Each year, the Islamic banking sector continues to acquire increasing proportions of the assets of the global Islamic services industry in terms of assets, financing and deposits, and the Islamic capital market sector also acquires growing proportions of the assets of the global Islamic financial services industry.

Being a global leader in the world of Islamic banking; and following the successful closure of two SAR Sukuk issuances in 2022, the year 2023 witnessed Al Rajhi Bank’s successful launch of its first five-year USD sustainable Sukuk worth USD 1 Bn., with an annual return rate of 4.75%.

Since its establishment more than 60 years ago, Al Rajhi Bank adheres to the principles of Islamic Sharia across all its business activities. It is also considered one of the first banks to implement Sharia governance through the General Assembly’s adoption of the “Sharia Board Regulations” in 1999 and its following updates. This practice remains strengthened by the “Sharia Governance Framework for Local Banks” issued by the Central Bank, which represents direct support for Al Rajhi Bank’s view of Islamic banking.

Proud of the pioneering role of Al Rajhi Bank as a landmark national financial institution, the Sharia Group has continued to fulfil its responsibility, ensuring the Bank’s compliance with the principles of Islamic Sharia in all its operations, products and services, across all the departments as well as the Bank’s subsidiaries both in and outside the Kingdom. These functions are conducted through the Sharia Board Secretariat and Sharia supervision departments.

1

– Sharia Board Secretariat Department

This department, staffed with legal consultants and specialists, is concerned with studying and analysing all contracts, agreements and banking products. It prepares all the reports to be presented to the Sharia Board. The department then communicates the Sharia Board’s decisions across the Bank’s departments and divisions, in addition to providing related guidance and recommendations.

2

– Sharia Audit Department

It supervises all the Bank’s transactions to ensure full compliance with the decisions and recommendations of the Sharia Board regarding contracts, agreements and products. In addition, the department is responsible for conducting Sharia-compliance audits on the Bank’s activities through automated systems, programs and field visits. Such supervision ensures that there are no unauthorised products, contracts, or models; and that employees understand the Sharia Board’s decisions. The team is also responsible for developing and reviewing auditing standards issued by the Sharia Board.

Main Activities carried out by Sharia Group in 2023 include:

• Holding 33 meetings of the Sharia Board, during which the group discussed more than 280 issues related to the following topics:
  • Banking products
  • Investment and financing agreements
  • Contracts
  • Banking forms

• Issuing 260 decisions by the Sharia Board addressed to the Bank and its subsidiaries.
• The Sharia Group conducted Sharia awareness campaigns for the Bank’s employees, customers and those interested in Islamic banking, through:
  • Holding 16 training courses and workshops for employees of the branches, direct sales and “Tahweel Al Rajhi” in various regions of the Kingdom; regarding products, services and various fields of Islamic banking.
  • Responding to more than 700 mail and telephone inquiries.
  • Sending 12 awareness messages to the Bank’s employees about the Sharia principles in banking and the Sharia policy of the Bank.
  • Carrying out supervisory and awareness visits to more than 150 Bank locations, including branches, financing halls, and sales outlets in various regions nationwide.
  • Training undergraduate students from Sharia colleges in collaboration with Al Rajhi Academy.
  • Providing instructional support to researchers in the field of Islamic banking.
  • Developing and updating the Sharia Group’s website, to include clarifications of the Sharia provisions related to various products.
  • Preparing, printing, and distributing of specialised academic theses by experts and specialists in the field of Islamic banking and finance.
  • Printing 2 books and issuing 20 publications to be distributed to researchers and scholars, and in commercial and public libraries.
  • Representing the Bank in the meetings of the Islamic Banking Committee at the Saudi Central Bank.
  • Participating in specialised seminars and forums of Islamic jurisprudence.