Wary expats withdraw bank funds ahead of iqama renewal

Jeddah - 13 July 2011 (AN): Expatriates face many hurdles while having their iqamas (residence permits) renewed, especially having their bank accounts frozen during the renewal period.

As the iqama renewal period approaches, the most common practice for expatriate workers is to withdraw all their funds.

Many have said that the process is easy or difficult depending on the company or the sponsor.

Previously, the National Society for Human Rights had to step in to help expatriates who had their bank accounts frozen for various reasons and were in dire need of financial aid due to their commitments in their home countries.

"When your iqama expires, your bank accounts are automatically frozen. If you're lucky enough to have your papers complete, the iqama renewal process can take a minimum of two days, but most are not. Once your iqama is renewed, it can take up to two to three days to have your account activated again. Even though they say it takes 24 hours, in reality it takes longer," said M. Ahmad, a 50-year-old Pakistani national currently working in the construction industry.

"I don't understand the purpose of freezing bank accounts. The government has all of our official documents and we are working in the Kingdom legally. Where and why would we run off?

"If our accounts are frozen and our salaries are still being deposited, then why is the bank accepting any transactions? That money is rightfully mine, yet I can't access it!" he added.

Khaled, a 40-year-old Indian national working for a private company in Jeddah, has ongoing issues with renewing his iqama.

"Prior to the expiration of my iqama, I talked to my company about renewing it. They waved me away and said they would take care of it when they renew all of the other employees' iqamas," he said.

"Just to be on the safe side, I withdrew all of my money from the bank. It so happened that my company sent my iqama for renewal a month after its expiration date. It's been two months and I'm still waiting."

An added complication in Khaled's case was the change of profession on his iqama.

On the other hand, Amir's bank account was frozen a week before his iqama was due to expire. Amir is a Tunisian national working for a travel agency.

"I went and talked to the manager at the bank and he said that he could do nothing about it. He asked me to bring the renewed copy of my iqama," he said.

"After that incident, I renewed my iqama a month before it was due to expire and withdrew cash just in case."

The different situations in all these cases can be attributed to the different regulations that govern banks.

"Different banks have different regulations. At our bank, we freeze the account as soon as the iqama expires. The customer has to bring the renewed iqama and we activate it the same day, and no fee is charged," Reham, an employee at a local bank in Jeddah, told Arab News.

"Some banks freeze your account as soon as the iqama expires and sometimes a grace period is given. It all depends on the bank and its regulations."

Asked why bank accounts are frozen, she said, "This is not us, this is an order from the government, more specifically the Saudi Arabian Monitory Agency."

A source at another bank said: "When the iqama expires, we provide our customers with a grace period of one month. Before that, we send you a message on your phone and when you use your ATM."