Al Rajhi Bank

Our History

Founded in 1957, Al Rajhi Bank is one of the largest Islamic banks in the
world with total assets of SR 172 billion (US$ 45,867 bn), a paid up capital of
US$4 billion and an employee base of over 7,447 associates. With over 50
years of experience in banking and trading activities, the various individual
establishments under the Al Rajhi name were merged into the umbrella 'Al
Rajhi trading and exchange corporation' in 1978 and it was in this year that the
bank was also established as a Saudi share holding company.  Deeply rooted
in Islamic banking principles, the Sharia compliant banking group is
instrumental in bridging the gap between modern financial demands and
intrinsic values, whilst spearheading numerous industry standards and
development.

With an established base in Riyadh, Saudi Arabia, Al Rajhi Bank has a vast
network of over 550 branches, over 100 dedicated ladies branches, 2,514
ATM's, 16,700 POS terminals installed with merchants and the largest
customer base of any bank in the Kingdom, in addition to 130 remittance
centers across the kingdom.  The first men's branch was opened in Aldirah in
1957, with the first ladies branch being opened in AlShmaisi in 1979.
 Our Customer Centric Approach

 As one of the leading and most progressive banks in Saudi Arabia, Al Rajhi
Bank recorded net income profits of SR 1,684 million (equivalent to US$ 449
million) during the first quarter of 2010.  Al Rajhi Bank operates in multiple
segments and continues to grow through diversification of income resources
and development of the investment and corporate banking sectors which build
on the strong retail banking base.

 Al Rajhi Bank also continues to develop banking programs and projects with a
focus on the latest electronic services and investment products in order to
offer innovative banking and investment services, especially e-banking.  At Al
Rajhi Bank, we have achieved leadership through offering new electronic
channels that answer customers’ needs and aspirations, simplifying their
efforts whilst saving time.  The Bank has also worked on numerous electronic
governmental projects in collaboration with many official sectors.

 Our ongoing commitment and focus on caring for our customers through the
delivery of quality products and services has been recognized through the
numerous awards obtained from independent institutions all over the world. 
During 2009 the bank received several awards from Euromoney, Arabian
Business, Global Finance and The Asian Banker for achievements in retail
and corporate banking, including best finance deals based on Islamic
structures for various projects in several fields.

International Presence

Malaysia
Al Rajhi Bank ventured into the Malaysian market in 2006 after being the first
foreign bank to be awarded a full-banking license by the Bank Negara
Malaysia.  Malaysia marked the bank's first foray into the South East Asian
banking scene, whereby the core banking products were introduced to the
Asian market providing a whole new Islamic banking experience. Al Rajhi
Bank currently has 19 branches in Malaysia with plans to increase this number
in the future.

Kuwait
Al Rajhi bank got the approval to open a branch in Kuwait, Al Rajhi will
become the first Saudi Bank to operate in Kuwait.

Jordan
Al Rajhi Bank has obtained all the regulatory agreements needed to launch its
banking activities in the Kingdom of Jordan. The announcement of the official
opening day and operation will be declared in due course.
 Vision, Mission and Values
Our Vision

A trusted leader delivering innovative financial solutions to enhance quality of life

everywhere.

Our Mission

To be most successful bank admired for its innovative service, people, technology
and Sharia compliant products, both locally and internationally.

Our Values
Despite the growth over the last five decades our commitment in adhering to our core
values remains the same.  Everything we do is built around our core values, based
on a customer centric approach which puts the customer at the heart of our activities.

 Integrity & Transparency

Openness and highest standards of corporate & personal ethics, in all that we
do.
 Passion to Serve Our Customers
A strong commitment to anticipate and address customer needs beyond
expectation
 Solution Orientated
Helping our customers achieve their objectives
 Modesty
Humility in thought and deed in everything we do
 Innovativeness
Nurturing imagination and fostering creativity for better results
 Meritocracy
Defining, differentiating and reinforcing excellence in people
  Care for Society
Contributing towards a better tomorrow

The Shariah Group

The Sharia Group of Al Rajhi Bank is the fundamental pillar supporting the bank.

The Group is entrusted with a series of interrelated and complementary functions that
collectively aim at realizing the Bank’s strategy of being a leading Islamic Bank. This
objective is achieved by having in place policies which ensure that the bank conducts
its business in harmony with the precepts of Islamic Sharia.

 Sharia Policy
 Objectives
 Sharia Board

Sharia Policy

Ever since its inception, Al Rajhi Bank has undertaken to implement and observe the
precepts of divine Sharia and Islamic legislation in all its transactions.  To realize this
objective, a Sharia Board was formed, based upon on a decision of the General
Assembly, which also ratified the Board’s rules of implementation. The Board is
completely independent of all other corporate divisions and departments, whose
transactions and dealings are subject to the Boards' approval.  Such compliance is
considered one of the most important standards of quality assurance, which is
applied to all products and services rendered to Al Rajhi clients. All corporate
personnel, including top management, are called upon to comply with this policy, in
line with the provisions of the Bank’s articles of association and other rules and
guidelines.

Implementation or effect of Rules and Guidelines States the Following

1. Decisions of the Sharia Board are considered binding on all departments and
the management of the Corporation
 2. Implementation of Sharia Board decisions is the responsibility of all levels of
corporate executive departments
3. No product or service can be launched until it has been approved by the
Sharia Board
4. It is strictly forbidden to act in violation of any decisions of the Sharia Board
5. Any violation of a Sharia Board decision, breach of an existing practice
decreed by the Sharia Board or the launching of any product or service
without prior approval of the Sharia Board will incur upon the culprit the
applicable penalty
6. The Sharia Board monitors the activities of the Corporation from a Sharia
standpoint and follows-up the implementation of Board decisions, through the
Sharia Control Department or any designated body.
7. The Sharia Board will develop a contract sin line with the precepts of Sharia,
applicable to all corporate transactions and deals at both local and
international levels
8. The Sharia Board will create an awareness of Islamic banking and investment
through employment of the right tools
9. The Sharia Board will ensure the proper selection of company personnel,
especially at the top management level, of persons who are willing to adopt its
Islamic banking policy and train other company personnel in Islamic banking

The Sharia Board will endeavor to ensure the proper implementation of Sharia Board
decisions and facilitate their monitoring through the publication of proper manuals
and guidelines, such as the Sharia Monitoring Guide and Sharia Control Guidelines.
(Sharia Board Decision # 317)

Objectives

The objective of the Sharia Group is to participate in the realization of the Bank’s
Islamic banking strategy through support of the plans and policies necessary for the
Bank’s compliance with the precepts of Islamic Sharia, in the conduct of its business
transactions.
To achieve this objective, the Sharia Group has been entrusted with the following
functions:

 Reviewing the Bank’s transactions and activities and reporting its findings to
the Sharia Board for further action
 Monitoring the implementation of the Sharia Board decisions and their
application to all aspects of the Bank’s business activities within the Kingdom
and abroad
 Developing contracts and products in line with the precepts of Islamic Sharia
 Creating an awareness of Islamic economics inside and outside the Bank
 Developing the necessary information and communications for implementing
the functions of the Sharia Group

The following divisions are present within the Sharia Group:

 Secretariat
 Sharia Control Department
 Support and Development
 Sharia Board

The founders of Al Rajhi Banking and Investment Corporation mutually agreed in the
memorandum of association that all company transactions and dealings should be in
compliance with the precepts of Islamic Sharia.  Accordingly, the Council of Ministers
Resolution No. 245 dated 26/10/1407H and Royal Decree No. M/59 dated
03/11/1407H were issued to license Al Rajhi Banking and Investment Corporation.
Additionally, Ministerial Resolution No. 3198, dated 05/04/1409H, announced the
incorporation of Al Rajhi Banking and Investment Corporation as a Saudi joint stock
company.

Objectives of Sharia Board

In the 11th. General Assembly held on 27/11/1419H, the charter of the Sharia Board
was approved.  The charter stated that the objective of the Sharia Board it to verify
the compliance of the Bank with the precepts of divine Sharia in all corporate
dealings, provide counsel and guidance to the Bank in a manner that will satisfy the
intent of Islamic legislation.

Scope of Sharia Board

In the 11th. General Assembly held on 27/11/1419H, during which the charter of the
Sharia Board was approved, it was stated that all corporate transactions and
dealings should be subject to the approval and under the control of the Sharia Board,
whose decisions will be binding upon the Corporation.

Sharia Board Decisions

 From the date of its formation until 23/07/1431H, the Sharia Board has taken
over 911 decisions in which it approved a variety of contracts, agreements, forms
and products, treated a substantial number of issues and remarks and responded to
a large number of inquiries addressed to the board by various departments and
clients of the bank.

The General Assembly of the Company approved the creation of the Sharia Board
and appointed its members.  It also approved its methodology.  Accordingly, it has
become contingent upon the executive management of Al Rajhi Banking and
Investment Corporation at all levels to endeavor to realize the objectives for which
the Corporation has been incorporated, in compliance with the precepts of Islamic
Sharia in all its dealings and transactions.

The current membership of the Sharia board as determined during the 21th General
Assembly held on 03/03/2010 is as follows:

Name Function
His Excellence Sheikh Abdullah Bin Mohammed bin Khonain Chairman
His Excellence Sheikh Dr. Ahmed Bin Abdullah bin Homaid Vice-chairman
His Excellence Sheikh Abdullah Bin Nasser Al Salmi Member
His Excellence Sheikh Dr. Yousuf Bin Mohammed Al Ghafees Member
His Eminence Sheikh Dr. Saleh Bin Abdullah Al Lohaidan Member & Secretary
“AFF Program” means Al Rajhi Friends & Family Program. “Member” means the
Bank’s customer or staff who has signed up for the AFF Program. “Rewards” means
cash incentive that will be credited into Member’s account. “Eligible Products”
referred to participating banking products in AFF Program where the Bank will share
part of the net income earned from the said banking products with the Members.

AFF Program is provided by Al Rajhi Bank, Malaysia. Members of AFF Program will
have the opportunity to earn rewards by referring customers to the Bank. Rewards
will be given to Members for every successful financing customer referred to the
Bank.

Under the AFF Program, the Bank will be sharing its profit earned on the Eligible
Products with the Members based on the profit sharing ratio as stated herein. The
AFF Program and Member’s participation are subject to the foregoing terms and
conditions. The applicable Shariah principle with regards to this AFF Program shall
be the principle of Jua’lah.
 Board of Directors

The Bank's Board of Directors represents a set of members elected by the General
Assembly every three years.  Members are classified according to the definitions provided in
the Capital Market Authority Corporate Governance Regulations as follows:

Membership
Name Function
Description
Board of Directors
Sulaiman Bin Abdul Aziz Al Executive Member
Chairman and
Rajhi (Dependent)
Managing Director
Executive Member
Abdullah Bin Sulaiman Al Rajhi CEO
(Dependent)
Board of Directors Non-Executive Member
Sulaiman Bin Saleh Al Rajhi
Member (Dependent)
Board of Directors Non-Executive Member
Abdullah Bin Abdul Aziz Al Rajhi
Member (Dependent)
Board of Directors Non-Executive Member
Salah Bin Ali Aba Al Khail
Member (Dependent)
Abdul Aziz Bin Khalid Al Board of Directors Non-Executive Member
Ghefaily Member (Dependent)
Mohammed Bin Abdul Aziz Al Board of Directors Non-Executive Member
Rajhi Member (Dependent)
Board of Directors Non-Executive Member
Mohamed Bin Abdullah Al Rajhi
Member (Dependent)
Board of Directors Non-Executive Member
Ali Bin Ahmed Al Shiddi
Member (Dependent)
Board of Directors Non-Executive Member
Saeed Bin Omar Al Esayi
Member (Dependent)
Mohammed Bin Othman Al Board of Directors Non-Executive Member
Bishr Member (Dependent)
 Passion to Serve our customers
Making it real for all of us
At Al Rajhi Bank we are dedicated to providing you with the service and commitment
you deserve. We believe that we can better serve you through a combination of the
latest banking technology solutions, clearly defined customer service level
agreements and a dedicated team specially trained to meet your banking
requirements. Our philosophy is captured by one of our guiding values “passion to
serve our customers”, a commitment to anticipate and addresses our customer
needs in a reliable, engaging and transparent way.

“Passion to serve our customers” is a strong commitment to anticipate and address

customer needs beyond expectation.

Reliable

 We will carry out your requests as we promised to do

 We will carry out your requests right first time
 We will have the knowledge, authority and responsibility to deal with your
requests or to be able to refer you to someone who has

Engaging

 We will be courteous and helpful in all our dealings with you

 We will identify ourselves whenever we talk with you
 We will show you that we appreciate and value your custom
 We will be solution focused and offer you an alternative if we find we cannot
carry out your request

Transparent
  We will fully explain our fees and ensure you understand them
 We will welcome complaints as a way of improving our service and will resolve
them quickly and transparently

Corporate Finance

As part of our ongoing commitment to provide you with the right products, here at Al
Rajhi Bank have developed a number of Islamic products that we are sure will be of
interest to you.  Our products are always in accordance with both international
standards and Sharia requirements:

Bai Al Ajel

Bai Al Ajel is a financing facility that provides cash to customers.  The process
involves selling the goods or commodities to customers, who later appoint the bank
as the agent to sell the same goods in the market.  The sale proceeds are then
transferred to the customer.  Payment for this facility is on a deferred basis and they
can be made to the bank in installments or in one lump sum.

Murabaha

Murabaha contracts allow customers to purchase raw materials, capital goods and
other consumables from local and international markets.  These goods are first
bought by Al Rajhi Bank for its account on orders of the customers by paying cash or
through Letter of Credit (LCs) and then sold to the customers with a profit margin on
a deferred payment basis.  Deferred payments can be made to the bank in
installments or in one lump sum.

Musharaka

Musharaka functions like a limited partnership between Al Rajhi Bank and customers
who need to import certain goods and equipment, but do not possess sufficient funds
to do so.  In this type of transaction, the customer provides a portion of the funds and
Al Rajhi Bank provides the remaining funds.  Al Rajhi Bank then issues LCs to import
the goods.  When the goods arrive, there are three options available:
  Al Rajhi Bank sells its share in Musharaka to the customer in return for a cash
payment or deferred basis at an agreed margin
 The customer sells his share to Al Rajhi Bank in return for a cash payment or
deferred basis
 Both parties sell their shares in the market together

Istisnaa

This product is suitable for financing large real estate projects. Under Istisnaa, Al
Rajhi Bank arranges to build an asset or plant (the project) in accordance with the
specifications requested by the customer.  Upon completion, the asset will be
delivered to the customer against deferred payment of the sale price.

Akar

Al Rajhi Bank’s Akar product gives customers the opportunity to invest in property.
Repayment to the bank can be in the form of installments structured over a certain
period of time.

Eirad

Our Eirad product provides credit facilities against the assignment of rental income
for a specific period for those interested in financing a real estate purchase.  This
product enables owners of income generating properties to obtain credit facilities
against assignment of rental income.

The product enables real estate investors to increase their property holding,

commercial activities or expand into new businesses, providing additional liquidity
without the need to sell their properties.
 Features of Eirad Program

 Provides an opportunity to own investment properties

 Financing opportunity that meets the needs of the customer's business activity

Corporate Social Responsibility

Our responsibility to our community has always been at the forefront of our
obligations and is one of the main objectives of the Bank.  Al Rajhi community
services include:

 Our Banking Products:  As one of the first Islamic Banks in the world, our
products have been adopted as models by other banks locally, regionally and
internationally.  Each of our products is fully Sharia Compliant, carefully
studied and approved, by our Sharia Committee; a group of the Kingdom’s
most prominent and esteemed Islamic scholars
 Internal Policies:  Our bank operates within approved policies regarding
employment, equipment purchasing, project management, and internal
maintenance, through which the bank upholds the highest levels of social
responsibility.  We are environmentally responsible in terms of energy usage
and recycling
 Human Resources:  Al Rajhi Bank values maintaining social responsibility in
the HR sector, establishing mutual loyalty and a personal relationship with
each staff member.  Employer and employee alike share the same vision, thus
building an extended family within our organization
 Corporate Social Responsibility:  Al Rajhi Bank has continuously committed
itself to a series of corporate social responsibility programs in different
sections of the community, including educational, health, and general social
programs

We are proud of our services to the society through redirecting the funds from the
clearance account to serve our community:
 Education

 Al Rajhi Bank signed an agreement with the Ministry of Social Affairs, setting
up a training and development program for both men and women, eventually
offering them employment in banking
 We collaborated with the Women’s University in preparing diplomas in the
fields of body and hair care, and other related fields.  The diploma programs
train women and eventually provide them with the support required to
establish their own small business ventures

Healthcare

 Our pledge to the Friends of the Sick helped provided a total of 600 medical
machines and equipment for those in need
 Furthermore we guaranteed to provide housing and furniture, to the Friends of
the Sick, in a project worth SR 4 million
 We also recently signed an agreement with King Fahad Medical City to help
600 ill men and women travel to other centers for their medical treatment, a
project worth SR 500,000 annually
 Al Rajhi Bank and Enaya, an association formed to care for the ill, organized
an educational road show to prevent blindness caused by diabetes, a project
worth SR 4 million
 Al Rajhi Bank, along with the Anti-smoking Foundation, have laid the ground in
building and equipping a clinic, and supporting its operation for a total of 3
years in the Al Ahsa region, a project worth SR 4.5 million

Housing

 In agreement with the Prince Salman Housing Project, we have undertaken to

pay for 20 housing units between the areas of Al Kharj and Al Mzahmeya, with
an estimated cost of SR 6 million
 Charity Work for Orphans
 In agreement with the Ministry of Social Affairs, Al Rajhi Bank has developed
an investment fund specifically for orphans to invest their money and
eventually receive their investment in cash