Money and Banks

[Mocha]

Hi

I am moving to Dubia soon and have been researching on the issue of money and banks. I think I have worked out what I need to do but any advice would be most appreciated!!

1. Opening an offshore bank account whilst I am still here (UK) and transfer some money into it.

2. Bring a small sum of cash with me to Dubai to survive until my first pay cheque!

3. Once I am able to open a local bank account, I will transfer money from offshore to onshore as I anticipate that rent, furniture and car would be the largest upfront payment. I am thinking of using HSBC simply because of its network around the world and might look into other banks once I have got myself sorted!

Does this sound like what others have done as well to start off with? Have I missed anything obvious?

Thanks.

Mocha

[Maz25]

Why do you want to open an offshore account? You can transfer money every month from Dubai to the UK to meet any ongoing commitments back home. As everything is tax-free in Dubai in any case, your local bank account would in actual fact be working like an offshore account.

Saying that, if you still want to open an offshore account, please be aware that any interest earned will be subject to taxes until you officially move to Dubai and are able to provide the bank with proof of address in Dubai. In the long run though, you will benefit from a higher interest rate compared to the interest paid by UAE banks!

If I understand you correctly though, are you planning to open an offshore account in the UK and then get your local salary paid into it and then after that transfer money into your account in the UAE? If this is the case, then there is no need - just open a local bank account and have your salary paid directly into it. As I said above, you can still transfer money back home either through your bank or places like UAE Exchange!

HSBC, for e.g, will allow you to open an account before your residence visa is issued. Your employer will need to provide you with a letter though! I intend to look into this as soon as land in Dubai!! They will not, however, issue you with a cheque book before your residency visa is approved. They will give you a credit card though - are my missing the point here!!!! Strange but true, I know!!!

If you are planning to use some of the money that you plan to transfer into the offshore account whilst in the UAE, I would say to just bring the cash instead. Bank charges will be quite hefty otherwise!! It's not worth using a credit or debit card for small purchases, as on top of some horrible interest rate heavily in the bank's favour, there is a 2 -3% charge on every purchase!

Everything else seems ok. I'm planning to do more or less the same thing!

[Mocha]

Yes, I think you have got a point here. I will take with me a few thousand quid to pay for small items.

May I just ask what is your plan for paying the annual rent and car - which I gathered would be the biggest expenditure? Perhaps I could just transfer these large sums of money from my UK Bank to a Dubai Bank (and accept that the bank will earn a a fee on this). Can't imagine bringing AED90,000+ (over 10 grand) cash on the off the plane!

[Maz25]

I'm planning to just rent a room to begin with. It will probably work out the same as a one-bed apartment or studio but at least there is more flexibility to pay monthly. I live on my own in the UK and to say the least, I'm not sure that I could manage this in Dubai. It can get so lonely and it will be a lot worse in Dubai considering that I will be in a new country, where I do not even know a soul - at the beginning at least!! At least in the UK, I can go out and visit friends when I get tired of staring at the walls and talking to my imaginary friend!!!

In regards to car rental or purchase, I will be relying firmly on taxis. I've heard enough about the driving standard in the UAE to be put off for the immediate future - maybe I will change my mind when I get to Dubai. Plus, the metro will be opening next year, so that you should take care of my 'travel needs'. If you are planning to rent a car, you will need to get an international driving license; I think that it cost around £5 from the post office or you can it from the AA. In regards to buying a car, you will need to have your residence visa. Once this has been issued, you can swap your UK license for a UAE license and after that, you are good to go!!

Yes, you are quite right about carrying such a large amount of money on the plane and the fact that accommodation will be your biggest expense! In this case, it would be better to simply transfer the money to the UAE. You will get charged by your bank for the 'favour' and it would be worthwhile just enquiring how much they are going to charge you. If you need the money as soon as you arrive, you can use Western Union or UAE Exchange (they have a branch in London). Just be aware that you need an extra 10% of the value of your rent - 5% agent's fees & 5% deposit.

I haven't even got on the plane yet and I'm already spending a small fortune!!!

[louis.abdilla]

I am starting a new job in Dubai in mid Feb and would like to know what is the easiest and the cheapest way of sending money to the UK to cover my existing mortgage and other bits and pieces. I will be paid in UAE Dirham and so what would I have to do to sedt up funds to be transferred regularly to the UK.
Many thanks,
Bigillu

[RabsyA]

Hi Guys

I am new to this forum and to Dubai...this is my 2nd week in the country still awaiting my residence visa and then I can start doing the pratical things I need to do such as opening bank account, car leasing, licensing etc etc! I have found there is so much red tape here and nothing is as it seems...the rules keep changing and no 2 people tell you the same thing especially in terms of driving license.

Also with regards to HSBC....from this forum and people I work with I have not really heard any good feedback so it may be an idea to bank with a local bank. I would certainly do some research into this before opening an account.

Talking of being lonely...have family and work colleagues here but would be nice to make some friends too...so if your in the same boat as me (like most I guess) get in touch