Saudi Arabian Banking System

The banking system in Saudi Arabia is comprised of 30 banks, 13 of which are local while the remaining 17 are international. The entire system is under the supervision of the Saudi Arabia Monetary Authority (SAMA), which was established in 1952 as the central bank of the Kingdom.

SAMA’s responsibilities include managing monetary policy, supervising banks and financial institutions, overseeing the financial and insurance systems, and ensuring stability within the banking system.

In relation to the country’s GDP, banking in Saudi Arabia is a part of the services sector, which accounts for approximately 53.2% of the economy.

As of 2019, four domestic banks held approximately 57% of the total sector assets: The National Commercial Bank (NCB) with 20.5% market share, Al Rajhi Bank with 16.1%, and both Samba Bank and Riyad Bank holding 10.1% each. The country is home to 2,062 bank branches, with Riyadh housing the most branches at 627.

Expat Banking in Saudi Arabia

Expats residing in Saudi Arabia have the liberty to open accounts at any of the 30 retail banks in the Kingdom. The banks are modern and are equipped with internet and phone banking services. Customers have the flexibility to manage their finances either through in-person transactions at branches or remotely via the internet. Banking hours are from 9:30 to 16:30 from Sunday to Thursday, with some banks also providing services on Saturdays. It should be noted that banks are closed on Fridays, the weekly holiday, but branches located at airports remain open 24/7.

Due to the conservative nature of the Islamic country, many banks offer ladies-only branches or dedicated sections for women clients. The banking system does not include specific savings banks as seen in the USA or the UK.

Top banks in Saudi Arabia include:

• Al Rajhi Bank,
• The National Commercial Bank,
• Riyad Bank,
• Samba Bank, and
• The Saudi British Bank.

International banks operating in Saudi Arabia include

• BNP Paribas
• Deutsche Bank
• Emirates NBD
• First Abu Dhabi Bank
• Industrial and Commercial Bank of China
• J.P. Morgan Chase NA
• Standard Chartered Bank.

Islamic Banking in Saudi Arabia

Saudi Arabia, being home to two of Islam’s holiest sites, strictly adheres to Islamic principles in its economic and social norms. This is evident in the prevalence of Islamic banking institutions in the country. Approximately 78% of the total banking sector in Saudi Arabia is comprised of Islamic banks’ financing base, and nearly 30% of all Islamic banking activity within the GCC occurs in the Kingdom. By law, conventional banks operate in alignment with Islamic principles. In lieu of interest, account holders earn a ‘profit rate’ due to Islamic rules. Major Islamic banks in Saudi Arabia include Al-Rajhi Bank Saudi Arabia, Al Jazeera Bank, Al-Bilad Bank, and Alinma Bank.

Digital Banking in Saudi Arabia

Saudi Arabia has recently emerged as the top digital banking market in the Middle East and North Africa. Research from ArabNet shows that over three-quarters of banking customers use online or mobile apps for their banking needs. With the electronic push from SAMA, nearly all major banks have an online presence. Residents in Saudi Arabia can also use the electronic payment system known as Mada.