Top 5 Best Countries to Open a Reserve Bank Account for a UAE Company

The unstable situation in the UAE is forcing more and more entrepreneurs to seek alternative options for growing their businesses. Requests for opening a backup corporate account in another jurisdiction to continue servicing international transactions are currently one of the most frequent requests from our team of lawyers at Antwort Law. We not only have extensive, successful, and diverse experience in banking and KYC consulting, but also the rare opportunity to evaluate alternative options across multiple jurisdictions, as we operate globally. We'll discuss this in a new article, highlighting the top 5 countries where Arab companies should open a backup account to ensure your business continues uninterrupted.

1. Turkey

Napoleon said that geography is a death sentence, meaning Turkey is doomed to exist between Europe and Asia, voluntarily or involuntarily serving as a kind of intermediary. Loyal to the UAE and, in turn, albeit cautiously, accepted by Western countries, Turkey can provide you with an alternative, functioning account. Currently, this country faces no obvious or acute geopolitical risks, maintaining a balance between the West and the East.

Among the advantages of Turkish banks for international clients, we note shorter account opening times and simplified compliance procedures compared to bureaucratic European alternatives. Banks in this region are also riskier and often have options for working with jurisdictions that more conservative competitors prefer not to engage with. Finally, a third, no less important factor is the ultimately lower cost of services and commissions for clients, again compared to European countries, which for many is a decisive factor when choosing a bank.

2. Switzerland

Swiss banks need no advertising. With its neutral status and a very strong geopolitical position for decades, the country consistently reduces its clients' risks of blocking and stopping transactions by counterparty banks. Such an account is synonymous with stability, a reliable guarantee for your international transactions. Antwort Law has been working with local bank managers for many years. We will help you navigate strict compliance procedures and ensure the stable growth of your business with strong legal protection and no unexpected surprises. It's worth noting that Swiss banks are the perfect place to trust capital and large deposits. Many entrepreneurs choose these banks specifically as a "safe-haven" account.

3. Benelux

Banks in Luxembourg, Belgium, and the Netherlands also enjoy high reliability ratings, but these countries' banking institutions have certain nuances that only become apparent in practice. We recommend opening an account in this region if your payment logistics are primarily within the EU. Firstly, it will be easier to open an account this way, as the bank will understand your application process. Secondly, within the EU, such an account will operate like clockwork: direct processing of euros, a European IBAN, direct access to SEPA, no exchange rate risk within the EU, and other factors. Among other features, we highlight the relatively strict compliance requirements and often higher turnover requirements. 4. Mauritius

4. Mauritius

The reputation of Mauritian banks, their policies, and compliance are in some ways similar to those of Turkish banks. Among the common features, we note a higher level of tolerance for high-risk countries, more flexible compliance, and lower fees compared to their European counterparts. As with Turkey, the country's location determines its business characteristics, namely its role as a global intermediary between the increasingly developing Africa and other countries. The main drawback is that these banks have a lower reputation than their Swiss or EU counterparts, but in our experience, more and more entrepreneurs are seeking clients/partners/contractors from this continent, including as a bet for the future, so this type of account is especially relevant for them. If your company's main account is in the UAE or another country, then an account in Mauritius is a good option as a backup.

5. China/Hong Kong

If your business model is tailored to the Asian market, it makes sense to consider a number of Chinese banks that will provide you with fast payments within Asia, direct settlements in yuan and other popular Asian currencies, and greater trust from Chinese counterparties. Many have heard of Hong Kong's banking system, as it is one of the strongest in the world. However, it's important to note that Chinese and Hong Kong banks are not identical in their processes and internal organization. Hong Kong, as an international financial center operating under the English legal system, is more lenient to international clients than China, where opening accounts is more difficult. Generally, opening an account with these banks "off the street" can be difficult. In our experience, it's better to apply to banks in this region not through a public organization. Accessible communication channels, but rather having specific contacts within the system. Then, the application will be processed faster and more likely to satisfy you. Therefore, if you need a local payment infrastructure, opening an account with banks in this region makes the most sense.

We've listed the five best countries for opening a backup corporate account, in our opinion, but it's important to understand that there are no universal solutions suitable for every company in every situation. Contact the Antwort Law team, and we'll find the most cost-effective and efficient banking solution tailored to your specific needs and circumstances.

Lidia Ivanova

International lawyer
Antwort Law