Saudi Arabia is transforming. Vision 2030 is attracting hundreds of thousands of expats. Salaries are tax-free, the cost of living is lower than the UAE, and the investment landscape is opening up. But investing from Saudi has quirks: accessing global markets is less straightforward than from the UAE, and the local exchange (Tadawul) has its own rules for foreign investors. This guide covers everything.

Key takeaways

  • -Saudi Arabia has no personal income tax. Investment gains and dividends are tax-free for individuals.
  • -International brokers like Interactive Brokers and Saxo accept Saudi-based clients.
  • -Tadawul (the Saudi stock exchange) is accessible through local banks and CMA-licensed brokers.
  • -Zakat at 2.5% applies to Saudi and GCC nationals, not to expats.
  • -Currency risk: SAR is pegged to USD at 3.75, similar to the UAE AED peg.

Saudi tax environment for expat investors

Saudi Arabia has no personal income tax. Your salary, investment gains, dividends, and interest are all tax-free for individuals. The 15% VAT applies to goods and services, not investments.

Zakat (Islamic wealth tax at 2.5%) applies to Saudi and GCC nationals but not to expats. Non-GCC expats are not subject to Zakat on their personal wealth.

Like the UAE, your home country may still tax you. US citizens owe US tax on worldwide income. UK expats are subject to the Statutory Residence Test. Indian NRIs have specific rules around NRE/NRO accounts.

Choosing a broker from Saudi Arabia

International brokers: Interactive Brokers and Saxo both accept Saudi-based clients and give you access to global stock exchanges. eToro also operates in Saudi Arabia. These are the best options for investing in global ETFs and stocks.

Local brokers: SNB Capital, Al Rajhi Capital, and Riyad Capital are CMA-licensed and provide access to Tadawul and selected international markets. They are suitable if you want to invest in Saudi equities.

Robo-advisors: Sarwa operates in Saudi Arabia and offers automated portfolio management with global ETF portfolios. Minimum investment is lower than self-directed brokers.

For most expats focused on building long-term wealth, Interactive Brokers gives the best combination of global market access, low fees, and regulatory strength.

Read more

Open an Interactive Brokers account

What to invest in from Saudi Arabia

Global ETFs: the same UCITS ETFs that work for UAE investors work for Saudi-based ones. VWCE, IWDA, and VUAA are all accessible through Interactive Brokers or Saxo.

Tadawul stocks: the Saudi stock exchange is the largest in the Middle East by market cap. Major companies include Saudi Aramco, Al Rajhi Bank, and SABIC. Foreign investors can access Tadawul through Qualified Foreign Investor (QFI) programs or local brokers.

Sukuk and Islamic bonds: Saudi Arabia issues sovereign sukuk regularly. These are accessible through local banks and some international platforms.

Real estate: expats can now buy property in certain areas of Saudi Arabia under the Premium Residency scheme. Real estate investment is also possible through REITs listed on Tadawul.

Exit planning: end of service and repatriation

Saudi labor law provides end-of-service benefits (similar to UAE gratuity). For the first 5 years, you get half a month salary per year. After 5 years, one full month salary per year. This is based on your last drawn basic salary.

GOSI (General Organization for Social Insurance): expats contribute 2% of salary (employer contributes 2%) to GOSI for occupational hazard insurance. This is not a pension and you do not get a payout when you leave.

Before leaving, close local bank accounts, settle any outstanding obligations, and transfer your savings. There are no restrictions on repatriating your personal savings.

Frequently asked questions

Do expats pay tax in Saudi Arabia?
No. Saudi Arabia has no personal income tax. Investment gains, dividends, and interest are tax-free for individuals. Zakat applies only to Saudi and GCC nationals.
Can I use Interactive Brokers from Saudi Arabia?
Yes. Interactive Brokers accepts Saudi-based clients and provides access to global stock exchanges. You can invest in UCITS ETFs, US stocks, and other international instruments.
How does Saudi end-of-service benefit work?
You get half a month salary per year for the first 5 years, and one full month per year after that. Based on your last drawn basic salary. Paid as a lump sum when you leave.

Official sources and further reading

Related guides