Challenges for UAE Start-Ups in Securing Bank Accounts

Jul 6, 2026

87 min

Jul 6, 2026 09:31

Why UAE start-ups struggle to get banked: Experts point to key gaps

## Key Challenges for Start-Ups

Start-ups in the UAE face significant hurdles when trying to open bank accounts. Experts at the "Reset & Rise" forum highlighted that transparency and clear financial documentation are crucial for smooth onboarding with banks. Entrepreneurs often underestimate the complexity of the banking process, which now involves thorough assessments of ownership structures, business activities, and compliance with regulations.

## Importance of Transparency

Banks prioritize understanding the risk associated with new businesses. Rajeev Chalisgaonkar from Mashreq Bank emphasized that companies in low-risk industries with straightforward ownership structures generally experience fewer delays. However, many start-ups inadvertently trigger additional scrutiny due to complex ownership or operations in high-risk areas.

## Documentation and Compliance

Hamed Amshan from Ajman Bank pointed out that delays often stem from incomplete documentation rather than compliance issues. Businesses that clearly disclose ownership and financial sources are onboarded faster. Enhanced due diligence is a standard procedure to ensure regulatory compliance and better understanding of the businesses.

## Compliance as a Business Enabler

James Mathew of UHY James Chartered Accountants noted that compliance has evolved into a business enabler. Strong financial reporting and governance standards help banks make informed lending decisions. However, companies with non-resident ownership may face additional scrutiny to ensure accountability.

## Opportunities in Free Zones

Girish Chand from MCA Gulf discussed the tax advantages for businesses in UAE free zones. While goods-based businesses can benefit from VAT efficiencies, service-based companies must meet specific conditions to enjoy tax benefits. The diversity of free zones allows businesses to align with their commercial goals while maximizing tax efficiency.

Overall, successful banking relationships now depend on more than just documentation. Transparent ownership, sound financial reporting, and tax compliance are essential for building credibility with banks.

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