When you move to Dubai, one of the major steps of settling down is setting-up a bank account. Whether this comes hand in hand with setting up your business or as a result of a new job, it is important to know a bit about the banking market, and understand how lawyers can assist you with defining your rights or maintaining your obligations.
In order to open a bank account in Dubai, the law says that you will need to have a residence permit through your business or employer. Alternatively, you can open an offshore account.
With the usual banking facilities available through either local or international banks, you may also look into the additional services such as loans. Regulations in Dubai will enable individual customers to borrow up to 20 times their salary or monthly income and requires that repayment installments should not exceed 50% of the borrower’s gross salary or any regular income from a specific source. Please be aware of this, should the payback rate be much higher.
With regards to car loans, these should not exceed 80% of the value of the financed vehicle and this loan must be secured by a pledge over the vehicle with a maximum period of 60 months for repayment of the loan. Please note this when you plan on buying a car, and take into consideration your rights to pay back over a period of time.
Moving to a new country comes with both excitement and challenges, and understanding the laws and regulations are extremely important to settling in well and maintaining a strong presence in the country where you live.