On most UAE corporate accounts, minimum balance charges can start in the very first month your account is active. At month end the bank checks your average balance. If it’s below the required level, the bank deducts a fall-below fee. The main exceptions are new-customer waivers, which some banks give for the first few months, and accounts with no minimum balance at all.
The timing depends on three things: your bank’s waiver policy, how it counts your first month, and the day you make your first deposit. This guide covers all three, using figures from UAE banks’ own fee schedules, so you can open a bank account in Dubai without paying fees before your business is running.
When does the first fall-below fee get charged?
The first charge comes at the end of the first month in which your average balance falls short and no waiver applies. For most new companies without a waiver, that’s the month the account goes live.
Here’s the usual sequence:
- The bank approves your application and opens the account. Some digital accounts give you an account number first and activate it a few days later.
- You make your first deposit, and the account becomes fully active.
- At month end, the bank works out your average balance for that month.
- If the average is below the minimum, the fee is taken from the account and shows on your statement.
The fee then repeats every month your average stays short. It isn’t a one-off penalty. For example, UBL’s 2026 corporate schedule sets minimum balances of AED 25,000, 50,000 and 100,000 across its accounts and charges a monthly fee based on the month-to-date average balance. You pay that every month, not once.
How is your monthly average balance worked out?
Your monthly average balance is the closing balance for each day of the month, added together, then divided by the number of days. Banks usually call it the MAB (monthly average balance). It isn’t your balance on a single day, and that’s why the first month catches people out.
Here’s a simple example. Your account needs an AED 50,000 average. It goes live on the 20th of a 30-day month, and you deposit AED 60,000 that day. If the bank counts the whole calendar month, your average is AED 60,000 × 11 days ÷ 30 days, which is AED 22,000. That’s well under the minimum, so you pay the fee even though your balance looked healthy.
Banks don’t all treat that first partial month the same way. Some count from the activation date, some use the full calendar month, and some skip the opening month entirely. Ask which method applies, and get the answer in writing before you fund the account.
Key point: a deposit made early in the month counts for more than a larger one made late. AED 30,000 held for the whole month gives a higher average than AED 60,000 held for the last 11 days.
Which banks give new accounts a break from the fee?
Only some banks and packages give new customers a fee waiver, and the terms are specific to each package. The table below shows published figures from a range of UAE banks as of October 2026. Fees are monthly and usually carry 5% VAT on top.
| Bank and account | Minimum average balance | Fee if you fall below | New-account note |
|---|---|---|---|
| Emirates NBD Emirati Business | AED 25,000 | AED 150 | Waived for the first 6 months for customers new to the bank |
| FAB Business Advantage | AED 250,000 | AED 350 | AED 250 closure fee if closed within 6 months |
| FAB Business Preferred | AED 500,000 | AED 500 | AED 500 closure fee if closed within 6 months |
| UBL UAE corporate accounts | AED 25,000 to 100,000, by account | AED 350 to 500 | Charged monthly on month-to-date average |
| Mashreq NEO BIZ Pro | None | None | Flat AED 99 monthly fee instead |
| ADCB SmartStart | None | Not applicable | Flat AED 125 monthly fee plus VAT |
| RAKBANK RAKstarter | None | No minimum balance fee | Monthly maintenance fee waived for the first month |
The Emirates NBD waiver is the clearest published example. On its Emirati Business package, the AED 150 fee is waived for the first six months for customers new to the bank. That package is for Emirati-owned businesses, so most expat founders won’t qualify. For FAB, the bank’s own commercial fee page lists monthly fall-below fees of AED 100 on the Basic Account, AED 350 on Business Advantage and AED 500 on Business Preferred. You can check the current figures on FAB’s business banking fees and charges page.
Some banks also waive the minimum balance for the first three to six months as a new-account promotion. These offers come and go, so treat any waiver as something to confirm, not assume.
What else can you be charged in the first few months?
The fall-below fee isn’t the only cost that can start early. Several other charges apply to new accounts, and some of them hit even when your balance is fine.
- Monthly package fees. Zero-balance accounts swap the minimum for a flat monthly fee. You pay it whatever your balance is.
- Early closure fees. FAB charges between AED 150 and AED 500 to close a business account within six months of opening it, depending on the account. If you open an account and then switch banks quickly, you pay this.
- Expired trade licence charges. Banks expect your renewed licence soon after it expires. Mashreq’s NEO BIZ schedule says monthly fees may apply if a trade licence stays expired after a 30-day grace period, and UBL also lists a charge when an expired licence isn’t submitted within 30 days.
- Lost package pricing. Some banks also remove your discounted pricing when you miss the balance. Mashreq’s NEO BIZ key facts statement says the bank may reverse special tariffs or benefits if the monthly average balance isn’t kept, on top of the fall-below fee.
- VAT. Bank fees in the UAE carry 5% VAT. Mashreq’s schedule notes that its fees have been subject to 5% VAT since 1 January 2018. So an AED 150 fee costs you AED 157.50.
How do you stop charges starting before you’re ready?
You can usually avoid an early fee with some planning around timing and paperwork. Work through these steps before and just after the account opens.
- Read the Key Facts Statement before you sign. Every UAE bank publishes one. Look for the terms “monthly average balance,” “fall-below fee” and “waiver,” and note the exact figures.
- Get any waiver in writing. Confirm the start date, the end date, and whether it covers the fall-below fee, the monthly fee, or both.
- Fund the account early in the month. If your account goes live late in a month, ask whether that month counts. If it does, deposit as much as you can on day one.
- Set a reminder before the waiver ends. Put it in your calendar a month ahead, so you have time to top up or change to another account tier.
- Pick a tier you can actually hold. A lower minimum you meet every month is cheaper than a premium tier you miss.
- Keep your trade licence renewal on time. Send the renewed licence to the bank as soon as you have it.
If you’re setting up through a business setup consultant such as HA Group, ask them to time the account opening around your first deposit. They can also get the bank’s current fee sheet for you before you sign. Firms that handle bank applications regularly can help you compare tariffs across several banks, which saves you collecting each schedule yourself.
Is a zero-balance account cheaper for a new company?
For most new companies without steady cash in the bank, a zero-balance account works out cheaper. The maths is simple.
Mashreq’s NEO BIZ Pro has no minimum balance, a zero fall-below fee and a monthly fee of AED 99. That’s AED 1,188 a year before VAT. Now compare a traditional account where you keep missing the minimum. An AED 350 monthly fall-below fee adds up to AED 4,200 a year, and an AED 500 fee adds up to AED 6,000.
The picture changes once you have cash to spare. If you can comfortably keep AED 50,000 or more in the account every day, a traditional account with no monthly fee may cost you nothing, and it often comes with better branch and trade services. Many founders start on a zero-balance account and move to a traditional tier once revenue is steady.
Frequently asked questions
Is there a grace period for minimum balance on a new business account in the UAE?
Only at some banks and on some packages. Emirates NBD waives the fall-below fee for six months on its Emirati Business package for new customers, and some banks run three to six month promotions. Most standard accounts have no grace period, so always ask.
How much is the fall-below fee on a UAE corporate account?
Most banks charge between AED 100 and AED 500 a month, plus 5% VAT. FAB, for example, charges AED 100 to AED 500 depending on the account. The fee repeats every month your average balance stays below the required level.
Is the minimum balance the same as the initial deposit?
No. The initial deposit is what you pay in to activate the account. The minimum balance is the monthly average you must keep after that. The deposit stays your money, but if your average drops below the minimum, the fall-below fee applies.
Can I open a bank account in Dubai for my company with no minimum balance?
Yes. Mashreq NEO BIZ, ADCB SmartStart and RAKBANK RAKstarter have no minimum balance requirement. Instead, most of them charge a flat monthly fee, usually between AED 99 and AED 125, whatever your balance is.
Does a late first deposit increase the risk of a fee?
It can. Banks use your average daily balance across the month, so money that arrives late in the month counts for only a few days. If the bank counts the full calendar month, a late deposit can leave your average below the minimum.
Conclusion
Minimum balance charges on a new UAE corporate account usually start in the first month the account is active, and they’re based on your average balance for that month. Unless you have a written waiver or a zero-balance account, a late or small first deposit can trigger a fee straight away. Read the Key Facts Statement, confirm how your first month is counted, fund early, and choose a balance tier you can keep every month.
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