Banking

The monetary unit of Saudi Arabia is the Saudi Riyal (SAR), which since May 2008 has been pegged to the US dollar at the exchange rate of SAR 3.75 to the dollar. The highest denomination note is SAR 500 and the smallest SAR 1. The minor unit is the halalah, which is one cent of one Riyal.

US dollars are easy to exchange at money-changer agencies, which provide a better rate than a Saudi Bank.

Banking in Saudi Arabia can be quite an experience. Although a simple transaction can take hours and customer service is not precisely the fastest in the world, people find the banking system reliable and easy to work with once the first steps are completed.

Opening a Bank Account

Please note: It is not possible to register for these things or open a bank account until you have your Iqama (your National ID card) - the school will take care of this process once you have your Iqama.

Teachers will be able to open a bank account in Saudi Arabia after they obtain the work permit (Iqama). AISJ will help you set up the appointment and write the verification of employment letter that is requested. Male teachers and female teachers will be separated in the bank to get bank services separately. The female branches have been reported as slower than male branches.

Most recently AISJ and overseas staff have been working with Riyad Bank.

Opening a bank account can take from two to four hours. This is related to the quantity of customers and the quantity of available operators. Teachers may need to request coverage in their classrooms depending on their schedules and the timing of the bank trip.

Once the bank account is open, a debit card is provided as well as the instructions for online services. There is no cost for the first debit card. There is an additional cost for additional cards that ranges between 35 to 50 Riyals.

Teachers do not need to deposit money to open their bank accounts. The bank will open the account and will wait for the first paycheck to be deposited.

Opening a Joint Bank Account

The school will assist you in opening a bank account once you have received your Iqama.

ATMs and Debit/Credit Cards

Using your debit card (linked to the local bank) at the ATM is probably the easiest way to get cash in the KSA. There is a daily limit of SAR 5,000. ATMs also provide SADAD system, which allows you to pay additional services such as Internet bills, Mobile bills and air tickets from some airlines.

Credit Cards and Debit cards are also widely accepted in commercial centers and restaurants.

Online Services

Saudi banks have developed online systems, which are very reliable for banking services. In order to ensure a secure platform, Saudi banks link their online services to either mobile phones or additional devices (tokens) which provide authentication codes that help you to log in to the bank’s website. It is important that you provide your mobile number at the time of opening your bank account otherwise it will require another trip to the bank’s branch (not advisable) to update your information.

Sending Money Overseas

Sending money from your local bank to your account in the US or overseas must be done in person for the first time. This is in order to confirm the bank information of the beneficiary. Once the information is updated you can send money to your overseas bank account using the bank’s online portal.

The standard timeline to complete an international wire transfer ranges from two to four working days. The cost of a wire transfer is SAR 50 (approx. $13) automatically debited from your bank account. Additional costs from the destination account could vary from bank to bank. Please ask your personal bank for the specific bank fees for wire transfers.

Budget for Arrival in Jeddah

AISJ provides furnished housing equipped with all essential furniture and appliances. That said, many new arrivals purchase additional items such as wardrobes, home electronics, carpets, storage and children’s furniture. There are many places to buy these items and they vary widely in quality and price. However, most teachers spread out their purchases within the first few months of their arrival to defray the cost. You may want to bring some extra cash with you in case you have difficulty opening your bank account, or your credit cards do not work the first few weeks.

The biggest expense you may incur would be the purchase of a vehicle. AISJ provides transportation to and from school, but you will need to find a means of transport to the complex in the evenings and on weekends. Uber and Taxis are easy and inexpensive and rental cars are also affordable. However, many families and single teachers may want to purchase a car. Car prices here are relatively higher than in the US, but hold their value better.

Cost of Living in Jeddah

Jeddah, Saudi Arabia is one of the most affordable cities in the Middle East. It is the least expensive city in Saudi Arabia. Most teachers find living in Jeddah very reasonable because food, goods, and services are easily accessible within their budget while AISJ takes care of housing and utility bills including electricity, water and Internet. Additionally, salary packages for expat employees are tax free in the KSA.

The following are recent comparisons that will help you understand the cost of living in Jeddah.

Recent Comparisons

· Cost of living in Jeddah is about the same as Shanghai

· Cost of living in Jeddah is 39% more expensive than Kuala Lumpur

· Cost of living in Jeddah is 38% cheaper than Hong Kong

· Cost of living in Jeddah is 40% cheaper than Washington, DC

· Cost of living in Jeddah is 24% cheaper than Dubai

Source: expatistan.com/cost-of-living

Taxes

Saudi banks are required to inform the US of bank accounts opened to US citizens. US citizens working overseas are eligible to receive a foreign earned income exemption on federal taxes by filing form F-2555. For more information go to www.irs.gov. Beginning in 2018, Saudi Arabia implemented a VAT Tax at the rate of 5%.