Relocating to Saudi Arabia is a bold step that opens up a world of opportunities, from tax-free income to a thriving expat community and the chance to experience a rich and unique culture.
However, moving to Saudi Arabia from the UK involves more than just booking a flight and packing your bags.
There are essential financial, legal, and lifestyle considerations to plan for.
In this guide, we’ll explore the key aspects of moving to Saudi Arabia, share practical tips, and provide case studies to illustrate the process.
Whether you’re an expat in Riyadh, Jeddah, or heading to other parts of the Kingdom, preparation is key to a successful transition.
Key Considerations When Moving from the UK to Saudi Arabia
Understanding Residency Rules
Saudi Arabia has strict residency regulations, and all expatriates require a sponsor (kafeel) to live and work in the Kingdom.
Your employer typically acts as your sponsor and will arrange a work visa for you.
It’s essential to ensure all your documentation, including your employment contract, is in order before departure.
Navigating the Legal System
Saudi Arabia follows Islamic law (Sharia), which may differ significantly from the legal framework in the UK.
Understanding these laws and adhering to local customs is crucial.
This includes dress codes, alcohol restrictions, and rules around social behaviour.
Managing Finances Before and After the Move
- Banking: Setting up a Saudi bank account is a top priority once you arrive. Most expats use international banks with branches in Saudi Arabia, such as HSBC or Standard Chartered, to simplify money transfers.
- Savings Plan: Moving to Saudi Arabia is an excellent opportunity to save, thanks to the absence of income tax. Create a financial plan to make the most of this benefit.
Planning for Family
If you’re moving with family, research schooling options.
International schools are the most popular choice for expats, offering British, American, or IB curriculums.
Note that tuition fees can be high, so factor this into your budget if they are not covered by your employer.
Adapting to a Different Lifestyle
- Climate: Saudi Arabia is known for its hot climate, with summer temperatures often exceeding 40°C.
- Culture: While Riyadh and other cities are becoming more open to Western influences, respecting Saudi traditions and customs is vital for a smooth adjustment.
- Expat Communities: Engaging with expat groups can help you build a social network and find support during your transition.
Financial Checklist for Moving to Saudi Arabia
Before moving, ensure the following financial aspects are covered:
- Notify HMRC of your move to avoid unnecessary tax complications.
- Arrange for a clear record of your UK pensions and explore options to continue paying into a pension scheme while abroad.
- Look to continue making National Insurance Contributions while you are living in Saudi Arabia.
- Close or notify utilities and service providers in the UK.
- Make sure that any life insurance policies that you have still cover you while living overseas.
- Research the cost of living in Saudi Arabia. While salaries are competitive, expenses such as schooling, housing, and healthcare can add up.
Case Study: James and Sophie – Making the Most of an Expat Assignment in Saudi Arabia
Meet James and Sophie
James (56) and Sophie (53) are both British citizens.
They have three grown-up daughters who are now financially independent.
They’ve spent their entire lives in the UK but are about to embark on their first overseas adventure—a four-year expat assignment in Saudi Arabia.
James, an experienced executive, has been offered an exciting role on the NEOM project, while Sophie plans to take a break from work to fully embrace their new expat lifestyle.
Challenges James and Sophie Faced
As they prepared for their move, James and Sophie had several key concerns:
- Tax-Free Income: While their income in Saudi Arabia will be tax-free, they were unsure how best to save and invest their surplus income without access to UK savings vehicles like ISAs or pensions.
- Limited Financial Advice: They discovered that most UK-based financial advisers wouldn’t work with clients living overseas, leaving them feeling unsupported during this transition.
- Retirement Goals: They wanted to use this opportunity to set aside significant savings to boost their retirement fund while ensuring their investments were transparent, low-cost, and well-diversified.
- Cross-Border Complexity: They were unsure how their expat status might impact their long-term financial planning, especially when they returned to the UK after four years.
How a UK-Qualified Expat Financial Adviser Helped
James and Sophie decided to work with a UK-qualified independent financial adviser (IFA) who specializes in expat financial advice.
This decision proved to be a game-changer.
Step 1: Creating a Robust Financial Plan
The adviser worked closely with James and Sophie to understand their goals, timeline, and concerns.
Together, they created a clear financial plan designed to maximize their savings while they were in Saudi Arabia.
Step 2: Transparent and Low-Cost Investments
Their adviser recommended a well-diversified investment strategy that was tailored to their unique needs as expats. This solution was:
- Cost-Effective: Avoiding unnecessary fees that could eat into their returns.
- Transparent: Giving James and Sophie full visibility over their investments.
- Globally Diversified: Reducing risk by spreading investments across different regions and sectors.
Step 3: Cross-Border Expertise
The adviser ensured that their plan aligned with both UK and Saudi Arabian financial regulations.
They also factored in their eventual return to the UK, so James and Sophie could enjoy a smooth financial transition back to retirement.
The Results
By working with a specialist expat IFA, James and Sophie were able to:
- Save Tax-Free Income Effectively: Their adviser helped them make the most of their surplus income during their time in Saudi Arabia.
- Enjoy Peace of Mind: They knew their investments were being managed professionally, with a clear focus on their long-term goals.
- Boost Their Retirement Savings: They significantly increased their retirement fund during their expat assignment, setting them up for a comfortable future back in the UK.
- Embrace the Expat Experience: With their financial concerns addressed, they were free to fully enjoy their new lifestyle and the adventure of living in Saudi Arabia.
Top Tips for Expats Moving from the UK to Saudi Arabia
Here’s a quick-reference table to help you navigate the move:
Area | Advice |
| Residency | Ensure your employer arranges a valid work visa before your arrival. |
| Banking | Open an offshore bank account to simplify transactions. |
| Tax Compliance | Inform HMRC of your move to avoid dual tax obligations. |
| Schooling | Budget for international school fees if moving with children. |
| Healthcare | Invest in comprehensive health insurance, as expats are not covered by public services. |
| Savings and Investments | Take advantage of tax-free income to grow your savings and investments. |
| Lifestyle | Respect Saudi laws and customs to integrate smoothly into society. |
Embracing Life in Saudi Arabia
Saudi Arabia’s Vision 2030 initiative has opened the country to new opportunities for expats, creating a vibrant environment where tradition meets modernity.
Cities like Riyadh and Jeddah offer world-class infrastructure, while the Kingdom’s cultural heritage provides endless opportunities for exploration.
While moving to Saudi Arabia involves adjustments, the experience can be incredibly rewarding.
With proper financial planning, you can focus on enjoying your new adventure without worrying about your financial security.
Are You Moving to Saudi Arabia?
If you’re relocating to Saudi Arabia and need help with your financial planning, we’re here to guide you.
Whether it’s investing your savings, maintaining your UK pensions, or planning your retirement, professional advice can make all the difference.
Contact us today to start planning your financial future with confidence!
