Saudi Arabia Tightens Oversight on Bank Transfers to UAE

Companies moving funds between Saudi Arabia and the United Arab Emirates are facing tighter regulatory oversight in 2026, as Saudi banks apply enhanced compliance checks to UAE-bound transfers. Some businesses have reported delays, returned payments, or the need to route funds through third countries.

The measure is described as risk-based oversight rather than a publicly announced blanket ban or a country-specific direct restriction. It reflects standard anti-crime compliance procedures applied by banks based on their internal risk assessments, which include country and geographic risk factors.

The Saudi central bank's stated position is that banks apply controls and preventive measures A current official rule for payments sent to the UAE requires that the correct Purpose of Payment Code be included on each transaction — a detail businesses should verify before sending funds to avoid processing issues.

Why it matters

For companies and individuals with commercial or family ties across the two countries, the enhanced checks can mean longer clearance times and, in some cases, returned transfers. Ensuring accurate documentation and the correct payment codes can help reduce the risk of delays.

No specific transfer fee or charge tied to this UAE-focused oversight has been identified, and no dedicated step-by-step application process or consumer channel for the matter has been announced. Validity periods for any special approvals related to UAE transfers were also not identified. Businesses affected are advised to coordinate directly with their bank's compliance team to confirm requirements before initiating cross-border payments.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving