Saudi Arabia: What & How to open a bank account

Introduction

Opening an account in Saudi Arabia may take longer than you are used to in other countries. Therefore, you will need to budget enough cash to get you through the first few weeks after you get there. Fortunately, employers understand the situation and will usually provide employees with a cash advance on their initial salary.

In 2019, four domestic banks accounted for approximately 57% of the industry’s total assets, including National Commercial Bank (NCB), Raj Bank, Samba Bank, and Riyadh Bank. All banks operating in Saudi Arabia offer services in English and Arabic.

This article will guide local Saudi Arabian citizens, as well as overseas citizens who are going to work in Saudi Arabia, in three areas: preparation, process, and account management. In addition, international students need to apply for a residence card with their school as their employer to share the right to open a bank account with the above two groups. Unfortunately, Saudi Arabia does not support bank accounts for tourists. Therefore, at this time, Visa, MasterCard, and a sufficient amount of cash are essential.

Preparation: Before you open a bank account

1. Are you eligible to open a bank account?

You must be physically present to open a bank account in Saudi Arabia. The reason is that, in addition to other documents, you must have a residence visa stamped in your passport. However, the Saudi Arabian Monetary Authority (SAMA), which regulates banking activities in Saudi Arabia, states that the account opening service is free.

2. Do you need to open a bank account?

Saudi Arabian residents may be able to handle their cash through an offshore account. They may, however, find this tiresome and inconvenient. Saudi Arabian citizens benefit from local bank accounts, particularly for payment transfers.

3. Notes before opening a bank account

Since it can take a few weeks to open a bank account in Saudi Arabia, those who have just moved to the country should budget a few weeks’ worth of cash to cover daily expenses. In addition, retailers in large cities, in particular, accept cards from networks such as Visa and MasterCard. However, you may be asked to pay cash for smaller transactions, such as cab fares or groceries.

With expatriates accounting for up to 30% of the population. As a result, most businesses have procedures and processes to assist incoming expatriates in adjusting to life in Saudi Arabia. Furthermore, HR department will immediately issue a cash advance from your first or second salary.

Process: How to open a bank account?

1. How to select a bank account?

Evaluating the goods and services of many banks before selecting the one that fulfills all of your needs is a good idea. For example, many employers have a preferred banking partner, and you may be required to use the same bank for your payroll account. This ensures that your payroll is available on the day of the transfer. Furthermore, these include Internet and mobile banking services, with phone banking options available 24/7. For your convenience, I’ve included the four most common banks.

• National Commercial Bank: NCB, also known as Al Ahli Bank, was the first modern bank in Saudi Arabia, opening in 1953. It is the largest in the country by asset size.
• Saudi British Bank: It is partly owned by HSBC and traces its roots to the British Middle East Bank, which was acquired by HSBC in 1959.
• Al Rajhi Bank: Al Rajhi is the world’s largest Islamic bank and one of the largest joint stock companies in the Kingdom.
• Emirates NBD: Headquartered in Dubai, Emirates NBD is one of the most progressive banks in the Middle East.

2. Process of opening a bank account

Opening a bank account in Saudi Arabia can be a tedious process that can take several weeks. As a resident, the basic requirements to open a personal savings or current account are:

• Your original passport with one copy.
• A copy of your iqama or visa page showing that you are a legal resident of Saudi Arabia.
• A no-objection letter from your employer or sponsor (called NOC). It needs to specify your salary in Saudi Arabia to show the amount that will be paid to the bank on a regular basis.
• Some banks may ask for a copy of your lease agreement to identify your residential address.
• Between two and six passport size photographs in the specified format (please check with the bank for the format required).
• A completed and signed bank account application form.

3. What to do if your application is denied

According to SAMA legislation, banks cannot refuse to open accounts for legal resident expatriates unless specific conditions are met. For example, no bank can deny any request to create a bank account if all processes and requirements to open a bank account are followed. If you are refused access to a bank account, you can file a complaint with SAMA’s Consumer Protection Department. You can complain by phone, by letter, by email, or in person.

Account Management: How to use your bank account?

1. Banking services

Local and foreign banks operating in Saudi Arabia provide various extra services to residents. When acquiring these services, you can work with your current bank or establish a new partnership. Many of these services are restricted to payroll transfer accounts.

2. Bank account management

In Saudi Arabia, you can operate your bank account in a variety of methods. For example, you may manage your money and finances with your bank in the following ways.

• Mobile banking: The majority of Saudis and ex-pats prefer to handle their accounts using apps. Almost every bank in Saudi Arabia provides services via apps.

• Online Banking: All Saudi banks provide online banking services, allowing you to access your money anytime.
• Face-to-face: Reservations are usually not required for those who prefer to visit a branch.

3. Change or close bank accounts

If you change jobs, you may transfer to another Saudi bank. Another motivation to switch banks is to get better products and more freedom. However, before transmitting the connection to the new bank, you must satisfy existing obligations with the original bank.

When canceling your Saudi bank account, your employer will notify the bank that you have quit. Your account will be locked, especially if you have outstanding debts. As a result, after filing your resignation request, you should remove all monies.