Company Insights Alrajhi Bank Banking & Finance Latest Alrajhi Bank DevelopmentsAI Insights Al Rajhi Bank has partnered with Sulaiman Al Habib Medical Services Group Company to provide a sharia-compliant credit facility amounting to SAR1.3 billion. This long-term financing will fund multiple healthcare projects across Saudi Arabia2. The bank also reported a 6 percent increase in net profit to SAR4.4 billion in the first quarter of 2024. This growth was attributed to a rise in operating income despite higher operating expenses3. The International Monetary Fund noted positive performance amongst Saudi banks, including Al Rajhi Bank, in its annual Article IV report. It acknowledged the banks’ robustness despite political uncertainty in the region4. In collaboration with four other Saudi banks, Al Rajhi Bank has agreed to fund Saudi Arabia's Cultural Development Fund. This initiative will finance various private sector cultural projects across the kingdom, although the exact financial commitments have not been disclosed5. As receiving agents for retail investors, Al Rajhi Bank, alongside Saudi Awwal Bank and Banque Saudi Fransi, will facilitate the initial public offering of Arabian Mills for Food Products Company on the Saudi bourse. This activity includes handling the retail subscription process scheduled for September1. 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 Banking & Finance 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 […] January 29, 2025 Health 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 […] January 28, 2025 Analysis Banking & Finance 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 […] December 3, 2024 Aviation 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 […] October 31, 2024 Banking & Finance 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 […] October 25, 2024 Analysis Banking & Finance 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 […] October 23, 2024 Opinion Banking & Finance IMF proves Saudi banks have reasons for optimism Over the long term the kingdom’s banks will benefit from the scale of spending on Vision 2030 projects October 23, 2024 Health 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 […] October 1, 2024 Giga-projects 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 […] August 22, 2024 Markets Arabian Mills to float 30% of its stake on Saudi bourse Arabian Mills for Food Products Company (Arabian Mills) will sell 15.4 million shares, or 30 percent of its share capital, on the Saudi stock exchange. The sale comprises existing shares by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company (Ajlan & Bros), Sulaiman Abdulaziz Al-Rajhi International Company, and National Agricultural Development Company (NADEC). […] August 22, 2024 Posts navigation 1 2 … 4 Next
Banking & Finance 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 […] January 29, 2025
Health 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 […] January 28, 2025
Analysis Banking & Finance 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 […] December 3, 2024
Aviation 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 […] October 31, 2024
Banking & Finance 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 […] October 25, 2024
Analysis Banking & Finance 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 […] October 23, 2024
Opinion Banking & Finance IMF proves Saudi banks have reasons for optimism Over the long term the kingdom’s banks will benefit from the scale of spending on Vision 2030 projects October 23, 2024
Health 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 […] October 1, 2024
Giga-projects 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 […] August 22, 2024
Markets Arabian Mills to float 30% of its stake on Saudi bourse Arabian Mills for Food Products Company (Arabian Mills) will sell 15.4 million shares, or 30 percent of its share capital, on the Saudi stock exchange. The sale comprises existing shares by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company (Ajlan & Bros), Sulaiman Abdulaziz Al-Rajhi International Company, and National Agricultural Development Company (NADEC). […] August 22, 2024
