Account Opening Rules

Non-Resident and Non-Banking Companies and Businesses with Contracts or Projects in Saudi Arabia When a non-resident business or company has a contract or a project in Saudi Arabia, it may have accounts with a bank in Saudi Arabia for the duration of the project or the contract according to the following conditions: 1. Obtaining permission from the Ministry of Commerce and/or a provisional license from the Ministry of Investment and approval from the company’s head office. This approval must be certified by the Saudi embassy in the company's country of origin. 2. A copy of company's memorandum of association duly attested by the Saudi embassy in the company's home country. 3. A recommendation from a bank rated by an approved rating agency with which it deals in the country of origin. 4. A copy of the authorization from the company’s head office certified by the Saudi embassy, nominating the persons authorized in Saudi Arabia to sign on behalf of the company for all financial transactions (including opening and operating accounts and checks), along with copies of their Iqamas. 5. Approval of the CEO/general director and the manager of compliance department to open the account. - Banks must close all such accounts upon expiry of the contract. In order to manage post-project receivables and payables, including zakat and income tax payments, special accounts can be maintained specifically for this purpose until completion. After that, such accounts must be closed according to the following: 1. Considering such account as a trust account under the control of the operations manager at the bank's head office only. 2. Obtaining a letter from the company’s head office, duly attested by the Saudi embassy in its home country, identifying the authorized signatories to sign for the trust account after completion of the company’s business and specifying the method for transferring the remaining amounts and paying zakat or income tax. 3. Limiting deposits in such account to the amounts payable to the company by other parties such as the Ministry of Finance (government checks) or a private entity if the contract is made with a private or semi-government business sector. 4. Classifying this account as of high risk. 300.2.4 Non-Resident and Non-Banking Companies and Businesses Leasing Spaces in Deposit Areas in Saudi Arabia Banks may open accounts for companies and institutions licensed to sell and reexport commodities in deposit areas at local ports in Saudi Arabia, whether leasing was directly through contracts with the Saudi Ports Authority or through concession. This shall be for a period equal to the duration of the lease contract and according to the following requirements: 1. A copy of the lease contract attested by the Chamber of Commerce and Industry and the port management. 2. A copy of the lessee’s commercial register issued by the country of origin and attested by the Saudi embassy in addition to the full address of the entity. 3. A letter from a bank in the lessee’s country of origin. 4. The persons authorized to manage the entity’s account must be Saudis or non-Saudis with valid Iqamas. 5. The purpose of the account must be specified through a letter from the lessee to the bank. 6. The account must be closed by the bank upon expiry of the lease period if a renewal notification is not received.