An Arab expatriate was forced by his financial conditions to borrow SR10,000 with a promise to return SR15,000 upon renewal of his work/residency visa (iqama), the first step toward having access to his bank account again.
Saudi banks periodically request foreign residents who are customers to come and provide proof of legal residence with a valid iqama at risk of losing access to their accounts. However, sometimes the time it takes to get an iqama renewed can put an expatriate bank customer in a quandary, waiting for their sponsors to get their visas renewed and losing access to their bank accounts.
The Arab expatriate told Arab News that he was quite aware that his SR5,000 fee was equivalent to usury.
"I have two daughters having their university education abroad," he said.
"I cannot delay their tuition and expenses. They are getting ready to come here for the summer vacation and I have to settle all their financial dues. I also have to pay the costs of the renewal of my iqama," he said.
Another Asian expatriate told Arab News that his sponsor traveled to a European country for medical treatment and stayed there about a year.
He said during this time, his iqama expired and he was unable to withdraw money from his account.
"I approached my bank many times asking them to give me money from my account but the bank had the same answer every time: Bring your renewed iqama and take as much money as you want from your account," he said.
The Asian said during all this time he lived on financial assistance from his friends until his sponsor returned and he was able to renew his iqama.
Commenting on the issue, NSHR Chairman Muflih Al-Qahtani said the banks were acting according to the laws and rules of the country. He said nobody would blame them as the law was made to preserve public interest.
"However, there are some cases which should be dealt with from a humanitarian point of view, especially when foreigners are processing the renewal of their iqama," he said.
Al-Qahtani noted that the renewal of the iqamas might sometime protract for a long time and said the banks should find a way to enable these foreigners to use their accounts.
"Foreigners may run into emergency situations which require money. They cannot deal with these situations if they are not able to use their bank accounts," he said. "There should be solutions, even if temporary ones, for this kind of situation."
