Banking in Saudi Arabia is slightly different from banking in most European or Western countries. It can be a bit complicated as there are many agreements between employers and banks. Generally, your employer will have a payroll agreement with the bank of their choice, and all their employees will have to deposit their salaries in that bank.
Fee To Open A Bank Account In KSA:
Due to Islamic law, banks charge no interest on balances. Generally, they do not charge high interest rates on loans. In addition, banks do not allow account holders to accumulate loans.
Documents Required To Open A New Bank Account:
- Get a NOC “NO OBJECTION CERTIFICATE” from your current employer
- Original and photocopy of passport.
- Original and photocopy of residence permit (IQAMA)
- Address in KSA where you are residing with a proof (Might be a residing contract)
Bank Account Opening Of Expat’s Family Members:
Generally, sponsored family members can also open their bank account. The person should have permission from his dependent after obtaining NOC. There are exceptions, such as Al Raji and Riyadh Bank, which also have dedicated ladies banking units.
Cash withdrawals, mobile, and phone banking, debit cards, checkbooks, and statements are also free.
List Of All The Licensed Bank Accounts In KSA:
There are precisely 24 approved banks all over the Kingdom of Saudi Arabia. Almost 12 are local, and the other 12 are foreign bank companies. “EXPATS IN SAUDIA” searched all over the kingdom and made the below list of 24 licensed banks in KSA.
List Of All Local Banks In KSA:
- Alinma bank
- Banque Saudi Francis
- Al Rajhi Bank
- Bank AlBilad
- Bank AlJazira
- The National Commercial Bank
- The Saudi British Bank
- Saudi Investment Bank
- Arab National Bank
- Riyad Bank
- Samba Financial Group (Samba)
- Saudi Hollandi Bank
List Of All Foreign Banks In KSA:
- National Bank of Bahrain (NBB)
- National Bank of Kuwait (NBK)
- National Bank of Pakistan (NBP)
- State Bank of India (SBI)
- Gulf International Bank (GIB)
- Industrial and Commercial Bank of China (ICBC)
- Emirates NBD
- Muscat Bank
- Deutsche Bank
- BNP Paribas
- J.P. Morgan Chase N.A
- T.C.ZIRAAT BANKASI A.S.
Advice For Expats On Switching A Bank In Saudi Arabia:
. Generally, your employer will have a payroll agreement with the bank of their choice, and all their employees will have to deposit their salaries in that bank.
Although you can choose to have additional bank accounts with any bank you wish, your salary transfer will get transferred to the banks that belong to your employer. However, you can ask your employer if they do not mind using a different bank.
Another hurdle you may face is if you have a loan at your current bank. Before you can transfer your salary to another bank, you may need to repay your loan in full with the bank.
How To Refinance Your Debts?
According to SAMA rules, you are eligible for refinancing after repaying at least 20% of your loan amount. Most banks offer to buy financing, which only allows you to terminate your financing with your bank and transfer it to a new one.
Your eligibility for financing will depend on many factors, including:
- Amount of financing
- Employment type
Note: The SAMA rules and regulations state that if all the existing bank loans have been settled, then all the customers have the right to go to a different bank.
Procedure To Switch Your Bank Account:
- To convert banks, you must first make sure that the bank you are changing to is ready to buy your existing financing. After that, you should inform your current bank about your wish.
- Then, you have to make sure that there is no pending debt with your existing bank.
- Sometimes, new banks can only issue a manager check to settle your debts, then once that is paid, your financing will get transferred to them.
- You will need to submit a “Letter of No Liability” to your new bank following the closure of debts. This document needs to be processed. Finally, you will need to reassign your salary to your new bank.