UNITED ARAB EMIRATES
With a population of 11 million and a forecasted GDP of $548bn in 2025, the United Arab Emirates is a small advanced open economy, underpinned by high per‑capita income (~ $49.5 k in 2025), substantial sovereign wealth, and a strong external surplus. Its current account surplus is estimated at around 7.9 % of GDP in 2024, supported by oil and non‑oil exports (tourism, gold, services), and net foreign assets exceed $2.5 trillion via sovereign and emirate-level investment funds.
Public debt remains low and sustainable: general government debt is expected to decline to around 31.3 % of GDP in 2024, while fiscal positions reflect surpluses or modest deficits depending on oil prices and capital spending. The fiscal credibility of the UAE lies in deep buffers, prudent fiscal management, and strong capital inflows.
Structural transformations continue under diversification strategies, including energy transition, tourism, financial services, and trade liberalisation via CEPAs. Challenges encompass global commodity volatility, property market cycles, and geopolitical risk. Growth is expected to remain strong — projected at around 4.6 % in 2025, with non‑oil sector growth near 4.9 %, underpinned by ongoing private sector expansion and infrastructure investment.
Summary
BNP Paribas has been present in the UAE since 1973 with centres in Dubai and Abu Dhabi, which are among the largest logistic hubs for trade globally. The bank offers domestic and cross-border cash, liquidity and international trade finance services to both corporations headquartered in UAE that are expanding overseas, and multinational corporations with a presence in UAE.
Currency
- Emirati dirham (AED).
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
| Exchange rate: AED per USD | 3.6725 | 3.6725 | 3.6725 | 3.6725 | 3.6725 | 3.6725 |
Sources: IMF, International Financial Statistics, June 2021.
- The UAE's central bank is the Central Bank of the UAE (www.centralbank.ae).
Bank supervision
- UAE banks are supervised by the Central Bank.
Bank accounts
A company is considered resident in the UAE if it can establish that:
- All of the shares of the company are beneficially owned by residents of the UAE;
- All or substantially all of the company’s income is derived by the company from the active conduct of a trade or business other than an investment business in the UAE; and
- All or substantially all of the value of the company’s property is attributable to property used in that trade or business. Bank accounts
| Within UNITED ARAB EMIRATES | Outside UNITED ARAB EMIRATES | |
| Local Currency | Permitted without restrictions, fully convertible |
Permitted with restrictions, fully convertible |
| Foreign Currency | Permitted without restrictions, fully convertible |
Permitted without restrictions, fully convertible |
| Within UNITED ARAB EMIRATES | Outside UNITED ARAB EMIRATES | |
| Local Currency | Permitted without restriction, fully convertible |
Not permitted |
| Foreign Currency | Permitted with restrictions, fully convertible |
Not applicable |
- Lifting fees are applied on payments between resident and non-resident bank accounts.
BNP Paribas Cash Management Capabilities
| Cash collections | |
| Cheque collections | |
| Direct debit collections | |
| Domestic incoming transfers | |
| Virtual IBAN | |
| Virtual accounts | |
| International incoming transfers | |
| Card acquiring |
| Cash withdrawals | |
| Cheque payments | |
| Direct debit payments | |
| Domestic outgoing transfers | |
| Commercial cards | |
| Virtual cards | |
| International outgoing transfers | |
| SWIFT gpi | |
| Real-time international payments through BNP Paribas’ network | |
| Card issuing |
| Local e-Banking | |
| Global e-Banking - Connexis | |
| SWIFT/ host to host |
Payments & collections
The Central Bank’s National Payment Strategy aims to transform the country into a cashless economy. In November 2020, for example, a contactless payment system for mobiles, Empay, was launched, as part of the Emirates Smart Government Program, a program to ensure that all government services are delivered electronically. Electronic methods of payment are increasing as consumers choose cards or e-wallets over cash to pay for goods: POS transactions account for over 90% of all non-bank payment transactions in the UAE.
Electronic banking services are available from most banks. These services are primarily used by larger companies. There is no national electronic banking system in the UAE, so companies use banks' proprietary services.
Online and mobile banking services are provided by the country’s leading banks.
A number of digital-only banks have been launched, including CBD Now, Emirates NBD’s Liv., and Mashreq Bank’s Mashreq Neo.
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| UAEWPS | Participants |
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* The date shown may vary by plus or minus one day. These dates are derived by converting from a non-Gregorian calendar (e.g., Muslim or Hindu) to the Gregorian calendar. Some of these dates cannot be determined in advance with absolute accuracy, even by the governing authorities. In the case of Muslim dates in particular, the feast days are determined by the sighting of a new/full moon. |
- Credit transfers are used by companies to pay salaries and suppliers.
- Credit transfers are available as both paper-based and electronic payment instruments.
- Credit transfers are settled in real time via the UAEFTS.
- Low value (AED 10,000) transfers can be made via Immediate Payment Instructions (IPIs). Transfers are made in real time, 24/7/365. In 2019, there were 2.2 million IPI transactions, with a value of AED 5.8 billion.
- Cross-border transfers can be made via SWIFT and settled through correspondent banks abroad.
- The UAE is involved in developing a regional and cross-border Real-Time Gross Multi-Currency Settlement Systems (GCC-RTGS), which will settle payments in the currencies of the six Gulf region countries. The GCC-RTGS will be operated by the Gulf Payments Company based in Saudi Arabia.
- In December 2020, the UAE-based Arab Monetary Fund’s regional payment system (known as Buna) went live settling transactions in multiple currencies across markets in the GCC, Middle East and Africa. Currencies cover not just the fiat currencies of the Arab countries, but principally traded currencies such as the USD and EUR.
- Direct debits are mainly used for regular payments, such as credit card bills.
- The UAE Direct Debit System (UAEDDS) offers a centralised method of effecting recurring payments.
- The UAEDDS processed 15.7 million transactions in 2019, an increase of 17.2%.
- Salary payments paid via the UAE Wage Protection System are made via direct debit. In 2019, the volume of WPS transactions rose 5%.
- The cheque is an important cashless payment instrument in the UAE, used by consumers and companies.
- Cheques are truncated into electronic items and processed via the ICCS. Final settlement takes place on a same-day basis via the UAEFTS.
- In December 2018, the Central Bank issued guidelines requiring banks to review the creditworthiness of customers with the Al Etihad Credit Bureau (AECB) before issuing cheque books. New customers will be initially issued with just ten cheques. The Central Bank has also encouraged banks to promote the use of electronic payment methods such as direct debits and bank transfers to minimise the use of cheques.
- In 2019, 26.9 million cheques were presented (28.1 million in 2018), a fall of 4.2%.
- Card payments are increasingly popular, especially for retail transactions.
- Visa and MasterCard-branded cards are the most widely issued.
- The Indian domestic debit and credit payment network RuPay was launched in the UAE in August.
- Each bank has its own clearing arrangements with the relevant card issuer.
- All debit cards issued are EMV compliant.
- There were 4,422 ATMs operated by banks in the UAE at the end of December 2020.
- There are approximately 200,000 POS terminals in the UAE.
- All ATMs and POS terminals are EMV-compliant.
- Most ATMs and POS terminals are linked via the UAESwitch network. UAESwitch connects 39 banks within the UAE.
- UAESwitch links to the Gulf Cooperation Council’s (GCC) GCCNet ATM network, as well as to the national networks in Egypt, Iran, Jordan and Lebanon. (The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.)
- The dominant electronic wallet scheme, the e-Dirham card, is mainly used to pay for government services. There are 3.7 million cards in circulation. The total number of transactions in 2019 reached 49 million.
- E-money payments are settled via individual schemes.
- Mobile wallet applications are available from leading UAE banks and telecoms operator Etisalat. Other providers, such as Samsung Pay, Mashreq Pay and Apple Pay, and Google Pay, are also available.
- Emirates Digital Wallet, jointly owned by 15 national banks, owns and operates Klip, a digital cash platform. Klip, which launched in September 2020, enables users to make instant cashless digital payments directly from their bank account or from value stored in the digital wallet.
- The eDMobile application, which provides users with access to eDirham services and e-payments through their smartphones, is an electronic wallet that allows users to store all their payment cards.
Short term investments
Interest payable on credit balances
- Interest-bearing current accounts are available, subject to regulatory approval.
Demand deposits
- Demand deposits denominated in AED or major foreign currencies are available.
Time deposits
- Time deposits are available in AED or major foreign currencies for terms of one, two, three, six and 12 months.
Certificates of deposit
- The Central Bank auctions certificates of deposit (CDs) denominated in AED, EUR and USD with terms ranging from one week to five years.
- Auctions are held weekly for CDs with maturities of up to a year and monthly for CDs with longer maturities.
- CDs are issued with a minimum value of AED 1 million, EUR 1 million or USD 1 million.
- Shariah-compliant Islamic certificates are available with maturities of one week to five years.
Treasury (government) bills
- In 2018, the UAE issued the Public Debt Law permitting the Federal Government to issue sovereign debt for the first time. UAE banks will be able to purchase government bonds in AED or foreign currency.
- The Central Bank began issuing AED-denominated securities known as M-Bills in January 2021. M-Bills will be issued via an auction process and replaces the conventional CD program.
- Commercial paper is issued.
Money market funds
- Money market funds are available in the UAE.
Repurchase agreements
- Repurchase agreements are available in the UAE.
Banker's acceptances
- Banker's acceptances are not used in the UAE.
BNP Paribas Trade Finance Capabilities
| Documentary credits | |
| Documentary collections |
| Bank guarantees | |
| Standby letters of credit |
| Receivables | |
| Payables | |
| Inventory |
| Connexis Trade | |
| Connexis Supply Chain | |
| SWIFTNet Trade for Corporates | |
| Connexis Connect | |
| Connexis Guarantee | |
| SWIFTnet Supply Chain |
- Backed by a senior trade salesperson, a trade middle officer and a dedicated Bahrain-based trade structurer, the UAE represents one of BNP Paribas Global Trade Solutions' (GTS) primary markets. A centralised trade middle office is located in Dubai handling middle office operations for both Abu Dhabi and Dubai branches. GTS offers a wide range of trade products in UAE, and is a leader in supply chain management solutions in the region.
International trade
- As a member of the Gulf Cooperation Council (GCC), the UAE has entered into a customs union with all GCC member states. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.
- As a member of the Greater Arab Free Trade Area (GAFTA), the UAE has eliminated most trade tariffs with GAFTA member states.
- The UAE is home to 45 free zones and a number of special economic zones.
- The UAE has signed free trade agreements (FTAs) with European Free Trade Association (EFTA) member states (Iceland, Liechtenstein, Norway and Switzerland), Australia, Iceland, Iraq, Jordan, Lebanon, Norway, Singapore, Switzerland and Syria.
- The GCC has signed an FTA with EFTA and Singapore. Trade talks are ongoing with the European Union, Mercosur, Japan, China, South Korea, Australia, Pakistan and Turkey. A free trade agreement has been concluded with New Zealand but has not yet been ratified.
| Imports | Gold
| Broadcasting equipment | Jewellery | Refined petroleum | Diamonds | |
| Primary Import sources | China (15.0%) | India (12.0%) | USA (7.0%) | |||
| Exports | Crude petroleum | Refined petroleum | gold | Jewellery | Broadcasting equipment | |
| Export markets | India (11%) | Japan (10.0%) | Saudi Arabia (7.0%) | Switzerland (6.0%) | China (6.0%) | Iraq (6.0%) |
| 2016 | 2017 | 2018 | 2019 | 2020 | ||
| Exports | - goods USD bn | 295 | 314 | 321 | 316 | NA |
| - services USD bn | 66 | 70 | 71 | 73 | NA | |
| Imports | - goods USD bn | 267 | 274 | 262 | 268 | NA |
| - services USD bn | 84 | 72 | 72 | 74 | NA | |
| Current account as % GDP | 3.8 | 7.4 | 10.3 | 7.3 | NA | |
Sources: UAE, Bureau of Statistics, June 2021.