shariah group

Islamic banking continues to strengthen its position as a cornerstone of the global financial system, driven by innovation, resilience, and a steadfast commitment to Shariah-compliant financial solutions. Characterised by robust and sustainable growth alongside institutional maturity, the industry continues to adapt to evolving market dynamics while safeguarding stakeholder interests. In 2025, Islamic banking is entering a transformative phase, shaped by rapid advances in digitalisation, the rise of artificial intelligence, and a heightened focus on environmental sustainability and green finance.

Throughout its long-standing history spanning over 60 years, alrajhi bank has upheld its leadership as the world's largest Islamic bank by remaining firmly committed to the principles and provisions of Islamic Shariah across all its business activities. This commitment is institutionalised through alrajhi bank's Shariah Group, operating under the authority of the Shariah Board and serving as a cornerstone of the Bank's governance framework.

The Shariah Board Secretariat Department plays a central role in studying and analysing all contracts, agreements and banking products, preparing detailed reports for the Shariah Board's deliberation and approval. Following the issuance of resolutions, the Secretariat then communicates the Shariah Board's decisions across the bank's departments and divisions, in addition to providing related guidance to guarantee consistent and accurate implementation.

Complementing this function is the Shariah Audit Department, which oversees the bank's transactions to ensure full compliance with the Shariah Board's resolutions and directives. In addition, the department is responsible for conducting Shariah-compliance audits on the bank's activities through automated systems, programmes and field visits. The Audit Department also continuously reviews, develops and refines auditing standards issued by the Shariah Board, reinforcing a proactive compliance environment.

alrajhi bank was among the first financial institutions to formalise Shariah governance through the General Assembly's adoption of the “Shariah Board Regulations” in 1999, and its subsequent updates that have strengthened the bank's governance structure over time. This practice is reinforced by the “Shariah Governance Framework for Local Banks” issued by the Saudi Central Bank, which further strengthens regulatory alignment, and contributes to maintaining the integrity and credibility of Islamic banking practices within the bank.

As part of Shariah Group's efforts to enhance awareness about Islamic Banking among community members, employees, customers and stakeholders, a series of supervisory, advisory and educational initiatives and events were organised in 2025, including:

• Holding 37 meetings, during which more than 330 formal resolutions and directives were issued to the bank and its subsidiaries.
• Conducting supervisory and awareness visits to 80 bank locations and 6 subsidiaries to assess on-ground compliance.
• Delivering 20 training courses and awareness workshops for employees.
• Disseminating 12 awareness messages on Shariah principles and policies to employees.
• Responding to more than 345 inquiries via phone and email
• Arranging meetings with customers to explain banking products and services, as requested by regional managers.
• Holding a workshop with local banks to share experiences regarding the application of “Shariah governance framework” issued by the Central Bank.

Members of the Council of Shariah at alrajhi bank