Al-Rajhi Bank

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Al Rajhi Bank
Type Public (Tadawul1120)
Industry Finance
Founded 1957; 57 years ago (1957)
Headquarters Riyadh, Saudi Arabia
Key people Abdullah bin Suleiman Al Rajhi, Chairman
Suliman bin Abdulaziz Azzabin CEO
Products Financial Services
Employees 8,400
Website www.alrajhibank.com.sa

The Al Rajhi Bank (Arabic: مصرف الراجحي‎) (previously known as Al Rajhi Banking and Investment Corporation)[1] is a Saudi Arabian bank and the world's largest Islamic bank by capital based on 2006 data.[2] The bank is a major investor in Saudi Arabia's business and is one of the largest joint stock companies in the Kingdom, with a paid up capital of SR 16.25 billion. Its head office is located in Riyadh and there are six regional offices. Al Rajhi Bank also has 24 branches in Malaysia.

History[edit]

Banking and trading activities began in 1957. In 1978 the individual establishments were merged into "Al Rajhi Trading and Exchange Corporation" and in 1987 it was converted into a joint stock company under the royal decree No. 59. The company was renamed to Al Rajhi Banking and Investment Corp under the ministerial decision No. 1398, and was re-branded, in February 2006, to Al Rajhi Bank, but is still registered as Al Rajhi Banking and Investment Corp.

ATM Al Rajhi Bank

Al Rajhi Bank's shareholding pattern show that the four sons of Abdul Aziz Al Rajhi (Saleh, Sulaiman, Abdullah and Mohammed) and their heirs remain the corporation's primary equity holders.

Al Rajhi Bank is considered one of the major joint stock banking and investment companies with a 100% Saudi capital initiated by SR 750 million, then doubled to SR 1500 million and a stock grant and split up to SR 2,250 million took place. The capital doubled again to reach SR 4,500 million and also a stock grant and split up to SR 6,750 million took place. The capital doubled a third time to reach SR 13,500 million. And in 2008, the capital was increased to become SR 15 billion. During the year 2014, the bank's capital increased to SR 16.25 billion.

In 2006 - nearly after 50 years of operation solely within Saudi Arabia - the bank launched in Malaysia, signifying its first foray into international banking.[3] Following the Saudi business model which adheres closely to the deeply rooted Islamic banking principles, the Sharia-compliant banking group is planning to be instrumental in bridging the gap between modern financial demands and intrinsic Islamic values, for the numerous industry standards and development in Malaysia.

Further regional expansion has seen the 2010 opening of a national office, men's branch and separate ladies' branch in Kuwait. Followed by the 2011 launch of a national office and branches in Jordan.

In 2014, Al Rajhi Bank and Wipro Arabia Ltd. have successfully implemented Oracle FAHGL Program. Shifting from the legacy system, the new program enables more operational efficiency at the bank especially in the treasury, risk and card business operations.[4]

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