks are licensed by the Central bank. The foreign banks also assist the customers with administrative formalities and have designated representative offices. The Federal law also states that the investment banks cannot accept deposits with maturity less than 24 months but are allowed to borrow from its head office, from financial market or from local or foreign banks. The UAE also offers Islamic banking services, which are governed by Shari’a law and Federal Law . The law states that the Islamic banks can carry out all or part of the banking, commercial, financial and investment services. The Islamic banks have every right to engage in all types of services and operations being practiced by banks, referred in the Federal law.
The citizen and residents of the UAE can open their bank accounts for which the required documents include a copy of their family book, a salary letter or a letter of no objection from the employer. The expatriate residents need to furnish copies of their passport, Emirates ID, worker residents visa, and a salary letter or a no objection letter from the employer. Expatriate residents or the citizens of the UAE are also allowed to open a joint account with another legitimate resident of the UAE. The use of international bank account number (IBAN) is mandatory for all electronic payments and receipts except for making payments through a credit card.
