Posted on: 2nd June 2025

How Expats Can Manage Their Finances While Living in Saudi Arabia

Living in Saudi Arabia as an expat can be a rewarding experience, both personally and financially.

With no income tax and a relatively low cost of living, it's a great place to grow your savings. But to make the most of your time in the Kingdom, it's essential to have a good plan for managing your money.

Here's a simple guide to help you get started.

Understand the Tax System

One of the significant benefits of working in Saudi Arabia is that there is no personal income tax on your salary. That means more take-home pay for you.

But don't forget—if you're from a country like the United States, you may still need to report your income and pay taxes back home.

Also, if you're working for a Saudi company, a small part of your salary (2%) goes towards social insurance (GOSI), while your employer contributes 12%. It's not a big chunk, but it's worth knowing where your money is going.

Open a Local Bank Account

Managing your finances is much easier with a local bank account. To open one, you'll usually need:

• Your passport

• A valid Iqama (residency permit)

• A letter from your employer

• Proof of address

Many banks in Saudi Arabia offer services in English and provide mobile apps to help you manage your finances on the go.

Popular banks include Al Rajhi Bank, Riyad Bank and SABB. Most accounts also follow Islamic finance rules, so instead of earning interest, you get a share of the profits.

Budget Smartly

The first step to good money management is setting a clear budget.

Track your income and categorise your spending into essentials (such as rent, food, and transportation) and non-essentials (like dining out and shopping).

A helpful method is the 50/15/5 rule:

• Spend 50% of your income on needs

• Put 15% into retirement savings

• Set aside 5% for emergencies

Try to save at least 20% of your monthly income and set up automatic transfers to a savings account. Over time, you'll build a safety net for unexpected costs.

Invest Wisely

With your savings in good shape, you may want to consider growing your money through investments .

Look for regulated investment platforms specifically designed for expatriates. These are safer and easier to manage—especially if you plan to move to another country in the future.

Avoid anything that promises "guaranteed" returns. If it sounds too good to be true, it probably is.

Stick with well-established platforms and seek advice from trusted financial advisors. It's better to take a steady, long-term approach rather than rushing into high-risk opportunities.

Plan International Money Transfers

Most expats send money home from time to time. To get the best value, keep an eye on exchange rates and plan your transfers when the rates are strong.

Rather than using traditional banks, try money transfer services. These platforms often offer better rates and lower fees, helping you save money.

You can also schedule transfers in advance to avoid last-minute stress, especially around holidays or major expenses.

Think About the Future

Even if retirement feels far away, it's smart to start planning early. The longer your money has to grow, the better it will be.

Many expats won't build up a pension in Saudi Arabia, so it's important to explore other options. You could open a private pension or investment account that travels with you wherever you go.

It's a good idea to speak with a financial planner who understands both local and international rules. They can help you stay on track and avoid costly mistakes .

Choose the Right Financial Adviser

Finding the right adviser can make a big difference. Look for someone who is properly regulated and has experience working with expats.

They should be transparent about fees and focused on your needs—not just selling products that earn them a commission.

A good adviser will take time to understand your goals and help you build a plan that fits your lifestyle, wherever life takes you next.

Know the Legal Landscape

It's also helpful to understand how your residency status affects your financial options.

Saudi Arabia offers a Premium Residency programme that allows expats to live and work in the Kingdom without needing a sponsor. This may be worth looking into if you plan to stay long-term.

Keep in mind that Saudisation rules are in place to increase local employment. These factors may impact the types of jobs available to expats in specific industries, so it's essential to stay informed and plan accordingly.

Final Thoughts

Managing your finances as an expat in Saudi Arabia doesn't have to be complicated. With a bit of planning and the right support, you can enjoy your time here while building a strong financial future.

Start with the basics—open a bank account, set a budget, and build up your savings. Then, take it a step further by investing wisely, planning for retirement, and seeking professional advice when needed.

If you're unsure where to start, consider consulting a trusted financial advisor who understands the unique needs of expats living in Saudi Arabia. You don't have to do it all on your own—and the peace of mind is worth it.