If you are an expatriate living in Saudi Arabia and want to invest in the stock market, the process is straightforward and accessible. As a resident with a valid Iqama, you can invest directly through Saudi banks or licensed brokerage platforms.
Open a Local Bank Account
First, you need a Saudi bank account. Most major banks — such as SNB (AlAhli), Al Rajhi, SAB, and Riyad Bank — provide investment services through their own platforms, like SNB Capital or Al Rajhi Capital.
Once your bank account is active, you can access their investment section via mobile app or online banking.
Open an Investment (Trading) Account
To buy and sell shares, you’ll need to open a trading account linked to the Saudi Exchange (Tadawul).
This can be done online through your bank’s investment services, such as SNB Capital, Al Rajhi Capital, or Riyad Capital. You’ll be asked to provide:
- A valid residence permit (Iqama)
- Your local bank account number
- Provide your personal and employment information
Once your application is verified and approved, your broker will issue a Tadawul trading number, allowing you to start investing immediately through their app or website.
Note: Account opening steps and requirements may vary slightly between banks or brokers. Always check with your investment provider for the latest process and fees.
Invest through IPOs or Direct Stock Trading
You can begin by participating in Initial Public Offerings (IPOs) — where companies list their shares for the first time. Many banks allow IPO subscriptions directly through online banking.
Alternatively, you can trade shares on the Tadawul market using your bank’s trading app or website, just like any local investor.
Fees and Charges
- Trading commission: Up to 0.155% (15.5 bps) of the trade value (includes all exchange, broker, and regulatory fees).
- VAT (15%) applies to the broker’s commission.
- No annual maintenance fees in most cases, though some brokers may charge for inactivity or special services.
Learn Before You Trade
The Saudi market (Tadawul) is one of the largest in the Middle East, but like all markets, prices can fluctuate.
- Study company fundamentals before investing.
- Start small and diversify your portfolio.
- Invest only what you can afford to lose.
- Be patient — stock investing is best approached with a long-term view.