Saudis and expats living in Saudi Arabia need a Tadawul account to buy and sell shares in the Saudi stock exchange. Here is a simple way to open an account in Tadawul or Saudi Stock Exchange.
Can expatriates buy shares in Saudi Arabia?
Yes, expatriates can invest their hard-earned money in the stock market and buy and sell shares of any company listed on Tadawul. The following people are allowed to buy shares in Saudi Arabia;
- Saudi Nationals.
- GCC nationals with a Saudi Bank account.
- Iqama holders of Saudi Arabia.
- Any business or company registered in Saudi Arabia.
How to open a Tadawul account in Saudi Arabia?
There are two ways to open an account in the Saudi Stock Exchange and I will explain about the second method;
- The formal procedure.
- Buying IPO Shares.
In order to open a Tadawul account in Saudi Arabia, you need to
1- Wait for an Initial Public Offering of any company. You will get the latest updates about the IPOs on the Tadawul website.
2- Buy any amount of shares in that public offering from any bank account. In order to do that;
- Login to your Internet Banking Account.
- Click on the “IPO Services” under the Investment tab.
- Select “Subscribe IPO”.
- Agree to the terms and conditions.
- Enter the number of shares you want to purchase in the IPO.
- Make the payment.
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3- After a few days, you will receive an SMS from your bank about the number of shares allotted to you.
4- The bank has already opened your Tadawul account and credited your IPO shares in that.
5- Take the login details of your investment account from your bank and start buying and selling shares.
6- In order to add more funds in your Tadawul account, you need to login to your internet banking account and click on the investment tab.
7- In order to transfer funds from your investment account to your bank account, login to your investment account and request for the transfer.