Concept
Private Banking ("Al-Khassa", الخاصة) is an in-bank unit of Al Rajhi Bank, not a separate legal entity; client investments are executed through the subsidiary Al Rajhi Capital. Everything is fully Sharia-compliant. Within the segmentation ladder the unit sits above the affluent "Diamond" tier. The group styles itself the world's largest Islamic bank, a claim corroborated by third parties.
Scale according to official FY2025 figures: total assets SAR 1,043 bn (~US$278 bn — the SAR 1 trillion mark was crossed in 2025); net income attributable SAR 24,792 m (+26% YoY); ROE 23.4%; NPL 0.75%; ~21 m customers; #1 in financing and deposits in Saudi Arabia.
History and evolution
- 1957 — founded as an exchange house by four Al Rajhi brothers (Saleh, Sulaiman, Mohammed, Abdullah); first branch in Al-Dirah, Riyadh.
- 1978 — the entities merged into the Al Rajhi Trading and Exchange Corporation.
- 1987 — Royal Decree conversion to a joint-stock company.
- 1988 — renamed Al Rajhi Banking and Investment Corporation; listed on Tadawul on 1 December 1988.
- 2006 — rebranded "Al Rajhi Bank"; Malaysia subsidiary established (first overseas).
- 2008 — Al Rajhi Capital founded.
- 2010 — Kuwait branch. 2011 — Jordan branch.
- 2024–2026 — the "harmonize the group" strategy names Premium/HNWI as a key segment.
- 2025 — named "Best Private Bank – Saudi Arabia" (MEED MENA Banking Excellence Awards).
Regulation
The bank — Al Rajhi Banking & Investment Corp. SJSC (Tadawul: 1120) — is supervised by SAMA, with CMA oversight as a listed entity. Al Rajhi Capital holds CMA licence 07068-37 of 19 June 2007, operating since 18 March 2008 (dealing, managing funds and discretionary portfolios, arranging, advising, custody).
Compliance context: SAMA penalties are self-disclosed in the annual reports — FY2025: 36 supervisory-instruction decisions totalling SAR 102,728,350 (FY2024: 59 decisions, SAR 102,638,386; plus FY2024 customer protection SAR 4.1 m, cybersecurity SAR 11.86 m, AML/CFT due diligence SAR 115,000). CMA: no fines in the FY2023–FY2025 disclosures; February 2010 — a SAR 50,000 fine for late disclosure of top-shareholder changes. SAMA's industry-wide 2019/2020 "responsible finance" rounds also included Al Rajhi (amounts undisclosed). No enforcement action specific to the private-banking unit has been found.
Source of wealth
Typical client wealth origins: merchant and trading families, real-estate fortunes, business owners and professionals; wealth expansion under Vision 2030. Source of funds verification is performed under the bank's compliance procedures.
Who it serves
Wealthy Saudi families and business owners who want fully Sharia-compliant banking; clients who value local presence, the country's largest banking ecosystem and investments through Al Rajhi Capital.
Services
- Dedicated private-banking centres and a relationship manager; fee exemptions; premium cards (mada Infinite debit, Visa Infinite credit with supplementary family cards); elevated transaction limits.
- Credit and financing solutions supporting investments, including real-estate financing.
- Investments via Al Rajhi Capital: mutual funds, discretionary portfolio management (DPM) for HNWIs and institutions, private real-estate funds (13+ launched in 2025, combined more than SAR 25.8 bn), private-equity funds, brokerage (16.3% market share, #2 in 2024; first market maker on the Saudi Main Market), custody (AUC SAR 3.7 bn at end-2025, +147% YoY).
- Protection and saving programmes via Al Rajhi Takaful (a 35% associate).
- Estate and inheritance handled in the Sharia context: Saudi Arabia has no trust law; succession follows Islamic inheritance rules.
Entities
| Jurisdiction | Legal entity | Form and supervision | Role |
|---|---|---|---|
| Saudi Arabia | Al Rajhi Banking & Investment Corp. SJSC (Tadawul: 1120) | Bank; SAMA supervision, CMA listed-entity oversight | Parent bank; Private Banking "Al-Khassa" |
| Saudi Arabia | Al Rajhi Capital | CMA licence 07068-37 of 19 Jun 2007; operations since 18 Mar 2008 | Investments: funds, DPM, brokerage, custody |
| Malaysia | Al Rajhi Malaysia | Licensed Islamic bank under Bank Negara's IFSA 2013; 13 branches | Retail-focused; no private banking |
| Kuwait | Al Rajhi Bank branch (2 outlets) | Branch | Retail; no private banking |
| Jordan | Al Rajhi Bank branch (13 outlets) | Branch | Retail; no private banking |
The group also includes Emkan, Neoleap/urpay, Ejada, Atmaal and other fintech and digital units.
Strengths
- The world's largest Islamic bank: total assets SAR 1,043 bn (~US$278 bn), ROE 23.4%, NPL 0.75%, according to official FY2025 figures.
- Full Sharia compliance across the entire product line.
- Al Rajhi Capital — the #2 asset manager in KSA: AUM SAR 165.8 bn at end-2025 (+35% YoY), according to official CMA data; #2 broker, first market maker.
- Leadership: Managing Director & CEO Waleed Abdullah Al-Mogbel (CEO since January 2020); Chairman Abdullah bin Sulaiman Al Rajhi (at the bank since 1979); Chief Private Banking Officer Hani Abdullah Al Meghem (reported in the role since January 2026; ~20 years of experience; ex-NCB Chief Private Banker).
- Reinforced capital: SAR 40 bn to SAR 60 bn increase via 1-for-2 bonus shares (approved April 2026); US$1 bn Social AT1 Sukuk (Q1 2026).
Where it falls short
- No officially published entry threshold; PB-specific AUM and client counts are not disclosed.
- Sharia-compliant products only: conventional instruments (interest-bearing products, trusts) are unavailable; succession follows Islamic rules only.
- The international units (Malaysia, Kuwait, Jordan) run no private-banking offering for private clients.
- Primarily oriented to Saudi residents; the investment book is limited to the Saudi market and Sharia-compliant instruments.
Al Rajhi Private Banking is the gateway to the world's largest Islamic banking ecosystem, with full Sharia compliance and the Al Rajhi Capital investment platform. Ownership: Tadawul-listed; Saudi shareholders hold 82.15%; Al Rajhi family members remain the largest shareholders; there is no PIF stake (in 2017 the bank publicly denied a rumoured 25% PIF acquisition).
Q/A
What is the minimum entry threshold for Al Rajhi Private Banking?
No official minimum is published. The reference point is the affluent Diamond tier: reported criteria include an opening deposit of SAR 1 m, a 6-month average balance of SAR 500 k, or a monthly salary transfer of SAR 40 k (not officially confirmed).
Are private-banking deposits insured?
Yes, on equal terms: SAMA's Depositors Protection Fund covers up to SAR 200,000 per person per bank, with all accounts aggregated.
Are trusts available for succession planning in Saudi Arabia?
No. Saudi Arabia has no trust law: inheritance follows Islamic rules, and private banking operates within that framework.
Who executes client investments?
Al Rajhi Capital (CMA licence 07068-37): funds, discretionary portfolio management, brokerage and custody; AUM SAR 165.8 bn at end-2025.
Is the bank owned by the PIF sovereign fund?
No. The bank is Tadawul-listed, 82.15% held by Saudi shareholders, with Al Rajhi family members as the largest shareholders; in 2017 the bank publicly denied a rumoured 25% PIF acquisition.