subsidiaries

In 2025, record banking sector profits failed to translate into a stronger overall index performance, with the Saudi Stock Exchange (Tadawul) posting the steepest decline among regional exchanges. The benchmark Tadawul All Share Index (TASI) saw declines in the first and second quarters of 2025 with lower than average daily turnover as a result of weakening oil prices, and persistently high interest rates.

While Tadawul witnessed robust activity in terms of IPOs and rights issues during the reporting period, the available liquidity among investors were distributed across other investment channels such as debt instruments and Murabaha, which provide stronger returns, making the stock market relatively less appealing. This meant that a majority of IPOs listed in 2025 traded below their listed prices. The market experienced a strong recovery in the third quarter, driven by the anticipation of relaxed foreign ownership rules of listed companies in KSA, yet continued to fluctuate towards the end of the year.

alrajhi capital (ARC) – the fully-owned financial services subsidiary of alrajhi bank, recorded a strong performance in these volatile market conditions in 2025, increasing operating income by 25% YoY during the reporting period. The performance was driven by strong growth across Asset Management and Real Estate, with income increasing by a significant 47% YoY to X 716 Mn. This contributed to an overall 27% increase in net income, with ARC reaching X 1,794.4 Mn. at the close of the year.

Securities services

Amidst challenging market conditions, ARC maintained its position as the top brokerage in KSA by value traded, maintaining a 15.5% market share at the close of 2025.

During the year in review, ARC expanded its securities services offering with the introduction of Securities Borrowing and Lending (SBL), primarily aimed at its institutional clients to support activities like short selling and hedging, and to generate additional income on idol portfolios. successfully introduced single-stock options (SSO)

trading as a product to its growing portfolio, making the service accessible to clients via the ARC Super App. Options trading for international markets is also made available on the Super App, which provides clients with access to a wide range of investment opportunities and trading in 38 markets worldwide.

ARC was presented with the award for Best Broker in Saudi Arabia for 2025 at the Euromoney Capital Markets Awards, and Best Brokerage Firm at the Argaam Summit 2024, in recognition of its market leadership and overall strong performance across Saudi Arabia’s capital markets. ARC also became a member of the International Securities Lending Association (ISLA), further strengthening its alignment with global market standards and best practices.

As an accredited Independent custody member in the Saudi Market, the value of total Assets under Custody (AUC) of ARC reached X 3.7 Bn. at the close of 2025, a remarkable +147% YoY increase resulting from new mandates and larger institutional inflow.

Asset management

During the year in review, ARC’s total Assets under Management (AUM) grew by 35% YoY to reach X 165.8 Bn., maintaining its rank as the second largest Asset Manager in the Kingdom.

ARC offers a wide range of innovative investment products across all major asset classes, with varying investment objectives and risk appetite. The Division manages international, regional and local mutual funds, in addition to customised discretionary portfolios for institutional and high net worth clients. Key asset classes under management include Equity Funds (Local, GCC, MENA and International), Commodity Murabaha Funds, and various Multi Asset Funds.

The Al Rajhi Awaeed Fund launched in 2024 with the aim to achieve capital growth and liquidity with low risk, was top ranked for its performance in 2025 in the Money Market asset class and was the largest public mutual public mutual fund in KSA. In line with its strategy to expand offerings in alternative investments, the Asset Management Division’s Fund Factory launched four private equity funds during 2025:

• Indirect Financing Fund 2 and 3
• Pharma Sukuk Fund
• Private Conservative Fund
• Al Rajhi Monthly Distribution 3

In the money market segment, ARC delivered leading performance during the reporting period, with the Awaeed Fund achieving the highest returns in its category. Furthermore, ARC was recognised at the Argaam Summit 2024 for Best Performing Investment Fund.

ARC’s commitment to supporting the Kingdom’s growing non-profit sector by aligning with Vision 2030 efforts to grow funding through endowment funds was recognised during the year in review. ARC was felicitated at the ‘Numo’ Financial Sustainability Forum as a leading provider of services to endowment beneficiaries, currently serving 73 entities across key areas such as healthcare, education and charitable work, providing a stable, long-term source of sustainable funding for impactful social initiatives.

Real estate division

More than 13 private real estate funds were successfully launched by ARC’s Real Estate Division in 2025, with the combined size exceeding X 25.8 Bn. The Division also carried out the execution of over 10 Memoranda of Understanding (MoUs) during the year in review. The reporting period also saw ARC’s successful exit of a private fund exceeding X 1 Bn. in size, delivering a return on equity of over 40%.

Investment banking

ARC’s Investment Banking Department offers a complete range of strategic financial advisory services, including debt and equity structuring and arranging, to assist clients in achieving their business and financial goals. The Investment Banking Team provides extensive regional and international expertise across various products and service lines.

The Investment Banking Division closed the year strongly, maintaining ARC’s rank at #2 among Issuers in Saudi Arabia for both SAR and USD denominated sukuk, having successfully closed a total of 13 Debt Capital Market (DCM) transactions between USD and SAR. In the equity space, ARC secured the #3 position in the Kingdom’s IPO League Table, demonstrating the subsidiary’s continued role in performance and recognition as a market leader for its brokerage and investment solutions.

During the reporting period, ARC also participated in three IPOs and three transitions to the Main Markets, enabling greater efficiencies for clients via automated operational processes for main and Nomu IPO activities.

ARC managed government debt instrument issuances worth X 274 Bn. The structured finance agency team of ARC managed the issuance of 85 government and institutional sukuk Issuances programmes in 2025, and successfully executed 98 Murabaha transactions. ARC has been accredited as a primary dealer for submitting bids for the purchase of sukuk issued by the KSA government.

Leading the digital evolution

In 2025, ARC captured 25.2% of the Kingdom’s digital trading market. This was driven by the high adoption of its online platforms, with 85.3% of ARC’s total value traded executed through its internet channels, reflecting the strong digital engagement of its clients. This commanding position in Saudi Arabia’s digital brokerage market is powered by ARC’s ‘Super App’, an industry-redefining mobile application that aggregates all ARC’s investment services, from brokerage and asset management to investment banking, into one unified, user-friendly mobile interface.

During the year in review, ARC expanded its digital ecosystem with the launch of ‘Super Web’, a unified web-based platform that serves as the web counterpart to the Super App, offering integrated access to ARC’s full suite of products and services. Users can access real-time information on and trade on the Saudi Tadawul Market and access 38 international markets, enabling them to explore new global investment opportunities instantly. This is further supported by ARC’s robo advisory platform ‘alrajhi Mashora’, an automated, algorithm-driven investment management service.

Margin lending was fully digitised end-to-end from request to execution during the reporting period, and was made available through its digital platforms, contributing to a 150% increase in margin lending contracts. The Family Proposition was introduced in 2025, allowing parents to digitally onboard dependents and monitor their investment activities, supporting long-term financial planning and responsible wealth management. Customers were also introduced to Stock Profile technical analysis features for Saudi equities, combining listed company profiles with market data and technical indicators to enhance investment research and decision making.

In 2025, the Super App underwent a comprehensive interface upgrade, enhancing usability and streamlining the onboarding journey. These improvements, combined with stronger customer retention initiatives, drove a notable 47% YoY increase in international clients. Overall, the ARC Super App recorded over 3 million downloads in total at the close of 2025, while maintaining an impressive 4.6/5 App Store rating.

Leveraging group synergies

ARC launched its 3-year Business Strategy cycle in 2024, coinciding with the launch of alrajhi’s new ‘harmonize the group’ strategy. This has enabled the subsidiary to collaborate with alrajhi bank in order to better leverage group synergies, and provide highly tailored investment solutions for bank customers under the Business-to-Consumer (B2C) and Business-to-Business (B2B) offerings. Investment options have also been integrated into the alrajhi bank app.

Under ARC’s Human Capital Transformation Programme, the Subsidiary delivered a new HR System and app to its employees in 2025, enhancing communication and collaboration among employees, improving the onboarding experience, while also providing employee self-service options to unlock greater efficiencies. The team will continue to develop and deliver initiatives aimed at strengthening ARC’s organisational culture and elevating the overall employee experience.