The Al Rajhi Bank, which was previously known by the name of Al Rajhi Banking and Investment Cooperation, is one of the largest and successful Islamic Bank in terms of capital based on 2015 data. The bank is entirely based on Saudi Arabian banking system.
Al Rajhi Bank has been found to be an influential contributor to the Saudi Arab’s finances and business. It is the reason why it is one of the largest joint stock companies based in the country. There are more than 600 branches currently functional all over the world with assets of approximately SR 330.5 billion in AUM that is around $88 billion in total. Being Saudi driven, there are six main regional offices that control all the affiliated subsidiaries and the headquarters is in Riyadh, Saudi Arabia. Al Rajhi Bank has expanded its operations to nearby countries such as Malaysia, Kuwait and Jordan.
Al Rajhi Bank has a 60-year history; it was founded in 1957 as a small private bank. Today, it is one of the largest financial institutions with 500 branches across the country and Malaysia with over 9,600 employees and $88 billion value of assets. The bank, which is the largest private financial institution, conducts active investment and credit policy, is a major investor in the business world in Saudi Arabia. The positive image of Al Rajhi Bank, its high reputational, financial stability, and viability for several decades, makes it a leader in banking services not only in Saudi Arabia but also across the region as a whole.
It was founded by four brothers known as Suleiman, Saleh, Abdullah, and Mohammed of the Al-Rajhi family, one of the richest families in Saudi Arabia. Hence, that was where the Al-Rajhi bank got its name from.
The bank started its financial programs in 1978 as Al Rajhi Trading and Exchange Company. The bank timely changed their operations according to supply and demands. In 1987-89, Al Rajhi Bank went through the conventional rebranding phase and changed its name to the Al Rajhi Banking and Investment Corporation, but later in 2006, the name was again changed to Al Rajhi Bank. The bank is public listed under the Saudi Arabian Stock Exchange trademark or Tadawul. Approximately 75% of the total shares owned by the public. Nevertheless, the Al Rajhi family members are the largest and most significant stake and shareholders of the bank.
After successfully running the banking operations for 50 years, Al Rajhi Bank decided to expand its influence in the South-Asian territory by choosing Malaysia as a good platform for initiation in 2006. This step was found beneficial as it opened the gates of International banking even beyond expectations. Since Al Rajhi Bank was completely rooted with Islamic banking systems, therefore, it was made mandatory to implement banking services that are in accordance with Islamic banking systems. In fact, the Sharia-Compliant banking group has introduced a plan that encompasses both modern banking and Islamic banking filling the gap of inflation to produce better future in Malaysia. In the year 2010, Al Rajhi Bank opened its various branches and national offices in various countries such as Kuwait, two main branches separate for men and women and in Jordan in 2011.
Currently, Al Rajhi Banking network has more than 500 branches, which includes more than 118 female-oriented branches specifically for women. There are also over 4,100 ATM and 46,000 POS terminals installed all over Saudi Arabia. Al Rajhi Bank is also known as the largest customer base in the Saudi Arabia. Supported by its established name in the Middle East, Al-Rajhi then plan to make its mark in the international banking market by opening its first foreign branch in Malaysia in October 2006.
On October 16th, 2006 Al Rajhi Bank finally opened its first branch of Malaysia in Jalan Ampang. Currently, Al Rajhi Bank has more than 22 branches all over Malaysia, 13 branches situated in Klang Valley alone, and the rest of the branches are in Kota Kinabalu, Kuantan, Melaka, Kota Bharu, Kuching, Penang, Johor Bahru and Sg. Petani. Keeping the exponential increase in customers, Al Rajhi Bank is expanding its influence in more regions with improved products and services.