In order to meet the growing demand of the customers in the changing market conditions, the Treasury Department has been diversifying the business portfolios to provide our customers with high-quality professional services and Shariah compliant products.
Funds are typically employed in trade or a commodity finance structure and the process requires a simple metal or commodity sale. The whole procedure happens through the intermediation of the Bank in the purchase of a commodity, which is based on the request of a client on deferred payment terms for a price equivalent to the total cost of the purchase, plus a fixed profit (markup) agreed upon by both the Bank and the client.
This product is popularly created and used by the Treasury as alternative conventional deposit transactions.
Investments are structured using the global commodity markets. The client advises the Bank of their investment objectives and appoints the Bank as the agent to buy a commodity on their behalf for the desired investment amount. The Bank completes the spot purchase, pays the supplier by debiting the client’s account and confirms the transaction to the client.
The Bank purchases the commodity from the client for the spot delivery of the commodity then the deferred payment.
The deferred payment date will correspond to the investment term, as stipulated by the client, and the deferred price will exceed the spot price by a profit margin previously agreed upon between the client and Bank.
The Bank as a major trader in the global commodity markets, undertakes all aspects of the commodity transactions on behalf of the client; and through the execution of the sale contract, the client secures direct investment risk of Al Rajhi Bank.
Our Bank can buy and sell for spot delivery most foreign currencies against other currencies or against the Saudi Riyal.
The parties enter into a “Commodities Forward Purchase & Sale in Different Currencies Agreement” and each transaction will be confirmed through the exchange confirmations that detail the Currency Pair, Exchange Rate and Forward Settlement Date.
A Treasury Sales Desk has been established to cater to the demands of corporate clients (or banks) for the purchase or sale of large volumes of banknotes and bullion business.
Our Treasury Sales Desk is ready to accommodate your needs with the most competitive prices in the market.
Did You Know? You can apply online for our financing products.
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