Corporate Banking in Dubai

1 – Introduction to Corporate Banking in Dubai

Dubai’s rapid growth isn’t just about ambition—it’s backed by solid corporate banking and funding.

From mega infrastructure projects to thriving SMEs, access to capital has been the fuel behind Dubai’s success.

Business loans, trade finance, and credit facilities help companies scale fast, manage cash flow, and expand globally.

Without financial backing, industries like real estate, tourism, and tech wouldn’t have reached their full potential.

SMEs, which power Dubai’s economy, rely on corporate banking for working capital, investment, and expert financial guidance.

Banks offer tailored digital solutions, advisory services, and funding programs to help businesses navigate challenges.

Government-backed financing and bank partnerships make Dubai a top destination for entrepreneurs and investors.

Strong corporate banking is the difference between struggling to grow and scaling successfully.

In this series, I’ll break down the different aspects of corporate banking and how it fuels business success in Dubai—so stay tuned!

2 – Classification of Businesses in Dubai

Welcome to the second post in this series, where I break down the world of corporate banking in Dubai—quick, simple, and to the point!”

Let’s start with a key question: How do banks classify businesses in Dubai? You see, it’s all about revenue—not the number of employees you have on your payroll. Why? Because revenue reflects performance, profitability, and efficiency way better than headcount!

So, here’s the breakdown:

• If your business makes less than AED 20 million a year, it’s considered a Micro SME.
• Between AED 20 – 250 million? That puts you in the SME category.
• If your revenue is between AED 250 – 600 million, you’re classified as a Commercial Enterprise.
• And if you’re making over AED 600 million annually, congratulations—you’re in the Corporate Business category!

Banks use these categories to determine loan eligibility, financial support, and business banking services. Understanding where your business fits can help you make the most of what the banking sector has to offer!

So follow along as I break down more insights on corporate banking in Dubai!

3 – Types of financing in Dubai

Welcome back to the Corporate Banking series! Last time, we covered how banks classify businesses in Dubai. Today, let’s talk about something every entrepreneur knows in this city – that scaling a business here isn’t easy!

The biggest roadblocks are obviously lack of capital, and cash flow struggles. And, let’s be honest, banks prefer funding the big players with solid financial records. SMEs? We have to work twice as hard to secure financing!”

Think about it—a rent-a-car business with even 1M dirhams blocked in assets might take years to expand their fleet size. Or a buzzing restaurant in Karama that’s packed every weekend? The owner may still struggle to get funding for a second branch in Business Bay, Dubai Mall, or JBR.”

So what’s the game plan? SMEs in Dubai need two key types of financing: CAPEX and Working capital.

1. CAPEX Financing – For opening new locations, buying equipment, or scaling up.
2. Working Capital Financing – To cover daily expenses like rent, salaries, and supplier payments.

Next time in this series, we’ll get into what it takes to get an approval when applying for any kind of corporate finance. So stay tuned!

4 – Bank’s Financial Tools and Green Flags of Dubai based companies

Welcome back to the Corporate Banking series! We’ve talked about SME challenges—now, let’s discuss how banks ACTUALLY support business growth in Dubai. 

First things first—banks finance businesses that are “profitable and expanding”. If you’re struggling to survive, banks “won’t” step in to save you. 

There are 3 kinds of general financial tools that banks offer, such as:

1. Working Capital Loans: To manage short-term cash flow. 
2. Letter of Credit (or LC): To secure transactions for imports.
3. Trade Finance: To help businesses buy large inventories. 

But getting approved isn’t exactly a walk in the park. Banks look for solid financials and stability. Here’s what you need: 

1. At least 4 years in business
2. Consistent profitability
3. Strong financial records: which include VAT returns, audited statements, and a clean credit history.
4. A clear expansion or operational plan
5. A consistent and impressive turnover
6. Good banking history
7. Your profile as a business owner

Next time in this series, I’ll break down how banks assess you as a business risk. So stay tuned!

Part 5 – Risk assessment of Dubai based companies

Let’s cut to the chase—if you’re a big corporate in Dubai, banks will roll out the red carpet for funding. But if you’re an SME? The rules are different, and most applications get rejected before they even make it to the final stage.

Not all businesses get the same treatment when it comes to bank loans. Banks sort you into three risk categories—where you land determines your chances of getting funded.

• Big corporates and well-established SMEs with steady profits come under LOW RISK and get the VIP treatment with: Quick approvals, lower interest rates, and plenty of financing options.
• Growing SMEs with strong revenue land in the grey zone and come under MEDIUM RISK. Here, quick approvals are possible but only if financials are solid and there’s a clear track record of growth.
• Startups, struggling businesses, or companies with unstable revenue come under HIGH RISK and have the toughest time with the banks because without strong financials, securing funding is almost impossible.

Here’s the bottom line—banks invest in businesses that are already profitable. They don’t fund uncertainty, they don’t fund survival, and they definitely don’t fund ‘good ideas’ without numbers to back them up.

In the next episode, I’ll break down the top reasons banks reject SME financing in Dubai—so you can avoid costly mistakes. Stay tuned!

6 – Red Flags of Dubai based companies

Welcome back to the Corporate Banking series! Here I want to touch upon what banks in Dubai will consider to be a RED FLAG if an SME applies for corporate financing. Let’s run through the points quickly:

1. Your business isn’t profitable – Banks don’t fund losses. If you can’t show consistent profits, you’re out.
2. You’re too new – Less than 4 years in operation? Banks see that as too risky.
3. Your financials are weak – No audited reports, poor VAT filings, and messy books? Banks won’t trust you with their money.
4. No solid expansion and operational plan – If you don’t have a clear, structured growth strategy, banks won’t invest in uncertainty.
5. Your cash flow is unstable – Late payments? Unpredictable revenue? If banks think you’ll struggle with repayments, you’ll be rejected.
6. Already drowning in debt – If you’re over-leveraged, taking another loan just signals financial distress—and banks avoid that.
7. Bad banking history – Bounced cheques, unpaid loans, or a poor credit record? That’s an instant red flag.
8. You’re asking for the wrong reason – Banks finance growth, not survival. If you’re looking for a loan to cover losses, you’re just delaying a bigger problem.
9. Industry risk factor – Some industries have higher risks. Banks are extra cautious before lending to these sectors.
10. Owner’s credibility matters – If your personal finances, business experience, or reputation are weak, banks will hesitate.

So Banks only bet on businesses with strong numbers, clear strategies, and financial discipline. If you’re not prepared, your application is as good as rejected.

Next time, I’ll touch upon the high-risk industries in Dubai from a bank’s perspective. See you in the next one!

7 – High risk industries in Dubai

So what are high-Risk Industries in Dubai from a Bank’s Financing Perspective?

You see, Banks in Dubai evaluate industries based on two major factors:

1. Financial Risk: That includes Market volatility, business stability, cash flow issues, and repayment ability.
2. Compliance & Regulatory Risk: That includes Anti-money laundering (AML), financial crime, and high regulatory scrutiny.

If an industry falls into both categories, securing financing becomes significantly harder. Here’s my top 10 list of high-risk sectors:

1. Construction & Real Estate
2. Hospitality & F&B
3. Retail Sector
4. Metal Trading & Precious Metals
5. Automotive Trading
6. Cryptocurrency & Virtual Assets
7. General Trading & Import/Export
8. Private Cash-Intensive Businesses
9. Startups in Tech Ventures
10. Logistics & Shipping

Now you may ask, we understand Financial risk. But what is this about Compliance risk. I will cover this next time. So stay tuned!

8 – Why AML (Anti-Money Laundering) is taken seriously in Dubai

In the banking world, compliance isn’t just important—it’s sacred. If you’ve ever applied for anything, you may have heard about it. But why do banks enforce it so strictly?

You see Banks in Dubai are legally required to enforce strict compliance measures on their customers to meet regulatory standards set by the Central Bank. They can’t afford to ignore compliance—or they’ll pay the price. Violations come with hefty fines.

Here’s what happens if banks fail compliance checks:

1. Weak Anti-Money Laundering (AML) Controls? – Fines running up to millions of dirhams. (I have mentioned some of the recent enforcement cases in Dubai in the caption below*)
2. Poor KYC Procedures? – Fines range from 100,000 to 250,000 dirhams per violation.
3. No Compliance Officer? – That’s 250,000 dirhams straight out of the bank’s pocket.
4. Ties with Shell Banks or Shell Companies? – Another 250,000 dirhams fine.
5. Failure to implement AML systems? – that’s a 200,000 dirhams penalty.

And it’s not just about money—banks can face license suspensions, business bans, or even forced shutdowns if they don’t take compliance seriously. The message is clear—follow the rules or pay the price.

*Recent Enforcement Actions:

• January 2025: The CBUAE imposed a fine of AED 5.8 million ($1.6 million) on a bank operating in the Emirates for breaching the country’s laws on anti-money laundering and counter-terrorism financing (AML/CFT). ​
• August 2023: The Dubai Financial Services Authority (DFSA) fined Mirabaud (Middle East) Limited over AED 11 million for significant deficiencies in its AML controls. ​
• 2021: The CBUAE fined 11 banks a total of AED 45.75 million for failing to achieve appropriate levels of compliance regarding their AML and sanctions compliance frameworks as of the end of 2019.

9 – Handling Dubai-based companies in high-risk industries

​In the aftermath of the 2008 global financial crisis, Dubai’s banks have significantly tightened their lending practices, implementing stricter regulations and focusing more on risk management to ensure financial stability.

So naturally, Banks don’t play nice with high-risk industries. If your business raises red flags, expect extra scrutiny, endless paperwork, and hoops to jump through just to get a foot in the door. Here’s how banks really handle anything considered HIGH-RISK in Dubai:

1. They have stricter Due Diligence – This means Higher compliance requirements, enhanced KYC checks, and ongoing transactions monitoring.
2. They will demand Higher Collateral Requirements – This means personal guarantees or asset-backed loans.
3. They will offer Limited Banking Services – Some sectors such as crypto, metal trading, and high-value retail may struggle to find a bank willing to provide financing.
4. They will enforce a Stricter Loan Approval Process – This means strong financials, audited reports, and a clear profitability track record. 
5. They will favor Large, Established Players over small startups
6. They may offer alternative Financing Options – Like trade finance, overdrafts, or project-based lending instead of term loans.  

10 – Breaking down the top 10 high-risk industries in Dubai

In one of my previous posts I gave you a list of 10 High-Risk Industries in Dubai from a Bank’s Financing & Compliance Perspective. Let’s dig a little deeper. Now before I go on, I have got to say there’s a lot to unpack, so I’ll break down each of these 10 into bite-sized insights—covering just a couple of key points in each post to keep things sharp, focused, and easy to absorb. Let’s start!

1. Construction & Real Estate
   1. Here banks are concerned about Financial Risk
   1. It is Highly cyclical—dependent on market demand, government regulations, and economic cycles.
   1. Over-supply concerns in the property sector make it vulnerable to price crashes.
   1. Delayed payments and project funding gaps create cash flow issues.
   1. Banks often require high collateral and strong project viability reports.

• Hospitality & F&B
  • Here banks are concerned about Financial Risk
  • There is a High failure rate as many restaurants don’t survive beyond 3 years.
  • You have to account for Seasonal demand fluctuations— especially slowdowns during off-peak seasons in Ramadan and summers.
  • High operational costs with relatively thin profit margins, so cash flow management is super important.
  • Municipality compliance failure can lead to heavy fines and even shutdowns.
  • Banks prefer established brands or franchise models over independent operators.

• Retail Sector
  • Here banks are concerned about Financial & Compliance Risk
  • The Shift toward e-commerce threatens traditional retail businesses.
  • High overhead costs (rent, salaries) eat into profit margins.
  • Cash-based transactions in some retail sectors raise AML red flags.
  • Luxury goods & high-value retail (jewelry, watches) face compliance scrutiny for potential money laundering risks.

• Metal Trading & Precious Metals
  • Here banks are concerned about High Compliance Risk
  • Full spectrum of metal trading is considered as high risk—from scrap metal to precious metals.
  • Metals are easily movable, highly liquid, and can be used to launder illicit funds.
  • Informal & cash-based transactions in scrap metal make due-diligence difficult.
  • Gold & diamond trading faces strict scrutiny under AML regulations due to historical risks.
  • Banks require extensive KYC (Know Your Customer) and may refuse services if compliance isn’t met.

• Automotive Trading
  • Here banks are concerned about Financial & Compliance Risk
  • High capital requirements for inventory, increasing loan default risks.
  • Used car trading & re-export businesses face AML concerns due to cash-heavy transactions.
  • Banks prefer to work with authorized dealerships over independent traders.

• Cryptocurrency & Virtual Assets
  • Here banks are concerned about Extreme Compliance Risk – AML
  • Highly volatile—price swings can lead to rapid gains or devastating losses.
  • Often associated with money laundering & illicit transactions.
  • Banks in Dubai have strict KYC/AML checks for businesses involved in crypto.
  • Limited banking options—only approved crypto exchanges get financial support.
• General Trading & Import/Export
  • Here banks are concerned about Financial & Compliance Risk – AML
  • Businesses with no clear specialization (general trading licenses) face high scrutiny.
  • Shell companies often misuse trading licenses for illicit activities.
  • Long payment cycles & supply chain dependencies increase financial risk.
  • International trade links (especially with sanctioned or high-risk countries) trigger AML compliance checks.

• Private Cash-Intensive Businesses
  • Here banks are concerned about Extreme Compliance Risk – AML
  • Money exchange houses & remittance services face strict AML regulations.
  • Gaming, casinos, & gambling-related businesses are nearly impossible to finance.
  • Art, antiques & luxury goods dealing—often used for trade-based money laundering.
  • Banks require deep due diligence & enhanced reporting for these businesses.

• Startups in Tech Ventures
  • Here banks are concerned about Financial Risk
  • Lack of profitability—many startups operate at losses for years before turning a profit.
  • High failure rate—most startups shut down within the first 3 years.
  • Unproven business models make it difficult for banks to assess risk.
  • Funding is usually from VCs & private investors, not traditional bank loans.

1. Logistics & Shipping
   1. Here banks are concerned about Financial Risk, AML Risk, and Sanctions Compliance
   1. Dependent on global trade conditions, oil prices, and geopolitical tensions.
   1. Cash flow issues due to long credit cycles & delayed payments.
   1. High-risk routes & clients—businesses involved in shipping to/from sanctioned countries are red-flagged.
   1. Banks require full transparency on cargo origin, destination & ownership structure.

So that’s it. My top 10. Stay tuned as we continue breaking down the world of corporate banking in Dubai—because understanding the rules is how you play to win. I am thinking of covering real estate financing next! See you in the next one!