Saudi Arabia’s banking sector is one of the most capitalised and technologically advanced in the Middle East, with total assets exceeding SAR 4.8 trillion (USD 1.28 trillion) as of mid-2025. Regulated by the Saudi Central Bank (SAMA), the Kingdom’s 39 licensed banks — including 15 domestic institutions and 24 branches of foreign banks — serve a population increasingly shaped by Vision 2030’s drive toward a cashless, digitally connected economy.

Whether you are an expatriate opening your first salary account, a foreign investor establishing corporate banking relationships, or a business owner navigating trade finance, this guide covers everything you need to know about banking in Saudi Arabia in 2026.

Major Banks in Saudi Arabia

Saudi Arabia’s banking landscape is dominated by several large institutions, most of which trace their roots to the Kingdom’s oil-driven modernisation of the 1950s and 1960s. All major banks offer Sharia-compliant products alongside conventional services, reflecting the centrality of Islamic finance to the Saudi financial system.

Saudi National Bank (SNB)

The largest financial institution in Saudi Arabia and one of the biggest in the Middle East, SNB holds total assets exceeding USD 300 billion. Formed from the 2021 merger of National Commercial Bank (NCB) and Samba Financial Group, SNB serves approximately 15 million customers through more than 480 branches and 20 retail service centres. It is the preeminent financier for Vision 2030 infrastructure and diversification projects, with major roles in NEOM, the Red Sea development, and the Riyadh Metro.

Al Rajhi Bank

The world’s largest Sharia-compliant bank by assets (approaching USD 300 billion), Al Rajhi grew from a family currency exchange operation in Riyadh into a global Islamic banking powerhouse. It serves approximately 20 million customers through over 500 branches and more than 4,000 ATMs. Its remittance arm, Tahweel Al Rajhi, operates 135 dedicated transfer centres and is a dominant force in expatriate money transfers.

Riyad Bank

Founded in 1957, Riyad Bank is one of the Kingdom’s oldest financial institutions with total assets of approximately SAR 400 billion. It offers a comprehensive suite of retail, corporate, and investment banking services, and has been a pioneer in digital banking adoption among Saudi Arabia’s legacy banks.

Saudi British Bank (SABB)

SABB merged with Alawwal Bank in 2019 to create one of Saudi Arabia’s top-tier banks. With historic ties to HSBC (which holds a significant stake), SABB is particularly strong in corporate and trade finance, offering international expertise that appeals to foreign companies operating in the Kingdom.

Banque Saudi Fransi (BSF)

Affiliated with Credit Agricole, BSF has long been a bridge between Saudi and European financial markets. The bank is particularly active in project finance, syndicated lending, and structured products for large-scale infrastructure developments.

Other Notable Banks

Alinma Bank operates as a fully Islamic bank and has grown rapidly since its founding in 2006, targeting younger, digitally native customers. Bank AlJazira and Bank Albilad also operate on a fully Sharia-compliant basis. Arab National Bank (ANB) and Saudi Investment Bank round out the domestic roster, each serving distinct corporate and retail niches.

Opening a Bank Account in Saudi Arabia

SAMA regulations guarantee that any natural or legal person has the right to open an account in any Saudi bank, provided they meet identity verification and documentation requirements. The process differs significantly depending on your residency status.

For Residents (Iqama Holders)

Expatriates holding a valid residence permit (Iqama) can open accounts at any Saudi bank. Required documents typically include:

• Valid Iqama — your Saudi residence permit, which serves as your primary identification
• Employer letter — confirming your employment status, job title, and salary
• National address registration — obtainable through the Saudi Post (SPL) platform at splonline.com.sa
• Passport copy — your home country passport
• Initial deposit — varies by bank but typically SAR 500-5,000

Most major banks now allow Iqama holders to initiate account opening online or via mobile apps, with a single branch visit required for identity verification. Al Rajhi Bank and SNB offer same-day account activation for salaried employees whose employers have payroll agreements with the bank.

For Visitors and Tourists

Visitors to Saudi Arabia can open limited bank accounts by presenting their visitor ID issued by the Ministry of Interior, along with their Saudi residential address and home country address. However, these accounts carry restrictions — no products or services extend beyond the visa expiry date, and access to credit facilities is generally unavailable.

For Non-Residents

Non-Saudi, non-GCC nationals who do not reside in the Kingdom cannot open bank accounts without written approval from the Ministry of Interior or Ministry of Foreign Affairs, transmitted through SAMA. This restriction has eased somewhat for foreign investors holding MISA (Ministry of Investment) licences, who can open corporate accounts with the appropriate documentation.

Corporate and Business Accounts

Foreign investors and businesses establishing operations in Saudi Arabia need to provide:

• Commercial Registration (CR) from the Ministry of Commerce
• Articles of Association — company formation documents
• MISA investment licence — for foreign-owned entities
• Tax Identification Number (TIN) from ZATCA
• National Address for the business
• Authorised signatory identification — Iqama or passport for each signatory

Anti-money laundering (AML) and know-your-customer (KYC) requirements are rigorously enforced. Banks verify customer identity, source of funds, and transaction patterns, and enhanced due diligence applies to politically exposed persons and high-value accounts. For a full guide to business registration, see our Company Formation Guide.

Understanding Saudi Arabia’s IBAN System

Saudi Arabia adopted the International Bank Account Number (IBAN) system to standardise account identification for both domestic and international transfers. Every Saudi bank account has a corresponding IBAN, and it is required for all electronic transfers within the Kingdom and internationally.

IBAN Structure

A Saudi IBAN contains exactly 24 characters, structured as follows:

Position	Characters	Description	Example
1-2	2 letters	Country code	SA
3-4	2 digits	Check digits (error detection)	03
5-6	2 digits	Bank code	80
7-24	18 characters	Account number (zero-padded)	000000608010167519

The print format groups digits in blocks of four for readability: SA03 8000 0000 6080 1016 7519. The electronic format used in banking systems contains no spaces.

Key Bank Codes and SWIFT Identifiers

Bank	IBAN Bank Code	SWIFT/BIC Code
Saudi National Bank (SNB)	10	NCBKSAJE
Al Rajhi Bank	80	RJHISARI
Riyad Bank	20	RIBLSARI
SABB	45	SABBSARI
Banque Saudi Fransi	55	BSFRSARI
Alinma Bank	05	AABORIBR
Bank AlJazira	60	BJAZSAJE
Bank Albilad	15	BABORIBR

You can find your IBAN in your bank’s mobile app, online banking portal, or on your bank statement. Most Saudi banks also provide IBAN calculators on their websites where you can generate your IBAN from your account number.

Islamic Banking

Saudi Arabia is the world’s largest Islamic banking market, and Sharia compliance permeates every level of the financial system. All 15 domestic banks offer Islamic banking products, with several — Al Rajhi, Alinma, Bank AlJazira, and Bank Albilad — operating exclusively on an Islamic basis.

Core Islamic banking products available in Saudi Arabia include:

• Murabaha — cost-plus financing, commonly used for vehicle and property purchases. The bank buys the asset and sells it to the customer at a disclosed markup, paid in instalments.
• Ijara — lease-to-own arrangements for property, vehicles, and equipment
• Mudaraba — profit-sharing investment accounts where the bank acts as fund manager
• Tawarruq — structured commodity transactions used for personal financing
• Wakala — agency-based investment deposits

SAMA does not issue fatwas directly but approves the appointment of Sharia boards at each bank and monitors institutional compliance. The Saudi banking system’s commitment to Islamic finance has made it a global benchmark, with institutions like Al Rajhi Bank influencing Sharia-compliant product development worldwide.

Digital Banks and Fintech

Saudi Arabia’s fintech sector has expanded rapidly, growing to 261 licensed companies by late 2025 — a 21 per cent increase year-on-year. Cumulative investment in the sector reached SAR 7.9 billion (USD 2.1 billion), exceeding the Kingdom’s 2025 target by 204 per cent.

Licensed Digital Banks

STC Bank — evolved from STC Pay (Saudi Arabia’s first fintech unicorn), STC Bank received SAMA’s full digital banking licence in 2024 and commenced full operations in January 2025. It offers current accounts, savings products, international transfers, and card services through an entirely app-based experience.

D360 Bank — launched officially in December 2024 as a fully licensed, Sharia-compliant digital-only bank. D360 has attracted more than one million customers and offers individual and business accounts, savings facilities, lending products, and debit and credit cards.

Vision Bank — the newest entrant, launching operations in September 2025, expanding the digital-only banking options available to Saudi residents.

Buy Now, Pay Later (BNPL)

Tamara and Tabby dominate the Saudi BNPL market, offering interest-free instalment payments for consumer purchases. Both are integrated with major Saudi e-commerce platforms and point-of-sale systems, and are regulated under SAMA’s consumer lending framework.

SAMA Regulatory Sandbox

SAMA operates a regulatory sandbox that currently hosts 25 fintech companies testing innovative services, including open banking APIs (SpireTech), peer-to-peer lending platforms (The Lending Hub, Soar), and MSME factoring solutions (Ldun). The sandbox has been instrumental in nurturing startups that bridge gaps in the traditional banking system.

Payment Systems

Saudi Arabia has engineered one of the Middle East’s most advanced digital payments ecosystems, with over 75 per cent of financial transactions now conducted digitally.

Mada

Saudi Arabia’s national debit card and payments network, mada connects all ATMs and point-of-sale terminals across the Kingdom. Every Saudi bank account comes with a mada card, and the network processes billions of transactions annually. Mada cards are accepted at virtually every merchant in Saudi Arabia and work with Apple Pay, Samsung Pay, and Google Pay for contactless transactions.

SADAD

Launched in 2004, SADAD is the Kingdom’s centralised bill payment system for utilities, telecommunications, traffic fines, government fees, and more. It processed 364 million transactions in 2024, growing at a steady 8 per cent annually. SADAD integrates with all Saudi banks and is accessible through online banking portals and mobile apps.

Digital Wallets and Mobile Payments

Mobile payment adoption is surging: Apple Pay leads with 36 per cent of preferred digital payment methods, followed by mada at 22 per cent and STC Pay at 12 per cent. Samsung Pay launched with native mada support in 2024, and Google Pay began its Saudi rollout in 2025, with Alipay+ integration planned for 2026 to serve the growing Chinese tourist and business community.

The Saudi mobile payments market is projected to reach USD 25.94 billion in 2025 and grow to USD 45.82 billion by 2030, driven by Vision 2030’s cashless economy goals. For more on Saudi Arabia’s economic transformation, see our Business Hub.

Corporate Banking and Trade Finance

Saudi Arabia’s corporate banking infrastructure supports the Kingdom’s position as the Arab world’s largest economy and a major global trading partner. Key services include:

• Letters of credit (LCs) — essential for Saudi import/export transactions, particularly in petrochemicals, construction materials, and consumer goods
• Bank guarantees — commonly required for government contracts and major project tenders
• Supply chain financing — growing rapidly as Saudi companies integrate into global value chains
• Treasury and cash management — multi-currency accounts, hedging products, and liquidity management
• Project finance — SABB, BSF, and SNB are major players in financing Vision 2030 megaprojects

SABB’s historic ties to HSBC make it a preferred partner for international companies entering the Saudi market, while Al Rajhi’s extensive branch network gives it unmatched domestic reach. Blockchain-based trade finance is emerging, with SABB piloting Islamic trade finance on distributed ledger technology. For investment-related banking, see our Investing in Saudi Arabia Guide.

Money Transfers and Remittances

Saudi Arabia is one of the world’s largest remittance-sending countries, reflecting its large expatriate workforce. Major transfer services include:

• Tahweel Al Rajhi — the market leader, with 135 dedicated centres and access through 520 Al Rajhi Bank branches. Covers 100+ countries with bank transfer, cash pickup, and mobile wallet delivery options. Recently partnered with MoneyGram for expanded international reach.
• Western Union — operates over 200 locations across Saudi Arabia with online and in-person transfer options
• STC Bank / STC Pay — offers competitive digital remittances through its mobile app
• Ersal — a Saudi-licensed digital remittance platform
• Bank-based transfers — all major banks offer SWIFT international wire transfers, typically at higher fees but with greater security for large amounts

SAMA sets daily and monthly transfer limits that vary by bank and account type. Standard individual daily limits typically range from SAR 20,000 to SAR 50,000 for online transfers, with higher limits available through branch requests.

SAMA: The Central Bank

The Saudi Central Bank (SAMA, formerly the Saudi Arabian Monetary Authority) is the Kingdom’s financial regulator, monetary authority, and banking supervisor. Established in 1952, SAMA’s responsibilities include:

• Monetary policy — maintaining the Saudi Riyal’s peg to the US Dollar at SAR 3.75 per USD
• Banking supervision — licensing, prudential regulation, and consumer protection
• Payment systems oversight — governing mada, SADAD, and real-time payment infrastructure
• Fintech regulation — operating the regulatory sandbox and issuing digital banking licences
• Foreign reserves management — Saudi Arabia holds some of the world’s largest foreign exchange reserves

SAMA has been instrumental in driving Vision 2030’s financial sector development programme, which aims to increase the financial sector’s contribution to GDP, expand digital payments, and position Riyadh as a global financial hub through the King Abdullah Financial District (KAFD).

Tax Considerations for Banking

Saudi Arabia does not levy personal income tax on individuals, which simplifies banking for both residents and foreign workers. However, businesses should be aware of VAT at 15 per cent on certain banking fees, withholding tax on cross-border payments, and Zakat obligations for Saudi-owned entities. For comprehensive tax guidance, see our Saudi Arabia Tax Guide.

Key Takeaways

• Saudi Arabia’s banking sector comprises 39 licensed banks with combined assets exceeding SAR 4.8 trillion, regulated by SAMA
• Expatriates with an Iqama can open accounts at any bank; non-residents face restrictions requiring government approval
• The Saudi IBAN is a 24-character code (SA + 2 check digits + 2 bank code digits + 18-character account number) required for all transfers
• Islamic banking is universal — all major banks offer Sharia-compliant products, and several operate on a fully Islamic basis
• Digital banking is surging, with three licensed digital-only banks (STC Bank, D360, Vision Bank) and 261 fintech companies
• Mada, SADAD, Apple Pay, and STC Pay form the core of a payments ecosystem where over 75 per cent of transactions are digital
• The SAR is pegged to the USD at 3.75, providing currency stability for international business and investment

For related guides on doing business in the Kingdom, explore our Stock Market Guide and Investment Guide.