How Saudi Arabia’s financial system appeared
Al-Rajhi Bank is part of the Saudi Arabia credit and financial system. It consists of the Saudi Arabian Monetary Authority (SAMA), twelve commercial banks, state and private banks operating in Islamic traditions and the manner familiar to a Western investor.
In the Kingdom of Saudi Arabia, eleven foreign banks operate successfully. The impossibility of the activity of moneylenders is a feature of traditional views on the world of finance for people professing Islam. Cash could not be accepted as deposits or issued as loans. Even the word “bank” was practically not used.
Exchange dealers decided on all issues related to lending. The main activity of such exchange dealers was currency exchange. The heyday of dealers in Saudi Arabia occurred in the 40-50s of the twentieth century.
The prototype of the Saudi bank appeared in 1927. It was as a branch of the Netherlands Trading Society and was called Saudi Hollandi Bank. Saudi Hollandi Bank was engaged in traditional Islamic finance activities.
How King Faisal influenced bank development in the Kingdom
After the discovery of giant oil reserves in the Kingdom of Saudi Arabia in 1939, the volume of export-import trade operations sharply increased. As a result, there was a need to create financial control and cash management body.
The development of the economy and financial sector in Saudi Arabia was due to the personal interest of Faisal bin Abdulaziz Al Saud, the King of Saudi Arabia. During the reign of Faisal, the planned development of the economy was introduced, and active investment of funds in the development of the country began. At the same time, the banking system of the Kingdom was created.
How the financial system of Al-Rajhi Bank works
The activities of the Al-Rajhi banking group are very favorably perceived by society in Saudi Arabia, as financial services are provided for clients who respect the traditions of Islam. European banking also operates.
Al-Rajhi successfully overcomes the barriers between modern financial requirements and traditional Islamic values. Al-Rajhi is headquartered in Riyadh. The Al-Rajhi banking network covers more than 500 branches; bank branches for women are among them. There are more than 118 such specialized branches.
The financial structure of Al-Rajhi is a high-tech organization. All significant innovations in science and technology are involved in the Al-Rajhi banking system. There are 4,000 ATMs, 46,000 POS-terminals that are connected with all customers and all the banks of the Kingdom.
Cryptocurrency and the Kingdom of Saudi Arabia
It is known that the Al-Rajhi banking system works not only with financial instruments familiar to everyone. Cryptocurrency is one of the tools for investors in the Kingdom.
It was in Saudi Arabia that the world’s first successful projects related to blockchain technologies were launched. Saudi Arabia plans to introduce its national cryptocurrency by the end of 2019. It is a joint project with the company that released Ripple.
How to purchase Al-Rajhi shares
АForex analysts and investors often call Al-Rajhi Bank their favorite investment, because Al-Rajhi Bank’s financials are in constant and steady growth. Al-Rajhi Bank shares are on the top list.
For investors, Al-Rajhi Bank shares can bring substantial returns in the long run. The bank has a high capitalization of income and high dividends.
Al-Rajhi Bank Securities is part of the Dow Jones GCC Market Capitalization Index. On August 1, 2019, Al-Rajhi Bank shares were traded at 67.6 SAR. It’s over 18 dollars.
To acquire Al-Rajhi shares, register on the Dowmarkets platform, choose to trade with Dowmarkets.сom, and select the Al-Rajhi Bank instrument.