Banking in Dubai: salary accounts and cheques

Australians haven't written a cheque in years. In Dubai, you'll need a chequebook before you can rent a flat, and a bounced one can still cost you dearly.

The short version

You need an Emirates ID, a residence visa, your passport and a salary certificate to open a resident account. Approval usually takes hours to days [1].
Employers registered with MOHRE must pay salaries through the Wages Protection System (WPS), into a UAE bank or exchange house account [3].
Many banks charge a fee if you drop below a minimum balance. A salary-transfer account often waives it [1].
Bounced cheques aren't automatically a crime since January 2022, but they bring fines, civil enforcement and a black mark on your credit report [2][4].
Unpaid debts in the UAE can lead to a travel ban, detention on arrival or jail until they're settled. Don't leave with loans outstanding [5].

Opening an account

You can't open a normal resident account until your residence visa and Emirates ID are issued. Before that, you're living on your Australian card. Plan for a few weeks of foreign transaction fees, or bring a travel card.

Banks ask for [1]:

Emirates ID
a valid UAE residence visa
your passport
a salary certificate or employment letter
sometimes proof of address, such as your Ejari tenancy contract or a utility bill.

You can apply in a branch, on the bank's website or through its app. Many banks now use digital onboarding with identity checks in the app [1]. Once approved, you get a debit card, online banking and your IBAN. An IBAN has been required for electronic payments in the UAE since 2012, so HR will ask for it on day one [1].

Which bank?

Dubai has a mix of large local banks, such as Emirates NBD, Dubai Islamic Bank, Mashreq and First Abu Dhabi Bank, and international banks, such as HSBC and Standard Chartered. Digital-only banks also operate. Islamic banks offer accounts that don't pay interest, which suits some people and makes no difference to others.

What matters most for Australians is usually:

Whether the bank has a partnership with your employer. Big employers often have a deal that gives staff fee waivers or quicker approval.
Minimum balance rules. Many banks charge a monthly fee if your balance falls below a set amount [1]. Some waive it if your salary is paid in.
Transfers to Australia. Compare the exchange rate and fee on an AED to AUD transfer, not just the headline fee.
The app. You'll do most things on your phone, including paying DEWA, telecoms and Salik.

Salary transfer and the Wages Protection System

The UAE runs the Wages Protection System so the government can see that wages are paid. All employers registered with MOHRE must pay salaries through it, via banks, exchange houses or financial institutions authorised by the Central Bank [3]. Wages are paid in dirhams unless your contract says otherwise, and last month's salary is due on the first of each month [3].

If pay is late, the system escalates: alerts from day two, a freeze on new work permits for the employer from day five, fines from day 11, an automatic labour complaint from day 16 and enforcement steps from day 21 [3]. If your employer is behind, file a salary complaint with MOHRE [3].

What "salary transfer" means for credit

Banks often ask for a salary transfer letter from your employer when you apply for a credit card, personal loan or car loan. It confirms your pay will keep going into that bank. If you leave the job, the bank can see it straight away.

Account type	Who it suits	Watch out for
Salary-transfer current account	Most employees in their first year	Tied to your employer, and a job change can trigger a review of loans and cards
Non-salary current or savings account	People who move money between banks	Minimum balance fees [1]
Islamic account	Anyone wanting Sharia-compliant banking	Different product names, such as profit rather than interest
Australian account kept open	Paying Australian bills and super	Tell the bank you're a foreign resident

Why cheques still matter

In Dubai, rent is usually paid with post-dated cheques: one, two, four or more, written in advance for the whole year. Landlords also ask for security deposit cheques. Our renting guide covers how that works.

So you need a chequebook. Ask for one when you open the account, because it can take a while to arrive.

What happens if a cheque bounces

The law changed on 2 January 2022. A cheque that bounces for insufficient funds is no longer a crime by itself, so there's no jail term unless bad faith or fraud is proven [4]. But:

Fines still apply. Khaleej Times reported fines of AED 2,000 for bounced cheques up to AED 50,000, AED 5,000 up to AED 100,000 and AED 10,000 up to AED 200,000 [4].
It's still criminal if you act in bad faith, for example closing the account, withdrawing the balance, or stopping payment before the date so the cheque can't be cashed [4].
Your landlord can enforce it directly. The holder can take the bank's certificate straight to the execution judge, and the cheque works like a court order against your assets [4].
Banks pay what they can. If you have part of the money, the bank must pay the part it can cover [4].
It goes on your credit record. Bounced cheque history is part of what the credit bureau collects [2].

The simple rule: never write a cheque you can't cover on the date, and never close an account while post-dated cheques from it are out there.

Your AECB credit report

The UAE's credit bureau is the Al Etihad Credit Bureau (AECB). Your report includes your credit score, an income utilisation ratio, 36 months of loan and bill payment history, your loans and credit cards, and any court-ordered financial obligations [2].

You start in Dubai with no UAE credit history. Your Australian credit file doesn't carry over automatically, which is one reason your first credit card limit may be low.

To get your report [2]:

Set up UAE Pass, the national digital ID.
Log in to the AECB website or app.
Choose a credit report or credit score.
Pay the fee online.
Download the PDF, which arrives straight away.

Banks check it when you apply for a loan, credit card or other credit [2]. Pay your phone and utility bills on time too, because payment history counts. If something is wrong, contact the bank first. If that fails, the Central Bank's Sanadak service takes banking complaints [1].

Debt, travel bans and leaving Dubai

This is where Dubai is very different from home. Smartraveller warns that if you have unresolved criminal charges in the UAE, including unpaid debts, you may be detained when you arrive. It says bail is generally not available to non-residents arrested for fraud, and you can be jailed until debts are settled [5]. UAE authorities can also hold your passport and stop you leaving while a dispute is resolved [5].

So before you leave the UAE for good:

Pay off or formally settle every loan and credit card, and get a clearance or liability letter from each bank.
Get back any security cheques held by your landlord, car finance company or bank.
Close accounts only after all post-dated cheques have cleared or been returned.
Keep your final statements. You may need them for your Australian tax return.

If you're in financial trouble while in Dubai, talk to your bank early. Restructuring is far better than default here.

Sending money home

Exchange houses licensed by the Central Bank can send money abroad, including to Australia [1]. Banks and online transfer services do it too. Compare the total cost, meaning the exchange rate margin plus fees, on a realistic amount. Our sending money home guide explains how to do that.

On the Australian side:

Keep at least one Australian account open for your super, tax refunds and visits home. See keeping Australian accounts while abroad.
Tell your Australian bank if you become a foreign resident for tax. Withholding tax then applies to interest. Our Dubai tax guide explains it.
Large transfers are normal, but keep records of where the money came from. Australian banks may ask.

Not sure which bank's app is least painful or which exchange house people use? Ask in Cooee UAE, our Facebook group for Australians in the UAE.

Banking in Dubai: salary accounts, credit scores and the cheques that still matter