RIYADH, 15 February 2006 — In a major move to expand its operations globally, particularly in Southeast Asia, Al-Rajhi Bank is planning to open 50 branches in Malaysia. Al-Rajhi Bank, will open its first branch in the second quarter of this year, according to a Dow Jones report, published in a section of international press.
Malaysia’s Ambassador Dr. Ismail Ibrahim, while speaking about Al-Rajhi’s plans to open branches in his country, welcomed the initiative and said that “Al-Rajhi’s operations, hopefully, would be very successful and well-responded by not only Malaysians but by Muslims and non-Muslims living in the whole region including Indonesia, Brunei and Thailand.”
He said, “Our experience shows that Islamic banking is not only meant for Muslims but non-Muslims also find it very useful. It will also boost trade and investment relations between the two countries.” Al-Rajhi Bank, the only Islamic bank in Saudi Arabia issued with a license to operate in Malaysia, will open its branches in a staggered schedule, said local banking sources.
But, Al-Rajhi Bank officials contacted by Arab News refused to divulge more details of the plan. The Dow Jones report, however, said that the bank had planned to offer retail and corporate products in Malaysia such as car and real-estate financing as well as mutual funds. Al-Rajhi’s role as an Islamic bank largely fits into the Malaysian banking framework as that Southeast Asian country is a leader in Islamic banking offering products and services that comply with Shariah.
Al-Rajhi Bank currently is one of the largest joint stock companies in the Kingdom, with a paid up capital of SR4. 5 billion. The bank was established as a Saudi share holding company in 1987 to replace Al-Rajhi Exchange and Trading Company which is one of the oldest established banking institutions in the Arab world. It is considered as one of the leading and developed banks in terms of traditional banking products and services in addition to the new electronic links and facilities.
