The Kingdom of Saudi Arabia has 24 licensed banks out of which 12 banks are local and the rest are the branches of the foreign banks. All of the banks in Saudi Arabia are handled by the Saudi Arabian Monetary Authority. The Saudi Arabian Monetary is also referred to as the Central Bank of the kingdom which was established in 1952. This authority was also responsible for the country’s national currency (i.e., Saudi Riyal) and the managing of the growth and the management of the financial conditions for the nation.
Top banks in the Kingdom of Saudi Arabia
- National Commercial Bank.
- Al Rajhi Bank.
- Riyad Bank.
- Saudi British Bank.
- Arab National Bank.
- Alinma Bank.
The National Commercial Bank (NCB) is the largest bank of the Kingdom of Saudi Arabia. NCB is also known as the Al-Ahli Bank. The Bank has more than 405+ branches in Saudi Arabia and almost handles 13,000 employees. The NCB has its headquarters located in Jeddah, Saudi Arabia. The NCB was originally founded in 1953, but in late 1999 the government of Saudi Arabia acquired the majority of the shares for the bank through the Ministry of Finance’s Public Investment Fund (PIF). NCB is also the world’s largest bank Islamic bank in terms of assets and the bank also aims to become fully Islamic in the coming years.
The Al Rajhi Bank is one of the largest banks in Saudi Arabia. It is previously known as Al Rajhi Banking and Investment Corporation and later named Al Rajhi Bank. The Bank’s headquarters are located in the capital city of Riyadh having six regional offices in different regions. The bank is also named the world’s largest Islamic bank in terms of capital. Bank has more than 600 branches all over the kingdom. The bank has invested a very big part of its money in Saudi Arabia’s business and was also named as the largest joint-stock company in the nation.
Riyad Bank was established in 1957 and is one of the unique banks in the Kingdom of Saudi Arabia. This is one of the banks which is having female branches in Saudi Arabia. The majority of shares (51%) of the bank are owned by the government. Riyadh Bank had more than 300 branches all over the nation. The Bank has its head office located in Riyadh, Saudi Arabia.
The Saudi British Bank is a joint venture of the British banking firm HSBC bank where HSBC bank holds a minority share in the Saudi British Bank. The Saudi British Bank has more than 80 branches all over the kingdom and one branch in London, England. Saudi Arabia British Bank is the biggest financial institution in Saudi Arabia.
Arab National Bank
It was established in the year 1979, around 38 years ago. Its headquarter is also located in Riyadh. In terms of the total assets acquired, this is the 7th largest bank in Saudi Arabia. The total assets acquired by the Arab National Bank at the end of March 2017 were SAR 168.427 billion. During the same time, the customers` deposits were SAR 135.02 billion. It provides mainly retail and corporate banking. Around 4400 employees are employed here.
Alinma Bank is one of the leading banks in Saudi Arabia. As an Islamic bank, it is fully Sharia compliant and also offers a full range of retail banking services. In terms of total assets acquired, this bank ranks 8th. Total assets acquired by Alinma Bank at the end of March 2017 amounted to 105.256 billion SAR. It has about 80 branches all over Saudi Arabia.
What is the biggest bank in Saudi Arabia?
Saudi National Bank- Saudi National Commercial Bank, also known as AlAhli Bank, was founded in 1953 and is the largest bank in Saudi Arabia. It is regarded as a pioneer in Islamic banking. It has a headquarters in Riyadh and employs 13,334 people who service over 5 million consumers through its 431 locations.
Do banks in Saudi give interest?
Saudi Banks works on the policy of Sharia law, and certain things come under this Muslim law. Islamic banking is simply banking that follows Shariah law. Interest and usury are prohibited under Islamic law (i.e., lending money at exorbitant or unlawful rates of interest). As a result, interest cannot be imposed on loans or paid on savings accounts.
Are all banks in Saudi Islamic?
The concept of Islamic banking is not officially recognized in Saudi Arabia. The rationale goes that if one bank is designated as an Islamic institution, then all others are deemed un-Islamic. The official position was that all Saudi Arabian banks were Islamic by definition.