All Al Rajhi banking activities and financial transactions are in compliance with the principles of Shariah law and are overseen by a religious board comprised of Shariah scholars.
The Fundamentals of Al Rajhi Bank
Dependence on Sharia
The practices of the bank are governed by Shariah laws overseen by the Shariah Board. As a result all products and services are delivered in the context of Islamic teachings with a focus on work ethics.
Prohibition of Ribah
The prohibition of Riba is the fundamental basis of all Islamic money transactions whether taking, giving, assisting or witnessing. Therefore Riba transactions are prohibited directly or under any other name.
Source of Money Growth is Effort and Work
This means that money is not the only source of monitary growth nor shall money generate money. In other words the development process must be achieved through a relationship between capital and labor. Exceptions are made to those who cannot work due of illness or disability.
Risk Sharing when the Bank enters into a partnership with its client
The risk in any partnership contract is shared between the client and the bank. The objective is to ensure the absence of a determined rate such as that in conventional banking whereby the entrepreneur takes all the risk, regardless of the result of the project. In Islamic banking there is no guaranteed gain or loss, for one and not the other.