Business accounts with no minimum balance: how UAE bank fees work

Whether a UAE business account has a minimum balance, and what happens if the balance drops below it, depends on the bank’s schedule of charges. The levels and fall-below fees are set bank by bank, so there is no market figure. Central Bank rules require banks to give SME customers the fee schedule and, before providing the account, a Key Facts Statement.

Key takeaways

• Minimum or average balances and fall-below fees are set in each bank's schedule of charges; the SME regulation sets no minimum balance, and there is no single market figure.
• Banks must disclose every fee to SME customers, one-time or recurring, and give them a copy of the fee schedule.
• A Key Facts Statement must be given before an SME product is provided, and fee changes need at least 60 calendar days' written notice.
• A bank cannot charge an SME a closing fee or penalty once the account has been open for 6 months or more.
• The cheapest account depends on how a business uses it, so a fair comparison prices the whole fee schedule, not only the minimum balance.

On this page 7 sections

What a minimum balance is

A minimum balance is the amount a bank’s schedule of charges asks a business to keep in its account. If the balance falls below it, measured the way the schedule sets out, the bank charges a fee or applies different terms. The Central Bank’s SME Customer Protection Regulation does not set a minimum balance: the bank’s schedule of charges shows whether an account has one, at what level and with what fee.

Minimum balance and average balance

The difference lies in how the balance is measured. A schedule may test the lowest balance during a period, the average of the daily balances over a month, or use another method; the schedule and the account terms are where to check which method applies and over what period.

Worked example

How an average balance is worked out

The balances and the required average are illustrations made up for the arithmetic, not typical figures. Each bank’s schedule sets its own method.

1. The month has 30 days. The balance is AED 30,000 for 20 days and AED 5,000 for 10 days.
2. Sum of the daily balances: AED 30,000 × 20 + AED 5,000 × 10 = AED 600,000 + AED 50,000 = AED 650,000.
3. Average daily balance: AED 650,000 ÷ 30 = AED 21,666.67.
4. Against an illustrative required average of AED 25,000, the shortfall is AED 25,000 - AED 21,666.67 = AED 3,333.33.
5. The average is below the requirement, so that bank’s fall-below fee would apply for the month.

Average balance: AED 21,666.67, below the illustrative AED 25,000.

A bank that tests the lowest balance instead would compare AED 5,000, the lowest point of the month, with its minimum. Under that method a short dip counts in full, while an average spreads it across the month.

Fall-below fees

A fall-below fee is the charge for a period in which the balance is under the required level. The bank sets the amount, how often it is charged and how the balance is measured, and the regulation requires every fee to be disclosed with how often it recurs. The regulation defines a fee as any charge, penalty or commission on a financial product or service, so a fall-below fee is covered by the same disclosure rules as every other charge on the account.

What “no minimum balance” accounts trade off

An account without a minimum balance removes one charge, not every cost. Whether it costs less than an account with a minimum depends on the rest of its fee schedule. These questions show where the cost of an account can sit instead:

• Package or maintenance fee: is there a monthly or annual fee for the account itself, and what does it include?
• Pay-per-use services: are transfers, cheques, cash deposits or bank letters charged each time?
• Transaction limits: is the number of free transactions capped, and what does each one above the cap cost?
• Cheque books and branch services: are they included, charged separately or not offered?
• Time limits: does the account stay free of a minimum balance, or only for a first period?

Article 4 of the regulation also bars a bank from making the sale of one product conditional on the purchase of another, including through tied selling and bundling.

Other charges on a business account

Beyond the balance rules, a business account can be charged for its package, payments, cards, cheques, cash handling, documents and closure, and each of these charges belongs in the bank’s fee schedule. The table lists what to look for; amounts vary by bank and are not given here.

For international payments, the bank must disclose the fees of correspondent banks and third parties where they are available. If a fee is not known in advance, Article 3 requires the bank to give an estimate or a range, with a disclaimer that the fees are not final and more may apply.

For payments in US dollars, the dirham’s fixed link to the dollar, explained in the AED-USD peg, gives a reference point for the exchange rate a bank applies.

Your rights on fees

Since 13 September 2026, the Central Bank’s SME Customer Protection Regulation has required the banks and finance companies it licenses to disclose every fee to SME customers, give a Key Facts Statement before providing a product, give written notice before changing fees and answer complaints within set deadlines. SME customers are micro, small and medium businesses within the headcount and revenue limits of Cabinet Resolution No. 22 of 2016, sole proprietors included.

Every fee disclosed, with a copy of the fee schedule

Copy of the fee schedule; all fees disclosed

Under the CBUAE SME Customer Protection Regulation, banks and finance companies licensed by the Central Bank must have a transparent fee and pricing structure, disclose all fee components including third-party costs, and give SME customers clear information on all applicable fees, whether one-time or recurring and how often they recur, including a copy of the fee schedule.

Before providing a product, a bank must also present the reasonable options and comparisons among its own products, and it must not conceal cheaper alternatives that may suit the customer. Every disclosure must be available in English and Arabic.

Notice of changes and the Key Facts Statement

60 calendar days

Banks and other CBUAE-licensed financial institutions must give SME customers at least 60 calendar days' written notice before changing the terms and conditions of a product or service, including fees, and must give a Key Facts Statement before providing a product.

The regulation describes a Key Facts Statement as a concise, plain-language summary of a product’s key features and risks. The customer must acknowledge receiving it before entering into the contract.

Article 4 then limits what can be charged:

Fair fees and no closing fee after 6 months

No closing fee after 6 months

CBUAE-licensed banks and finance companies must charge SME customers fees that are fair, reasonable and proportionate, give a written schedule of applicable fees when providing a product, signing a contract or whenever the customer asks, where applicable, charge no fee for activities needed to meet legal requirements (such as updating identification document details) or for original paper statements, and impose no closing fee or penalty on a bank account that has been open for 6 months or more.

The closing fee rule is written for what the regulation calls a bank account: a transactional basic business account used for payments, deposits and withdrawals.

Fairness is measured against the cost the bank bears and the size and financial capacity of the customer, and a fee must stay consistent in type and amount throughout the relationship. Banks must also keep within any maximum fee limits the Central Bank sets. A bank must not benefit from its own errors: an error, such as a charge applied by mistake, must be put right without undue delay once identified, and the customer must be told immediately in writing of its cause, impact and correction.

Switching banks is protected too. A bank must not put barriers in the way of moving to another institution, the costs of moving must be reasonable and disclosed, and on request the bank must pass on the account details and other information needed for the transfer without additional fees.

A disputed charge goes to the bank’s complaints process first:

Complaint deadlines

Acknowledge in 2 business days; answer in 30

Under the CBUAE SME Customer Protection Regulation, banks and finance companies licensed by the Central Bank must let SME customers complain easily and free of cost, acknowledge a complaint in writing within two business days with a reference number, send a final written response with reasons within 30 business days, and tell the customer how to escalate an unresolved complaint, including to the Ombudsman Unit (Sanadak).

How Sanadak takes on a complaint is explained in complaining about a bank to Sanadak (thecreditzone.ae).

How to compare business accounts

A fair comparison prices the same typical month of use on each bank’s fee schedule and adds up the total, rather than comparing one feature such as the minimum balance. The steps:

1. Estimate a typical month: the balance, and the number of local and international transfers, cheques and cash deposits.
2. Price that month on each fee schedule: the package fee, the per-use charges and any fall-below fee the month would trigger.
3. Read the Key Facts Statement: set the key features and risks it summarises beside the fee schedule.
4. Check how the minimum is measured: lowest balance or average, and over what period.
5. Check what changes later: whether fees, allowances or waivers change after the first year or a promotional period.

The same method applies to accounts opened and run mainly through an app. Where the provider is a bank or finance company licensed by the Central Bank, the same SME rules apply as in a branch; how app-based accounts and partner banks work is in digital business banking.

The documents, checks and timelines for getting the account are in opening a business bank account, and loans and other borrowing are in SME finance. Other topics on accounts and finance are in the Business banking guides.