Features of the banking system in Dubai, UAE

Features of the banking system in Dubai, UAE - Makebiz

The banking system in the United Arab Emirates is represented by large international and local banks. Some of them are even included in the top of the best according to Forbes.

Organizations that perform transactions with finance and credit must comply with strict requirements of the Central Bank of the UAE. For example, having an impressive authorized capital to continue functioning even in times of international crises. Due to the strict system of requirements, there have been no cases of their bankruptcy. This guarantees stability and reliability of the banking system as a whole.

In the Emirates, there is a system of thorough verification of the client’s identity and even his transactions, if necessary.

Some economic zones have their own regulatory bodies outside the control of the Central Bank. For example, the DIFC freezone.

Banks are most often categorized by types of services and types of customers:

  • commercial — most common as they offer basic and popular services for opening personal and corporate accounts;
  • investment — perform complex operations for large enterprises and the state;
  • Industrial — supports infrastructure development by serving major sectors of the economy;
  • Islamic — support Shariah regulations prohibiting the payment and receipt of interest, and offer ethical financial transactions.

There are also highly specialized banks serving specific sectors of the economy.

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