Opening a Saudi Bank Account

Opening a Saudi Bank Account

Opening a Saudi bank account is a crucial step for any foreign business establishing a presence in Saudi Arabia, ensuring compliance with local financial regulations and facilitating smooth operations.

Why Do You Need a Saudi Bank Account for Business?  

  1. Legal Requirement: Saudi authorities may require businesses operating within the country to maintain a local bank account for regulatory compliance.

  2. Ease of Transactions: Facilitates local transactions in Saudi Riyals (SAR), reducing currency conversion issues and banking fees.

  3. Financial Management: Helps in managing business finances efficiently, including handling payroll, paying local suppliers, and receiving payments from customers.

  4. Credibility and Trust: Enhances credibility with local clients, suppliers, and partners by showing a commitment to operating within the country.

Steps to Open a Saudi Bank Account  

  1. Choose a Bank: Research and select a bank that meets your business needs. Major banks in Saudi Arabia include Al Rajhi Bank, National Commercial Bank (NCB), Riyad Bank, and Saudi British Bank (SABB).

  2. Gather Required Documents: Prepare the necessary documents for opening a bank account. Typically, these include:

    • Certificate of Incorporation (COI) / Commercial Registration (CR): Proof of your company’s legal registration.

    • Company’s Articles of Association: Document outlining the company’s purpose, structure, and regulations.

    • Board Resolution: A formal resolution from your company’s board authorizing the opening of the bank account and naming the authorized signatories.

    • Identification Documents: Copies of passports or identity cards of the company’s directors and authorized signatories.

    • Proof of Address: Evidence of the company’s physical address in Saudi Arabia, such as a lease agreement or utility bill.

    • Tax Identification Number (TIN): If applicable, provide the company’s TIN for tax purposes.

  1. Complete Application Forms: Obtain and fill out the bank’s account opening forms. These are usually available on the bank’s website or at the branch.

  2. Submit Documents: Submit the completed forms along with the required documents to the bank. Some banks may allow online submissions, while others may require in-person visits.

  3. Application and Bank Processing: The processing time varies by bank After submission, the bank's internal processing time can take an additional 3-4 weeks, potentially longer if referred to the legal department.

  4. Capital Transfer and Account Activation: Once the bank account is set up, the client transfers the initial capital into the

    account as per the legal requirements for new entities, the bank issues a certificate confirming the deposit, which is a crucial document for further legal and operational processes..

All necessary documentation for the bank account application:
  1. MISA license.
  2. Copies of the Signatory’s Identity Card.
  3. Power of Attorney.
  4. Shareholder Resolutions.
  5. Shareholder Articles of Association (AoA).
  6. Shareholder Certificates of Incorporation (COI).
  7. Notarized AoA from the client.
  8. Copies of Client directors’ passports.
  9. Organizational chart of the client, showing the relationship up to the ultimate shareholders.
  10. Completed bank application form.


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    • Key Considerations

      Variability Between Banks: Requirements and processing times can vary significantly between banks. Choosing a bank with experience in handling accounts for international clients can be beneficial. Expect Delays: Saudi banks are known for their ...