Your bank account setup process can face significant delays if there are major changes in your company that are not reflected in official documents like the Articles of Association. For global companies, not having an active corporate bank account often sets off a chain reaction that slows expansion plans and the business setup process in Saudi Arabia.
Following the necessary regulatory steps to open a bank account in Saudi Arabia is non-negotiable; the impact of non-compliance costs time and money, even affecting firm performance and reputation in the market.
This guide breaks down the requirements to open a bank account in Saudi, giving business leaders the insights needed to select the right banking partner and possible scenarios that can trigger frequent causes of account opening delays.
Why Open a Corporate Bank Account in Saudi Arabia?
In addition to being a regulatory requirement, opening a corporate bank account in Saudi Arabia helps you fulfill other compliance tasks such as filing tax returns, paying employees, and ensuring adherence to payroll and HR regulations in Saudi Arabia.
Beyond that, corporate bank accounts in Saudi Arabia enable businesses to access extensive benefits tailored to their needs, including:
- Multi-location fund transfers through business credit cards
- Access to comprehensive online and mobile banking services
- Trading and investment opportunities, including stocks and bonds
- Access to treasury management solutions
- Government tender participation through the Etimad portal access
- Saudization (Nitaqat) certificate
- Enhanced financial governance ensures compliance with SAMA regulations
In addition to operational benefits, a corporate bank account enhances your company’s credibility with clients, suppliers, and potential investors. It also helps build your company’s credit history, making it easier to secure business loans for expansion or new investments, along with access to exclusive banking services and preferential interest rates.
Key Requirements for Opening a Corporate Bank Account in Saudi Arabia
Prior to opening an account, Saudi banks require comprehensive documentation to assess foreign-owned clients, including professional backgrounds and detailed business activities. The standard checklist includes
Primary Business Documents
- MISA license
- Saudi entity’s Commercial Registration (CR)
- Proof of national address
- VAT certificate
- Memorandum and Articles of Association (AOA) – must include GM’s powers to open accounts or shareholder resolution/POA
Personal Documentation
- General Manager’s Iqama permit
- Physical ID cards (for Saudis and GCC nationals)
- Saudi SIM cards linked to authorized signatories’ Saudi IDs
Parent Company Documentation
Foreign parent companies must provide:
- Attested Parent Memorandum/Articles of Association
- Attested and active Parent Commercial License
- Comprehensive ownership structure chart including names, passport numbers, nationality, and ownership percentages
- IDs of parent shareholders and beneficial owners
Timeframe for Business Account Opening
The process of opening a bank account in Saudi Arabia can range from 1 to 4 weeks, depending on your company’s structure, the application requirements, and the bank’s internal processes. Companies with a simple ownership structure of one or two individual shareholders typically have their accounts approved within a few days.
After your application is approved, the bank will activate your account. This may require companies to fund their accounts within 60 days of establishment to avoid closure. For foreign businesses, the minimum capital requirement is SAR 25,000.
Recommended Banks for Corporate Accounts
Saudi Arabia’s position as a global financial center is reinforced by its robust banking sector, comprising 37 banks operating under the regulatory oversight of the Saudi Arabian Monetary Authority (SAMA). This diverse landscape includes:
- 3 digital banks
- 11 domestic banks
- 23 international banks
Leading Local Banks
- Saudi National Bank
- Al Rajhi Bank
- Saudi Awwal Bank
- Riyad Bank
- Samba Financial Group
International Banks with Saudi Presence
- Emirates NBD
- Standard Chartered Bank
- Deutsche Bank
- BNP Paribas
Selecting the appropriate bank for your corporate account is a critical decision, as it directly influences your company’s growth and long-term objectives. When choosing a banking partner, pay close attention to the scope of services offered, with a particular focus on solutions tailored to your business size and industry.
Compliance Traps: Where Can Things Go Wrong?
When opening a bank account, companies may encounter challenges that cause delays in the process. Here are some common issues:
Company-Side Challenges
- Legal Changes During the Banking Process
- Situation: Companies changing their legally registered parent company name after beginning the banking process face significant delays, requiring re-attestation of all documents and MISA license amendments.
- Impact: Contracts requiring Saudi bank accounts are put on hold, leading to operational difficulties and potential late fees.
- Solution: Complete all banking procedures before making any significant legal changes to your corporate structure.
- Delayed Document Signing
- Situation: Bank approval expires when companies fail to sign account opening agreements within the specified system timeframe.
- Impact: Government payments requiring Saudi bank accounts become impossible, and substantial contracts face delays.
- Solution: Sign account opening agreements promptly upon bank approval to ensure uninterrupted business operations.
- Incomplete Ownership Documentation
- Situation: Complex ownership structures, particularly consortiums, struggle to provide complete documentation of all owning entities and individual owners.
- Impact: License expiration during the documentation process leads to costly renewals and operational shutdowns.
- Solution: Maintain updated documents and submit them at least 90 days before license expiration to ensure compliance.
Bank-Side Challenges
- High-Risk Entity Classifications
Large companies may face extended processing times when classified as high-risk entities. Banks’ legal teams can take up to a month to provide online access, potentially requiring site visits for address verification, additional documentation requests, and enhanced due diligence procedures. - Technical System Issues
Banking system technical problems can cause widespread delays in account management and payments. However, with the help of specialized partners like AstroLabs, you can help navigate these challenges through direct banking relationships and dedicated support teams.
Companies facing banking challenges have successfully opened accounts within just three days by partnering with AstroLabs, which leverages strong relationships with leading Saudi banks such as Saudi Awwal Bank (SAB), Riyad Bank, and Albilad Bank.
Frequently Asked Questions (FAQs)
Can a foreigner open a bank account in Saudi Arabia?
Yes. Foreigners with a valid residency permit (Iqama) can open a bank account in Saudi Arabia. Without an Iqama, options are very limited.
Which bank is best for foreigners in Saudi Arabia?
There isn’t a single “best” bank, but popular choices among expats include Al Rajhi Bank, Saudi National Bank (SNB), Alinma Bank, and Saudi Investment Bank (SAIB). The best option depends on your needs, such as English-language support, mobile banking features, or branch access.
Can I open a bank account online without going to the bank in Saudi Arabia?
Some banks allow accounts to be opened online if you have an Iqama, National Address, and Absher registration. However, in most cases, you will still need to visit a branch for verification or to complete the process.
Can I open a bank account if I am a foreigner?
Yes, if you hold an Iqama. You will also need supporting documents such as a passport, proof of address, and often an employer’s letter.
How many types of banks are there in Saudi Arabia?
Saudi Arabia has a mix of local retail banks, Islamic (Sharia-compliant) banks, international banks, and specialized institutions. Services and requirements vary depending on the bank type.
How long does it take to open a bank account?
For expats, it usually takes 1–2 weeks if all documents are in order. More complex structures, like business accounts, may take longer.
What are the open banking regulations in Saudi Arabia?
The Saudi Central Bank (SAMA) launched an Open Banking Framework in late 2022. It sets standards for secure data sharing and is being rolled out in phases, starting with Account Information Services (AIS) and followed by Payment Initiation Services (PIS).
Can a tourist open a Chase bank account?
No. Tourists cannot open a local Saudi bank account without an Iqama, and Chase Bank does not operate retail banking services for tourists in Saudi Arabia.