Al Rajhi Bank: The Largest Islamic Banks In Saudi Arabia
Al Rajhi Bank, also known as Alrajhi Bank, stands as a leading Islamic bank in the Kingdom of Saudi Arabia, renowned for its comprehensive banking and investment services. This bank is likely one of the largest Islamic banks in Saudi Arabia.
Founded in 1957 as Al Rajhi Trading and Exchange Corporation, it has evolved into one of the largest banks globally, with total assets reaching SAR 1,023 billion (approximately USD 273.281 billion) in Q1 2025, according to Argaam.
Headquartered in Riyadh, the bank is committed to providing Shariah-compliant financial solutions for retail and corporate clients, making it a pivotal player in Saudi Arabia’s financial sector.
History and Background
Founding and Early Years
Al Rajhi Bank’s history began in 1957 when four brothers—Saleh, Sulaiman, Mohamed, and Abdullah Al Rajhi—established Al Rajhi Trading and Exchange Corporation. The company initially focused on trading and exchange services, as well as remittances, catering to pilgrims and travelers in Saudi Arabia. This early focus on remittance and trading laid a strong foundation for the bank’s growth, as noted in Wikipedia.
Transformation into a Bank
In 1978, the company underwent a significant transformation, consolidating its operations under Al Rajhi Trading and Exchange Company and becoming a joint stock company. This rebranding to Al Rajhi Banking and Investment Corporation marked its shift into a full-fledged bank, expanding its scope to include banking and commercial services. The transition was a pivotal moment, enabling the bank to scale its operations and establish a robust presence in Saudi Arabia’s financial landscape.
Growth and Expansion
Over the decades, Al Rajhi Bank expanded significantly, growing from a regional player to one of the largest banks globally by total assets. By 2006, it adopted its current name, Al Rajhi Bank, and ventured into international markets, establishing branches in Kuwait and Jordan and subsidiaries in Malaysia and Syria. With over 600 branches and a market capitalization of SAR 302.80 billion, as reported by Wikipedia, the bank has solidified its position as a leader in Islamic banking.
| Milestone | Year | Details |
| Founded | 1957 | Al Rajhi Trading and Exchange Corporation established by Al Rajhi brothers. |
| Joint Stock Company | 1978 | Rebranded as Al Rajhi Banking and Investment Corporation. |
| Current Name Adopted | 2006 | Became Al Rajhi Bank, expanding internationally. |
| Total Assets Milestone | 2025 | Reached SAR 1,023 billion in Q1 2025. |
Corporate Structure and Governance
Board of Directors
Al Rajhi Bank is governed by a board of directors, which includes four members from the Al Rajhi family, ensuring a blend of family legacy and professional oversight. The board plays a critical role in setting strategic objectives and maintaining the bank’s commitment to Islamic banking principles. This structure supports the bank’s stability and long-term vision.
Ownership and Shareholders
As a joint stock company listed on the Tadawul stock exchange, Al Rajhi Bank balances family ownership with public accountability. The Al Rajhi family holds a significant stake, providing continuity, while the public listing ensures transparency through regular financial disclosures. This dual structure enhances trust among shareholders and customers.
Management and Leadership
The bank’s leadership is spearheaded by CEO Stefano Bertamini, who drives strategic initiatives focused on digital transformation and customer engagement. Supported by a team of experienced executives, the management ensures that Al Rajhi Bank remains competitive in the global financial market. The bank’s governance aligns with regulations set by the Saudi Arabian Monetary Authority (SAMA), reinforcing its reputation for compliance and integrity.
| Governance Aspect | Details |
| Board of Directors | Includes four Al Rajhi family members, ensuring strategic oversight. |
| Ownership | Significant Al Rajhi family stake, publicly listed on Tadawul. |
| Leadership | Led by CEO Stefano Bertamini, focusing on innovation and compliance. |
Products and Services
Al Rajhi Bank, a cornerstone of Islamic banking, offers a diverse portfolio of financial products and services, all adhering to Shariah principles. Operating from its head office in Riyadh, the bank serves retail and corporate clients with innovative solutions, from savings accounts to treasury services.
Retail Banking
Savings and Current Accounts
Al Rajhi Bank provides a variety of retail banking options, including savings and current accounts designed for individual needs. Customers can open accounts online through the bank’s website, streamlining the process.
The bank’s retail services are tailored to ensure accessibility, with features like zero-balance accounts and the Hassad savings program.
Credit Cards
Al Rajhi Bank offers Shariah-compliant credit cards, such as the Al Rajhi Digital Card, which provide secure and convenient payment options.
These cards cater to retail customers, offering rewards through programs like Mokafaa, enhancing user engagement and loyalty.
Account Management
The bank simplifies account management with online and mobile banking platforms. Customers can check balances, update information, and manage transactions seamlessly.
For example, updating an Iqama or unblocking an account can be done via the Al Rajhi Bank app or website, ensuring ease of use.
| Retail Service | Details |
| Savings Accounts | Flexible options, including zero-balance accounts like Hassad. |
| Credit Cards | Shariah-compliant cards with rewards via Mokafaa program. |
| Account Management | Online tools for balance checks, Iqama updates, and account unblocking. |
Corporate Banking
Financing Solutions
Al Rajhi Bank supports businesses with tailored financing solutions, including working capital loans and trade finance.
These products comply with Islamic principles, ensuring ethical business support for corporate clients across Saudi Arabia.
Treasury Services
The bank’s treasury services include liquidity management and foreign exchange solutions, catering to corporate needs.
These offerings help businesses optimize cash flow while adhering to Shariah compliance, as overseen by the bank’s Shariah supervisory board.
| Corporate Service | Details |
| Financing | Shariah-compliant loans for working capital and trade. |
| Treasury | Liquidity management and foreign exchange for businesses. |
Islamic Banking Products
Al Rajhi Bank is renowned for its Islamic banking portfolio, offering products like Murabaha (cost-plus financing), Musharaka (partnership financing), and Sukuk (Islamic bonds). These products ensure compliance with Shariah principles, avoiding interest and focusing on profit-sharing models.
The bank’s commitment to Islamic banking has earned it recognition as a leader in the sector, supported by Fitch Ratings.
| Islamic Product | Details |
| Murabaha | Cost-plus financing for asset purchases. |
| Musharaka | Partnership-based financing for joint ventures. |
| Sukuk | Shariah-compliant bonds for investment. |
Investment Services
Through its subsidiary, Al Rajhi Capital, the bank offers wealth management, mutual funds, and brokerage services.These investment services cater to retail and corporate clients, providing opportunities for wealth growth within a Shariah-compliant framework.
The bank’s listing on the Tadawul stock exchange enhances its credibility in investment markets.
| Investment Service | Details |
| Wealth Management | Tailored solutions for high-net-worth individuals. |
| Mutual Funds | Shariah-compliant funds for diversified investments. |
| Brokerage | Trading services via Al Rajhi Capital. |
International Banking
Al Rajhi Bank facilitates international banking through remittance services and foreign exchange solutions. Customers can send money to destinations like the Philippines, with clear fee structures and competitive exchange rates.
The bank’s international operations, including branches in Malaysia and Kuwait, support seamless cross-border transactions.
Remittance Services
The bank offers efficient remittance services, enabling transfers to various countries. For example, sending money to the Philippines is straightforward via the Al Rajhi Bank app or branches, with processing times typically ranging from one to three days.
Partnerships with global financial networks enhance reliability, though the bank does not directly support Western Union.
Foreign Exchange
Al Rajhi Bank provides competitive exchange rates, updated daily, for international transfers. Customers can access rates via the bank’s website or app, ensuring transparency in transactions like SAR to USD conversions, as noted by Wise.
| International Service | Details |
| Remittance | Transfers to countries like the Philippines, processed in 1–3 days. |
| Foreign Exchange | Competitive rates for SAR and other currencies. |
Digital Banking
Al Rajhi Bank’s digital banking platforms, including its mobile app and online banking portal, have transformed customer interactions.
With over 1 billion app logins in 2024, as reported in the 2024 annual report, the app offers features like balance checks, transfers, and digital card management. Troubleshooting guides address issues like app login problems, ensuring a smooth user experience.
| Digital Service | Details |
| Mobile App | Features for transfers, balance checks, and digital cards. |
| Online Banking | Secure platform for account management and transactions. |
Branch Network and ATM Services
Al Rajhi Bank, headquartered in Riyadh, boasts an extensive network of branches and ATMs, making it one of the most accessible banks in Saudi Arabia.As a key player in Islamic banking, its infrastructure supports both retail and corporate clients, with a growing international presence.
Domestic Presence
Al Rajhi Bank operates over 526 branches and 4,900 ATMs across Saudi Arabia, as noted in Wikipedia. Customers can locate branches and ATMs using the bank’s online tool, available on the Al Rajhi Bank website.
Popular locations include Riyadh, Jeddah, and Yanbu, with some branches open on Saturdays. Operating hours vary, typically from 9:30 AM to 4:30 PM, with adjustments during Ramadan, verifiable via the bank’s branch locator.
International Presence
The bank has expanded internationally, with operations in Malaysia, Kuwait, and Jordan since 2006. Its Malaysian subsidiary, Al Rajhi Bank Malaysia, serves as a hub for Islamic banking in Southeast Asia.
This global footprint enhances the bank’s ability to offer international banking services, such as remittances, to expatriates and businesses.
| Network Aspect | Details |
| Domestic Branches | Over 526 branches in Saudi Arabia, including Riyadh and Jeddah. |
| ATMs | Approximately 4,900 ATMs nationwide, accessible 24/7. |
| International Operations | Presence in Malaysia, Kuwait, and Jordan since 2006. |
Financial Performance
Al Rajhi Bank’s financial strength underscores its position as one of the largest banks globally. Its performance in Q1 2025, as reported by Argaam, highlights significant growth, supported by robust metrics and positive Fitch Ratings.
Total Assets and Market Position
In Q1 2025, Al Rajhi Bank’s total assets reached SAR 1,023 billion (USD 273.281 billion), marking the first time the bank surpassed SAR 1 trillion. This milestone, converted using Wise, cements its ranking among the world’s leading Islamic banks. The bank’s market capitalization, approximately SAR 302.80 billion, reflects its strong position on the Tadawul stock exchange.
Net Profit and Growth
The bank reported a net profit of SAR 5.9 billion in Q1 2025, a 34% increase from Q1 2024, driven by higher operating income.
This growth aligns with the bank’s strategic focus on retail and corporate banking, as outlined in its 2024 annual report.
Key Performance Indicators
Key metrics for Q1 2025 include a 2.4% return on assets (ROA) and a 23.1% return on equity (ROE), demonstrating efficient capital utilization. These figures, verified by Argaam, highlight the bank’s financial resilience and operational excellence.
| Financial Metric | Details |
| Total Assets | SAR 1,023 billion (USD 273.281 billion) in Q1 2025. |
| Net Profit | SAR 5.9 billion in Q1 2025, up 34% from Q1 2024. |
| ROA | 2.4% in Q1 2025, reflecting efficient asset management. |
| ROE | 23.1% in Q1 2025, indicating strong shareholder returns. |
Governance, Compliance, and Shariah Adherence
Al Rajhi Bank’s governance framework ensures compliance with regulatory standards and Islamic principles, reinforcing its reputation as a trusted financial institution. Operating from its head office in Riyadh, the bank aligns with the Saudi Arabian Monetary Authority (SAMA) guidelines.
Regulatory Compliance
The bank adheres to SAMA’s regulations, implementing robust anti-money laundering (AML) and know-your-customer (KYC) policies. Its financial disclosures, available in the 2024 annual report, provide transparency, earning positive evaluations from Fitch Ratings. This commitment to compliance supports the bank’s stability and customer trust.
Shariah Supervisory Board
Al Rajhi Bank’s Shariah supervisory board oversees all products and services, ensuring adherence to Islamic banking principles. By prohibiting interest and focusing on profit-sharing models, the bank maintains its status as a leading Islamic bank.
The board’s role is critical in upholding Shariah compliance across retail, corporate, and international banking operations.
| Governance Aspect | Details |
| Regulatory Compliance | Adheres to SAMA’s AML/KYC policies with transparent disclosures. |
| Shariah Adherence | Shariah board ensures all products comply with Islamic principles. |
Customer Service and Support
Al Rajhi Bank, a cornerstone of Islamic banking, prioritizes customer satisfaction through accessible support channels. Operating from its head office in Riyadh, the bank ensures clients can resolve issues efficiently, reinforcing its reputation as one of the largest banks in Saudi Arabia.
Contact Channels
Customers can reach Al Rajhi Bank via phone, email, or social media. The toll-free customer care number, 800-124-1222, is available 24/7, as listed on the Al Rajhi Bank website. WhatsApp support at +966920003344 offers quick responses.
Email inquiries can be sent through the bank’s contact form, ensuring diverse options for retail and corporate clients.
Complaint Resolution
The bank provides a streamlined complaint resolution process. Customers can submit issues via the online complaint form or by calling the helpline.
Al Rajhi Bank aims to address concerns promptly, often within 5 business days, aligning with SAMA regulations. This focus on customer care enhances trust and satisfaction.
| Support Aspect | Details |
| Contact Channels | Toll-free number (800-124-1222), WhatsApp (+966920003344), email form. |
| Complaint Resolution | Online form and helpline, resolved within 5 business days. |
Future Outlook
Al Rajhi Bank’s strategic vision for 2025 emphasizes digital transformation, customer engagement, sustainability, and community initiatives, as outlined in its 2024 annual report. These efforts align with Saudi Arabia’s Vision 2030, positioning the bank as a leader in Islamic banking.
Digital Transformation
The bank is advancing its digital platforms, with plans for Open Banking integration in 2025. The Al Rajhi Bank app, with over 1 billion logins in 2024, will introduce enhanced features like real-time analytics and personalized services, improving user experience for retail and corporate clients.
Customer-Centric Strategies
Al Rajhi Bank is expanding cross-selling through subsidiaries like Al Rajhi Capital and Neoleap. The Mokafaa loyalty program rewards customers with points for transactions, fostering engagement. These initiatives aim to meet diverse financial needs, from savings to investments.
Sustainability and ESG
Sustainability is a core focus, with the bank reducing its carbon footprint and issuing USD 3 billion in Sustainable Sukuk. These efforts support environmental goals and attract socially conscious investors, as noted in the 2024 annual report.
Community Engagement
The bank’s community initiatives include the Educational Orphan Care Program, supporting over 200 students, and healthcare partnerships. These efforts reflect Al Rajhi Bank’s commitment to social responsibility, contributing to Saudi Arabia’s development.
| Strategic Focus | Details |
| Digital Transformation | Open Banking and enhanced app features for 2025. |
| Customer Engagement | Cross-selling and Mokafaa loyalty program. |
| Sustainability | USD 3 billion in Sustainable Sukuk, reduced carbon footprint. |
| Community Initiatives | Educational and healthcare programs, supporting Vision 2030. |
Frequently Asked Questions
Al Rajhi Bank addresses common queries to enhance customer understanding, covering services, operations, and Islamic banking principles.
What is the SWIFT code for Al Rajhi Bank?
The SWIFT code, RJHISARI, is used for international transfers, ensuring secure transactions, as verified on the Al Rajhi Bank website.
How to check Al Rajhi Bank account balance?
Customers can check balances via the Al Rajhi Bank app, ATMs, or online banking. The app provides real-time updates, accessible with login credentials.
Is Al Rajhi Bank open on weekends?
Some branches, like those in Riyadh, operate on Saturdays from 9:30 AM to 1:30 PM. Check specific hours using the bank’s branch locator.
Does Al Rajhi Bank have interest?
As an Islamic bank, Al Rajhi Bank operates on an interest-free model, using profit-sharing mechanisms like Murabaha, ensuring Shariah compliance.
| Question | Answer |
| SWIFT Code | RJHISARI, used for international transfers. |
| Account Balance | Check via app, ATMs, or online banking. |
| Weekend Hours | Some branches open Saturdays; verify online. |
| Interest-Free | Operates without interest, adhering to Islamic principles. |
Al Rajhi Bank stands as a pillar of Islamic banking in Saudi Arabia, offering Shariah-compliant services to millions. Its robust customer support, extensive network, and strategic focus on digital transformation and sustainability for 2025 make it a trusted choice. Explore detailed guides on Al Rajhi Bank’s website to learn more about its offerings, from account management to international transfers.