How should I think about/structure personal banking?

[bkidiot]

I'm an EU citizen that left several years ago and now resides in the UAE where I own a freezone company (self-employed).

I have no ties with my home country and have no intention of returning. And I don't plan on staying long term in the UAE (perhaps another 1-2 years). I don't know what my next stop will be.

Given the above, without a home base, I'm not sure what to do when it comes to banking. Everything is transient.

I have bank accounts in the UK, US and the UAE (most of my fiat wealth is here divided between three banks that I'm unhappy with). I'm not wealthy enough where Swiss banking makes sense. This could change if I sell my company (potential $3M-5M).

The ideal scenario is to have a bank that I can trust (I know, you can't trust the bankers, but still...), is financially stable, and can grow a relationship with regardless of my location. But does it make sense to do so with a bank in the UAE, especially given how things can change overnight?

I'm eligible for priority banking (ADCB Excellency, FAB Elite, Masreq Gold, etc.). I can potentially set up such an account with two banks, or go up another level with one of them, instead of using the three banks I'm currently using.

But I don't know if it makes sense? If I go with one of these banks, I would most likely lock the funds in a term deposit. Do I want to lock AED 500K? Not really, but priority banking is better than normal banking when things go wrong, that's for sure...

Does it make more sense to open an IBKR account and buy a few ETFs – if I move, I will most likely need to close the positions – or hold cash with them and get a rate higher than the UAE banks can offer?

Or are there other options out there that I should consider?

TLDR: What should I do with banking?

ps. Please no "use crypto, bro" comments. I got this covered.

 

[Clearsky Network]

Probably HSBC Expat could be suitable for you.

 

[bkidiot]

Probably HSBC Expat could be suitable for you.

I'm with them, but to be fair, they're s**t. Revolving door with RMs.

And I wouldn't be comfortable holding 7 figures with them. Perhaps I'm wrong here?

 

[JohnnyDoe]

the day you realize banks are useless you will be happy and free.
All you need are some random accounts where to transit the fiat you need, when you need it.
btw, term deposits are a very bad idea.

 

[Clearsky Network]

I'm with them, but to be fair, they're s**t. Revolving door with RMs.

And I wouldn't be comfortable holding 7 figures with them. Perhaps I'm wrong here?

dont think you have a lot of choice.
I would recommend some Swiss banks but you don't want to lock funds...

 

[bkidiot]

dont think you have a lot of choice.
I would recommend some Swiss banks but you don't want to lock funds...

Change my mind, please. Which banks do you have in mind?

 

[bkidiot]

the day you realize banks are useless you will be happy and free.
All you need are some random accounts where to transit the fiat you need, when you need it.
btw, term deposits are a very bad idea.

So how do you have things set up (generally speaking)? I lurk on here so I assume you have a healthy portfolio. Do you maintain the majority of your liquid wealth in crypto, and then offramp as needed?

re. term deposits, what do you suggest instead when you can only plan for the next 6 to 12 months?

 

[JohnnyDoe]

dont think you have a lot of choice.
I would recommend some Swiss banks but you don't want to lock funds...

Or have them frozen/confiscated at the blink of an eye

 

[rss]

Does it make more sense to open an IBKR account and buy a few ETFs

Definitely better than keeping cash for no reason at all, you should, of course, diversify.
I'm not sure if swissquote is available to the UAE, but they are great too.

 

[JohnnyDoe]

So how do you have things set up (generally speaking)? I lurk on here so I assume you have a healthy portfolio. Do you maintain the majority of your liquid wealth in crypto, and then offramp as needed?

Yes

re. term deposits, what do you suggest instead when you can only plan for the next 6 to 12 months?

Liquid investments, keeping in mind that you can obtain cash from IBKR at good rates without selling anything.
Check
Thread 'The Johnny Doe IBKR portfolio'
https://www.offshorecorptalk.com/threads/the-johnny-doe-ibkr-portfolio.43488/

 

[PhantomOf ThePits]

I'm an EU citizen that left several years ago and now resides in the UAE where I own a freezone company (self-employed).

I have no ties with my home country and have no intention of returning. And I don't plan on staying long term in the UAE (perhaps another 1-2 years). I don't know what my next stop will be.

Given the above, without a home base, I'm not sure what to do when it comes to banking. Everything is transient.

I have bank accounts in the UK, US and the UAE (most of my fiat wealth is here divided between three banks that I'm unhappy with). I'm not wealthy enough where Swiss banking makes sense. This could change if I sell my company (potential $3M-5M).

The ideal scenario is to have a bank that I can trust (I know, you can't trust the bankers, but still...), is financially stable, and can grow a relationship with regardless of my location. But does it make sense to do so with a bank in the UAE, especially given how things can change overnight?

I'm eligible for priority banking (ADCB Excellency, FAB Elite, Masreq Gold, etc.). I can potentially set up such an account with two banks, or go up another level with one of them, instead of using the three banks I'm currently using.

But I don't know if it makes sense? If I go with one of these banks, I would most likely lock the funds in a term deposit. Do I want to lock AED 500K? Not really, but priority banking is better than normal banking when things go wrong, that's for sure...

Does it make more sense to open an IBKR account and buy a few ETFs – if I move, I will most likely need to close the positions – or hold cash with them and get a rate higher than the UAE banks can offer?

Or are there other options out there that I should consider?

TLDR: What should I do with banking?

ps. Please no "use crypto, bro" comments. I got this covered.

Depending if you got proper source of funds, you could open accounts with IBKR or Swissquote or such and buy MoneyMarket ETFs.
Keep in mind as Swissquote is a Swiss Broker, they have stamp tax there 0.15% half turn

 

[JohnnyDoe]

they have stamp tax there 0.15% half turn

And this alone should suffice for running fast and far away from them and Switzerland.

 

[bkidiot]

Depending if you got proper source of funds, you could open accounts with IBKR or Swissquote or such and buy MoneyMarket ETFs.
Keep in mind as Swissquote is a Swiss Broker, they have stamp tax there 0.15% half turn

Thanks. I have proper source of funds. If I go the ETF route, I would most likely use IBKR. I believe they recently opened up a Dubai office which caters to HNWI.

 

[JustAnotherNomad]

Why would you keep anything in the UAE? That's not a good idea. They can freeze all your assets.
Open an account with IBKR and maybe a second broker (Schwab?).
I wouldn't touch UAE banking for anything except things like cheques for renting property.

 

[bkidiot]

Why would you keep anything in the UAE? That's not a good idea. They can freeze all your assets.
Open an account with IBKR and maybe a second broker (Schwab?).
I wouldn't touch UAE banking for anything except things like cheques for renting property.

I know and agree. That's why I am asking for suggestions. Not an excuse, but life has gotten in the way of things, and my business took off last year. It's a good problem to have (where do I place my funds?), but it's something that needs to get solved.

Appreciate everyones input so thank you.

It seems the common solution is crypto and IBKR (or similar).

 

[RAGAV]

Can one withdraw funds from IBKR to desired/different bank account(s)? I assume IBKR allows one to withdraw funds to the same account from which funds were transferred to IBKR?

 

[JohnnyDoe]

Can one withdraw funds from IBKR to desired/different bank account(s)? I assume IBKR allows one to withdraw funds to the same account from which funds were transferred to IBKR?

You can withdraw to any account belonging to yourself.

 

[RAGAV]

That is great. Just for confirmation, if I transfer funds to IBKR from UAE bank account to fund my investments and trading capital, at the time of withdrawal if I feel my UAE bank can freeze/block the funds, can I transfer it to my bank account in another country (EU,US or Australia for example)?

 

[JustAnotherNomad]

That is great. Just for confirmation, if I transfer funds to IBKR from UAE bank account to fund my investments and trading capital, at the time of withdrawal if I feel my UAE bank can freeze/block the funds, can I transfer it to my bank account in another country (EU,US or Australia for example)?

Yes, you absolutely can and IBKR has great exchange rates, so some people use IBKR to transfer funds from one country to another while also converting to another currency.
But IBKR does not like this - you should always also have trading activity.

 

[ilke]

That is great. Just for confirmation, if I transfer funds to IBKR from UAE bank account to fund my investments and trading capital, at the time of withdrawal if I feel my UAE bank can freeze/block the funds, can I transfer it to my bank account in another country (EU,US or Australia for example)?

TMBK, yes. As long as the name is the same, they don't have a problem with sending to accounts in other jurisdictions.

Their currency rates are also good.