KSA عربي
KSA عربي
Global عربي
Saudi Arabia is an emerging financial hub, rather only a destination for expats, investors, and global nomads.
The Kingdom’s Vision 2030 is presenting opportunities for foreign investors as never before. But with all that opportunity, one question on many people’s minds is, can a non-resident citizen open a bank account in Saudi Arabia?
This question is more important than it seems. In the absence of a local account, investors are expected to wait longer to relocate funds. It was hard for those remote workers and freelancers to actually get paid. And even international nomads exploring business in the area ran into a brick wall.
There is no standard answer. Some foreigners can open such accounts easily, but some require special terms of conditions. There are special rules for investment accounts, and you want to get the nitty gritty details on these things! This is what this blog intends to share: simple, clear, and accurate, according to the most recent laws in Saudi Arabia.
Read more about: Saudi Arabia’s Premium Residency Program
Yes, but it's all to do with your visa, your intent, and your documentation. Foreigners can also own a bank account in Saudi Arabia, with some conditions to be fulfilled.
It is quite easy when you are a citizen expat. You’ll need a valid Iqama, passport, and an employer letter. These documents are acceptable in almost all Saudi banks. Most of them provide accounts that are popular with expats, allowing online banking, salary investments, and even investment access.
However, in case you are a non-resident, this is where it becomes more specific. The Saudi Central Bank (SAMA) mentioned that non-resident foreigners can open accounts, but only for certain types. These include;
1- Foreign investors who have been qualified as Qualified Foreign Investors (QFIs) by Tadawul.
2- A non-resident business that possesses a project or contract approved by the government within Saudi Arabia.
3- Non-resident individuals who meet strict due diligence requirements for offshore investment accounts.
All transactions must comply with rigorous Anti-Money Laundering (AML) and Know Your Customer (KYC) standards. You will have to do it via the appropriate channels, sometimes assisted by a financial advisor or local partner, since documentation and approvals by regulatory authorities are vital.
It will be more difficult for real estate investors and digital freelancers who are not bound to contracts in Saudi Arabia. In the majority of cases, they might not be able to have a standard or an investment account until they become residents or join local regulators.
Not all individuals are allowed to open a bank account in Saudi Arabia because it all depends on your purpose, documents, and residency status.
As a resident, you can open a personal account with a valid Iqama and minimal documentation. This is the simple path for the majority of expats.
It is still possible even being a non-resident, but only under certain guidelines set by the SAMA.
Here is the breakdown on who is eligible:
You’re eligible if you;
- Have a valid Iqama.
- Have your passport and visa.
- Can submit proof of work, sponsorship company letter, or contract of work.
- Fulfill the KYC and AML requirements of the bank.
You’re eligible if you;
- Registered with Tadawul as a Qualified Foreign Investor (QFI).
- Investing in the Saudi market via a licensed financial institution.
- Can give all necessary documents and pass compliance tests.
- Obtain authorization under the special SAMA regulations for foreign investment accounts.
Note: Individual bank accounts where the non-resident is not a QFI or affiliated with an enterprise in Saudi Arabia are rarely approved.
To become eligible, your business needs to do the following;
- Have contracts, projects, or official business within Saudi Arabia.
- Is registered in Saudi Arabia, or working through a local and licensed partner.
- They can also include supporting documents like project contracts, authorization letters, and tax records.
What If You Don’t Qualify?
In case you do not fall under these categories, you cannot open a bank account easily. The majority of banks will demand either the residential status or direct connection with the Saudi market.
In this case, alternatives like opening an account with an international bank, online banking facilities, or investing the funds in the hands of a licensed local agent are convenient.
In Saudi Arabia, it is not that simple when it comes to opening a bank account. As a resident or a foreign investor, you should follow the strict regulations of the SAMA. These needs help ensure transparency, safety, and compliance with the Saudi regulations.
The documents you require are different for residents and non-residents.
As a resident and worker in Saudi Arabia, this is what most banks will require from you;
- A Valid Residency Permit, Passport, and the Visa Details.
- Proof of Employment Letter issued by your employer about the job title, salary etc.
- Your Iqama mobile registered number.
- Work permit provided that it exists.
- Address Proof using a Saudi Post address or a utility bill.
- Fill the KYC form.
As per SAMA, non-residents may open an account if they fall under one of these categories:
- Tadawul approved the Qualified Foreign Investors (QFIs).
- The non-resident who wants to invest under an intermediary licensed by the government.
- Legal projects in the Kingdom are executed by foreign companies or contractors.
Each of the applicants needs to submit valid documentation, pass KYC/AML procedures, and typically must apply directly or with a licensed investment agent.
Saudi Arabian markets are no longer owned by the Saudis; the country is opening up its markets to world investors, and to invest here, you require one essential component: a foreign investment account.
This type of account enables non-Saudis to sell and buy shares listed in the Saudi Stock Exchange, Tadawul. It’s also an indirect method to gain exposure to mutual funds, ETFs, and other regulated products in the Kingdom.
But not everyone can own these accounts. There are some eligibility criteria to meet, licensed channels to hold, and some compliance steps to take.
The foreigners can take two broad routes:
It is the most popular path. As a foreign institutional investor, such as a fund, bank, or asset manager, you may register as a QFI under a set of rules managed by Tadawul and the Capital Market Authority (CMA).
You can enter into swap contracts with licensed brokers or invest through ETFs and mutual funds. As an investor, you do not have to buy shares; you simply get exposure.
These options are more restrictive, and you won’t own shares, but you’ll have market access.
How to Open a Foreign Investment Account in Saudi Arabia?
In Saudi Arabia, the management requires formalities when opening a foreign investment account. It is not very complicated, yet it has to be done step by step and only using the approved channels.
The positive aspect is that it is already described in detail by Tadawul and the Saudi Capital Market Authority (CMA), and all the information necessary is publicly stated and updated.
Step-by-Step Process (For QFIs)
When it comes to Qualified Foreign Investors (QFI), this is how to start applying;
1. Check Your Eligibility
It should be a company from a nation with strict financial regulations and with at least half a billion dollars under asset management. It needs to be able to comply with AML, KYC, and financial reporting requirements.
2. Appoint a Local Custodian or Broker
You are not allowed to apply directly. To file your application, you must do it through a Saudi-based licensed financial institution. It can be a local custodian, a CMA-licensed brokerage firm, or a Saudi investment bank.
3. Submit the QFI Registration Form
The QFI application form will be filled out and submitted through your custodian or your broker to CMA. This includes the company info, source of funds, account statements, and KYC documents like passport copy, business license, and tax ID.
4. CMA Approval
Once you have applied, the Capital Market Authority will analyze it, and this normally takes a couple of weeks. In case you get accepted, you will have a QFI ID issued and placed on the official list.
5. Open a Custody Account with a Saudi Bank
Your custodian will open a custody and trading account on your behalf with a Saudi bank after it has been approved by the CMA.
As a foreigner to directly invest in the Saudi stock market, you must first become a Qualified Foreign Investor (QFI) with the Capital Market Authority (CMA) of Saudi Arabia. It provides you with direct access to trading stocks on the Saudi stock exchange, Tadawul.
The requirements can be seen in detail on the CMA website, and here is a summary in simplified form. To get qualified as a QFI;
1- You Must Be a Legal Entity
Like a bank, pension fund, asset management firm, insurance firm, sovereign wealth fund, etc. The private individuals, such as retail investors, are unlikely to be qualified, and QFI status is only for institutions.
2- Regulatory Supervision
You should be in a country with similar laws and regulations to the CMA, such as IOSCO (International Organization of Securities Commissions) or a parallel organization.
3- Minimum Assets under Management
The minimum assets you need to have under management are USD 500 million.
4- Experience in Investments
You should have a proven history in investing or trading securities, and it can be in financial statements or auditor reports.
5- No Major Violations
You must not have any convictions or sanctions related to any serious financial offences and possess a clean legal and compliance track record over the last five years.
6- Local Registration
It is impossible to apply directly and must submit the application through a brokerage firm, a licensed Saudi custodian, or broker.
The Ministry of Investment of Saudi Arabia (MISA) is a key partner to any non-resident who wants to invest or establish a business in the Kingdom.
If you are an international investor, an organization, a business, or a start-up founder, MISA is the first place to go. It grants investment licenses, required to open corporate bank accounts or register as a QFI.
After being approved by MISA, you are eligible to;
- To open a corporate account in the bank.
- Investing in capital or the real estate market.
- Obtain residency permits and trade licensing from the Ministry of Commerce.
- Use government portals such as GOSI, ZATCA, and Muqeem.
The entry process is made easy by MISA. It works closely with other governmental agencies such as the Saudi Central Bank (SAMA), the Ministry of Commerce, and the Zakat, Tax and Customs Authority (ZATCA) to facilitate a smooth setup by investors. It is also possible to fill in the application form online via the Invest Saudi portal regarding the investment license.
Things to know:
MISA is not a substitute for a bank, a broker, or a tax advisor. But it will get you the first step forward and legally operate a business in Saudi Arabia. You can consider it the gateway to the Saudi economy.
In the case of Saudi Arabia, not all non-residents may open a standard bank account or a foreign investment account. Yet, one can get into the market and utilize banking facilities legally and efficiently. The following are the most appropriate alternatives;
On a swap agreement, you may team up with a broker based in Saudi Arabia. The broker will be holding the shares on your behalf in Saudi and you will get the dividends and the economic benefits without physically owning the actual shares. It can perfectly suit the investor who does not qualify as a QFI but wants to access exposure.
There are mutual funds or ETFs to invest in the Saudi markets. These are organized by the platforms or managers licensed by the CMA. It is appropriate for small investors or those who need diversification, as it offers access to Saudi assets without engaging in direct trade.
There are regional services provided by some international accounts in global banks. While these accounts may not grant you access to Saudi currency or Tadawul, they offer multi-currency balances and global transfers. It is ideal for freelancers, digital nomads, and occasional market access.
A non-resident can acquire local status by proposing a joint venture or a subsidiary with a licensed Saudi partner. The partner is then able to open bank and investment accounts. This path is utilized by many foreign firms to completely engage locally. It is favorable to those planning to carry out business activities or long-term investments.
Non-residents may make use of prepaid cards or remittance accounts based on local money transfer providers. These can be used to receive and spend funds throughout Saudi Arabia. It is perfect for remote workers or freelancers.
1- Is it possible to open a Saudi bank account online from abroad?
According to SAMA rules, most Saudi banks will demand that you are physically present in the Kingdom to conduct identity checks.
A valid Absher account, the national address, and a matching Iqama-registered phone number are also required to activate e-account opening services like Saudi British Bank (SAB).
Therefore, when you are outside the country, even with an Iqama, you will not manage online because it is most likely, you have to visit in person.
2- Can a tourist open a bank account in Saudi Arabia?
In most cases, tourists are not allowed to open personal bank accounts. The opening of a short-term Riyal account under strict conditions is only allowed to specific visitors,
such as; with a business, scientific, or government-sponsored visa and an invitation letter. These accounts are terminated when the visa expires, and they provide access to an ATM only, not cheques.
3- Can GCC citizens open bank accounts in KSA?
Yes, the people of GCC countries are now able to open bank accounts in Saudi Arabia with the help of their national ID and visa status. They are handled similarly to locals, and they will also have to verify their KYC (National address and a valid ID).
4- What happens to my bank account when my Iqama expires?
After the expiry of your Iqama, the bank will freeze your account after 90 days. In case the expiration exceeds 180 days without renewal,
the balance is transferred to an integrated account. If you leave Saudi Arabia without renewing your Iqama, your bank account will also have to be closed, and in case you have an amount greater than SAR 50,000 in your account, then the bank will have to follow special procedures to handle your money.
5- Can a bank freeze my account if I leave Saudi Arabia?
Yes, the banks have to freeze your accounts once your Iqama expires or you make your final exit. In case you leave the Kingdom forever, your account will be frozen or terminated, depending on the amount of available money and regulatory policy.
6- I'm a freelancer with no employer in KSA — can I open a bank account?
Those freelancers who have always been in Saudi Arabia have a chance of opening a bank account by getting the freelance permit from the Ministry of Human Resources and Social Development.
However, in the case of non-resident freelancers or digital nomads having no Saudi employer or Iqama, it becomes hard. Most banks insist on having a residency permit, a local address, or an official Saudi contract to open an account.
Disclamer:
This post is for educational purposes only, and does not constitute investment advice or a solicitation to take any financial action. It should not be relied upon when making investment or financing decisions.
