Saudi Arabia - Revision history

imported>Jeeten.patel@thinkpublishing.co.uk at 16:16, 12 October 2015

2015-10-12T16:16:43Z

imported>Doug Williamson: Protected "Saudi Arabia": As discussed with Peter Matza 27 July 2015. (‎[edit=sysop] (indefinite) ‎[move=sysop] (indefinite))

2015-07-27T12:21:41Z

Protected "Saudi Arabia": As discussed with Peter Matza 27 July 2015. (‎[edit=sysop] (indefinite) ‎[move=sysop] (indefinite))

← Older revision

Revision as of 12:21, 27 July 2015

imported>Doug Williamson: Remove commercial bank links as requested by Peter Matza 27 July 2015.

2015-07-27T12:19:58Z

Remove commercial bank links as requested by Peter Matza 27 July 2015.

← Older revision		Revision as of 12:19, 27 July 2015
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	'''Saudi Arabian Monetary Agency'''		'''Saudi Arabian Monetary Agency'''
	* [http://www.sama.gov.sa http://www.sama.gov.sa]		* [http://www.sama.gov.sa http://www.sama.gov.sa]
	~~'''National Commercial Bank'''~~
	* [http://www.ncb.com.sa http://www.ncb.com.sa]
	~~'''Samba Financial Group'''~~
	* [http://www.samba.com.sa http://www.samba.com.sa]
	~~'''Riyad Bank'''~~
	* [http://www.riyadbank.com http://www.riyadbank.com]
	~~'''Al Rajhi Bank'''~~
	* [http://www.alrajhibank.com.sa http://www.alrajhibank.com.sa]
	'''Ministry of Finance'''		'''Ministry of Finance'''
	* [http://www.mof.gov.sa http://www.mof.gov.sa]		* [http://www.mof.gov.sa http://www.mof.gov.sa]

imported>Doug Williamson: Reverted edits by ChrisMueller (talk) to last revision by Jeeten.patel@thinkpublishing.co.uk

2015-07-27T11:51:22Z

Reverted edits by ChrisMueller (talk) to last revision by Jeeten.patel@thinkpublishing.co.uk

← Older revision		Revision as of 11:51, 27 July 2015
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	===Electronic and internet banking===		===Electronic and internet banking===
	Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. ~~[http://www.samba.com/en/personal-~~banking~~/ways-to-bank/samba-online.html Internet Banking]~~ is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels, with 49% of Saudis having access to the internet in mid 2012.		Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. Internet banking is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels, with 49% of Saudis having access to the internet in mid 2012.

	==Liquidity management==		==Liquidity management==

imported>ChrisMueller at 10:30, 27 July 2015

2015-07-27T10:30:39Z

← Older revision		Revision as of 10:30, 27 July 2015
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	===Electronic and internet banking===		===Electronic and internet banking===
	Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. Internet ~~banking~~ is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels, with 49% of Saudis having access to the internet in mid 2012.		Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. [http://www.samba.com/en/personal-banking/ways-to-bank/samba-online.html Internet Banking] is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels, with 49% of Saudis having access to the internet in mid 2012.

	==Liquidity management==		==Liquidity management==

imported>Jeeten.patel@thinkpublishing.co.uk at 17:18, 19 November 2014

2014-11-19T17:18:14Z

imported>Jeeten.patel@thinkpublishing.co.uk: Created page with "actskin {{Infobox |name = |bodystyle = width:400px; |titlestyle = |abovestyle = background:#e9d7e0; padding:5px 0px; |subheaderstyle = |title..."

2014-09-02T16:23:54Z

Created page with "<skin>actskin</skin> {{Infobox |name = |bodystyle = width:400px; |titlestyle = |abovestyle = background:#e9d7e0; padding:5px 0px; |subheaderstyle = |title..."

New page

<skin>actskin</skin>
{{Infobox
|name =
|bodystyle = width:400px;

|titlestyle =
|abovestyle = background:#e9d7e0; padding:5px 0px;
|subheaderstyle =
|title =
|above = KEY COUNTRY FACTS
|subheader =
|subheader2 =

|imagestyle = padding:10px 0px;
|captionstyle =
|image = [[File:Flag_saudi_arabia.png|border|160px|alt=Flag of Saudi Arabia]]
|caption =

|headerstyle = background:#e9d7e0;
|labelstyle = background:#e9d7e0;
|datastyle =

|header1 =
| label1 = System of government:
| data1 = monarchy
|header2 =
| label2 = Population:
| data2 = 27.35 million
|header3 =
| label3 = Currency:
| data3 = Saudi riyal (SAR)
|header4 =
| label4 = FX regime:
| data4 = pegged to USD
|header5 =
| label5 = GDP:
| data5 = US$718.5bn (2013 est)
|header6 =
| label6 = IGTA member:
| data6 = no
|header7 =
| label7 = FATF member:
| data7 = yes, through Gulf Cooperation Council (GCC) membership
|header8 =
| label8 = Treasury association:
| data8 = [http://www.treasurers.org/actmiddleeast ACT Middle East]

|belowstyle = background:#ddf;
|below =
}}

==Financial regulatory framework==
===Bank supervision===
The Saudi Arabian Monetary Agency (SAMA) is responsible for bank supervision in Saudi Arabia. SAMA operates in accordance with the Charter of the Saudi Arabian Monetary Agency approved initially by Royal Decree No 30/4/1/1047 (1952) and amended by Royal Decree No 23 of 1957, which gave SAMA its autonomy.

===Exchange controls===
There are no exchange controls applied by Saudi Arabia.

==Taxation framework==
===Corporate taxation===
Only non-Saudis and non-Gulf Cooperation Council (GCC) citizens are liable to corporate income tax in Saudi Arabia. GCC-registered entities operating as branches in Saudi Arabia are also liable to income tax.
Local companies are subject to zakat, an Islamic tax on net worth. In joint ventures, local shareholders’ and GCC shareholders’ attributable equity is subject to zakat, whilst the foreigner’s share of taxable income is subject to income tax. Zakat is assessed at 2.5% on the Zakat base of a Saudi shareholder.
The income tax rate is a flat rate of 20%. However, companies carrying on activities in the oil or natural gas sectors are subject to rates of 85% and 30% tax respectively.

===Capital gains===
A 20% capital gains tax is imposed on the disposal of shares in a resident company. Capital gains on the disposal of shares traded on the Saudi stock exchange are exempt if the shares were acquired after 2004.

===Taxation of dividends===
Payments for rents, insurance premiums, management fees and royalties to non-resident companies are assessed for Saudi Arabian withholding taxes at rates of 5–20%, depending on the type of service. The domestic company making the payment is liable for taxes relating to these foreign payments.

===Transfer pricing===
There is no specific transfer pricing legislation.

===Thin capitalisation===
There are no prescribed thin capitalisation rules in Saudi Arabia. However, for tax purposes, the deduction of loan interest is limited to the lower of actual expense or interest income plus 50% of taxable income calculated before interest income and interest expense.
Companies may be structured as they wish, but unless they meet specified criteria they are not eligible for investment incentives available under foreign capital investment regulations.

===Indirect taxes===
There are no consumption taxes in Saudi Arabia.

All tax information supplied by Deloitte Touche Tohmatsu and Deloitte Highlight 2014 (www.deloitte.com).

==Banking service provision==
Saudi Arabia’s banking sector consists of 12 local banks and 12 branches of foreign banks. Together they operate a total network of 1,696 branches (2012). There are four fully Islamic commercial banks in Saudi Arabia but all commercial banks provide some form of Islamic products due to the high demand for Shariah-compliant products.
Many of the leading international banks have established a presence in the sector, through branches and minority holdings in Saudi banks. International banks with minority holdings in local banks include HSBC (Saudi British Bank) and Crédit Agricole (Banque Saudi Fransi).
In terms of both assets and capital the banking sector is dominated by the National Commercial Bank, the first bank to be established in Saudi Arabia and one of the largest banks in the whole Gulf region. The government of Saudi Arabia has controlled a majority stake in the business since 1999 and holds minority shares in many other Saudi banks.
In recent years the banking sector in Saudi Arabia has enjoyed considerable growth and a surge in profitability. The effects of economic liberalisation and a boom in the Saudi economy have helped reverse the fortunes of what had previously been a largely underdeveloped market.

==Clearing and payment systems==
===Clearing systems===
All interbank payment and settlement systems in Saudi Arabia are managed and operated by SAMA.
The Saudi Arabian Riyal Interbank Express (SARIE) is Saudi Arabia’s automated real-time gross settlement (RTGS) system. Card payments are processed by the Saudi Payments Network (SPAN). The SADAD Payment System is Saudi Arabia’s national electronic bill presentment and payment (EBPP) service provider, enabling the payment of bills through various channels offered by banks. Saudi Arabia’s automated clearing house (ACH) consists of three clearing houses, which act together as a national electronic interbank cheque clearing system. There are seven other clearing houses located across Saudi Arabia for the manual clearing of cheques.
* '''SARIE''' – the SARIE RTGS system settles interbank transfers, customer credit transfers and direct debits. Transactions are settled electronically in real time with immediate finality, regardless of value. It is also used for the final settlement of participants’ net balances across Saudi Arabia’s other payments systems – ACH, SPAN and SADAD.
Both individual and batches of payments are settled by SARIE across participants’ bank accounts held at SAMA. There are currently 20 participants in the system in addition to SAMA.
SARIE uses a proprietary electronic network to communicate with participant banks. Payment messages are based on SWIFT international standards.
* '''SADAD''' – SADAD is Saudi Arabia’s EBPP system, providing a single platform that enables bank customers to make bill payments, such as repetitive utility bills or one-off fines.
Bill payments can be made via SADAD at bank branches, ATMs, online and through phone banking. Transactions are settled via SARIE at the end of each day. There are currently 14 banks and 119 billers participating in the system.
* '''SPAN''' – SPAN is a national card payments processing network, processing all card payments in Saudi Arabia. Transactions are settled via SARIE with immediate finality on a same-day basis.
In addition to SAMA there are currently 16 participants in the system.
A SPAN2 clearing system is currently being developed to handle the rapidly increasing payment card market in Saudi Arabia.
* '''ACH''' – Saudi Arabia’s ACH consists of three clearing houses acting together to process cheques as a national electronic interbank clearing system. The clearing houses are based at SAMA’s three largest branches in Riyadh, Jeddah and Dammam.
There are seven other clearing houses located across Saudi Arabia that process cheques manually, but all banks in Saudi Arabia participate in ACH.
Cheques that are drawn at banks based in Riyadh, Jeddah and Dammam are cleared via ACH on a next-day basis. Cheques cleared elsewhere but settled by ACH take an extra day for transit. Cheques cleared manually usually take two to three working days to clear. Cheques in foreign currency can take up to 21 working days to clear.
ACH cleared cheques are settled by SARIE.

===Payments===
The usage of payment cards has increased rapidly in Saudi Arabia in recent years. Debit cards account for the vast majority of issued cards. Although cheque usage has declined slightly in Saudi Arabia, the average value per cheque continues to rise. Direct debits are offered by most commercial banks and are usually used for utility bill payments. Automated electronic credit transfers are available but are mainly limited to business use. Paper-based credit transfers are also available.
* '''Credit transfers''' – automated electronic credit transfers are offered in Saudi Arabia for high-value payments and for salary payments by companies and the government. Credit transfers have increased substantially in recent years, by 16.8% and 22.9% in value and volume between 2011 and 2012.
Credit transfers are mainly used by businesses. Paper-based credit transfers are also offered by banks.
* '''Payment cards''' – payment card popularity has increased rapidly in Saudi Arabia in recent years, facilitated by an increase in ATM and point-of-sale (POS) terminals.
There were 16.5 million debit cards and 2.2 million credit cards in Saudi Arabia at the end of January 2013. The SPAN card is the debit card most commonly distributed by banks. Most credit cards are either MasterCard or Visa-branded.
Card payments are processed via SPAN, which connects banks to ATMs and POS terminals. SPAN also connects Saudi Arabia’s ATM networks to those in other GCC countries via the GCCNet ATM network.
* '''Direct debits''' – SARIE operates Saudi Arabia’s interbank direct debit service. Direct debits are used for utility bills and other low-value recurring payments.
* '''Cheques''' – cheques are used for commercial and retail payments in Saudi Arabia, with some employers using cheques for salary and pension payments.
They are processed both electronically and manually and as a result cheques have varying clearance times. Those processed in one of the ACH sites, in Riyadh, Jeddah and Dammam, are processed on a next-day basis. Manually cleared cheques are distributed among SAMA’s seven other branches and usually take two to three days. Cheques in foreign currency can take up to 21 days to clear.

==Cash and bank account management==
===Interest-bearing accounts===
Current accounts, saving accounts and time deposit accounts in Saudi Arabia can be interest bearing, subject to prior approval from the Saudi Arabian Monetary Agency (SAMA).

===Account opening requirements===
Residents in Saudi Arabia can hold local currency (SAR) accounts domestically and foreign currency accounts both domestically and abroad. Accounts in domestic currency are convertible into foreign currency.
If from within the GCC, non-residents are permitted to open and maintain SAR and foreign currency accounts domestically for business and credit purposes, subject to the submission of certain documents and approval from SAMA.
If from outside the GCC, non-resident non-banking companies are permitted to open domestic and foreign currency accounts, if they have projects or contracts in Saudi Arabia, subject to the recommendation of a rated bank, the submission of certain documents, permission from the Saudi Ministry of Commerce & Industry and approval from SAMA. However, accounts can be maintained only for the duration of the non-resident’s contract within Saudi Arabia. Signatories must have a residential licence in Saudi Arabia.
Non-resident non-banking companies from outside the GCC that do not have contracts or projects in Saudi Arabia cannot open bank accounts without prior approval from SAMA.

===Money laundering===
Saudi Arabia has implemented anti-money laundering legislation (Anti-Money Laundering Law of 2003; Rules Governing Anti-Money Laundering and Combating Terrorist Financing of 2003, updated 2008; and Banking Control Law of 1966). The Saudi Arabian Monetary Agency (SAMA) has also issued a series of Financing Rules and Guidelines, updated 2012.
Saudi Arabia is a member of the Gulf Co-operation Council (GCC). It is also a member of the Middle East and North Africa Financial Action Task Force (MENAFATF).
Saudi Arabia has established a Financial Intelligence Unit (FIU), the Saudi Anti-Financial Crime Unit (SAFCU), within the Ministry of the Interior, which is a member of the Egmont Group. The FIU refers all matters requiring investigation to SAMA.

''Supplied by BCL Burton Copeland (www.bcl.com). Data as at January 2014.''

===Cash concentration===
Cash concentration services are available in Saudi Arabia, with both zero balancing and target balancing available from cash management banks. It is permitted to use cash concentration arrangements between different legal entities only with prior SAMA approval.

===Notional pooling===
Notional pooling is permitted in Saudi Arabia. The participation of multiple legal entities requires SAMA approval.

===Cross-border issues===
Some cross-border cash management structures are available in Saudi Arabia, such as cross-border cash concentration techniques, subject to regulatory approval from SAMA. However, cross-border notional pooling techniques are impractical due to significant regulatory restrictions.

===Electronic and internet banking===
Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. Internet banking is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels, with 49% of Saudis having access to the internet in mid 2012.

==Liquidity management==
===Short-term investments===
Short-term investments include:
* '''Treasury bills''' – Saudi Arabia’s government issues Treasury bills (T-bills), with maturities ranging from one week to one year at weekly auctions.
* '''Repurchase agreements''' (repos) – repos are offered by SAMA, with terms usually ranging from overnight to one week for up to 75% of a bank’s T-bill holdings. Repos are not permitted to be traded outside Saudi Arabia.
* '''Term deposits''' – time deposits are offered with maturities of up to 12 months in SAR and foreign currencies.
* '''Certificates of deposit (CDs)''' – CDs are not available in Saudi Arabia.
* '''Commercial paper (CP)''' – CP is permitted in Saudi Arabia although it is not widely issued.

===Short-term borrowing===
Borrowing instruments include:
* '''Overdrafts''' – overdrafts are a very popular short-term borrowing tool in Saudi Arabia.
* '''Bank lines of credit and loans''' – formalised short-term loans are frequently used for commercial credit.
* '''Commercial paper''' – CP is not frequently issued for borrowing, although it is permitted.

==Websites==
'''Saudi Arabian Monetary Agency'''
* [http://www.sama.gov.sa http://www.sama.gov.sa]
'''National Commercial Bank'''
* [http://www.ncb.com.sa http://www.ncb.com.sa]
'''Samba Financial Group'''
* [http://www.samba.com.sa http://www.samba.com.sa]
'''Riyad Bank'''
* [http://www.riyadbank.com http://www.riyadbank.com]
'''Al Rajhi Bank'''
* [http://www.alrajhibank.com.sa http://www.alrajhibank.com.sa]
'''Ministry of Finance'''
* [http://www.mof.gov.sa http://www.mof.gov.sa]
'''Ministry of Commerce and Industry'''
* [http://www.mci.gov.sa http://www.mci.gov.sa]
'''Council of Saudi Chambers of Commerce'''
* [http://www.csc.org.sa http://www.csc.org.sa]
'''Saudi Arabian General Investment Authority'''
* [http://www.sagia.gov.sa http://www.sagia.gov.sa]
'''Saudi Stock Market'''
* [http://www.tadawul.com.sa http://www.tadawul.com.sa]
'''Capital Markets Authority'''
* [http://www.cma.org.sa http://www.cma.org.sa]

[[Category:Book_Export]]

← Older revision		Revision as of 16:16, 12 October 2015
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	\|header5 =		\|header5 =
	\| label5 = GDP:		\| label5 = GDP:
	\| data5 = US$~~718.5bn~~ (~~2013~~ est)		\| data5 = US$753bn (2014 est)
	\|header6 =		\|header6 =
	\| label6 = IGTA member:		\| label6 = IGTA member:
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	There are no consumption taxes in Saudi Arabia.		There are no consumption taxes in Saudi Arabia.

	''All tax information supplied by Deloitte Touche Tohmatsu and Deloitte Highlight ~~2014~~ ([http://www.deloitte.com www.deloitte.com]).''		''All tax information supplied by Deloitte Touche Tohmatsu and Deloitte Highlight 2015 ([http://www.deloitte.com www.deloitte.com]).''

	==Banking service provision==		==Banking service provision==
	Saudi Arabia’s banking sector consists of 12 local banks and 12 branches of foreign banks. Together they operate a total network of 1,~~696~~ branches (~~2012~~). There are four fully Islamic commercial banks in Saudi Arabia but all commercial banks provide some form of Islamic products due to the high demand for Shariah-compliant products.		Saudi Arabia’s banking sector consists of 12 local banks and 12 branches of foreign banks. Together they operate a total network of 1,894 branches (2014). There are four fully Islamic commercial banks in Saudi Arabia but all commercial banks provide some form of Islamic products due to the high demand for Shariah-compliant products.
	Many of the leading international banks have established a presence in the sector, through branches and minority holdings in Saudi banks. International banks with minority holdings in local banks include HSBC (Saudi British Bank) and Crédit Agricole (Banque Saudi Fransi).		Many of the leading international banks have established a presence in the sector, through branches and minority holdings in Saudi banks. International banks with minority holdings in local banks include HSBC (Saudi British Bank) and Crédit Agricole (Banque Saudi Fransi).
	In terms of both assets and capital the banking sector is dominated by the National Commercial Bank, the first bank to be established in Saudi Arabia and one of the largest banks in the whole Gulf region. The government of Saudi Arabia has controlled a majority stake in the business since 1999 and holds minority shares in many other Saudi banks.		In terms of both assets and capital the banking sector is dominated by the National Commercial Bank, the first bank to be established in Saudi Arabia and one of the largest banks in the whole Gulf region. The government of Saudi Arabia has controlled a majority stake in the business since 1999 and holds minority shares in many other Saudi banks.
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	The Saudi Arabian Riyal Interbank Express (SARIE) is Saudi Arabia’s automated real-time gross settlement (RTGS) system. Card payments are processed by the Saudi Payments Network (SPAN). The SADAD Payment System is Saudi Arabia’s national electronic bill presentment and payment (EBPP) service provider, enabling the payment of bills through various channels offered by banks. Saudi Arabia’s automated clearing house (ACH) consists of three clearing houses, which act together as a national electronic interbank cheque clearing system. There are seven other clearing houses located across Saudi Arabia for the manual clearing of cheques.		The Saudi Arabian Riyal Interbank Express (SARIE) is Saudi Arabia’s automated real-time gross settlement (RTGS) system. Card payments are processed by the Saudi Payments Network (SPAN). The SADAD Payment System is Saudi Arabia’s national electronic bill presentment and payment (EBPP) service provider, enabling the payment of bills through various channels offered by banks. Saudi Arabia’s automated clearing house (ACH) consists of three clearing houses, which act together as a national electronic interbank cheque clearing system. There are seven other clearing houses located across Saudi Arabia for the manual clearing of cheques.
	* '''SARIE''' – the SARIE RTGS system settles interbank transfers, customer credit transfers and direct debits. Transactions are settled electronically in real time with immediate finality, regardless of value. It is also used for the final settlement of participants’ net balances across Saudi Arabia’s other payments systems – ACH, SPAN and SADAD.		* '''SARIE''' – the SARIE RTGS system settles interbank transfers, customer credit transfers and direct debits. Transactions are settled electronically in real time with immediate finality, regardless of value. It is also used for the final settlement of participants’ net balances across Saudi Arabia’s other payments systems – ACH, SPAN and SADAD.
	Both individual and batches of payments are settled by SARIE across participants’ bank accounts held at SAMA. There are currently 20 participants in the system in addition to SAMA.		Both individual and batches of payments are settled by SARIE across participants’ bank accounts held at SAMA. There are currently 23 participants in the system in addition to SAMA.
	SARIE uses a proprietary electronic network to communicate with participant banks. Payment messages are based on SWIFT international standards.		SARIE uses a proprietary electronic network to communicate with participant banks. Payment messages are based on SWIFT international standards.
	* '''SADAD''' – SADAD is Saudi Arabia’s EBPP system, providing a single platform that enables bank customers to make bill payments, such as repetitive utility bills or one-off fines.		* '''SADAD''' – SADAD is Saudi Arabia’s EBPP system, providing a single platform that enables bank customers to make bill payments, such as repetitive utility bills or one-off fines.
	Bill payments can be made via SADAD at bank branches, ATMs, online and through phone banking. Transactions are settled via SARIE at the end of each day. There are currently 14 banks and ~~119~~ billers participating in the system.		Bill payments can be made via SADAD at bank branches, ATMs, online and through phone banking. Transactions are settled via SARIE at the end of each day. There are currently 16 banks and 141 billers participating in the system.
	* '''SPAN''' – SPAN is a national card payments processing network, processing all card payments in Saudi Arabia. Transactions are settled via SARIE with immediate finality on a same-day basis.		* '''SPAN''' – SPAN is a national card payments processing network, processing all card payments in Saudi Arabia. Transactions are settled via SARIE with immediate finality on a same-day basis.
	In addition to SAMA there are currently 16 participants in the system.		In addition to SAMA there are currently 17 participants in the system.
	A SPAN2 clearing system is currently being developed to handle the rapidly increasing payment card market in Saudi Arabia.		A SPAN2 clearing system is currently being developed, which will be renamed MADA, to handle the rapidly increasing payment card market in Saudi Arabia.
	* '''ACH''' – Saudi Arabia’s ACH consists of three clearing houses acting together to process cheques as a national electronic interbank clearing system. The clearing houses are based at SAMA’s three largest branches in Riyadh, Jeddah and Dammam.		* '''ACH''' – Saudi Arabia’s ACH consists of three clearing houses acting together to process cheques as a national electronic interbank clearing system. The clearing houses are based at SAMA’s three largest branches in Riyadh, Jeddah and Dammam.
	There are seven other clearing houses located across Saudi Arabia that process cheques manually, but all banks in Saudi Arabia participate in ACH.		There are seven other clearing houses located across Saudi Arabia that process cheques manually, but all banks in Saudi Arabia participate in ACH.
	Cheques that are drawn at banks based in Riyadh, Jeddah and Dammam are cleared via ACH on a next-day basis. Cheques cleared elsewhere but settled by ACH take an extra day for transit. Cheques cleared manually usually take two to three working days to clear. Cheques in foreign currency can take up to 21 working days to clear.		Cheques that are drawn on banks based in Riyadh, Jeddah and Dammam are cleared electronically and settled via ACH on a next-day basis. Cheques cleared elsewhere but settled by ACH take an extra day for transit. Cheques cleared manually usually take two to three working days to clear. Cheques in foreign currency can take up to 21 working days to clear.
	ACH cleared cheques are settled by SARIE.		ACH cleared cheques are settled by SARIE.

	===Payments===		===Payments===
	The usage of payment cards has increased rapidly in Saudi Arabia in recent years. Debit cards account for the vast majority of issued cards. Although cheque usage has declined slightly in Saudi Arabia, the average value per cheque continues to rise. Direct debits are offered by most commercial banks and are usually used for utility bill payments. Automated electronic credit transfers are available but are mainly limited to business use. Paper-based credit transfers are also available.		The usage of payment cards has increased rapidly in Saudi Arabia in recent years. Debit cards account for the vast majority of issued cards. Although cheque usage has declined slightly in Saudi Arabia, the average value per cheque continues to rise. Direct debits are offered by most commercial banks and are usually used for utility bill payments. Automated electronic credit transfers are available but are mainly limited to business use. Paper-based credit transfers are also available.
	* '''Credit transfers''' – automated electronic credit transfers are offered in Saudi Arabia for high-value payments and for salary payments by companies and the government. Credit transfers have increased substantially in recent years, by 16.8% and 22.9% in value and volume between ~~2011~~ and ~~2012~~.		* '''Credit transfers''' – automated electronic credit transfers are offered in Saudi Arabia for high-value payments and for salary payments by companies and the government. Credit transfers have increased substantially in recent years, by 12.9% and 22% in value and volume between 2012 and 2013.
	:Credit transfers are mainly used by businesses. Paper-based credit transfers are also offered by banks.		:Credit transfers are mainly used by businesses. Paper-based credit transfers are also offered by banks.
	* '''Payment cards''' – payment card popularity has increased rapidly in Saudi Arabia in recent years, facilitated by an increase in ATM and point-of-sale (POS) terminals.		* '''Payment cards''' – payment card popularity has increased rapidly in Saudi Arabia in recent years, facilitated by an increase in ATM and point-of-sale (POS) terminals. There were 15,516 ATM terminals and 138,779 POS terminals in Saudi Arabia at the end of 2014.
	:There were 16.5 million debit cards and 2.2 million credit cards in Saudi Arabia at the end of ~~January 2013~~. The SPAN card is the debit card most commonly distributed by banks. Most credit cards are either MasterCard or Visa-branded.		:There were 20.5 million debit cards and 1.8 million credit cards in Saudi Arabia at the end of 2014. The SPAN card is the debit card most commonly distributed by banks. Most credit cards are either MasterCard or Visa-branded.
	Card payments are processed via SPAN, which connects banks to ATMs and POS terminals. SPAN also connects Saudi Arabia’s ATM networks to those in other GCC countries via the GCCNet ATM network.		Card payments are processed via SPAN, which connects banks to ATMs and POS terminals. SPAN also connects Saudi Arabia’s ATM networks to those in other GCC countries via the GCCNet ATM network.
	* '''Direct debits''' – SARIE operates Saudi Arabia’s interbank direct debit service. Direct debits are used for utility bills and other low-value recurring payments.		* '''Direct debits''' – SARIE operates Saudi Arabia’s interbank direct debit service. Direct debits are used for utility bills and other low-value recurring payments.
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	Saudi Arabia has established a Financial Intelligence Unit (FIU), the Saudi Anti-Financial Crime Unit (SAFCU), within the Ministry of the Interior, which is a member of the Egmont Group. The FIU refers all matters requiring investigation to SAMA.		Saudi Arabia has established a Financial Intelligence Unit (FIU), the Saudi Anti-Financial Crime Unit (SAFCU), within the Ministry of the Interior, which is a member of the Egmont Group. The FIU refers all matters requiring investigation to SAMA.

	''Supplied by BCL Burton Copeland ([http://www.bcl.com www.bcl.com]). Data as at January ~~2014~~.''		''Supplied by BCL Burton Copeland ([http://www.bcl.com www.bcl.com]). Data as at January 2015.''

	===Cash concentration===		===Cash concentration===
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	===Cross-border issues===		===Cross-border issues===
	~~Some cross-border cash management structures are available in Saudi Arabia, such as cross~~-border cash concentration ~~techniques, subject to regulatory approval from SAMA. However, cross-border~~ notional pooling techniques are impractical due to significant regulatory restrictions.		Cross-border cash concentration and notional pooling techniques are impractical due to significant regulatory restrictions.

	===Electronic and internet banking===		===Electronic and internet banking===
	Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. Internet banking is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels~~, with 49% of Saudis having access~~ to ~~the internet~~ in ~~mid 2012~~.		Electronic banking products are widely available in Saudi Arabia, although mainly utilised by businesses. There is currently no national bank-independent electronic banking standard. Internet banking is widely available in Saudi Arabia, although its use by individuals is limited due to low internet penetration levels. More than 18 million users were registered to using online banking in December 2014.

	==Liquidity management==		==Liquidity management==
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	'''Saudi Stock Market'''		'''Saudi Stock Market'''
	* [http://www.tadawul.com.sa http://www.tadawul.com.sa]		* [http://www.tadawul.com.sa http://www.tadawul.com.sa]
	'''Capital ~~Markets~~ Authority'''		'''Capital Market Authority'''
	* [http://www.cma.org.sa http://www.cma.org.sa]		* [http://www.cma.org.sa http://www.cma.org.sa]

	[[Category:Book_Export]]		[[Category:Book_Export]]

← Older revision		Revision as of 17:18, 19 November 2014
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	There are no consumption taxes in Saudi Arabia.		There are no consumption taxes in Saudi Arabia.

	All tax information supplied by Deloitte Touche Tohmatsu and Deloitte Highlight 2014 (www.deloitte.com).		''All tax information supplied by Deloitte Touche Tohmatsu and Deloitte Highlight 2014 ([http://www.deloitte.com www.deloitte.com]).''

	==Banking service provision==		==Banking service provision==
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	The usage of payment cards has increased rapidly in Saudi Arabia in recent years. Debit cards account for the vast majority of issued cards. Although cheque usage has declined slightly in Saudi Arabia, the average value per cheque continues to rise. Direct debits are offered by most commercial banks and are usually used for utility bill payments. Automated electronic credit transfers are available but are mainly limited to business use. Paper-based credit transfers are also available.		The usage of payment cards has increased rapidly in Saudi Arabia in recent years. Debit cards account for the vast majority of issued cards. Although cheque usage has declined slightly in Saudi Arabia, the average value per cheque continues to rise. Direct debits are offered by most commercial banks and are usually used for utility bill payments. Automated electronic credit transfers are available but are mainly limited to business use. Paper-based credit transfers are also available.
	* '''Credit transfers''' – automated electronic credit transfers are offered in Saudi Arabia for high-value payments and for salary payments by companies and the government. Credit transfers have increased substantially in recent years, by 16.8% and 22.9% in value and volume between 2011 and 2012.		* '''Credit transfers''' – automated electronic credit transfers are offered in Saudi Arabia for high-value payments and for salary payments by companies and the government. Credit transfers have increased substantially in recent years, by 16.8% and 22.9% in value and volume between 2011 and 2012.
	Credit transfers are mainly used by businesses. Paper-based credit transfers are also offered by banks.		:Credit transfers are mainly used by businesses. Paper-based credit transfers are also offered by banks.
	* '''Payment cards''' – payment card popularity has increased rapidly in Saudi Arabia in recent years, facilitated by an increase in ATM and point-of-sale (POS) terminals.		* '''Payment cards''' – payment card popularity has increased rapidly in Saudi Arabia in recent years, facilitated by an increase in ATM and point-of-sale (POS) terminals.
	There were 16.5 million debit cards and 2.2 million credit cards in Saudi Arabia at the end of January 2013. The SPAN card is the debit card most commonly distributed by banks. Most credit cards are either MasterCard or Visa-branded.		:There were 16.5 million debit cards and 2.2 million credit cards in Saudi Arabia at the end of January 2013. The SPAN card is the debit card most commonly distributed by banks. Most credit cards are either MasterCard or Visa-branded.
	Card payments are processed via SPAN, which connects banks to ATMs and POS terminals. SPAN also connects Saudi Arabia’s ATM networks to those in other GCC countries via the GCCNet ATM network.		Card payments are processed via SPAN, which connects banks to ATMs and POS terminals. SPAN also connects Saudi Arabia’s ATM networks to those in other GCC countries via the GCCNet ATM network.
	* '''Direct debits''' – SARIE operates Saudi Arabia’s interbank direct debit service. Direct debits are used for utility bills and other low-value recurring payments.		* '''Direct debits''' – SARIE operates Saudi Arabia’s interbank direct debit service. Direct debits are used for utility bills and other low-value recurring payments.
	* '''Cheques''' – cheques are used for commercial and retail payments in Saudi Arabia, with some employers using cheques for salary and pension payments.		* '''Cheques''' – cheques are used for commercial and retail payments in Saudi Arabia, with some employers using cheques for salary and pension payments.
	They are processed both electronically and manually and as a result cheques have varying clearance times. Those processed in one of the ACH sites, in Riyadh, Jeddah and Dammam, are processed on a next-day basis. Manually cleared cheques are distributed among SAMA’s seven other branches and usually take two to three days. Cheques in foreign currency can take up to 21 days to clear.		:They are processed both electronically and manually and as a result cheques have varying clearance times. Those processed in one of the ACH sites, in Riyadh, Jeddah and Dammam, are processed on a next-day basis. Manually cleared cheques are distributed among SAMA’s seven other branches and usually take two to three days. Cheques in foreign currency can take up to 21 days to clear.

	==Cash and bank account management==		==Cash and bank account management==
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	Saudi Arabia has established a Financial Intelligence Unit (FIU), the Saudi Anti-Financial Crime Unit (SAFCU), within the Ministry of the Interior, which is a member of the Egmont Group. The FIU refers all matters requiring investigation to SAMA.		Saudi Arabia has established a Financial Intelligence Unit (FIU), the Saudi Anti-Financial Crime Unit (SAFCU), within the Ministry of the Interior, which is a member of the Egmont Group. The FIU refers all matters requiring investigation to SAMA.

	''Supplied by BCL Burton Copeland (www.bcl.com). Data as at January 2014.''		''Supplied by BCL Burton Copeland ([http://www.bcl.com www.bcl.com]). Data as at January 2014.''

	===Cash concentration===		===Cash concentration===