Barclays

Your guide to expatriate banking services in the Middle East

Introduction

The Middle East commonly refers to the areas of south-western Asia, plus Egypt. In recent years, the Middle East has remained a region subject to economic, political and religious sensitivity. Middle Eastern economies present a picture of extremes, ranging from Qatar, Saudi Arabia and the UAE, which have benefited from rich natural reserves, to poorer countries including Gaza and Yemen. All of the nations in the collective 'Middle East' have maintained positive economic growth, according to CIA statistics.

Throughout most of the Middle East region, the official language is Arabic, although English is widely spoken, particularly in business.

Central banks in the Middle East

• Central Bank of Bahrain
• Central Bank of Egypt
• Central Bank of Israel
• Central Bank of Oman
• Central Bank of Qatar
• Central Bank of Turkey
• Central Bank of the UAE

Bank opening times in the Middle East

Banks in the Middle East in general open from 8am to 1pm (Sunday to Thursday), with most banks closing on a Friday. Opening times do vary between countries, with some banks offering extended opening hours in the afternoon or on Saturdays.

Banking services in the Middle East

The major towns and cities offer numerous local and international bank branches, and provide customers with a comprehensive range of banking services, products and accounts. In more rural areas, bank branches may offer limited opening hours, in addition to offering customers a smaller range of services.

With the growth in popularity and range of online banking services, in addition to telephone banking, account holders with these facilities should be able to effectively operate their accounts throughout the Middle East, whether based in an urban or rural area, subject to phone and internet connection.

The use of credit, debit and cash cards is commonplace in the Middle East, although cash is still more popular than either cards or cheques for everyday transactions.

In most countries, bank statements and correspondence can be provided in either Arabic or English (or Hebrew in Israel). In many of the main bank branches, multi-lingual counter services are likely to be available.

The main types of bank account in the Middle East

The main types of bank accounts offered by major banks in the Middle East are:

• Current accounts - used for daily banking. They typically offer low rates of interest, with easy access to account funds. Current accounts may include an ATM/debit card, a chequebook and possibly a credit card on request.
• Savings accounts - generally offer higher rates of interest than current accounts, but may offer limited access to funds, and interest penalties may be incurred for making account withdrawals. Savings accounts may offer either fixed or variable rates of interest, and may be fixed for a period of time (e.g. two years).
• Deposit accounts - typically offer higher interest rates than current or savings accounts, but in return, access to funds may be limited or not available until the maturity date of the account. Deposit accounts may not be suitable if you require regular access to funds.

Many of the major banks will offer accounts in a range of major foreign currencies, such as pound sterling or US dollars.

Opening a bank account when you arrive in the Middle East

Regulations for opening bank accounts in the Middle East vary from fairly straightforward to very strict. In all cases, you're likely to require your passport and a residence permit and in some instances much more, such as a tenancy agreement and a letter from your employer.

Opening a bank account before you arrive in the Middle East

To find out more about the benefits of an International Account from Barclays International, you can speak to a specialist adviser on +44 (0)1624 684316†.

For full details of the range of international accounts, financial services and international investment opportunities available to expats and international residents, visit Barclays International online.

Currency exchange facilities in the Middle East

Currency exchanges and banking facilities are available at the major airports and many are open 24 hours a day, but typically offer low exchange rates. Hotels can also change foreign currency, but hotel exchange rates are typically uncompetitive. To find the best exchange rates, look for city centre bureaux de change.

ATMs in the Middle East

ATMs are widely available in the major towns and cities throughout the Middle East, and generally accept a wide variety of both regional and international cards. However, expect to pay a fee for using ATMs operated by banks other than your own. Withdrawals using debit cards are typically limited to daily cash withdrawal limits set by the banks.

Many machines provide instructions in both Arabic and English (and Hebrew in Israel).

Credit and charge cards
Major credit cards, such as Visa and MasterCard, are widely accepted throughout the Middle East. To a lesser extent, American Express and Diners Club cards are accepted, but this may be limited to use in major hotels and retail outlets. Cash withdrawals made from ATMs using credit cards will typically incur the highest fees, with charges being applied to each individual transaction, regardless of the amount withdrawn.

Cheques
When dealing with cheques, always write the recipient's Arab name in full as the shortened form of Arab names can be very similar. If your cheque is 'misdirected', you will not be entitled to reimbursement if there have been inaccuracies in writing out the cheque.

Managing your account
With the exception of Israel, where overdrafts are commonplace, it is a serious matter in the Middle East to become overdrawn on your bank account. An unauthorised overdraft will attract steep penalties, and issuing a cheque that 'bounces' is viewed as a criminal offence. The police and the creditor may be contacted, prosecutions are common and sentences are harsh. If there is any danger at all that you might have insufficient funds in your account to cover your payments, you must notify your bank immediately.

Money transfers to and from the Middle East

Money transfers can be conducted through banks and a range of specialist money transfer and currency exchange businesses.

Currency regulations relating to the import and export of currencies are subject to frequent change. You should check with the national bank for the latest details on current payments and capital payments.

For the most part, there are few restrictions on the movement of either local or foreign currency into or out of the region. However, in one or two countries, Israeli currency is prohibited.

Bank charges in the Middle East

Charges applied by banks on the range of products and services that they offer can be subject to considerable variation, so it's worth shopping around to find a competitive deal. Some bank accounts may incur a small monthly administration fee, whilst charges may be applied for additional services such as money transfers, cash withdrawals and arrangement fees for opening new accounts.

Banking in the Middle East - other information

Banking ombudsman
If you have a complaint against a bank and cannot resolve it, it's generally best to contact the central bank of the relevant country.

More information on banking with Barclays International

To find out more about the benefits of an International Account from Barclays International, you can speak to a specialist adviser on +44 (0)1624 684316†.

For full details of the range of international accounts, financial services and international investment opportunities available to expats and international residents, visit Barclays International online.