Some time ago, I opened an account with a foreign bank via its Dubai branch. I don't have any loans or credit cards with this bank or any other liabilities. I have plans to leave the UAE and I have not used the account for a year, so is it necessary to close the account? And does the bank have the right to charge any fees on my account? ZL, Dubai
All banks operating in the UAE, even if foreign owned, are subject to the rules of the UAE Central Bank. Generally banks will allow a person to maintain a bank account if no longer resident, provided there are no continuing liabilities, but people need to be aware of potential charges and fees. Some banks will charge a fee simply for having an account, but more common is for a charge to be levied if the balance falls below a certain amount, often D3,000 for a basic account, usually in the region of Dh25 per month. While this is a small amount, if an account is left open and fees accrue over a few years this can add up, so ZL should consider if he actually needs the account. If he does want to keep it open, he needs to keep an eye on the balance and also ensure there are a few transactions a year as it is common practice for banks to suspend accounts where there have been no transactions or contact with the bank for a period of six months.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
The advice provided in our columns does not constitute legal advice and is provided for information only.
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