Saudi residents and expats working in Saudi Arabia who want to invest through a Saudi Capital Markets Authority (CMA)-regulated broker. Also relevant for GCC expats who have investments remaining in Saudi Arabia or who plan to work in KSA. For UAE-based investing, see our best investment platforms UAE guide.
Different tools for different requirements — most Saudi investors will benefit from both
Choosing between SNB Capital and Al Rajhi Capital comes down to one primary question: is 100% Sharia compliance a requirement? If yes, Al Rajhi Capital is the clear choice — it is the largest Islamic investment institution in the world with full CMA regulation and a well-regarded Sharia supervisory structure. If not, SNB Capital's wider fund range and institutional capabilities give it an edge for sophisticated investors wanting full market access.
For most Saudi residents, the more important decision is not SNB Capital vs Al Rajhi Capital — it is how much of your portfolio to invest in Saudi markets at all versus globally. Tadawul exposure through either platform makes sense as a home-market allocation, but global diversification via a Sharia-compliant global ETF or IBKR account should form the majority of a long-term wealth-building portfolio.
Head-to-head comparison
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| Factor |  SNB Capital |
 Al Rajhi Capital |
|---|---|---|
| Regulation | CMA (Saudi Capital Markets Authority) | CMA (Saudi Capital Markets Authority) |
| Sharia compliance | Partial — both conventional and Sharia products | 100% Sharia-compliant institution |
| Tadawul equities | Yes, full access | Yes, full access |
| Equity trading commission | ~0.12–0.25% (min SAR 10) | ~0.12–0.20% (min SAR 10) |
| Mutual funds | 30+ funds (conventional + Sharia) | 15–20 funds (all Sharia) |
| Sukuk access | Yes — primary and secondary | Yes — Sharia sukuk only |
| IPO subscriptions | Yes | Yes |
| REITs | Yes | Yes (Sharia-certified REITs) |
| International markets | Some global fund access | Global Sharia equity funds |
| App quality | Functional, improving | Generally user-friendly |
| Best for | Sophisticated investors wanting full range, both Sharia and conventional | Investors who require 100% Sharia compliance on all holdings |
| Open account | Open SNB Capital → | Open Al Rajhi Capital → |
VAT note: All Saudi brokerage commissions are subject to 15% KSA VAT applied directly to the commission fee (not the trade value). For example, a 0.20% commission on a SAR 50,000 trade = SAR 100 commission + SAR 15 VAT = SAR 115 total brokerage cost. Commission rates above are exclusive of VAT. Verify current rates and VAT treatment directly with your broker before trading.
Saudi Arabia's capital market: context
The Saudi Exchange (Tadawul) is the largest stock exchange in the Middle East with a market capitalisation exceeding USD 2.5 trillion, driven by Aramco, Saudi National Bank, Al Rajhi Bank, SABIC, and other major listed companies. The exchange includes a main market (Tadawul) and a secondary market (Nomu) for smaller companies.
Since 2015, Saudi Arabia has progressively opened its capital market to foreign investors through the Qualified Foreign Investor (QFI) programme. Saudi residents — both Saudi nationals and resident expats with Iqama — can invest directly in Tadawul stocks through CMA-licensed brokers. The investment infrastructure has matured significantly through Vision 2030's capital market development agenda.
Two important points for Saudi-resident investors: first, Saudi Arabia does not charge capital gains tax or income tax on investment returns for individual investors — creating a tax environment similar to the UAE. Second, Saudi Arabia's investment platform landscape is dominated by bank-affiliated capital management subsidiaries, unlike the UAE where independent fintechs (Sarwa, Baraka) have made significant inroads.
SNB Capital in depth
SNB Capital is the investment arm of Saudi National Bank — the largest bank in Saudi Arabia by assets, formed from the merger of NCB (National Commercial Bank) and Samba Financial Group in 2021. SNB Capital was formerly NCB Capital, one of the oldest and largest Saudi asset managers.
SNB Capital offers: direct equity trading on Tadawul, mutual funds (fixed income, equity, Sharia-compliant, and balanced options), sukuk subscriptions, IPO participation, and portfolio management services. Their mutual fund range is extensive — over 30 funds including fixed income, equity, money market, and Sharia-compliant categories. AUM in SNB Capital's mutual fund range is among the largest in Saudi Arabia.
The trading platform is available via web and app (SNB Capital's Alistithmar app). Digital experience has improved significantly, though institutional heritage means the platform is more feature-rich than streamlined compared to pure digital competitors. Branch support from SNB branches throughout KSA adds accessibility for those who prefer human interaction for complex transactions.
- Largest AUM and fund range in Saudi Arabia
- Full institutional trading capabilities
- Strong research and market analysis
- CMA-licensed with Saudi National Bank backing
- IPO subscriptions and sukuk primary market access
- Portfolio management and advisory services
- Wide branch network via SNB
- Both conventional and Sharia options
- Not a pure-Sharia institution
- App less intuitive than fintech alternatives
- Mutual fund fees can be 1–2% p.a.
- Minimum amounts for some products
- Heavy institutional focus — retail UX not always priority
Al Rajhi Capital in depth
Al Rajhi Capital is the investment subsidiary of Al Rajhi Bank — the world's largest Islamic bank by assets. Unlike SNB Capital, Al Rajhi Capital is a fully Sharia-compliant institution: every product, fund, and service it offers must be certified by its Sharia Supervisory Board. There are no conventional (non-Sharia) products available through Al Rajhi Capital — if you need a conventional fixed-income deposit, you look elsewhere.
Al Rajhi Capital offers: Tadawul equity trading, Sharia-compliant mutual funds (Saudi equity, global equity Sharia, money market Sharia, income/sukuk funds), sukuk, and real estate investment trusts (REITs). Their mutual fund range is smaller than SNB Capital's but is deeply respected for Sharia compliance quality and institutional management.
Al Rajhi Capital's digital platform (Al Rajhi Capital app) is generally considered user-friendly by Saudi standards, with clean navigation and straightforward fund subscription workflows. Their investor base is predominantly retail Muslim investors who prioritise Sharia compliance as a non-negotiable requirement.
- 100% Sharia-compliant institution — all products
- World's largest Islamic bank backing
- Strong Sharia supervisory board reputation
- Clean, relatively user-friendly app
- Competitive Tadawul trading commissions
- Well-regarded Sharia equity and sukuk funds
- REITs and alternative Sharia products
- Simple onboarding for Al Rajhi Bank customers
- No conventional products (by design)
- Smaller mutual fund range than SNB Capital
- Less institutional research coverage
- International market access more limited
- Onboarding favours existing Al Rajhi Bank customers
Tadawul investing: Saudi market concentration risk
Both SNB Capital and Al Rajhi Capital provide Tadawul access. Before investing heavily in Saudi equities through either platform, it is important to understand the concentration risk of the Saudi market.
Saudi Aramco alone accounts for approximately 60% of Tadawul's market capitalisation. Saudi National Bank, Al Rajhi Bank, SABIC, STC (Saudi Telecom), and SABIC collectively push the top-five concentration to over 80% of the market. This means Tadawul is highly correlated with oil prices, Saudi government policy, and a handful of mega-caps — it is not particularly diversified.
For a Saudi-resident investor, a home-market bias toward Tadawul is understandable and has advantages (currency alignment, local economic exposure). But supplement Tadawul exposure with global diversification — global equity ETFs via a platform like Interactive Brokers provide what Saudi market alone cannot: diversification across 9,500+ companies in 50+ countries. See our ETF investing guide for global diversification strategy applicable from KSA as well as UAE.
I have worked in and around GCC markets for over 13 years, and the Saudi market is among the most interesting for the sheer scale of the Vision 2030 transformation underway — new sectors, privatisations, IPOs, and foreign investment flows. But I am consistently cautious about concentration in any single country market, and Saudi Arabia's Aramco-dominated Tadawul is an extreme example. My approach: Saudi residents can reasonably hold 10–25% of their equity exposure in Tadawul for local economic alignment, but the majority of their equity portfolio should be global. The platforms in this article access Tadawul well. For global diversification, use IBKR alongside them — the two are complementary, not competing.
Who should choose which platform?
Frequently asked questions
Yes. Expats living in Saudi Arabia with valid Iqama (Saudi residency permit) can open accounts with both SNB Capital and Al Rajhi Capital. You will need your Iqama number, passport, and bank account for funding. The CMA allows Saudi residents — regardless of nationality — to invest in Tadawul stocks and Saudi-domiciled mutual funds. Non-resident foreigners outside Saudi Arabia have more limited access (via the QFI programme, which is institutional-focused). Expats within KSA have the same practical access as Saudi nationals for most retail investment products.
Saudi Arabia does not impose personal income tax or capital gains tax on individual investment returns. Dividends, capital gains from Tadawul stocks, and mutual fund distributions are not taxed for individual residents. Saudi Arabia introduced a zakat obligation for Saudi nationals on net invested assets (2.5% annually in certain conditions), but this applies to Saudi nationals, not expats. Non-Saudi expats working in KSA are not subject to zakat as individuals. As always, your home country may tax your worldwide income even while you reside in Saudi Arabia — consult a tax advisor familiar with your home country's rules.
For direct equity trading on Tadawul, minimum trade values vary but you can start with the price of one share on most counters — some Saudi blue chips trade at SAR 20–100 per share, making entry accessible. For mutual fund subscriptions, minimum amounts typically range from SAR 1,000 to SAR 10,000 depending on the fund. Some premium or institutional funds have higher minimums (SAR 50,000+). Check the specific fund prospectus for current minimums as these change. Both platforms have no ongoing monthly account fee — you pay commission on trades and the mutual fund's annual management fee (typically 0.5–2% per year depending on fund type).
Both SNB Capital and Al Rajhi Capital primarily focus on Saudi and GCC markets. They do offer some global equity exposure through mutual funds — SNB Capital has some global equity funds, Al Rajhi Capital has Sharia-compliant global equity funds. However, these are managed funds with fees of 1.5–2.5% per year, not direct access to London-listed or US-listed ETFs at 0.03–0.12% fees. For direct, cost-efficient global investing, you need an international broker like Interactive Brokers. Saudi residents can open IBKR accounts — IBKR accepts clients from Saudi Arabia and provides access to London-listed ETFs that avoid US estate tax concerns. Use Saudi platforms for Tadawul; use IBKR for global ETF exposure.
