TL;DR: Decide whether you need a local‑only, hybrid, or offshore‑led setup. Open the right accounts (banking + brokerage), organize a compliance pack (ID, residence, source‑of‑funds), and build a two‑currency plan (earn/spend in SAR, invest or save in a base currency you’ll retire in). Use our checklists, scripts, and folder structure so annual filings and transfers never stall.
Who this guide is for (and how to use it)
Resident expats earning in Saudi Arabia who want a global plan.
Families planning education abroad, mortgage down‑payments, or retirement in another currency.
Professionals with restricted stock units, stock options, or global investment accounts.
How to use this: Skim the decision tree, set up the banking & brokerage stacks, print the checklists, and keep the compliance pack up to date. Revisit the currency and portfolio sections after your first month of transfers.
Decision tree — local‑only vs hybrid vs offshore‑led
Local‑only (starter):
Use a Saudi bank + local brokerage (Tadawul, sukuk, local ETFs/REITs).
Ideal for the first 3–6 months while you stabilize residency, payroll, and KYC.
Hybrid (most expats):
Local bank for salary + bills; multi‑currency/offshore account for savings and remittances; local and global brokerages for diversification.
Choose if you will send money home and invest outside Saudi regularly.
Offshore‑led (globally mobile):
Multi‑currency/offshore account as hub, with local account as spoke for bills.
Global brokerage as primary; local brokerage optional.
Choose if you change countries often or are saving/investing in a currency where you’ll retire.
Rule: Don’t open everything at once. Start local, add global when your KYC and payroll are stable, then build your currency and portfolio plan.
Compliance first — regimes you’ll actually bump into (plain English)
CRS/AEOI self‑certifications: Most banks/brokers ask for your tax‑residency and may report account data to tax authorities under the Common Reporting Standard. Keep your TINs and addresses current.
FATCA/FBAR (US persons): US citizens/green‑card holders must file US returns and may need to report foreign accounts and assets (forms vary by threshold).
W‑8BEN / W‑9: Non‑US persons investing in US securities submit W‑8BEN to claim treaty benefits; US persons submit W‑9. Renew when asked to avoid default withholding.
Withholding tax: Cross‑border dividends/interest can face withholding; treaties may reduce rates. Your broker/bank applies this at source.
Source‑of‑funds & AML: For larger transfers or new accounts, expect requests for salary letters, bank statements, or sale proceeds evidence.
Action: Build a Compliance Pack (see folder structure) with ID, residency proof, salary letters, contracts, and TINs so reviews take minutes, not weeks.
Banking stack — local, multi‑currency, and offshore accounts
What to look for
Multi‑currency balances (e.g., SAR, USD, EUR, GBP) with transparent FX.
International transfers (cheap incoming, reasonable outgoing, tracking).
Cards you can use while traveling; tune online/spending limits in app.
Deposit protection (jurisdiction‑specific) and clear fee schedules.
Responsive compliance/operations (KYC refresh SLA, named email contact).
Local account (Saudi)
Pros: salary rails, local bill pay, ATM network, Arabic support, mada/Apple Pay compatibility.
Watch‑outs: KYC tied to Iqama validity; update ID immediately after renewal.
Offshore/multi‑currency account
Pros: hold home‑country currency, reduce repetitive FX, route money to family/investments.
Watch‑outs: minimum balances, document requests, time zone support, account reporting (CRS/FATCA).
Setup: submit identity, residency, source‑of‑funds, and tax residency details.
Two‑bank rule: Keep at least two banks (local + offshore). If one freezes during a review, the other keeps life moving.
Brokerage stack — local vs global
Local brokerage (Saudi market)
Access to equities/REITs/ETFs/sukuk on the local exchange, settled T+2.
Pros: Arabic/English support; dividends in SAR; platform aligned to local regulations.
Watch‑outs: Market concentration risk; consider pairing with a global account.
Global brokerage
Access to US/Europe/Asia exchanges; multi‑currency funding; standardized W‑8BEN/W‑9 flows.
Pros: Diversified assets (global ETFs, bonds, REITs), sometimes lower commissions on liquid markets.
Watch‑outs: Currency risk, different investor protection schemes, product restrictions (e.g., some ETFs blocked to certain residents).
Custody & statements: Confirm who holds your assets (direct/omnibus custody), how dividends/coupons are paid, and where to download annual statements for your tax folder.
Currency strategy — base currency, buffers, and simple hedges
Base currency: Choose the currency of your future liabilities (where you plan to retire, pay school fees, or buy a home).
Buffers: Keep 3–6 months expenses in the currency of your spending (SAR for day‑to‑day, plus home‑currency buffer if you remit).
Funding cadence: Convert and move on a monthly or quarterly rhythm; avoid ad‑hoc FX at bad rates.
Simple hedges: For large near‑term liabilities, consider staged FX conversions (ladder over several months) rather than a single conversion day.
Reality check: Hedging costs exist; don’t hedge tiny amounts—focus on big liabilities with defined dates.
Money movement — fee+FX method, rails, settlement times, audit trails
Fee+FX method: Compare total landed amount, not just fees or FX. Build a small table with
Amount sent → Fees → FX spread → Amount received.Rails: SWIFT for bank‑to‑bank; local instant rails where available; card top‑ups for small amounts.
Settlement: Cross‑border wires take T+1 to T+3 on average; build buffers for cut‑off times and holidays.
Audit trails: Save transfer confirmations, SWIFT/MT103, and recipient receipts. When a compliance reviewer asks, you’ll respond with a single zip.
Tip: For family support, pre‑load beneficiaries before renewal windows so you aren’t blocked by KYC holds when you need to send money.
Portfolio foundations — allocation, rebalancing, product selection
Three buckets:
1) Safety (cash/short‑term instruments for the next 12 months). 2) Core (global equity/sukuk ETFs or funds). 3) Optional (REITs/gold/alternatives).
Rebalancing: Once or twice per year or after large moves.
Product due diligence: Look at index, expense ratio, replication method, domicile, distribution policy (accumulating vs distributing), and tax drag (withholding).
Shariah alignment: If required, use providers that publish methodology and purification notes; confirm ongoing screening.
Avoid complexity: If you can’t explain a product in two sentences, skip it until you can.
Taxes & treaties — what to know before you click ‘Buy’
Withholding at source: Dividends and interest from foreign securities may be taxed at source; treaties can reduce rates if your forms are in order (e.g., W‑8BEN for US securities).
Fund domicile matters: The same index tracked by different domiciles can have different withholding outcomes.
US persons: Watch for PFIC rules with non‑US funds; consider advice before buying non‑US pooled funds.
Capital gains: Often taxed where you are tax‑resident, but rules vary—keep transaction reports and day counts tidy.
Exit planning: If you’ll become tax‑resident elsewhere next year, avoid crystallizing gains right before the move without understanding consequences.
Action: Store treaty PDFs and key articles in your Treaties/ folder and annotate the residency and dividend articles you actually rely on.
Risk controls — bank risk, custody risk, platform risk, and mistakes
Bank risk: Prefer well‑capitalized institutions; understand deposit insurance limits in each jurisdiction.
Custody risk: Confirm segregation and your claim to assets if a broker fails.
Platform risk: Test logins, OTP methods, and address updates; keep two‑factor ON.
Operational mistakes: Wrong account numbers, wrong currency conversions, and late uploads cause delays; use checklists.
Travel risk: Keep one card that works offline; carry a backup payment method.
Personas — seven worked examples you can mirror
1) US citizen software engineer (married, kids)
Setup: Local bank + global brokerage; keeps US credit history active.
Compliance: Files US return; tracks FBAR/8938 thresholds; submits W‑8BEN at broker and keeps treaty text handy.
Currency: Quarterly USD funding; SAR buffer for living costs; education fund in USD.
Products: Broad US/global ETFs; some sukuk exposure for stability.
2) UK professional (single)
Setup: Hybrid stack; local bank + multi‑currency account + global broker.
Compliance: Follows UK Statutory Residence Test; non‑resident this year; keeps UK rental income records.
Currency: Builds a GBP home‑deposit fund offshore; converts monthly to smooth FX.
Products: Global equity ETF + GBP money‑market fund offshore.
3) Indian expat (family of four)
Setup: Local bank + multi‑currency account + local & global brokers.
Compliance: Tracks India residence tests and Liberalised Remittance Scheme if sending funds home.
Currency: Builds INR education fund and USD retirement sleeve.
Products: Global ETFs and local fixed‑income instruments aligned to goals.
4) Filipino nurse (remits monthly)
Setup: Local bank + remittance provider + low‑cost multi‑currency account.
Compliance: Documents residence position; keeps bank transfer and beneficiary receipts.
Currency: SAR buffer; monthly PHP remittance; emergency USD stash.
Products: Savings discipline + target‑date global ETF via global broker.
5) Pakistani engineer (contractor)
Setup: Local & offshore banks; global broker.
Compliance: Checks withholding exposure on cross‑border invoices; stores contracts and MT103s.
Currency: Quarterly USD conversions; SAR spending buffer.
Products: Diversified ETFs; avoids leverage.
6) Egyptian teacher (dual‑country family)
Setup: Two banks + multi‑currency; small local brokerage for REITs.
Compliance: Documents non‑residence at home; keeps day counts; stores treaty article highlights.
Currency: SAR buffer + EUR summer travel fund.
Products: Global ETF core; gold allocation for psychological comfort.
7) Canadian project manager (moving next year)
Setup: Hybrid; prepares for departure from next country.
Compliance: Plans departure filing if becoming non‑resident there; keeps healthcare and lease closure proofs.
Currency: Builds CAD lump sum for home purchase; stages FX conversions.
Products: Global ETFs; money‑market fund in CAD for down‑payment timing.
Worksheets & checklists (printables)
A) Account Opening Checklist
ID/passport, residency ID, address proof (Ejar/utility), tax residency/TINs, salary letter, bank statements (3–6 months), source‑of‑funds evidence, W‑8BEN/W‑9 as applicable.
B) Money Movement Worksheet
Date | From | To | Amount (orig) | Fees | FX | Landed amount | Receipt (Y/N) | Notes
C) Investment Policy Statement (1‑pager)
Objectives, base currency, allocation targets, rebalancing rule, product filters, no‑go list, behavior plan for market drops.
D) Annual Compliance Calendar
Jan–Mar: statements & day counts; Apr–Jun: forms; Jul–Sep: address/phone checks; Oct–Dec: year‑end tidy + advisor email.
Scripts you’ll actually use (EN/AR)
Bank compliance (EN):
“Attached are my residency ID, salary letter, and bank statements. Source of funds is employment income from [Employer]. Please confirm if any additional documents are needed to complete the review.”
مخاطبة الامتثال البنكي (AR):
«مرفق هوية الإقامة وخطاب تعريف بالراتب وكشوف الحساب البنكي. مصدر الأموال هو راتب من [اسم الجهة]. هل توجد مستندات إضافية مطلوبة لإكمال المراجعة؟»
Broker W‑8BEN refresh (EN):
“I’ve updated my address and tax residency. Please confirm my W‑8BEN is current so treaty withholding rates apply.”
تحديث بيانات الوسيط (AR):
«تم تحديث العنوان والإقامة الضريبية. نرجو تأكيد سريان نموذج W‑8BEN لتطبيق معدلات الاستقطاع وفق الاتفاقية.»
Employer letter (EN):
“Could you issue a salary certificate stating my role, start date, and monthly income for bank/broker KYC?”
خطاب تعريف (AR):
«هل ممكن إصدار خطاب تعريف بالراتب يتضمن المسمى الوظيفي وتاريخ المباشرة وقيمة الراتب لاستخدامه في متطلبات اعرف عميلك؟»
Permanent folder structure (reuse forever)
ID/(passport, residency ID, visas)Residence/(Ejar lease, utilities)Banking/(statements, IBAN certificates, compliance emails)Brokerage/(W‑8BEN/W‑9, statements, trade confirms)Transfers/(SWIFT/MT103, receipts)Taxes/(returns, assessments, treaty PDFs, day‑count sheet)Employment/(salary letters, contracts)Advisors/(engagement letters, notes)IPS/(your one‑page plan)