SME Account in Dubai, UAE

SME Account

Dubai SME, an agency of the Department of Economic Development – Government of Dubai, describes Small and Medium sized Enterprises (SMEs) as the bedrock of any economy. SMEs are responsible for driving job creation, innovation, exports and new business models.

Why choose SME Banking Solutions?

While each bank has a different solution for your banking needs, with SME banking you can

  • Avail finance for your operational needs, imports and other business requirements.
  • Use a range of products and services to improve your business.
  • Bank from the comfort of your office.
  • Avail trade finance services like letter of guarantee, letter of credit and remittance solutions.

Depending on the size and turnover of your organization, banks can offer various solutions to suit your needs.

SME Accounts Interest Rates in UAE

Minimum Salary

Interest Rate

Loan Amount

Reducing Rate

SME Definition for Dubai

Based on employee headcount and annual turnover, enterprises are defined as follows:

Types of SME Trading Manufacturing Services
Employee Turnover Employee Turnover Employee Turnover
Micro <=9 <=9 mn <=20 <=10 mn <=20 <=10 mn
Small <=35 <=50 mn <=100 <=100 mn <=100 <=100 mn
Medium <=75 <=250 mn <=250 <=250 mn <=250 <=250 mn

This can vary according to the sector in which you do business. Banks in UAE, realise this potential and endeavour to bring together a set of products and services tailor-made for your business requirements. Whether it is a loan, cash management or business banking, banks in the UAE have a plethora of services to offer.

Types of SME Accounts

As an SME owner, a gamut of accounts to cater to all your financial needs is offered by most banks in UAE.

Transactional accounts and deposits

SMEs need a robust banking system to support their specific commercial banking needs.

Current Accounts

Current accounts specifically designed for SMEs can suit your daily transaction needs. Types of current accounts offered by banks are:

  • Standard current account
  • Premium / Priority current account
  • Free-zone current account
  • Elite current account

Term Deposit

Business term deposits with flexible tenures and attractive interest rates ensures that your money earns for you too.

Commercial Banking Call account

This is a unique banking product which amalgamates the flexibility of a current account with the earning potential of a term deposit. You can withdraw money from this account usually by informing the bank a day prior.

Financing and business loans

Banks in UAE offer loans and financing options designed to meet the small business needs of SME customers including business expansion and working capital requirements.

Working Capital

Most banks in UAE offer a range of option for your medium to long term working capital needs. Some of them are :

  • Overdrafts
  • Invoice discounting
  • Enterprise credit
  • Secured trade finance
  • Special financing for SMEs that support the government

Business Loans

A simple unsecured finance for SMEs to help them focus on the business and make it a success. There is no collateral needed and usually these loans get approved within 48-72 hours of the receipt of application.

Vehicle / Equipment Finance

As your business expands, you might have to purchase equipment or vehicles. This is a secured loan with the vehicle / equipment working as a collateral for the loan. Some options available are:

  • Commercial vehicle loan
  • Medical equipment loan
  • Construction equipment loan
  • Office equipment loan

Real Estate

Buying commercial real estate is costly in UAE. Commercial real estate finance helps SMEs achieve their goals by offering loans for purchasing or constructing commercial property.

  • Finance for purchase of commercial property
  • Finance for construction of the property
  • Finance for lease rental discounting
  • Property mortgage solutions (Overdraft)

Trade Finance Solutions

If you are into imports, exports or re-exports or need short term financing, most banks in UAE offer comprehensive trade finance solutions. You may avail from a list of services like:

Letters of Guarantee : Most banking offering SME services issue letters of guarantee for your participation in bids. Research well before you finalize the bank from which you wish to avail this service.

Shipment Finance : For business into exports, the requirement of cash pre and post shipment can be managed with this service without affecting the regular cash flow of the business.

Tailored Trade finance : Depending on the nature of your business and your requirements, banks might offer tailored trade finance options to you. Make sure to talk to your bank about such services.

Islamic SME Banking

Shariah-compliant SME banking solutions are also available with most banks in UAE. The products and services mentioned above are available under various laws of Islamic banking.

Eligibility for SME Accounts in UAE

Every bank has its own eligibility criteria which needs to be checked individually. However, some basic requirements are as follows:

  • Registration as a proprietorship, partnership, limited liability company or Free Zone Entity.
  • To have been in operation for at least 3 years.

Documents required for SME Account in UAE

As is the case with eligibility, every bank can have its own requirement of documents to process your application. Apart from the application form, some basic documents needed are:

  • Copies of the latest Trade License, commercial registration certificate and passport or I.D. copies of owner(s)/partners.
  • A brief description of the company and its activities.
  • Audited financial statements of the business for the last 3 years (if available).
  • One year's account statements from all banks with which you do business.
  • Request letter on business letterhead for the SME services you require.

Banks offering SME Account

  • National Bank of Abu Dhabi (NBAD)
  • RAK Bank
  • Abu Dhabi Commercial Bank (ADCB)
  • Abu Dhabi Islamic Bank (ADIB)
  • Commercial Bank International (CBI)
  • First Gulf Bank (FGB)
  • Doha Bank
  • Emirates NBD
  • Commercial Bank of Dubai (CBD)
  • Mashreq Bank
  • Dubai Islamic Bank (DIB)

FAQ’s

Q. What are the fees associated with SME Accounts?

A. SME Current Accounts can come with fees like monthly management charges or fees for issuing new cheque books, making transfers or paying wages. Similarly, trade accounts come with a host of fees from document handling charges, to administrative fees and issuance commission so find the account that works best for your need.