Tuder, Al Rajhi Bank’s real estate and property management arm, concluded the reporting period on a highly successful note, exceeding its revenue target by 50% for 2023, and surpassing net income targets by 100%. Tuder also achieved a 9% Return on Investment (ROI) on real estate management, and an outstanding 98% occupancy rate, demonstrating the subsidiary’s ability to effectively manage and utilise its real estate properties. At the close of 2023, Tuder recorded a total of SAR 198 Mn. in cost savings for Al Rajhi Bank and its subsidiaries that demonstrated its proven capabilities and readiness to access a wider market outside the Al Rajhi Group.

Strategic growth and expansion

With a roadmap that outlines the company’s long-term digital strategy. Tuder set about investing in the implementation of advanced digital solutions in 2023, property management software, advanced ERP systems and other digital tools that would help automate and optimise key business processes in order to reduce manual intervention, increase accuracy, and speed up processing times.

Tuder Highlights for 2023

Enhancing operational energy efficiencies

Under its comprehensive Energy Efficiency Programme implemented across most Al Rajhi Bank properties, Tuder continued to enhance power and energy efficiencies during the year in review. The programme covered a number of initiatives comprising the installation of solar panels, air-conditioner upgrades for energy saving, the introduction of power-down equipment, window film installation, and the adoption of LED lighting. These strategic measures have resulted in an overall reduction in power usage and an estimated cost saving of approximately SAR 2.3 Mn. from the total annual energy bill, a significant reduction in the Bank’s operating expenses.

At the close of 2023, Tuder had successfully installed Solar Power System across 61 Al Rajhi properties across the country. While the initial investment amounted to SAR 16 Mn., the solar installations are capable of reducing energy costs by approximately SAR 3 Mn. per year – a high and sustainable return on investment for the Bank. The Solar Power System will also generate clean and green energy, contributing to reducing the Bank’s carbon footprint, while also optimising energy efficiency and reducing operational costs for Al Rajhi.

Driving the Al Rajhi Bank rebranding efforts

The year 2023 saw Tuder surpassing planned project targets and achieving a project completion of 109% for the year in review, successfully exceeding targets by 9% at the close of the reporting period. The completed projects comprised 11 subsidiary projects and 68 branch rebranding projects in total, which in turn included 4 projects in the final stage of SAMA-approved licensing for operation, 14 projects in pre-operation phase, 3 remittance centres and 2 private branches. Tuder also oversaw the set-up and branding of 13 new branches that opened in 2023, as well as the 27 branches that underwent renovation to enhance their infrastructure and improve customer experience. Furthermore, 10 branches were relocated to more strategic locations in order to enhance their reach and accessibility to better service customers.

Tuder also embarked on a project to replace the primary signage at 207 Al Rajhi Bank locations according to the requirements presented by the Retail Banking Group. Tuder’s diligent efforts resulted in signage replacements across 187 locations, accounting for an impressive 90% of the agreed-upon plan.

The application of value engineering

Tuder's value engineering process continued to eliminate unnecessary costs in 2023, while gradually insourcing highly sought-after services through applicable means. The execution unit rates for renovation projects were reduced by a significant 41% in 2023, resulting in the completion of renovation projects below projected budget. A value engineering study was conducted on vendors for multiple services including mechanical, electrical and plumbing (MEP) services; the study helped Tuder procure the most cost-effective vendors and materials, resulting in an additional 7% cost reduction with zero compromise on quality. Tuder also saved a further SAR 4 Mn. during the reporting period by repurposing existing assets such as furniture, video walls, and other equipment.

In 2023, Tuder successfully reduced the duration timelines of ‘Shell and Core’ Projects by 17%, Renovation Projects by a notable 31.3%, Fit-out Projects by over 40%, and ATM Cabinet Projects by a significant 76%, demonstrating excellent project management, planning and execution skills, which resulted in greater savings and efficiencies. Tuder also successfully decreased the number of received incidents from branches by a significant 50% YoY in 2023, evidencing improved capabilities and better management of projects.