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Middle East
backMoney tools for Middle East-based expatriates
Expats have particular money management issues according to where they are based around the world. We asked the top offshore banks to tell us what products and services they are offering to expats living and working in the Arab Gulf states.
Jane Matthews
Marketing Manager, Abbey International
Living and working in the Middle East, some of the most difficult things to stay abreast of are money matters and everyday savings. But with your salary paid into one of Abbey International’s savings accounts, which can be operated via the internet, day-to-day essentials such as ensuring you add regularly to savings accounts and pay bills can be simplified to just a few clicks of a mouse.
Comprehensive internet banking systems allow you to organise transactions, check statements and set up standing orders to savings accounts and direct debits, all at a time convenient to you.
This can be a real bonus for expatriates who don’t want the cost or difficulty of trying to deal with a UK-based branch across different time zones.
For many in the Middle East, a US dollar account is essential, as salaries are often received in US dollars or in a local currency which is fixed to the dollar.
One of the leaders in the multi currency internet banking market is Abbey International, whose web banking systems offer features including simple navigation, real- time money transfers between accounts and a website that is clear and simple to use, giving 24/7 access to your accounts from around the world.
The bank offers a range of accounts – including Gold, Call and fixed rate accounts – in three currencies - sterling, US dollar and euro.
Abbey International also offers its‘Peace of Mind Guarantee’ – should you lose any money when using their online services, the Bank will pay you back any loss you incurred from fraud providing you have taken all necessary safeguards to keep your account secure. The Gold account offers high interest, a Gold Visa card, 24-hour cash worldwide and an interest-free period on card transactions of up to 30 days.
Abbey International’s savings accounts for expats also have competitive rates of interest – for example the Base Rate Tracker Term account – Issue 7 is currently offering 5.35% gross p.a. on deposits of £10,000 or more, whilst their Instant Access Savings Account is currently paying 6.05% gross on deposits of £1 million plus. Alternatively you can choose a fixed rate account with a minimum opening deposit of £25,000, US$50,000 or Ä50,000, and fix the term of your deposit at 1, 3, 6 or 12 months. The interest rate is fixed at the time of starting your deposit.
Rex Cowley
Managing Director, Close Private Bank
Mobility of employment, income in one currency with saving and or expenses in another and the likelihood of having residence in several countries during one’s working life before retiring to another, are part and parcel of being an expatriate.These issues do pose many problems for expatriates and the ‘big issues’ such as income for children’s education, retirement and succession planning must be addressed.
Close Wealth Management Group specialises in providing international pension and savings solutions that take account of these issues.
Key requirements are flexibility, tax neutral domicile and a wide range of benefit options, both pre and post retirement. These are offered through Close Opes which is an international retirement and savings plan.
Not only is Close Opes internationally portable, it is also cost-effectively priced to give the expatriate the best value for their money.
Key Benefits of Close Opes include:
- No cap on contributions.
- No penalties to stop, start or amend contribution levels.
- Ability to make capital withdraws, cash in the entire plan or receive annuity income without penalty.
- Interchangeable benefit options.
- Multi-currency options (£, US$, Ä).
- Multi-asset, multi-manager investment choice.
- Plan subdivision to facilitate income or succession planning.
- Pre approved loan and credit facilities.
- Roll-up of income and capital gains with tax exemption in Guernsey.
- Unused annuity capital is distributed
David Stearn
Head of Private Banking, Fairbairn Private Bank
Fairbairn Private Bank is a member of the Old Mutual group of companies, and its ultimate parent company is Old Mutual, a FTSE 100 listed company formed as a Mutual in 1845.
Recognised for its client service, the bank offers banking and investment services through its offices in the Isle of Man or Jersey. Recently voted Best International Private Bank in the International Investment Fund and Product Awards, the key to Fairbairn Private Bank’s offering is its integrated banking and investment service, Focus.
Combining banking, discretionary and execution only investment dealing, and settlement services into a simple, seamless package, a Focus account can save time and simplify administration.
Clients with at least £50,000, or currency equivalent, in deposits and investments, can tailor a multi-currency account to meet their own specific requirements.
As the client’s financial needs change, so can the structure of the account, in many cases without the need to complete any further documentation.
The extensive range of multi-currency banking services includes: interest bearing cheque accounts, fixed term deposits, loan arrangements, deferred debit Gold Status Visa cards, plus structured, enhanced and fiduciary deposits. In addition, Focus embraces many optional investment facilities, ranging from full execution-only services through to discretionary managed investment portfolios.
As well as saving time, an integrated bank account may also save money in a number of ways. It can remove the cost of transferring investment funds between bank and stockbroker and, through the use of multi-currency accounts, can avoid unnecessary foreign exchange transaction costs on overseas securities.All elements of the Focus service are reported together within an easy to follow monthly statement that shows all of the client’s investment and banking details.
Whether income or growth, domestic or global, and irrespective of a client’s country of residence, an account can be designed to suit their personal circumstances.
The ability to transact over the phone makes banking and investment dealing an effortless process and, in addition, Fairbairn Private Bank’s web site (www.fairbairnpb.com) allows clients to view their account details in real time and access a full trading history.
Recent developments include the facility to view a freeze-shot of their complete portfolio at any specified point in time, consequently removing the need to receive printed copies of the report. This enables clients to keep up to date with their finances at any time, from anywhere in the world.
Laura Preston
Investec Bank (CI)
People who live and work abroad for any length of time in a Middle Eastern country frequently receive their salary and/or bonus in another currency. Investec Bank (Channel Islands) in Guernsey, offers high interest multi-currency savings accounts for expats living in the Middle East. Our most popular account is the Investec Horizon Account, which is available in sterling, US dollars and euro.
The key benefit of this 90 day notice account is that the variable interest rate will never fall below the UK Bank of England base rate, US Federal Reserve rate or the European Central Bank rate for savers with at least £25,000 ($/Ä50,000).
This gives clients the comfort of knowing that in a negative yield curve environment the interest rate will never fall below these central bank rates.
Interest is paid quarterly, rather than annually, so clients have the potential to earn interest on interest.
In order to give clients greater flexibility with their funds, the Investec Horizon Account offers a facility whereby the interest can be paid away to another nominated bank account free of charge.
For clients looking for a fixed rate of return our fixed term deposit accounts are available in all the major currencies,
ranging from one month to 12 months. Our in-house Treasury team provides up to the minute money market commentary and interest rates for clients wishing to
deposit funds in excess of £100,000.
We understand that some clients in the Middle East often have to meet expenditure commitments back home and we are able to offer commission-free corporate currency exchange rates to private clients.
Investec Bank (Channel
Islands) offers a private bank style, friendly, relationship-driven service through a dedicated client manager who is based in Guernsey.
Clients have access to the direct dial and email address of a client manager who aims to provide a flexible approach, fast response and a high attention to detail.
Julian Gouge
Head of Middle East and Asia, RBS International
The Royal Bank of Scotland International (RBS International) is expanding its offshore presence with a new representative office opening in Dubai.
As part of the Royal Bank of Scotland Group, one of the world’s largest banks, RBS International has extensive experience in looking after expats and International customers from its traditional hubs of the Channel Islands, Isle of Man, Gibraltar and Singapore.
Julian Gouge, Head of Middle East and Asia for International Personal Banking has moved to Dubai to build it as the regional hub. “Many RBS customers move to the region and in the past have lost contact with RBS. Our expansion into the UAE should ensure greater continuity of service for many people, especially our existing customers.”
RBS International looks after RBS’s customers who require offshore banking from a Bank who is part of the UK clearing system.
“We can provide help on a wide range of short and long term savings opportunities as well as advice on investment and treasury products. These are the type of products and services that so many people acquiring wealth require. We can assist with UK and overseas property purchases in places like Spain, as well as the essential and secure requirements such as Internet banking, allowing online currency payments,” says Mr Gouge.
As well as providing offshore banking needs, RBS International also provides products and services to companies who relocate staff frequently.
“The team has many years of experience in helping HR Directors who are relocating staff to and from the UK and work with many household names to provide their staff with banking needs for the UK. This service is being expanded into the UAE.”
In addition to this, RBS International has won a multitude of awards for its products including Financial Adviser Mortgage lender of the year 2007 for overseas property, Structured Products Europe Awards 2007 for Best UK Structured Products and the Portfolio International 2006 Best Current Account Award.
John Coyle
Managing Director, Standard Bank Offshore
Standard Bank Offshore continues to consider the Middle East a key ‘expatriate hub’ and is strengthening its commitment to the region this year by expanding its presence in Dubai.
By working closely with local independent financial advisers (IFAs), it has developed a wide range of products and services, designed specifically for expatriates in the region, including the many South Africans working across the Gulf.
For day-to-day money management of finances, the Bank offers comprehensive offshore banking facilities, including multi-currency internet banking and a Visa debit card to access funds held on account. In order to make the most of savings, the Bank also offers a range of high interest accounts, including the innovative multi-currency Expatriate Savings Account, which combines high interest rates with flexible access options.
Standard Bank also offers an ongoing range of structured guaranteed products, which offer the potential to obtain returns linked to the performance of the world’s stock or commodity markets, without risking the capital invested. These products can open up investment opportunities not normally available to expatriate investors and are launched every quarter.
High net worth expatriates in the Gulf are increasingly looking to diversify their assets into other markets.This may extend to managing an international property portfolio, establishing a private equity fund or facilitating trust and company structures to ensure the efficient administration of assets.
Additionally, the Bank’s Portfolio Management Service offers a range of stock and bond market investment strategies, both through unitised funds and direct equity holdings.
Standard Bank is well placed to offer all of these more complex solutions to deliver a real long-term wealth creation plan. To reflect its commitment to the Gulf, this year Standard Bank will open the doors to its brand new premises in Dubai, in so doing increasing the access clients in the region have to its services, products and expert financial advice. The Bank has also recently appointed Veronica O’Brien to the Middle East office.
With an in-depth knowledge of the Middle East market, she will work closely with IFAs to strengthen the Bank’s ability to distribute its range of offshore products and services in the region.
In addition, Malini Moodley has joined Standard Bank in Dubai as an Expat Services Executive, to boost its on-the-ground presence.
Information about all of the Bank’s offshore products and services are available on our website www.sboff.com and, additionally, from select IFAs throughout the Middle East region.
Fast Facts
Abbey International 44420
Close Private Bank 44421
Fairbairn Private Bank 44422
Investec Private Bank (CI) 44423
RBS International 44424
Standard Bank Offshore 44425- Click to find out more on the companies mentioned is this story
- Standard Bank Offshore