UAE Visa Cancellation: Impact on Bank Accounts

When someone loses their job in the United Arab Emirates, one of the most common questions that arise is what happens to their bank account if their residency visa is canceled. Uncertainty often adds to the stress during an already difficult period, especially when the family's future depends on finding a new job quickly. Below, we summarize the rules that apply to bank accounts in the UAE upon visa cancellation.

Visa Cancellation = Automatic Lock?

It is important to know that UAE regulations do not automatically result in the freezing or closure of a bank account upon the cancellation of a residency visa. The account can still be used as long as the client actively uses it, and their contact information (e.g., address, phone number, email) is known to the bank.

The UAE Central Bank's Regulation No. 29/2011 states that an account is not considered inactive if the client's address is known, or if they have another active account at the same bank.

When Does an Account Become Inactive?

In the UAE, an account is categorized as "inactive" if no financial or non-financial transactions occur for three years, and the client does not communicate with the bank in any form – neither in writing nor electronically.

The Central Bank's Circular No. 1/2020, issued on January 15, 2020, provides detailed rules for defining inactive accounts:

Savings, current, or demand deposit accounts that have no deposits, cash withdrawals, service requests, client data updates, or other client-initiated transactions for three years can be considered inactive.

Interest and fees automatically booked by the bank are not considered genuine account movements.

What Happens After Visa Cancellation?

After the visa is canceled, the person can continue to use their bank account as long as they:

regularly conduct financial transactions (e.g., balance top-ups, online shopping),

stay in contact with the bank (e.g., email communication, online banking site usage),

and the bank is aware of the client's address or contact information.

If the visa expires but the person does not leave the country immediately - for example, during a job search period (typically a 30–60 day grace period is available) - they can still access their account.

Reclassification to Non-Resident Account

The status of the bank account may change: the bank may choose to treat the account as a non-resident account. This does not automatically mean freezing or closure, but separate rules, charges, and documentation requirements may apply.

In such cases, the bank may require updated documents, such as:

a new employment contract or offer,

a copy of the new visa when available,

other documents supporting the status change.

What Should You Do in This Situation?

If one loses their job and thus their visa is canceled, it is advisable to notify their bank in advance of the change. This increases transparency and helps avoid any possible restrictions on account usage.

It's worth indicating:

that the person is job searching in the UAE,

plans to obtain a new visa within the same country.

This is particularly important if there are regular transfers, loan repayments, or automatic payments linked to the account.

Summary

Under UAE banking regulations, the cancellation of a residency visa does not automatically lead to the freezing or closure of a bank account. The key is activity and continuous communication with the bank. As long as the bank knows the client and they use their account, it remains active.

(Source: UAE Central Bank regulations.)