How to become the best bank in UAE for expat-preneurs

Our expertise in banking analysis tells us that to become the best bank in UAE for expat-preneurs, a bank must focus on tailoring its services to the unique needs of this group. It sounds easy. But how to do it? An in-depth understanding of the needs of expats in the United Arab Emirates reveals a whole set of challenges, demonstrating how dynamic and diverse this group is, including their level of financial literacy, traditional preferences for banking products and services, and the unique financial challenges they face.

Understanding the target audience

The wave of expat entrepreneurs in the UAE gained significant momentum in the early 2000s as the country diversified its economy beyond the oil industry. Today, in 2024, expat-preneurs have a profound impact on the UAE economy, driving innovation, creating jobs and contributing to economic growth.

The UAE government is actively supporting expat entrepreneurs as part of its Vision 2020 - 2030 development plan by implementing policies that promote business creation, offering incentives for startups and improving the overall business environment to attract and retain global entrepreneurial talent. By 2025, expat-preneurs are expected to continue making a significant contribution to the UAE's economy, primarily by driving innovation, fostering a competitive business environment, and attracting foreign direct investment. Their diverse business initiatives and international connections are pivotal in supporting the UAE's strategic goals of economic diversification and sustainable development.

Three main groups of expat-preneurs in UAE

Expat-preneurs in the UAE hail predominantly from India, Pakistan, and the Philippines/Bangladesh. Each group exhibits distinct characteristics:

• Indians: Often motivated by expansion of family businesses or technology startups, Indian expat-preneurs typically possess high financial and digital literacy. Their objectives are growth-oriented, with a focus on sectors like technology, trade, and services. Predominantly Hindus and Muslims, they bring diverse religious and cultural practices into the business environment.
• Pakistanis: Driven by the search for a more stable economic environment, Pakistani expat-preneurs have moderate financial and digital literacy. Their primary goal is to establish small to medium-sized enterprises, commonly in trade and services. As mostly Muslims, their business practices are often influenced by Islamic finance principles.
• Filipinos/Bangladeshis: This group looks to entrepreneurship as a means to better economic prospects, often in retail and hospitality. Their financial and digital literacy varies widely, but they are generally lower than their Indian and Pakistani counterparts. With a mix of Christian and Muslim beliefs, they adapt their business operations to conform to local religious norms.

Expat entrepreneurs from other countries do not constitute such a significant number. Among them are representatives of various states: expat-preneurs from the UK are drawn to the UAE for its tax benefits and high standard of living; Egyptians for the stable opportunities in construction and tech; Lebanese for a more stable economic environment; Americans for the dynamic tech and finance sectors; Chinese for trade and technology; Russians for investment and tourism opportunities; and South Africans for real estate and financial prospects.

UAE banking sector

The banking sector in the UAE is highly regarded on a global scale. The country hosts around 50 banks, including major local institutions like Emirates NBD and Abu Dhabi Commercial Bank, as well as international entities such as HSBC and Standard Chartered. These banks offer a comprehensive range of services from personal banking to investment and corporate banking, catering to the diverse needs of both local and international clients.

Fintech environment in the UAE

The UAE stands as the second-largest economy in the Arab world and is one of the leading financial centers globally with an active real estate market, business-friendly government, and low taxes. This robust economic backdrop supports a dynamic and thriving banking sector.

• Taxes in the UAE: A major advantage for expats in the UAE is the absence of personal income tax and VAT on earnings. Introduced in 2018, a standard VAT rate of 5% applies, with a zero rate for exports and certain sectors like oil and gas. Restaurants serving alcohol may impose a minimal tax on drinks and meals.
• Convenience of banking operations in the UAE: The UAE's banking system is lauded for its convenience and efficiency. Expatriates choose banks based on the availability of digital and mobile banking, proximity of ATMs, and the overall ease of services.
• Business banking: Opening corporate accounts in the UAE offers numerous benefits, including low borrowing rates and active lending to private enterprises. However, the process can be complex, involving the verification of signatories and providing detailed information about the company's structure and finances.
• Opening a bank account: For expats, the process of opening a bank account is straightforward once they have a residence visa. Required documents typically include a passport, proof of address, and a no-objection letter from the employer. Banks offer various services, including current accounts, debit and credit cards, savings accounts, and car loans.

This combination of a supportive economic environment, a wide array of banking services, and favorable tax conditions makes the UAE's banking sector extremely attractive to expat-preneurs looking for opportunities in the region.

Best services for the best bank: insights from Markswebb

To establish itself as the best bank for expat-preneurs in the UAE, a bank must align its services with the unique expectations of this group. Markswebb recommends focusing on the following strategic enhancements to optimize banking operations for expat-preneurs:

1. Multi-currency accounts: Essential for expat-preneurs who conduct transactions across different countries. These accounts help reduce currency conversion fees and manage multiple currency balances efficiently.
2. Asset management and investment services: Tailor these services to cater to the nuanced investment needs of expats, including options for international diversification and tax-efficient investing strategies.
3. Bureaucratic and taxation support services: Offer services that assist clients in navigating the complexities of expat tax obligations and international business regulations.
4. Efficient international money transfers: Provide cost-effective solutions for international transfers, emphasizing low fees and competitive exchange rates. This is crucial for expat-preneurs who frequently move funds globally.
5. Islamic banking: Since the UAE hosts a significant Muslim population, offering Sharia-compliant banking options can meet the needs of expat-preneurs looking for interest-free products.
6. Digital banking solutions: Deploy a robust digital banking platform that offers seamless access to banking services, ensuring that expat-preneurs can manage their finances effectively from anywhere in the world.
7. Personalized expat services: Create a customer service experience tailored to the expat lifestyle, including multilingual support and advisors skilled in international business practices.
8. Streamlined account opening processes: Simplify the account opening process for foreigners by minimizing paperwork and speeding up verification processes to enhance convenience for expat-preneurs setting up in the UAE.
9. Offshore banking capabilities: Maintain robust offshore banking services to accommodate the international lifestyle of expat-preneurs, ensuring that they can manage funds across borders without unnecessary restrictions or fees.
10. Proactive customer support: Implement a dedicated expat helpdesk that addresses specific issues faced by expat-preneurs, such as international credit history recognition and cross-border estate planning.

Curious about how we analyze and enhance business banking services? We offer a wealth of insights. Take a look at our collection of best practices right now and see how our research can help drive growth and improve digital experiences for businesses.

By implementing these targeted strategies, a bank in the UAE can significantly improve its appeal to expat-preneurs, thereby not only meeting their specific banking needs but also ensuring their financial success and satisfaction in the UAE. This approach will help build long-term loyalty and attract a broader international client base.

Markswebb is deeply engaged in studying the fintech market of the UAE. In the summer of 2024, we are conducting an extensive "Mobile Banking Review UAE 2024" study, where we will analyze the leading banks in the country using over a thousand different evaluation criteria. The result will be a comprehensive report that brings together a collection of best practices in the sector and highlights growth opportunities for the dynamic and affluent banking sector in the Emirates.

Markswebb is always ready to assist with analyzing the effectiveness of digital banking services and to provide solutions for any challenges encountered. Our team of experts specializes in optimizing user experience and functionality, ensuring that banks can offer top-tier digital services that meet the needs of their diverse clientele, including expat-preneurs.