Saudi Banking Guide for Expats

A bank account in Saudi Arabia runs on a 24-character IBAN, a five-digit postal code and a salary that arrives through a regulated system. This guide covers opening the account, moving money, and what to do with what is left.

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Opening an account and wiring money

Opening an account needs your Iqama, an address with an SPL postal code and a mobile number you control. Some banks also ask for an employer letter, and the requirements differ enough between banks that it is worth checking before you queue.

Every Saudi IBAN is 24 characters beginning with SA, followed by two check digits, the SAMA bank code and your 18-digit account number. Characters five and six identify the bank, which is why validating an IBAN also tells you whose account you are paying.

Domestic transfers between Saudi banks run through SARIE and are typically instant and free. International transfers are priced per bank and per channel, so compare the total — the exchange rate spread often costs more than the stated fee.

Savings, gold and Zakat

Zakat is 2.5% on qualifying savings, gold and business assets held for a full lunar year. It is calculated on the Hijri calendar, which is why the Zakat due date moves earlier each Gregorian year.

Gold bought as a store of value carries Zakat; gold worn as jewellery is a question scholars answer differently. Decide which yours is before you calculate, because the answer changes the number.

Live gold and silver quotes are per gram in SAR and USD. If you are comparing a quote from a shop against the market, remember the shop price includes making charges and 15% VAT, so it will always sit above the spot rate.

Household money

Rent, schooling and transport dominate an expat budget in Saudi Arabia, and they vary more between Riyadh, Jeddah and Dammam than the headline wage suggests. Model the real city before you accept an offer.

Utilities are the second surprise. Electricity follows a tariff that steps up with consumption, so the same house can produce very different bills depending on air-conditioning use.

Keep the postal code, the IBAN and the Hijri date of any contract to hand. Those three fields appear on almost every financial form in the Kingdom, and getting them right the first time is most of the battle.

Frequently asked questions

What do I need to open a bank account in Saudi Arabia?
Your Iqama, a valid SPL postal code for your address and a local mobile number. Some banks add an employer letter, so check the list before you go.
What is a Saudi IBAN?
A 24-character international account identifier starting with SA. It contains two check digits, the two-digit SAMA bank code and your 18-digit account number, and it is required for electronic salary transfers and international wires.
Are domestic bank transfers free in Saudi Arabia?
Transfers between Saudi banks through SARIE are generally free and near-instant. International transfers carry a fee plus an exchange rate spread, which is often the larger of the two costs.
How much Zakat do I owe?
2.5% of qualifying savings, gold and business assets held for a lunar year. Use the Zakat calculator for the arithmetic, and confirm the treatment of any unusual asset with your own adviser.
Why is the shop gold price higher than the listed rate?
Jewellers add making charges, their own margin and 15% VAT on top of the spot price. The market rate you see quoted is the bare metal only.
How do I send money home cheaply?
Compare the all-in cost: the transfer fee plus the exchange rate spread. Sending larger amounts less often usually beats frequent small transfers, and a SAR to local-currency pair quoted directly can be better than converting through USD.