As a prospering Middle Eastern economy, the UAE has several banking institutions that provide financial assistance to individuals, small businesses, and large corporations. The country has both conventional and Islamic banks to encourage the national economy. Islamic banks, another popular option, provide a range of banking services in the UAE, including deposit schemes, investment banking savings and current accounts, and salary accounts. Salary accounts have been the most basic of these products because every working person requires them to collect their salary and conduct daily transactions. Thus in today’s blog, Dhanguard will extensively discuss the minimum monthly income required to open an Islamic Bank Account in the UAE. Also, we will provide additional information about the benefits of opening an Islamic account. So without any further ado, let’s learn!
Types of Islamic Bank Account
Once we understand a bit about the Islamic Bank Account, we must know the types available in the UAE. These are types:
Islamic Savings Accounts
Money deposited into these accounts is investing in Shariah-compliant assets, and profits or losses are split equally between the account holder and the bank.
The applicant can open an Emirates Islamic Savings Account in the UAE in the following ways.
They can open an account through the respective bank's online banking portal.
For the goal of opening a bank account, the desired applicant can use phone banking.
They can also open a savings bank account at the nearby Emirates Islamic bank branch.
Islamic Current Account
Money deposited into current Islamic accounts is interest-free loans made to the bank by the account owner.
The respondent has three options for opening this Emirates Islamic Current Account. Here's how the applicant can begin.
For the purpose of opening this bank account, the applicant may contact the bank's official customer service number. The number is available on the bank's official website.
This Emirates Islamic Bank Current Account can also be opened via the bank's consumer online banking portal.
To open a current account, the applicant should go to the nearest Emirates Islamic Bank branch. They must bring the necessary documents, which must be submitted with the application form.
Islamic Fixed Deposit
While riba prohibiting under Shariah, law-making returns on your investment are permitted. The bank uses the funds deposited in these accounts to purchase Shariah-compliant commodities.
The Emirates Islamic Fixed Deposit accounts provide the account holder with safe and convenient ways to save and manage funds. These accounts come with a slew of benefits, such as high-profit rates, early withdrawals, and the ability to open accounts in multiple currencies.
The Emirates Islamic Bank offers the following types of fixed deposit accounts.
Booster Wakala Deposit
Investment Term Deposit
Flexi Term Deposit
Eligibility Criteria for Opening an Islamic Bank Account
The eligibility criteria for opening an Islamic bank account in the UAE differ from one bank to another.
The minimum salary criterion is something that all banks have in common.
Other considerations may include:
18 years old (for a savings account) or 21 years old (for a current or salary account).
A resident of the UAE
The applicant must be a salaried employee (for salary account)
You must go to the nearest branch to open an account. Furthermore, you must bring documentation to the bank where you really want to open an account.
The specific documents required depend on the type of account you want to open in the bank. In most cases, these are:
Original and Copy of Passport or Khulasat Al Qaid
Document related to Business such as commercial registration, Business, and trade License.
Expats can open an Islamic bank account as well. They must provide a passport with a residency visa, a copy of the shareholder representative's Emirates ID card, disclosure of the source funds, and any other documents that the bank may require.
Minimum Salary Required in the UAE to Open an Islamic Bank Account
As previously stated, individuals willing to open an Islamic bank account in the UAE must be employed and earn a minimum salary. The salary requirement varies depending on the bank and the services it provides. Most of the UAE's leading Islamic banks require a minimum salary transfer of AED 5,000 or more for opening an account . Furthermore, the bank may revoke the minimum account balance criterion if an individual wants to open a salary account while meeting the minimum income requirement.
Advantages of having An Islamic Bank Account in the UAE
It needs noticing that you should consider the benefits of an Islamic bank account in the UAE before opening one.
Aside from being Sharia-compliant, the Islamic account offers numerous benefits, which are listed below -
The Islamic bank accounts are fully sharia-compliant and adhere to the profit-sharing principle.
The accounts provide enhanced transaction and withdrawal limits.
Individuals obtain internationally accepted debit cards to access funds while traveling.
A few bank accounts, such as the ADIB Ghina salary account, also provide monthly and quarterly rewards based on account balances.
The Islamic accounts admit a variety of currencies, including AED, USD, GBP, and EUR. This facility, however, varies depending on the bank and the bank account.
Individuals have 24-hour access to their accounts through online and mobile banking.
Islamic banks also provide free cheque books (the first one is free) and monthly account statements.
A few Islamic banks also offer free international remittances to various countries.
Tops Banks in the UAE for Islamic Accounts
If you've been searching for a bank to open an Islamic account in the UAE, you're in luck because there are plenty of options.
Among some of the best options are:
Noor Bank Current Account
AED 3000 minimum balance required. There are no monthly or annual fees to pay.
Characteristics of Noor Bank Current Account
Current accounts are available in AED, USD, GBP, and EUR
International debit and ATM cards are available.
Online banking, mobile banking, and phone banking are all options.
Al Islami Dubai Islamic Bank Current Account
Begin your financial journey with this salary transfer account and globally recognised debit card, as well as cutting-edge services and banking options.The minimum opening balance for this salary transfer account is AED 3000. When you open an account, you will also receive a widely accepted debit card and will be able to use services such as electronic banking, mobile banking, E-statements, and so on.Enjoy stress-free living by paying utility and telecommunications bills with your Al Islami current account.
First Abu Dhabi Bank (FAB) Islamic Current Account
Free Islamic debit card and First free cheque book is available
Statement of Account is consistently free for every month
AED and other major currencies are accepted.
Cash withdrawals from any ATM in the GCC that displays the UAE/GCC Switch logo, as well as ATMs worldwide that display the Mastercard/Cirrus logo
Access to airport lounges throughout the region (no prior booking required; simply show your Mastercard Platinum debit card at reception)
ADIB Current Account
The minimum balance for an ADIB current account is AED 3000, while the minimum salary is AED 8000. There are no monthly or yearly fees.
Benefit for opening a ADI
RAKBANK Amal Current Account
The required Minimum Balance is AED 3000.
Islamic bank accounts are among the most popular in the UAE. The accounts have low salary requirements and considerable benefits to meet an individual's financial needs. Furthermore, various salary accounts in the UAE are not restricted to UAE nationals only. An expat with visa details and a working resident can open an Islamic bank account in the UAE. Individuals should consider the minimum salary requirement and eligibility criteria based on their banking needs to maximize the benefits when opening an account. Thus we hope this blog provides you with insightful information. For more information on other related aspects, feel free to check out our website or get in touch with our Experts.