Skip to content Skip to Search
Skip navigation
Banking and Finance
Company Insights

Alrajhi Bank

Banking and Finance

Latest Alrajhi Bank DevelopmentsAI Insights

Alrajhi Bank will serve as one of the receiving agents for retail investors in the upcoming initial public offering for Arabian Mills on the Saudi stock exchange. This aligns with the company's involvement in supporting the share sale of 15.4 million shares,1 equivalent to 30 percent of Arabian Mills' share capital.

The company has recently extended a SAR1.3 billion sharia-compliant credit facility to Dr Sulaiman Al Habib Medical Services Group. This financing will help fund multiple expansion projects in Saudi Arabia, such as hospitals and medical centres.2

The International Monetary Fund's annual report on Saudi Arabia highlights the positive medium-term outlook for banks in the kingdom, although challenges remain, such as potential rapid credit growth. Alrajhi Bank's robust balance sheet remains a key strength in maintaining lending capacity.3

In collaboration with Saudi Arabia's Cultural Development Fund, the company is part of a consortium of banks that will finance various private sector cultural initiatives. This participation supports the government's Vision 2030 programme to diversify the economy through increased investment in arts and culture.4

In the first quarter of 2025, the company recorded the most significant rise in quarterly profit among GCC banks, at 34 percent. This increase came amid a backdrop of strong borrowing demand and manageable loan defaults.5

Alrajhi Bank Overview

Alrajhi Bank was founded in 1957 by four brothers, Saleh, Sulaiman, Mohamed and Abdullah Alrajhi.

It initially began as a group of banking and commercial operations which, in 1978, joined together under the umbrella of the Alrajhi Trading and Exchange Company. 

This became a joint stock company in 1987, and was rebranded as the Alrajhi Banking and Investment Corporation two years later.

In 2006 the bank rebranded itself as Alrajhi Bank. In the same year, it launched its first foreign subsidiary, Alrajhi Bank Malaysia. Other subsidiaries include Alrahji Capital.

Today Alrajhi Bank has over 600 branches – most in Saudi Arabia but with a presence in Kuwait and Jordan – and assets under management of $223 billion.

Alrajhi Bank is the largest retail bank in Saudi Arabia and the Middle East, serving more than 16.5 million customers, and the world’s largest Islamic bank by capital. It is also one of the top 10 largest Saudi employers.

Taded on the Tadawul, around 75 percent of Alrajhi Bank’s shares are publicly owned. Alrajhi family members are the bank’s largest shareholders.

Alrajhi Bank News

A marketplace next to Qatar Central Bank. Qatar's Q1 performance was 'markedly more subdued than Saudi Arabia and the UAE in terms of loan growth' according to an expert

GCC banks impress with earnings in first quarter

Major banks in the six-country Gulf Cooperation Council (GCC) generated more than $13 billion in net profit in the first quarter of 2025. This was up by nearly one-tenth compared to a year earlier as increased lending and low loan defaults boosted the banks’ bottom lines. AGBI analysed the earnings of 21 banks across the […]

The Saudi Exchange was the 11th largest stock market in the world last month with a market capitalisation of SAR9.5 trillion

Two IPOs scrapped on Saudi Arabia’s junior market

Two planned initial public offerings (IPOs) on Saudi Arabia’s junior stock market have been scrapped. Yaqeen Capital and Watheeq Capital, the respective lead managers and financial advisors for Alkhaldi Logistics Company and Dome International Investment, announced that the IPOs had been declared void. The statements did not specify the reasons for the cancellations. Refund of […]

3AR786B Mecca, Saudi Arabia, June 7 2024: Alrajhi Bank, Al Rajhi Banking and Investment Corporation, a Saudi Arabian bank and the world's largest Islamic bank

Corporate borrowing swells Saudi banks’ Q1 profits

Saudi Arabia’s big banks prospered in the first quarter thanks to soaring borrowing demand from companies. However, lending growth is likely to slow and margins are shrinking because of rising fund costs and intensifying competition. The kingdom’s six largest banks by assets are Saudi National Bank, Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Banque […]

'Markets have been pretty resilient. That’s slightly against what we have expected, says analyst Shahrukh Saleem

Saudi IPOs bounce back ‘quicker than expected’

Three initial public offerings launched in the past six weeks stand to raise close to $1.8 billion on the Saudi Exchange – nearly twice as much as the IPOs on the main market in the first quarter. This suggests the lull in Saudi IPOs that followed President Donald Trump’s “Liberation Day” announcement on April 2 […]

Customers use Al Rajhi cash dispensers at a branch in Mecca. The bank's total assets have topped SAR1 trillion

Al Rajhi Bank reports 34% rise in quarterly profit

Al Rajhi Bank, the world’s largest Islamic bank by capital, has reported a 34 percent increase in net profit for the first quarter of 2025, to SAR5.9 billion ($1.5 billion). The Saudi bank’s total assets have risen by 22 percent to SAR1.02 trillion, marking the first time Al Rajhi has surpassed the trillion-riyal mark. Its […]

Modern arab housewife typing card number on laptop, banking online, purchase

STC digital banking given go-ahead to open in Saudi Arabia

STC Bank, a digital lender launched by Saudi Arabia’s biggest telecoms company, will commence operations in Saudi Arabia after receiving authorisation from the Saudi Central Bank (Sama). In an announcement published on the Saudi Exchange on Wednesday morning, STC Group (Saudi Telecoms Company) said that STC Bank’s launch “represents a significant milestone in the kingdom’s […]

Twaeraat

Twaereat Medical to trade on Saudi Arabia’s Nomu

Twaereat Medical Care Company will begin trading on the Nomu-Parallel Market from Wednesday, the Saudi Exchange has announced. Twaeraat, which operates more than 100 clinics around Saudi Arabia, will seek an external liquidity provider following its direct listing on the bourse. The indicative price per share is SAR12 ($3.20), according to the registration document. Twaeraat […]

Workers on a Riyadh construction site. Saudi Arabia's giga-projects programme has added to banks' liquidity pressures

Liquidity squeeze deepens for Saudi Arabia’s banks

Liquidity in Saudi Arabia’s banking sector has tightened again as lending increased more quickly than deposits in the third quarter.  The loan-to-deposit ratio among Saudi Arabia’s 10 largest banks was 100.1 percent in Q3, up from 97.8 percent in the previous three months, according to management consultancy Alvarez & Marsal. Loans and advances at the […]

Riyadh Air credit

Startup airline Riyadh Air secures $1.3bn credit facility

Riyadh Air, the Saudi airline that is due to start operations next year, signed a SAR5 billion ($1.3 billion) credit facility with a syndicate of banks on Wednesday, as it announced an order for 60 more aircraft. The kingdom’s second flag carrier, owned by the PIF sovereign wealth fund, has closed an inaugural Islamic revolving […]

A man walks past a branch of Qatar National Bank in Riyadh, Saudi Arabia; third-quarter earnings have not been significantly affected by rate cuts

Rate cuts will put pressure on Gulf banks’ margins

September’s benchmark interest rate reductions came too late to affect Gulf banks’ third-quarter earnings to a meaningful extent, although the longer-term impact on lenders’ net interest margins will be negative. In mid-September the Federal Reserve cut the benchmark US interest rate by 50 basis points to 5 percent, its first reduction since late 2018. The […]