Finance and Banking in the UAE
Money
In 1973, the UAE adopted a dirham and fils system of decimal currency. There are 100 fils to one dirham.
Notes are in denominations of 1,000 AED, 500 AED, 200 AED, 100 AED, 50 AED, 20 AED, 10 AED, and 5 AED.
Coins are in denominations of 1 AED, 50 fils, 25 fils, 10 fils, and 5 fils.
Currency Conversion
One UAE Dirham roughly equates to:
- £0.22 (UK Pound)
- €0.24 (Euro)
- $0.27 (US Dollar)
- ₹19.76 (Indian Rupee)
- ¥1.88 (Chinese Yuan)
Applying for a Bank Account
Opening a bank account in the UAE is quite simple and there are plenty of banks to choose from, so always ensure you are getting the best deal.
To apply for an account, you will need to organise a meeting with a representative from your chosen bank. You will need to take your passport, extra passport-sized photographs and a letter of no-objection from either your sponsor or employer.
You may also require a copy of your visa, your Emirates ID card and documentation showing your employer’s name and the amount of your salary.
As you are required to sign your application, you must be present in order to open an account. Unfortunately, this means that the process cannot be completed prior to your move or online.
Tax
There is no income tax in the UAE. Taxes are imposed on the import of goods and entertainment, although these are incorporated into the final price.
As a foreign worker, you may still be liable to pay tax in your home country if:
- You remain a tax resident of your home country
- You lease property in your home country
Pensions
The retirement age for UAE nationals is 49, while expatriates must work until they are 60. Some foreign workers are permitted to work until they are 65,but must seek approval from the Minister of Human Resources and Emiratisation.
Expatriates are not entitled to a pension but are eligible for end-of-service benefits such as gratuity or severance pay.
