Over a period of time as Dubai developed into a global financial hub, the business banking system of Dubai has also evolved with it to support the local as well as the international businesses that have a base in Dubai. The Dubai government has set up strict regulations to regulate the banking system and has provided a secure and technologically advanced environment for businesses to prosper, as a result, business banking in Dubai has also evolved in tune with international standards. The business banking regulatory framework in Dubai ensures stability, transparency and compliance with international standards. The business banking in Dubai provides businesses with a range of services and solutions to help with their business banking requirements.
Dubai’s banking sector consists of both local and international banks along with financial institutions. Local banks of UAE like Dubai Islamic Bank and Abu Dhabi Commercial Bank etc. offer a wide range of services to local businesses. The International banks like HSBC, Citibank etc. offer business solutions to multinational companies and businesses with international operations by providing services such as overseas transactions, foreign exchange and international trade finance. The business banking sector of Dubai also has specialized financial institutions and fintech companies like digital banks and payment solution providers.
In Dubai, the UAE Central Bank regulates all the banking activities by setting regulations on capital adequacy, anti-money laundering and consumer protection to ensure best practices by all financial institutions. The government, in order to provide credibility and reliability to its banking sector, is committed to international standards like Basel III framework. Dubai International Financial Centre (DIFC) is an economic zone with its own regulations and the financial institutions established here come under the Dubai Financial Services Authority (DFSA).
To fully understand and navigate the regulatory landscape of the business banking system of Dubai, to open a business account and make use of the business solutions / services provided by a bank to a business, it is advisable to take the services of a consultant like ‘GrowBiz’. The professionals at ‘GrowBiz’ have experience in helping entrepreneurs from around the world who come to set up businesses in Dubai, in choosing the right bank for their business, opening a corporate account and liaising with the bank on the clients’ behalf for various services and solutions. This saves time and effort of an entrepreneur and allows him to concentrate on the core business issues instead.
Services Offered
- Business Account: Banks in Dubai offer businesses a choice of corporate accounts such as current accounts, savings accounts and multi-currency accounts to manage day-to-day transactions, payroll, etc. An entrepreneur can choose the type of account that aligns most with his business needs.
- Trade Finance: For businesses that are involved in export and import or any form of international trade, the trade finance service offers them specialized services such as letters of credit or LC, trade loans etc.
- Loans and Credit: To help businesses manage their capital needs, banks provide services such as working capital loans, term loans, overdrafts, etc.
- Merchant Services: Some businesses have to take payment from their customers through cards or online wallets, to make these type of transactions possible for the business, banks provide them with merchant services.
- Cash Management: Any business can take the cash management service provided by banks to manage its liquidity and financial transactions efficiently.
- Corporate Cards: Corporate cards or business credit and debit cards are provided by banks to businesses to help them have a control on their corporate expenses.
- Wealth Management: To help companies manage their assets, banks provide them with the wealth management services, portfolio management and financial planning.
Advantages
- Banking Infrastructure: Dubai offers a secure and credible banking sector with advanced technology and infrastructure which includes digital banking services and innovative financial products.
- Strong Financial Sector: The financial sector of Dubai has the presence of all the major international banks along with local banks and this ensures that the clients get a wide range of banking solutions and best financial expertise.
- Stable Currency: The currency of UAE (dirham) is a stable currency as it is attached to the US dollar, this also reduces exchange rate risk for businesses that are engaged in international trade.