RIYADH, 12 December 2005 — The Governor of Riyadh Prince Salman officially opened Bank Albilad yesterday in a ceremony held in the capital, making it the 14th bank in the Kingdom. Bankers, investors, the mayor of Riyadh, Abdul Aziz Ayyaf, and the governor of the Saudi Arabian Monetary Agency (SAMA) attended the inauguration.
Salman cut the ribbon to mark the opening of the main branch in Al-Siteen Street with Musaed Al-Sunani, chairman of the board, and CEO Azzam Abaalkhail.
Salman then took a tour of the main branch where he had a first-hand look at the various departments. Abaalkhail briefed Salman on the strategies of the bank, its vision and the organizational infrastructure.
The CEO also briefed the prince on activities of the bank during the period between first receiving its license until its actual opening.
Salman expressed his delight that Bank Albilad’s operations were based on Islamic principles. “I feel happy that this bank is operating on Shariah principles,” said the prince.
He stressed the need for more Islamic financial institutions to be set up in the banking sector. “The fact that many companies are offering their shares for sale and that hundreds of thousands of citizens are investing in them is a clear sign of blessings and welfare in the country,” he said.
In his speech that marked the opening of the event, SAMA Governor Hamad Al-Sayari said the opening of Bank Albilad came at a time of economic growth in the Kingdom, especially in the banking sector. He said that the fact that yet another new bank had opened in the Kingdom illustrated the constant growth of the national economy and its sustainable development.
He said the Saudi financial market was open for fostering competition and offering job opportunities for Saudis.
The governor lauded the achievements of the bank in a short time. “Bank Albilad has managed to increase the number of its branches to 12 and now has 1,130 employees. It has also established 20 ATM machines,” Al-Sayari said. “All of this was done in a few months.”
The SAMA governor said the Kingdom enjoyed one of the largest banking sectors in the Gulf with 14 banks and 1,247 branches. According to the governor, there are 4,423 ATM machines and 42,000 points of sales in malls, supermarkets and shops all over the country.
The number of Saudis working in the banking sector has also risen dramatically, he added. “The Saudization rate has increased in the banking sector from 38 percent 20 years ago to 80 percent now,” he said.
Bank Albilad was granted a license to operate as a Saudi joint stock company by a royal decree in Nov. 4, 2004 with a capital of SR3 billion.
The bank offered half of its 60 million shares that represent SR1.5 billion of its capital for public offering last year in the largest IPO offering in the Kingdom.
