CORPORATE BANKING IN SAUDI ARABIA
In Saudi Arabia, the term “corporate banking” refers to the financial services that banks provide to their corporate clients, which might include major corporations, governmental organisations, and other institutions.
In Saudi Arabia, corporate banking is important in the following ways:
- The market is extremely competitive, and banks are providing a wide range of services to draw in business clients.
- Loans and financing, cash management, trade finance, foreign exchange, and investment banking are all corporate banking services offered in Saudi Arabia.
- In Saudi Arabia, the corporate banking market includes a significant portion of Islamic finance.
- Saudi Arabia’s corporate banking industry is undergoing a digital transformation as banks invest in technology to boost productivity and customer satisfaction.
HOW TO OPEN A CORPORATE ACCOUNT IN SAUDI ARABIA?
The process of opening a corporate bank account in Saudi Arabia can be complex and may take some time, so it is important to plan ahead and allow plenty of time to complete the process. Additionally, each bank may have different requirements, so it is a good idea to check with the bank you are interested in for a list of their specific requirements.
CHALLENGES IN OPENING A BANK ACCOUNT IN SAUDI ARABIA
Opening a bank account in Saudi Arabia can be a daunting task, as it requires strict adherence to documentation requirements and residency regulations, and compliance with anti-money laundering regulations. As a result, it is possible that a few challenges may arise during the account opening process.
Here are some of the common challenges:
- Documentation requirements.
- Residency requirements.
- Anti-money laundering regulations.
- Limited options.
WHAT ARE THE BENEFITS OF A SAUDI BANK ACCOUNT?
There are several benefits to having a bank account in Saudi Arabia, whether you are a resident or a non-resident. Here are some of the key benefits:
- Easier to conduct transactions in local currency in Saudi Arabia if you have a local bank account there.
- Access to banking services.
- The Saudi Arabian Monetary Authority (SAMA) oversees banking in Saudi Arabia, where strong security regulations are in place to safeguard client information and accounts.
- Investment opportunities.
- Several banks in Saudi Arabia provide shariah-compliant Islamic finance solutions, which may be appealing to clients that favour moral and ethical banking.
REQUIREMENTS TO OPEN A SAUDI ARABIA CORPORATE BANK ACCOUNT
Saudi Arabia is home to more than 30 local & international banks. Expats can choose from a wide range of options when opening a bank account in Saudi Arabia.
A newly established Saudi company will have to provide:
- Copy of General Manager Iqama.
- Copy of MISA license and Company Commercial Registration Certificate.
- National address and company seal.
- Passport copies of the shareholders or statute documents in case the shareholder is a legal entity.
- Company Memorandum & Articles of Association (MOA/AOA).
- Board Resolution empowering a company officer to open the bank account.
- ID copies for shareholders & authorised signatories.
- ZATCA Certificate.
Opening a corporate bank account is an essential aspect of incorporating a business in Saudi Arabia. A variety of banking options are available, and Creation Business Consultants partners with the most reputable banks, both onshore and offshore, to find and secure the best bank suitable for you.
Creation Business Consultants will analyse the company and stakeholder’s profile, assist in bank’s eligibility criteria, guide stakeholders/investors in preparing the necessary banking requirements, and facilitate the account opening process.
HOW CAN WE HELP?
At Creation Business Consultants, our top priority is ensuring your business’s performance. Hence, we customise our work to suit your requirements, offering excellent services. We collaborate with you throughout the process, concentrating on your necessities, and producing impactful strategies, as well as scalable solutions of the highest caliber.
CORPORATE BANKING FAQs
Yes, non-Saudi residents can open a corporate bank account in Saudi Arabia, but the process may be more complex than for Saudi residents. Non-Saudi residents will need to provide additional documentation and may be subject to more stringent requirements to open a corporate bank account in Saudi Arabia.
To open a corporate bank account in Saudi Arabia as a non-Saudi resident, you will typically need to provide the following documents:
- A valid passport and residency visa.
- Proof of the company’s registration in Saudi Arabia.
- A business plan outlining the company’s operations, financials, and growth projections.
- Proof of address, such as a utility bill or rental agreement.
- Tax registration documents with the relevant authorities in Saudi Arabia.
- Board resolution authorising the opening of a bank account and designating authorised signatories.
- Bank reference letters from their existing banks.
Yes, there are minimum holding requirements for banks in Saudi Arabia, as mandated by the Saudi Arabian Monetary Authority (SAMA), the country’s central bank.
The time it takes to open a corporate bank account in Saudi Arabia can vary depending on the bank and the complexity of the account opening process. Generally, it can take anywhere from a few weeks to a few months to open a corporate bank account in Saudi Arabia. To minimise delays in the account opening process, it is important to ensure that all necessary documentation is prepared and submitted accurately and in a timely manner.
Creation Business Consultants work with the most reputable and largest regional banks and offshore banks. Some of them are as follows National Commercial Bank (NCB), Al Rajhi Bank, Samba Financial Group, Riyad Bank, Banque Saudi Fransi, Saudi British Bank (SABB), Arab National Bank, Alinma Bank, Alawwal Bank, Saudi Investment Bank (SAIB), Islamic Development Bank (IDB), and Bank AlJazira.
Don’t let the complexity of opening a corporate bank account in Saudi Arabia hold you back from achieving your business goals. Let us take care of it for you! Contact us today to learn more about our bespoke services at [email protected] or KSA +966 56 865 2329 UAE +97148786240.