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Alrajhi Bank

Banking and Finance

Latest Alrajhi Bank DevelopmentsAI Insights

Alrajhi Bank will act as a receiving agent for the retail investors involved in Arabian Mills for Food Products Company's upcoming sale of a thirty percent stake on the Saudi stock exchange. The listing, part of a privatisation drive, aims to raise capital by offering 15.4 million shares, with pricing determined via a book-building process1.

The bank signed a sharia-compliant credit facility with Dr Sulaiman Al Habib Medical Services Group Company, valued at 1.3 billion Saudi riyals, to finance various expansion projects in Saudi Arabia, including several hospitals and medical centres as part of increasing healthcare competition2.

In the first quarter of 2024, Alrajhi Bank's net profit increased six percent year on year to 4.4 billion Saudi riyals. This growth was mainly due to an increase in net financing and investment income, although operating expenses, including impairment charges, saw a rise3.

The International Monetary Fund's report on Saudi Arabia described the banking sector as dynamic and competitive, despite noting possible risks associated with rapid credit growth. Alrajhi Bank, like other Saudi banks, maintains a significant proportion of non-interest-bearing deposits4.

Alrajhi Bank, along with four other banks, has agreed to finance projects managed by Saudi Arabia’s Cultural Development Fund. These projects aim to develop the country's cultural sectors, including architecture, film, and music, as part of a broader strategy to diversify the economy5.

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

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 […]

Analysts are expecting 'pockets of margin pressure, particularly in Saudi Arabia', but higher Q3 revenues for most Gulf banks

Analysts expect ‘mixed’ picture from Gulf banks’ Q3 results

The Gulf’s largest banks are likely to report mixed earnings for the third quarter, analysts say, as pressure on margins lessens the benefit of lending growth. Qatar National Bank and Dubai’s Emirates NBD – the Middle East and Africa’s largest and fifth largest banks by assets – have already published Q3 results. QNB’s profit rose […]

Dr. Sulaiman Al Habib's second-quarter net earnings rose 14 percent year on year to SAR555 million

Sulaiman Al Habib secures $347m loan for Saudi expansion

Dr Sulaiman Al Habib Medical Services Group Company has secured long-term financing to expand across Saudi Arabia amid growing competition for healthcare services in the kingdom. The company, which trades on the Saudi stock exchange, has signed a sharia-compliant credit facility worth SAR1.3 billion ($347 million) with Al Rajhi Bank, a Saudi-listed lender. The 13-year-long facility will […]

Saudi cultural Music is one of the sectors to benefit from funding as part of Saudi Arabia's Vision 2030 programme

Five Saudi banks to finance cultural development fund

Five Saudi banks have agreed to provide financing for a new arts fund managed by Saudi Arabia’s Cultural Development Fund, which has been leading government support for the arts since 2021.  The agreement with Al-Rajhi Bank, Alinma Bank, Banque Saudi Fransi, Arab National Bank and Bank Aljazira will provide support to private sector projects in […]