Dubai relies on a dynamic and strong banking sector, as it is expected from a competitive market such as that of the UAE. Lately, more and more banks focus on client satisfaction and are preoccupied to maintain innovation in products, and high quality services. Many new products have been developed lately such as new categories of interest income, charges, commissions and possibly FX-related profit (profit from forex trade). As a consequence, the companies registered in the banking sector in Dubai are also growing in number. Our Dubai lawyers can offer you all information you might need regarding the legislation applicable in the banking sector.
Main institutions and laws regulating the banking sector in Dubai
The Banking Law in Dubai contains several resolutions regarding the formation and registration of banking and financial entities in Dubai.
Moreover, the Central Bank of the United Arab Emirates, which has one of its headquarters in Dubai, has as one of the main responsibilities to formulate and implement banking, credit and monetary policies. Accordingly, banks, insurance and reinsurance companies, as well as investment and trust companies are allowed to operate in Dubai, ensuring the growth of the national economy of the UAE in a balanced manner.
The Banking Supervision and Examination Department is in charge with overseeing and regulating other issues in the UAE banking industry. You can count on our attorneys in Dubai who can help you comply with the legislation in force at this moment in the banking sector in Dubai.
Registering a banking company in Dubai
The registration of a banking company in Dubai will have to respect as well the Company Law which regulates the application procedure and the necessary documentation that needs to be submitted to the Dubai Company Register.
Once your banking company is registered with the Dubai Register, you must further obtain from the Central Bank of the UAE special authorizations and pass several tests which have the purpose to establish the financial capacities of the new company. A few examples of these examinations are the stress test and the liquidity test, through which the company’s capital is evaluated and through which the examiners decide the eventual weaknesses of the company.
One of the first steps a company must do in order to obtain the needed authorization for the banking sector is to engage with the Business Development Unit of the Dubai International Financial Centre Authority (DIFCA).
Our law firm in Dubai can inform you on the requirements for registration of a banking company in Dubai by elaborating the needed documentation. You can contact us for assistance in the formation of your banking company in Dubai.