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Challenges and limitations for non-residents

Remco Coerman, Partner at SeventyTwoNinety FZ LLC and a former accountant specializing in international tax structures, explained to Gulf News that non-residents face certain restrictions when opening a local bank account. Without an Emirates ID, individuals are limited to opening a savings account, rather than a full current account.

“This means you won’t have access to essentials like a cheque book or a debit card. While this may seem minor, it’s a major inconvenience as many financial transactions in the UAE still rely heavily on cheques,” he said.

This limitation can make paying bills, managing transactions, or handling financial matters difficult. “Before making any financial commitments in the UAE, it’s crucial to assess how these restrictions might impact your financial flexibility," Coerman said. Should non-residents use a local or international bank? Coerman who relocated to the UAE from the Netherlands in 2022, shared his experience.

“If you don’t have an Emirates ID, it comes with a lot of limitations - think no debit card, no cheque book, and a heavy reliance on outdated systems. Instead, I’d recommend skipping the traditional options altogether (both UAE and European traditional banks) and looking at the newer, more flexible players like Revolut, Wise, or N26. These digital banks are designed for global use, with fewer restrictions when it comes to international transfers and spending in different countries,” he advised.

As a non-resident in the UAE, opening a local bank account comes with limitations. Without an Emirates ID, you can only open a savings account, not a full-fledged current account. This means you won’t have access to essentials like a cheque book or a debit card. While this may seem like a minor inconvenience, it’s actually a major challenge since many financial transactions in the UAE still rely heavily on cheques."