The price of Al Rajhi stock is one of the most closely monitored indicators by investors in the Saudi financial market, reflecting Al Rajhi Bank's leading position in the Islamic banking sector in the Kingdom. At the beginning of 2025, the price of Al Rajhi stock ranged between 90 and 98 Saudi Riyals, maintaining its status as a leading stock in the TASI index and a mirror of the performance of the Saudi banking sector. Analyzing the movements of Al Rajhi stock price and understanding the influencing factors are essential steps that help investors form a clear picture of local market dynamics and the stability of major stocks. In this comprehensive article, we will review the developments of Al Rajhi stock price during 2024 and 2025, discuss key financial indicators, distribution policies, and the most important economic and regulatory factors affecting the stock. We will also compare Al Rajhi's performance with major competitors in the Saudi banking sector and clarify how the stock reacts to changes in oil prices, banking policies, and national initiatives such as Vision 2030. The article does not provide investment recommendations but aims to offer an educational and objective picture of Al Rajhi stock to help the reader gain a deeper understanding of the market.
Definition of Al Rajhi Stock in the Saudi Financial Market
Al Rajhi stock is the stock of Al Rajhi Bank, one of the largest Islamic banks in the world and one of the prominent companies listed on the Saudi financial market (Tadawul). Established in 1957, the bank is distinguished by providing comprehensive Islamic banking services to individuals and businesses, in addition to compliance with Sharia in all its financing and investment activities. Al Rajhi stock is considered one of the leading stocks within the Saudi market index (TASI) and is often used as a benchmark for the health of the Islamic banking sector in the Kingdom. The stock trades according to an auction system and electronic trading in the Saudi market and is subject to the regulations of the Capital Market Authority, which ensures transparency and investor protection.
The price of Al Rajhi stock reflects market trends and investors' expectations regarding the bank's profitability and future growth. It is also influenced by several factors, including the monetary policies of the Saudi Central Bank (SAMA), local and global economic changes, and market liquidity behavior. The stock's position as one of the largest Saudi stocks in terms of market capitalization makes it a focal point for investors, institutions, and investment funds, especially those seeking Sharia-compliant investments.
Al Rajhi Stock Price Movements During 2024 and 2025
During 2024 and 2025, the price of Al Rajhi stock experienced relative stability within a defined range, influenced by the bank's financial results and general market trends. At the beginning of 2024, the stock price was around 86 Saudi Riyals, gradually rising with the announcement of strong financial results, reaching 94 Riyals by mid-year, and hitting a peak of 115 Riyals in February 2024 after announcing strong profits. The stock faced some volatility amid global market fluctuations, dropping to 85 Riyals in August before rebounding.
By the end of 2024, the stock price stabilized around 95 Riyals and continued to move within the range of 90–98 Riyals in the first half of 2025. This relative stability reflects investor confidence in the bank's performance and its ability to face economic challenges. Quarterly financial results announcements often see increased trading volumes and noticeable price changes, indicating the stock's sensitivity to material news and announced financial reports.
Market Capitalization of Al Rajhi Stock and Its Importance
The market capitalization of Al Rajhi stock is one of the most important indicators reflecting the size and strength of the bank in the Saudi financial market. Based on the number of issued shares and the stock price, Al Rajhi's market capitalization at the end of June 2025 was approximately 1.22 trillion Saudi Riyals, making it one of the top five listed companies in the Saudi market. Market capitalization fluctuates with stock price movements and typically increases with improved financial results or increased investment demand for the stock.
Market capitalization holds particular importance for institutional investors and index funds, as it affects the stock's weight in national and international financial indices, thereby influencing passive investment flows. It also reflects market confidence in the sustainability of the bank's profits and its ability to expand and grow in the future.
Price-to-Earnings (P/E) Ratio of Al Rajhi Stock and Its Implications
The Price-to-Earnings (P/E) ratio is one of the key indicators for assessing the attractiveness of Al Rajhi stock relative to its earnings. During 2024 and 2025, the P/E ratio of Al Rajhi stock ranged between 14 to 18 times, reaching approximately 17.5 times by mid-2025. This means that investors are paying 17.5 Riyals for every Riyal of the stock's annual earnings.
The relatively high P/E ratio compared to some other banks reflects investor confidence in the quality of Al Rajhi's assets and the sustainability of its growth and profitability. Al Rajhi stock is often classified among the stocks with a medium to high P/E ratio in the banking sector, reflecting its status as a preferred option for long-term investment. Investors should consider the P/E ratio in the context of the banking sector as a whole, as valuations may vary among banks depending on their size, strategy, and the quality of their credit portfolio.
Al Rajhi Stock Dividends and Bank Policy
Al Rajhi Bank has consistently adhered to a policy of regular dividend distribution to its shareholders, enhancing the stock's attractiveness to investors seeking periodic income. In 2024, the bank distributed cash dividends of 2 Riyals per share, equivalent to about 5.5% of the stock price at that time. For 2025, the bank announced its intention to continue the distribution policy at approximately 20% of capital (2 Riyals per share), with the possibility of slight increases in case of profit growth.
This dividend yield gives Al Rajhi stock a competitive advantage in the banking sector, often outperforming the average dividends of other banks. In addition to cash distributions, the bank may grant free shares in some years, increasing the total return for shareholders. Regular dividend returns enhance investor confidence in the bank's stability and provide them with flexibility in managing their financial portfolios.
Key Financial Results for Al Rajhi 2024–2025
The financial results of Al Rajhi Bank during 2024 and 2025 reflected strong performance and sustainable growth. In 2024, net operating income before zakat and taxes reached approximately 16 billion Saudi Riyals, compared to 14.6 billion in 2023. Net profit after zakat and taxes rose to 13.5 billion Riyals, recording an annual growth of nearly 10%. Total assets also increased to over 710 billion Riyals by the end of 2024.
The bank continued to achieve positive results in the first half of 2025, with net profits of 3.8 billion Riyals in the first quarter, rising to 4.1 billion Riyals in the second quarter, bringing the total semi-annual profits to 7.9 billion Riyals. These results reflect the bank's increased efficiency in managing its operations, growth in its loan portfolio, and its success in capitalizing on local economic opportunities.
Analysis of the Saudi Banking Sector and Al Rajhi's Position
Al Rajhi stock belongs to the banking and financial services sector, which is one of the most stable and developed sectors in the Saudi market. The sector includes major traditional and Islamic banks, with Islamic banks like Al Rajhi enjoying a high market share due to their compliance with Islamic law and their widespread presence in financing individuals and businesses.
Al Rajhi competes with major banks such as the National Bank of Saudi Arabia (SNB), Riyad Bank, Alinma Bank, and Bank Albilad. Al Rajhi distinguishes itself from its competitors with its asset size, diversified financing portfolio, stability in dividend distribution, and superiority in digital and Islamic banking services. The Saudi banking sector also benefits from government support, high oil prices, and the flow of public spending under Vision 2030 plans, which supports future growth for all banks.
Economic Factors Affecting Al Rajhi Stock Price
The price of Al Rajhi stock is influenced by a wide range of local and global economic factors. At the forefront of these factors are oil prices, as rising prices enhance government spending and liquidity in the economy, positively impacting banks' profits. Conversely, any decline in oil prices may lead to liquidity pressures and a slowdown in lending.
Other influencing factors include the monetary policies of the Saudi Central Bank (SAMA), particularly interest rates. Raising interest rates typically increases banks' profit margins, but it may raise financing costs and affect the quality of the loan portfolio. Additionally, government initiatives such as Vision 2030 and major housing and infrastructure projects impact the available financing and the growth of banking businesses. Finally, changes in global markets, such as financial market volatility or geopolitical tensions, play a role in influencing investor sentiment and stock movements.
Al Rajhi Stock Performance in Competition with Other Banks
Al Rajhi stock faces strong competition from major local banks such as the National Bank of Saudi Arabia (SNB), Riyad Bank, and Alinma Bank. Despite some financial indicators being close among these banks, Al Rajhi maintains a competitive edge due to its large size, stability in dividend distribution, and leadership position in the Islamic banking sector.
Investors tend to compare Al Rajhi's P/E ratio with those of its competitors: in 2024 and 2025, Al Rajhi's P/E ratio was slightly higher than that of Bank Albilad or Alinma, and slightly lower than that of the National Bank. These differences reflect market confidence in the quality of Al Rajhi's assets and profits, as well as its ability to capitalize on national economic growth. Competition drives Al Rajhi to innovate and develop digital services, including collaborations with fintech companies, supporting the sustainability of its leadership position.
Technological Developments and New Banking Services at Al Rajhi
In recent years, Al Rajhi Bank has shown increasing interest in technological innovation and digital transformation. In 2025, the bank launched new electronic payment platforms and mobile banking services enhanced with artificial intelligence technologies to analyze customer data and provide personalized services. The security of digital channels has also been improved, facilitating remote banking operations.
These initiatives have resulted in a 15% increase in the number of customers, particularly among the young demographic (ages 20–35) in 2024. The digital evolution has also led to increased operational efficiency and reduced operating costs, supporting the bank's profit growth. Continuous innovation in digital services has become essential to keep pace with competition from local and global fintech companies.
Major Partnerships and Projects and Their Role in Enhancing Stock Performance
Financing major projects and strategic partnerships is a pivotal part of Al Rajhi Bank's activities. In the second half of 2024, the bank announced financing for housing projects in collaboration with the Real Estate Development Fund, in addition to issuing Islamic sukuk worth 5 billion Riyals to finance renewable energy projects.
These steps enhance Al Rajhi's role as a key financier of national projects and open new revenue sources from financing and sukuk returns. They also elevate the bank's status in supporting the national economy and expanding its customer base. For Al Rajhi stock, these partnerships mean long-term projects that may support profit stability and growth, thereby enhancing the stock's attractiveness to investors.
Regulatory and Administrative Changes and Their Impact on the Stock
In 2025, Al Rajhi Bank's Board of Directors underwent some administrative changes, such as appointing a new Secretary-General and expanding internal control powers. The bank also launched a rewards program linked to employee performance in digital services and foreign markets to stimulate sustainable growth.
On the regulatory front, the Saudi Central Bank indicated an expected tightening of liquidity standards for major banks. This may affect banks' ability to expand lending but strengthens the resilience of the banking sector as a whole. For Al Rajhi stock, administrative and regulatory changes typically reflect the bank's ability to manage risks and keep pace with developments, supporting the stock's long-term stability.
Impact of Global Developments on Al Rajhi Stock Price
Al Rajhi stock remains sensitive to global economic developments, particularly oil prices and changes in global financial markets. In cases of declining oil prices or escalating geopolitical tensions, the stock price may experience some volatility due to weakened economic expectations or reduced liquidity. Conversely, periods of market recovery or rising oil prices enhance investor confidence and attract more investments to the stock.
Additionally, changes in global monetary policies (such as U.S. Federal Reserve interest rate decisions) have direct effects on the Saudi banking sector, including changes in lending margins or increased financing costs. Monitoring these global influences is essential for understanding the dynamics of Al Rajhi stock price and predicting its future trends.
The Role of Al Rajhi Stock in Diversifying the Investment Portfolio
Al Rajhi stock is a preferred choice for many investors looking to diversify their investment portfolios within the Saudi market. The stock is characterized by its relative stability, regular dividend distributions, and leadership position in a vital sector like Islamic banking. It is often included in long-term portfolios targeting a combination of capital growth and periodic returns.
However, it is important to note that investing in stocks in general, and Al Rajhi stock in particular, carries a degree of risk associated with market fluctuations and changing economic conditions. Investors are always advised to consult a licensed financial advisor before making any investment decisions and to ensure that the stock aligns with their financial goals and risk tolerance.
Conclusion
The price of Al Rajhi stock represents a key indicator of the health of the Islamic banking sector in the Kingdom of Saudi Arabia, reflecting the performance of one of the largest and most stable local banks. During the period of 2024–2025, the stock demonstrated resilience in the face of economic challenges, supported by profit growth, regular dividend distributions, and the evolution of digital services. It also benefited from government policies, the strength of the banking sector, and Vision 2030 initiatives that boosted national spending and investment.
However, every investor must recognize that investing in the stock market carries risks of price volatility and is influenced by local and global economic factors that may be beyond the control of any single institution. Therefore, it is essential to review updated financial reports, monitor market performance regularly, and, most importantly, consult a licensed financial advisor before making any investment decisions. The SIGMIX platform provides analytical tools and reliable data to help you understand market dynamics, but the financial decision remains a personal responsibility that requires full knowledge and awareness.
Frequently Asked Questions
According to the latest available data as of the end of June 2025, Al Rajhi stock is trading at approximately 94 Saudi Riyals per share on the Tadawul platform. This price reflects the relative stability of the stock during the first half of 2025, falling within a limited fluctuation range between 90 and 98 Riyals in recent months. It is always advisable to check real-time prices via the official Tadawul website or financial market applications for the most updated prices before making any financial decisions.
The P/E ratio of Al Rajhi stock was approximately 17.5 times in mid-2025, indicating that investors are paying 17.5 Riyals for every Riyal of the stock's annual earnings. This figure reflects market confidence in the sustainability of the bank's profitability and its ability to grow in the future, placing the stock within the medium to high P/E ratio category in the Saudi banking sector. Investors should always compare this ratio with those of competing banks and consider the quality of earnings.
Al Rajhi stock is characterized by relatively regular dividend distributions at competitive rates compared to other Saudi banks. In 2024 and 2025, the bank distributed cash dividends of 2 Riyals per share (approximately 4–5% of the stock price), in addition to granting free shares in some periods. While some other banks may distribute lower dividends (2–3%), the dividend yield in Al Rajhi ranks among the highest in the local banking sector, making it a preferred choice for investors seeking periodic income.
The price of Al Rajhi stock is influenced by several key factors, including the bank's quarterly financial results, dividend distribution policies, changes in oil prices, monetary policies of the central bank (SAMA), government initiatives such as Vision 2030, and the overall performance of the Saudi banking sector. Global developments such as U.S. interest rates or geopolitical tensions also play a role in determining market trends. Regularly monitoring these influences is essential for understanding the dynamics of Al Rajhi stock.
Al Rajhi stock is considered one of the leading stocks in the Saudi market, often outperforming its competitors in terms of asset size, dividend stability, and profit growth. Compared to competitors like the National Bank of Saudi Arabia (SNB) and Riyad Bank, Al Rajhi maintains a balanced P/E ratio and a relatively higher dividend yield. It also stands out for its comprehensive compliance with Islamic law and its widespread presence in individual financing. Competition continually drives the bank to develop its digital banking services and improve operational efficiency.
Global economic changes, particularly oil prices, U.S. Federal Reserve interest rate decisions, and international financial market movements, directly or indirectly affect the price of Al Rajhi stock. Rising oil prices typically support local liquidity and bank profits, while global crises or declining oil prices may lead to a temporary drop in bank stock prices. Global monetary policies also affect lending margins and financing costs for Saudi banks.
Al Rajhi stock is often viewed as a good option for long-term investment due to its stable profits, regular dividends, and leadership role in the Islamic banking sector. However, investing in stocks carries market risks and volatility, so investors should assess their financial goals, risk tolerance, and consult a licensed financial advisor before making any investment decisions. Diversification in the investment portfolio remains one of the most important principles for managing risks.
When Al Rajhi Bank decides to distribute cash dividends, shareholders receive a specified cash amount for each share they own, which is automatically added to their investment account. Free shares represent an increase in the number of shares owned without additional payment, resulting from converting part of retained earnings into capital. Benefiting from dividends means achieving periodic income, while free shares increase the total number of shares owned, which may enhance future returns when the stock price rises.
The SIGMIX platform provides analytical tools and up-to-date financial data about Al Rajhi stock and all stocks listed in the Saudi financial market. Users can monitor the stock's real-time performance, access key financial indicators, read educational analyses, and compare the stock with its competitors in the banking sector. These tools assist investors in making informed decisions, emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
The main risks associated with investing in Al Rajhi stock include financial market volatility, changes in interest rates, declining oil prices, sudden regulatory changes, and the possibility of a global or local economic recession. Intense competition or technological developments may also impact the bank's future profits. It is always recommended to review periodic financial reports, monitor the bank's and sector's performance, and avoid relying solely on one stock in the portfolio to mitigate risks.