Barclays

Moving to the Gulf region?

Introduction

The Persian Gulf, in the Southwest Asia region, is an area rich in natural resources, and contains the largest resources of crude oil in the world. Countries located around the coastline of this vast body of water include the United Arab Emirates, Saudi Arabia, Qatar, Bahrain and Oman.

The countries of the Gulf predominantly speak Arabic as a first language, with English being widely taught as second language in schools and colleges.

Units of currency

The major currencies used in the countries comprising the Gulf region include:

• UAE - the UAE dirham (AED), divided into 100 fils
• Saudi Arabia - the Saudi Riyal (SAR) is divided into 100 halalat.
• Qatar - the Qatari riyal (QAR), divided into 100 dirhams.
• Oman - the Omani rial (OMR), divided into 1,000 baizas.
• Bahrain - the Bahraini dinar (BHD), divided into 1,000 fils.

Bank opening times in the Gulf

Bank opening hours may vary between Gulf countries, and city centre branches may offer extended opening hours. Banks opening hours in the Gulf are generally from 7.30am to 1pm (Sunday to Thursday), and closed on Fridays and Saturdays. In the Gulf, which is a predominantly Muslim area, Friday and Saturday are the official days of rest, and the majority of businesses are closed to reflect this.

Banking services in the Gulf

Branches of major national retail banks and international banks are well established throughout the Gulf, and the provision of services include multi-lingual telephone banking and online banking facilities. Many of the banks also a wide range of retail financial services, as well as a number of banks offering Islamic banking services, operated according to the rules of Sharia Law. ATM and electronic banking services are an integral part of the banking services on offer in the Gulf.

The main types of bank account in the Gulf

The main accounts offered by banks in the Gulf to expatriates include:

• Current accounts are typically used for everyday banking, and these accounts may provide customers with facilities such as online banking, money transfers, standing orders and debit cards, in addition to easy access to funds. These accounts may be provided with no monthly fees, but may require a minimum account balance to be maintained. Interest rates paid on current accounts are generally low, and employee salaries are typically paid into current accounts.
• Savings accounts should be considered as a medium to long-term account, as account holders may have limited access to funds, and may only be allowed a fixed number of fee-free withdrawals within a defined period. Savings accounts typically pay a higher rate of interest than current accounts, but accounts may require a minimum account balance to be maintained.
• Fixed-deposit accounts generally offer higher interest rates than current or savings accounts, and are primarily for long-term savings. Deposit accounts may offer limited or no access to funds until the account matures, and may require a minimum account balance be maintained.

In addition to these accounts, expats may have the option to open Islamic accounts that operate within the rules of Sharia Law, in addition to opening accounts in a range of foreign currencies, including US dollars and pound sterling. Retail banking services available to expatriates in the Gulf may vary between country and between banks, so research the marketplace before your arrive.

Opening a bank account in the Gulf

Typically, to open an account you will need to provide:

• A reference letter from your employer, stating your salary, and also giving your employers approval and authorisation for you to open an account
• Residency permit (if applicable)
• Passport (plus copies)
• A letter of reference from your existing bank plus recent bank statements

Before you open an account, clarify the conditions regarding closing or moving your account at a later date, as this may require the approval of the bank with which you currently bank.

Opening a bank account before you arrive in the Gulf

Opening an international account prior to leaving for the Gulf is a convenient alternative to opening a local account. Your international account can be used in the Gulf States, and is ideal for individuals travelling between international locations.

In addition to international banking facilities, you can access a comprehensive range of services, including online banking, international payment and money transfer services, along with accounts available in a range of major currencies.

Currency exchange in the Gulf

You will generally find a number of bureau de change and money-transfer facilities at the major airports and hotels throughout the Gulf. Whilst these facilities provide extended opening hours, they typically offer low exchange rates compared with the banks. If you are unable to visit a local bank branch, city-centre bureau de change services may provide a more competitive rate of exchange.

ATMs in the Gulf

ATMs will accept a wide variety of debit and credit cards, both local and international, and ATMs are widely available throughout the Gulf in the major towns and cities. However, expect to pay a fee for using an ATM that is operated by a bank other than your own, and check in advance the charges that will be levied, particularly on cash withdrawals using credit cards, as these can vary between Gulf countries. Many of the ATMs in the Gulf provide Arabic or English instructions, and may provide features such as balance displays and mini-statements.

Credit and charge cards
Throughout the Gulf, major credit cards, including Visa and MasterCard, are widely accepted by the major hotels and retail establishments, but a surcharge may be applied to transactions. In rural areas, card payments may not be so widely accepted, with cash being the preferred payment method.

Cheques in Gulf countries
As is Western Europe, there has been a significant decline in the use of personal cheques, due to the wide use of electronic and card payments. In the Gulf, the use of post-dated personal cheques has been widely used as a means of paying rent to a landlord, with personal cheques being issued for the period of the tenancy. However, as of May 2010, the post-dating of cheques will no longer be accepted in Qatar, and other countries that have not yet followed suit, may implement similar restrictions in the future. Issuing a personal cheque that cannot be honoured due to insufficient account funds is seen as fraud, and can lead to prosecution and conviction.

Money transfers to and from Gulf countries

For the most part, there are few restrictions on the movement of either local or foreign currency into or out of the Gulf region. Currency regulations relating to the import and export of currencies are subject to change, so check with the national bank for the latest rules and regulations relating to foreign currency.

Bank charges in the Gulf

Charges levied by banks for the range of services provided vary between countries and between banks. Check the fees and charges that apply to all accounts and services offered, as some accounts may be more suitable, based on your needs and financial situation.

Banking in the Gulf - other information

Banking Ombudsman
Should you have a query or complaint relating to a bank, contact the Central Bank of that country to seek further advice. If the country has a banking ombudsman, then the Central Bank will be able to advise you of the complaints process.

Main Central Banks in the Gulf region

• Central Bank of Bahrain - www.bma.gov.bh
• Central Bank of Oman - http://www.cbo-oman.org
• Qatar Central Bank - www.qcb.gov.qa
• Saudi Arabia Central Bank - www.sama.gov.sa
• Central Bank of the UAE - www.centralbank.ae

More information on banking with Barclays International

For further information about the benefits of an overseas bank account, speak to a specialist adviser at Barclays International by calling +44 (0)1624 684316†.

Find out more about the specialist expat financial services that Barclays International provide to expats moving to the Gulf, including international investment help and advice services.