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Wednesday, 7 September 2016

What is the limit to transfer money from Saudi Arabia?

There are around 10 million expatriates living in Saudi Arabia. Obviously they come to earn money and send it back to their home countries. The economic condition of Saudi Arabia has been deteriorating from past few years due to drop in oil prices. Many expatriates have been going on final exit and others don’t really want to keep their savings in Saudi Arabia or Saudi bank accounts. Moreover, there have been discussions among government authorities for either imposing tax on foreign remittance from Saudi Arabia or limit the amount one person can transfer to his home country. People really want to know, about the current limit for the amount of money we can transfer from Saudi Arabia.


White Money: There is no limit to transfer money from Saudi Arabia as far as you are having ‘white money’ and it is sent through a legal banking channel. It is important to mention here that white money pertains to the money earned from legal business activity. For example, if you are working as an employee and earning a salary of SR 10,000 per month and you have worked in Saudi Arabia for 12 months and earned SR 120,000. In these 12 months you have not remitted any amount of money. Now after 1 year, you are planning to transfer SR 100,000 to your home country; as your family was not living here so SR 100,000 is your true saving out of money earned from legal source of income. Bottom line: if you are transferring more than your earnings, authorities have a right to investigate the matter.


Black Money: A problem arises with those businessmen who have been conducting business in Saudi Arabia on the name of some sponsor. These businessmen actually own the business but legally sponsor is the owner of the business. Just to fulfill requirements of Jawazat and Labor office, they sign a contract that they are employees and have been receiving minimal amount as salary e.g. SR 10,000 per month. Let’s say, a businessman is earning SR 100,000 per month and want to transfer this money from his bank account to his home country, he will be soon detected and caught by authorities since his total legal income is only SR 10,000, how can he transfer SR 100,000 per month.


Daily Limit of Banks: As we have mentioned earlier, there is no limit to transfer money to your country by government authorities, however banks have imposed some limits to reduce risk related to mishandling or unauthorized transactions. For example, SAMBA bank allows transferring around SR 67,000 per day and Al Rajhi Bank allows a transfer of SR 50,000 per day through internet banking. However, if you visit branch office along with your Iqama, they will allow you to transfer as much money as you want from your bank account. But it is always better to transfer money in small trenches e.g. SR 50,000 per day.



Other Laws of Saudi Arabia
  1. How much Cash can I take out of Saudi Arabia?
  2. Procedure to Transfer Money through Enjaz Remittance
  3. Foreign Remittance Charges from Saudi Arabia
  4. What is Hawala System of Remitting Money? Is it legal?
  5. Top 5 Reasons to Avoid Western Union for Remittance

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