Saudi Arabia, with its large economy and expanding workforce, offers enormous opportunity for both local and international businesses. But trying to manage banking and payroll functions here? It’s more complex than most newcomers expect. The issues crop up fast: complicated local banking rules, shifting currency regulations, strict labor laws, slow technological adaptation, and the unique cultural landscape. Sometimes, you think you’ve got it under control—then, suddenly, another hurdle appears.
Payroll banking issues in Saudi Arabia look simple at first, but are full of hidden details. Much of the pressure falls on partner management, HR directors, payroll teams, and global mobility managers, especially in Series B and C startups and established technology firms. As companies look to scale in this region, understanding local practices is just the start.
At EWS Limited, we’ve seen it all. We’ve watched fresh entrants struggle with opening payroll accounts. We’ve helped established firms navigate fast-changing bank compliance checks. And perhaps, most of all, we’ve had to become experts in smoothing out the complexities that come with local and international payroll needs.
The Saudi banking sector is modern in some ways, and cautious in others. According to sector reports, retail credit in Saudi Arabia increased by 6.7% in 2023, mostly due to a spike in mortgages. Yet, non-performing loans actually improved, dropping from 1.8% in 2022 to 1.5% in 2023, which might feel reassuring for now. Still, the banking sector resists rapid change. This means payroll teams must constantly adapt to shifting compliance requirements and reporting rules. More details on Saudi banking sector trends here.
Multinational companies often wonder why local banks don’t expand as quickly as some of their clients. Despite major businesses setting up regional headquarters in Riyadh (thanks to programs like ‘Programme HQ’), the banks themselves are slow to move, often hesitant due to strict regulatory conditions. These regulatory considerations are front-and-center for every payroll and banking decision in the country.
Payroll isn’t insulated from broader market conditions. The volatility of the Tadawul All-Share Index—which fell over 9% in 2025—brings added stress. Why does this matter for payroll? Lower market confidence can mean more conservative banking practices and unpredictable processing delays. Add in falling oil prices, increased debt from new sovereign issuances, and persistent worries about economic reform, and you get a climate where payroll is often anything but routine. Read more about the Tadawul Index fall.
Sometimes, it all feels a bit overwhelming. But, it gets easier with the right support.
How currency fluctuations impact payroll operationsManaging payroll in Saudi Arabia involves constant vigilance over the currency’s performance, especially for international businesses paying staff in SAR as well as other denominations. Fluctuating rates create a tricky environment, exposing both companies and employees to unexpected shortfalls or surpluses.
When oil prices fall—as they did in 2025—exchange rates may react quickly, and debt sales spike to make up revenue gaps. For example, the Public Investment Fund prepared to issue between $1.5 and $2 billion in sukuk for funding needs just as oil slipped. This chain reaction forces payroll managers to rethink remittance timings and currency conversion strategies. View the details on debt issuance changes.
Exchange risks aren’t theoretical. A delay in executing payroll, even by a day, might mean millions lost across a large, cross-currency workforce. Here’s a look at typical risks:
EWS helps its clients minimize such currency risks through multi-currency payroll solutions, which feature built-in checks to ensure timely payments and accurate conversions. You can read more about how such solutions help simplify global payroll operations in our article about multi-currency payroll solutions.
If there’s anything that truly complicates payroll, it’s Saudi Arabia’s strict labor laws. For every payment you process, there are numerous compliance checks, tight deadlines, and new rules published without much warning. Even a minor paperwork slip-up can mean delayed salaries or even fines. Here’s the heart of the issue:
Rules change. Fast. Sometimes, just when you think you’ve learned them all.
EWS keeps clients ahead by keeping a close eye on local regulation updates. A regular, proactive audit and frequent training are part of our service, helping avoid surprises. Our compliance checklist resource, the international hiring compliance checklist, is a helpful tool for companies scaling teams in Saudi Arabia and beyond.
Opening payroll bank accounts: what companies faceArriving in Saudi Arabia, companies often expect opening a payroll account to be fast and simple. In reality, it’s a slow-moving, labyrinthine process. Banks usually ask for a mountain of paperwork:
Even once the account is open, initial transactions are scrutinized, and sometimes, the bank may request further documentation at any point. Regulatory suspicions arise, even for long-standing companies.
There’s no shortcut. Patience is a necessity, not just a virtue.
For international clients working with EWS, our centralised contact model means we handle the back-and-forth, translations, and periodic check-ins, so you focus on your core business instead of chasing signatures.
Saudi’s digital banking growth is impressive, and many companies want to take advantage of new online tools to automate and manage payroll. Yet, digital progress has introduced another layer of complexity.
IT managers, especially in cybersecurity roles, must coordinate closely with HR, payroll, and external partners to ensure that controls are updated and tested—sometimes more often than expected.
EWS includes cybersecurity awareness and training as a routine part of our onboarding for payroll clients. We also advise clients on which digital platforms best comply with local standards, reducing exposure without adding excessive complexity.
Relocation, global mobility, and payroll challengesMany tech companies and startups moving talent to Saudi Arabia discover that relocation is a logistical tangle, especially regarding payroll banking. Every incoming employee needs a local bank account, and sometimes the process can take weeks due to ID verification delays or policy changes at the local branch.
Mobility is not just about moving people; it’s about making sure they can get paid.
EWS assists businesses with every step: from sorting immigration paperwork to managing the payroll transition at each move. We take care of risks, obligations, and administration, so your expansion is smoother and, perhaps, a little less stressful. For more on our support with Saudi hiring and payroll, check out our Employer of Record service.
Streamlining payroll: where ews stands outThe Saudi market is unique—what works elsewhere can fall flat here. EWS Limited stands apart by providing a centralised point of contact, which removes much of the paperwork grind for our clients. Our expertise means we foresee many challenges, tackling them before they grow into bigger headaches.
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