# Al Rajhi Private Banking: the world's largest Islamic bank

> Al Rajhi Private Banking: fully Sharia-compliant, no published minimum; Al Rajhi Capital AUM SAR 165.8bn; SAMA deposit protection SAR 200,000 per person per bank.

Author: Dana Berzeg — Attorney-at-law, Family Office (https://wiki.private.law/en/authors/berzegova)
Last modified: 2026-10-20T13:22:00.000Z
Canonical: https://wiki.private.law/en/al-rajhi-private
Publisher: wiki.private.law (https://wiki.private.law)
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Cite as: Al Rajhi Private Banking: the world's largest Islamic bank. wiki.private.law. https://wiki.private.law/en/al-rajhi-private. Version ba392be833a6dceccc58a3b87d15d255a2753d43d8e22f15c8046b66f0d5ae8c.
Topics: banking
Jurisdictions: saudi-arabia, global
Functional tags: private-banking
Product tags: bank, wealth-planning, investment, lombard-credit
Semantic tags: private-banking, bank, wealth-planning, investment, lombard-credit

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## 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).
> 🍓 Deposit protection: SAMA's Depositors Protection Fund covers SAR 200,000 per person per bank (all accounts aggregated, local and FX deposits); in force since 2015/2016, it covers ~97.6% of depositors in full. Excluded: interbank deposits, shareholders above 5%, board members and senior management. It applies equally to private-banking clients.

## 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](https://wiki.private.law/source-of-funds) verification is performed under the bank's compliance procedures.

> 💡 Entry threshold: no official private-banking minimum is published. The reference point is the affluent "Diamond" tier (launched 2021, dedicated RMs); reported criteria, not officially confirmed: opening deposit of SAR 1 m or more, 6-month average balance of SAR 500 k or more, or monthly salary transfer of SAR 40 k or more.

## 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.

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