The United Arab Emirates banking system is quite stable. It is because the banking system showcases sound flexibility in the capital adequacy ratio. It means the best bank in UAE has sufficient capital to execute even during tough times.
The banks have sufficient liquidity buffers to function in their operations in hard times. Moreover, the banks in UAE have the effectiveness to absorb the upcoming situation of problem loans.
Bank Structure in the UAE
The banking regulatory organization in the UAE is the UAE Central Bank. There are 23 local banks and 26 foreign banks in the UAE. With having a total of 49 banks, UAE’s five major banks consist of 60% of the investment and banking sector assets.
These statistics clearly show that in UAE the large banks control the banking industry. Islamic banks also come under the top banks’ sector in the UAE. It accounts for about 19% of the entire banking sector. UAE has 8 fully functional Islamic banks.
With lots of banks in the UAE, a single bank may not fit everyone’s requirements. Considering the individual characteristics, we have mentioned down the list of best banks in UAE for each purpose.
- Most Convenient & Safest Bank: FAB (Ranked as Safest Bank in UAE)
- Best Customer Service Bank: ADCB (Best Service Award in 2020)
- Best Islamic Bank: Emirates Islamic (Islamic Bank of the Year in 2020)
- Best Bank for Salary Transfer: ADCB, RAKBANK
- Best Bank for Taking Loans: ADCB
- Best Bank for Overseas Filipino Workers (OFWs): ADCB
- Best Bank for Small and Medium-Sized Enterprises (SMEs): Emirates NBD, ADCB (Awarded for Trade)
Best Bank For Opening Savings Account in UAE
When looking for opening a savings account it is important to know the interest rates available on your deposited amount. A savings account can also be opened in foreign currency. It is recommended to look for charges on a debit card, charges for not maintaining a minimum balance, usage of ATMs, and other withdrawal limits before choosing one.
ADCB’s active saver account provides up to 1.15% interest rate per annum on AED and 0.65% interest rate per annum on USD amount.
Minimum Balance: AED 0 | Monthly Fee: 0 | Annual Fee: 0 | Currency Account: Yes
Note: To open an Active Saver account you should first have an ADCB Current or Savings Account
You can open a United Arab savings account in all major international currencies. Contact the bank to know about interest rates.
Minimum Balance: AED 3000 | Monthly Fee: 0 | Annual Fee: 0 | Currency Account: Yes | UAE nationals, non-resident individuals, and minors can open a UAB Savings Account.
Best Bank in UAE For Taking Loans
When taking a loan in UAE, ensure that you have a sufficient income every month and also you afford to make the repayments on time.
While looking for the best bank to take a loan always compare loan packages from different banks with the interest charges proportionate to your salary. With a small salary, you’ll end up with higher interest rates.
Note: Review the terms & conditions, find any hidden charges or automatic sign up for other products, negotiate with the bank to lower the interest rate, and always try to borrow less.
1. Home Loan
You can avail loan amount of 75-80 percent of the property value, for UAE nationals a 5% more. A down payment of 25 to 30% is needed to take a home loan.
Interest Rate: 2.99% | Min Salary: AED 8K | Loan Amount: AED 2400K | Available for both UAE nationals and Expatriates
Interest Rate: 2.79% | Min Salary: AED 15K | Loan Amount: AED 2000K | Available for both UAE nationals and Expatriates
2. Car Loan
A car loan is typically a personal loan, you need to have a certain minimum salary to avail yourself in any banks. Always choose a lower interest rate package and also most car dealers can help you with the loan paperwork.
Interest Rate: 2.39% | Min Salary: AED 10K | Loan Amount: AED 600K | Available for both UAE nationals and Expatriates
Standard Chartered Saadiq New Auto Finance
Interest Rate: 2.49% | Min Salary: AED 20K | Loan Amount: AED 100K | Available for both UAE nationals and Expatriates | Shariah Approved
3. Personal Loan
If you already have a salary transfer account in any of the below banks, you can avail lower interest rate on your personal loan. It is recommended to take a personal loan with the bank you already have a salary transfer. Do not go big on your loans with a low-interest rate.
ADCB Personal Loan
UAE Nationals – Interest Rate: 5% | Min Salary: AED 10K | Loan Amount: AED 400K
For Expats – Interest Rate: 6% | Min Salary: AED 5K | Loan Amount: AED 150K
Interest Rate: 5.99% | Min Salary: AED 10K | Loan Amount: AED 100K | Available for both UAE nationals and Expatriates
Best Bank for Small and Medium-Sized Business in UAE
Whether looking to start a new business or expand it, business loans come with several options. Banks usually give loans based on an individual assessment and business turnover in determining the loan amount.
Interest Rate: 1% | Min Balance to Maintain: AED 10K | Monthly Fee: 0 | Relationship Manager: Yes | Currency Account: Yes | Approved by Sharia and Supervisory Board
Interest Rate: 0% | Min Balance to Maintain: AED 20K | Monthly Fee: AED 150 | Relationship Manager: Yes | Currency Account: Yes | Local Transfer Cost is AED 50 & International Transfer Cost is AED 75
Best Bank in UAE For Child’s Savings
Ensure future financial planning with the child’s saving account. Available for both Emiratis and expatriates. A guardian can open the account on behalf of the child. Islamic bank account approved by Shariah and supervisory board
Minimum Balance: AED 0 | Monthly Fee: 0 | Annual Fee: 0 | Emiratis and expatriates can apply
Dubai Islamic Shaatir Savings Account
Minimum Balance: AED 0 | Monthly Fee: 0 | Annual Fee: 0
5 Best Bank in UAE Based on [2020 Revenue & Net Income]
From Bankrate.com, “Revenue is the total amount of money generated by a company’s business activities”. “Net Income is the amount of money left after subtracting all expenses, taxes, and costs”.
Below, we’ll take a look at the list of the 10 biggest banks in the UAE in terms of revenue and net income for the 2020 financial year.
Note: Some banks haven’t produced the full-year financial results for 2020 yet, we have added a projected net income based on the Q1 to Q3 results.
First Abu Dhabi Bank PJSC (FAB)
Revenue (TTM): AED27.9B | Net Income (TTM): AED10.5B
Recognition: Ranked by Global Finance as the Safest Bank in UAE.
Established in 2017, following a merger between First Gulf Bank (FGB) and National Bank of Abu Dhabi (NBAD). Largest and one of the top leading banks in the UAE. The headquarters of the bank is located in Abu Dhabi.
The bank functions in Real Estate, Global and Treasury Markets, Consumer Banking, Wholesale Banking, and various Banking functions. It lends to corporate and retail clients. FAB offers Islamic Banking, Investment, and Private Banking services. The bank functions in 19 countries around the globe.
No. of Branches in UAE: 72
No. of ATMs with Cash Deposits in UAE: 112
No. of ATMs in UAE: 312
Revenue (TTM): AED36.1B | Net Income (TTM): AED6.9B
Recognition: Awarded Best Retail Bank in the Middle East at Asian Banker Awards.
Emirates NBD is the result of a blend between the National Bank of Dubai and Emirates Bank – the fourth and second-largest bank in the United Arab Emirates in terms of assets.
Emirates NBD functions through various segments- Information Technology, Operations, International, Wholesale Banking, Islamic Banking, Wealth Banking, and Retail Management.
Some of their services that are well appreciated by their clients are business credit cards, project finance, housing loans, auto loans, and personal loans.
No. of Branches in UAE: 72
No. of ATMs in UAE: 357
Abu Dhabi Commercial Bank (ADCB)
[2020 projection] Revenue (TTM): AED18.3B | Net Income (TTM): AED3.7B
Recognition: Awarded Best Customer Service & Best Trade Finance Bank in the UAE in 2020
One of the largest bank in UAE with assets of 405 billion dirhams. Founded in 1985, the bank functions in Islamic Banking, Commercial, Retail, and various financial segments. Abu Dhabi Commercial Bank offers banking services like Property Management, Wholesale Banking, Treasury Banking, Investments Banking, and Consumer Banking. The headquarters of the bank is located in Abu Dhabi.
No. of Branches in UAE: 25
No. of ATMs in UAE: 166
No. of ATMs with Cash Deposits in UAE: 41
Dubai Islamic Bank
[2020 projection] Revenue (TTM): AED14.5B | Net Income (TTM): AED4.1B
Recognition: Awarded Best Islamic Bank in UAE 2019
Established in 1975, the headquarters of Dubai Islamic Bank is situated in Dubai. It is the first bank in UAE to implement Islamic practices in banking activities.
The bank strictly sticks to the principles of Sharia in banking. Dubai Islamic Bank serves in Treasury, Corporate Banking, Real Estate Development, Consumer Banking, and various banking segments. It serves about 1.7 million customers and clients across the UAE.
No. of Branches in UAE: 65
No. of ATMs in UAE: 464
No. of ATMs with Cash Deposits in UAE: 91
[2020 projection] Revenue (TTM): AED9.1B | Net Income (TTM): AED46.8M
Recognition: Awarded Middle East’s Best Digital Bank in 2020 by Euromoney
Established in 1967, Mashreq is one of the oldest bank in UAE. It has its headquarters in Dubai. It is an associated organization of Joint Stock Company and HSBC Group.
It offers Brokerage Services, Asset Management Services, Islamic Banking, Commercial Banking, Investment Banking, and Retail Banking services.
The bank has branches in countries like Bahrain, Qatar, Kuwait, and Egypt. It functions with 4,000 employees.
No. of Branches in UAE: 32
No. of ATMs in UAE: 452
When you open a bank account compare every individual aspect before proceeding with your applications. Banks always contain hidden charges or fees that you may not know. If you are an expat, avoid taking loans and credit cards.
Know about account closing charges and minimum balance requirements etc. Hope you liked our article on showcasing some of the best banks in UAE.
If you think we have missed any, please do comment below. Let us know your experiences with banks involving loans and accounts.
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