(a) Incorporation and operation

Al Rajhi Banking and Investment Corporation, a Saudi Joint Stock Company, (the “Bank”), was formed and licensed pursuant to Royal Decree No. M/59 dated 3 Dhul Qadah 1407H (corresponding to 29 June 1987) and in accordance with Article 6 of the Council of Ministers’ Resolution No. 245, dated 26 Shawal 1407H (corresponding to 23 June 1987).

The Bank operates under Commercial Registration No. 1010000096 and its Head Office is located at the following address:

Al Rajhi Bank
8467, King Fahd Road – Al Muruj District
Unit No. 1
Riyadh 12263 – 2743
Kingdom of Saudi Arabia

The objectives of the Bank are to carry out banking and investment activities in accordance with its Articles of Association and Bylaws, the Banking Control Law and the Council of Ministers’ Resolution referred to above. The Bank is engaged in banking and investment activities inside and outside the Kingdom of Saudi Arabia through 581 branches (2017: 599 branches) including the branches outside the Kingdom and 13,532 employees (2017: 13,077 employees). The Bank has established certain subsidiary companies (together with the Bank hereinafter referred to as “the Group”) in which it owns all or majority of their shares as set out below [Also see Note 3 (b)]:

Name of subsidiaries Beneficial shareholding percentage
Al Rajhi Development Company – KSA 100 100 A limited liability company registered in the Kingdom of Saudi Arabia to support the mortgage programmes of the Bank through transferring and holding the title deeds of real estate properties under its name on behalf of the Bank, collection of revenue of certain properties sold by the Bank, provide real estate and engineering consulting services, provide documentation service to register the real estate properties and overseeing the evaluation of real estate properties.
Al Rajhi Corporation Limited – Malaysia 100 100 A licensed Islamic Bank under
the Islamic Financial Services
Act 2013, incorporated and domiciled in Malaysia.
Al Rajhi Capital Company – KSA 100 100 A limited liability company registered in the Kingdom of Saudi Arabia to act as principal agent and/or to provide brokerage, underwriting, managing, advisory, arranging and custodial services.
Al Rajhi Bank – Kuwait 100 100 A foreign branch registered with the Central Bank of Kuwait.
Al Rajhi Bank – Jordan 100 100 A foreign branch operating in Hashemie Kingdom of Jordan, providing all financial, banking,
and investments services and importing and trading in precious metals and stones in accordance with Islamic Sharia rules and under the applicable banking law.
Al Rajhi Takaful Agency Company – KSA 99 99 A limited liability company registered in the Kingdom of Saudi Arabia to act as an agent for insurance brokerage activities per the agency agreement with Al Rajhi Cooperative Insurance Company.
Al Rajhi Company for Management Services – KSA 100 100 A limited liability company registered in the Kingdom of Saudi Arabia to provide recruitment services.

The subsidiaries are wholly or substantially owned by the Bank and therefore, the non-controlling interest which is insignificant is not disclosed. All the above-mentioned subsidiaries have been consolidated. As of 31 December 2018 and 2017, interests in subsidiaries not directly owned by the Bank are owned by representative shareholders for the beneficial interest of the Bank.

(b) Sharia Authority

As a commitment from the Bank for its activities to be in compliance with Islamic Sharia legislations, since its inception, the Bank has established a Sharia Authority to ascertain that the Bank’s activities are subject to its approval and control. The Sharia Authority had reviewed several of the Bank’s activities and issued the required decisions thereon.