Al Rajhi Bank
Encyclopedia
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
, and a major investor in Saudi Arabia's business world. It is one of the largest joint stock companies in the Kingdom, with a paid up capital of SR
Saudi riyal
The Riyal is the currency of Saudi Arabia. It is abbreviated as ر.س or SR . It is subdivided into 100 Halalas . The Saudi Ghirsh is 5 Halalas.-History:...
6.75 billion. Its Head Office is located in Riyadh
Riyadh
Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of Riyadh Province, and belongs to the historical regions of Najd and Al-Yamama. It is situated in the center of the Arabian Peninsula on a large plateau, and is home to 5,254,560 people, and the urban center of a...
and there are six Regional Offices. Al-Rajhi Bank also has 18 branches in Malaysia and plans to have 50 branches in that country by 2010.
History
Banking and trading activities of Al-Rajhi Bank began 30 years ago. In 1398 HIslamic calendar
The Hijri calendar , also known as the Muslim calendar or Islamic calendar , is a lunar calendar consisting of 12 lunar months in a year of 354 or 355 days. It is used to date events in many Muslim countries , and used by Muslims everywhere to determine the proper day on which to celebrate Islamic...
(1978) individual establishments were merged into "Al Rajhi Trading and Exchange Corporation" and in 1404 H (1987) it was converted into a joint stock company under the royal decree No. 59, dated 3/11/1407. In 5/4/1409 H, 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.
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. The Al Rajhi family is considered, by most in Saudi Arabia, as the country's wealthiest non-royals, and among the world's leading philanthropists.
Al-Rajhi Bank is considered as one of the largest banking corporations in the kingdom with a capital base funded at 100% beginning at SR 750 million, which was then increased to SR1.5 billion, then to SR2.25 billion, then to SR4.5 billion (March 2005) then to SR6.75 billion (March 2006) and finally to SR13.50 billion (March 2007).
After 50 years of operation solely within Saudi Arabia, the bank launched in Malaysia, signifying its first forey into international banking. Following the Saudi business model which adheres closely to the deeply rooted Islamic banking
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
principles, the Sharia
Sharia
Sharia law, is the moral code and religious law of Islam. Sharia is derived from two primary sources of Islamic law: the precepts set forth in the Quran, and the example set by the Islamic prophet Muhammad in the Sunnah. Fiqh jurisprudence interprets and extends the application of sharia to...
-compliant banking group is planning to be instrumental in bridging the gap between modern financial demands and intrinsic Islam
Islam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
ic 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.