How Much Does Al Rajhi Bank Distribute in Annual Dividends? Details of Al Rajhi

Dividend distributions are the mechanism by which companies listed on the Saudi stock market return a portion of their annual profits to shareholders. This process is overseen by the Saudi Capital Market Authority (CMA), requiring board approval and ratification by the general assembly of shareholders. Dividends are typically paid in cash, with companies announcing distribution schedules and entitlement/payment dates through official platforms such as Tadawul and their own websites. Every shareholder registered on the entitlement date is eligible to receive dividends in proportion to their shareholding. Dividends are a key tool for attracting investors, especially in stable sectors like banking, and help strengthen confidence in both the stock and the company. In the Saudi market, high dividends are viewed as a sign of corporate strength and the ability to generate sustainable profits, providing a regular income stream for long-term investors.

Al Rajhi Bank is one of the largest Islamic banks in the world and among the biggest companies listed on the Saudi stock market in terms of market value and annual profits. Founded in the 1960s, the bank has grown to become a cornerstone of the Saudi banking sector, boasting a vast customer base and Sharia-compliant banking solutions. Al Rajhi Bank maintains a leadership position in annual dividend distributions, with its board committed to allocating a significant portion of profits to shareholders, making it a preferred choice for investors seeking financial stability and high cash returns. The bank leverages its large asset base and strong financial position to sustain generous dividends even during periods of economic volatility. It is subject to strict regulatory oversight to ensure financial transparency and protect shareholder rights, further enhancing its credibility and investor trust.

Al Rajhi Bank’s annual dividend distributions reached high levels in the past two years (2023 and 2024). The board approved a cash dividend of approximately SAR 5.6 per share for the first half of 2024, followed by SAR 5.8 per share for the second half. This brings the total annual distribution for 2024 to around SAR 11.4 per share—one of the highest in the Saudi banking sector. In 2023, dividends ranged between SAR 10.5 and 11 per share, reflecting the bank’s ongoing policy of generous payouts. These figures are based on the bank’s actual performance and annual net profit growth, with net profits in 2024 reaching about SAR 13 billion, enabling the distribution of more than half of these profits to shareholders. This payout ratio is among the highest in the Saudi market, making Al Rajhi’s stock highly attractive to investors seeking stable cash returns.

Dividend yield, or the ratio of dividends to share price, is a key metric for investors evaluating the attractiveness of a stock. For Al Rajhi Bank, total annual distributions in 2024 amounted to approximately SAR 11.4 per share. With the share trading between SAR 45 and 50, the annual dividend yield exceeds 22% and can reach up to 25% at times. This yield is significantly higher than the average for the Saudi banking sector, which typically ranges from 5% to 8%. The high yield is attributed to Al Rajhi’s strong annual profits and commitment to distributing a large portion of them, in addition to its financial stability and resilience to market fluctuations. However, actual yield may vary annually depending on share price and business results, so investors are advised to monitor the bank’s quarterly and annual announcements for the latest figures.

Al Rajhi Bank follows a semi-annual dividend policy, announcing distributions for the first half of the year typically in mid-year (June or July), and for the second half at year-end or early the following year after the general assembly. This system provides shareholders with regular cash income throughout the year. For example, in 2024 the bank announced a distribution of SAR 5.6 per share mid-year and SAR 5.8 per share at year-end, totaling SAR 11.4 per share. The dividend schedule, including entitlement and payment dates, is published on Tadawul and the bank’s official website. Shareholders registered at the end of the entitlement date receive the payout, which is usually processed within a few business days after the official announcement. This transparent policy aligns with best practices in the Saudi banking sector.

When comparing Al Rajhi Bank’s dividends to other major Saudi banks such as Saudi National Bank (SNB), Riyad Bank, and Bank Albilad, Al Rajhi often leads in both annual payout value and dividend yield. For instance, SNB’s average annual dividend has been around SAR 6–8 per share in recent years, while Riyad Bank’s ranged from SAR 4 to 6 per share. Al Rajhi Bank, by contrast, has consistently distributed over SAR 10 per share annually, achieving a much higher yield than the sector average. This is due to Al Rajhi’s strong profitability, asset size, focus on Islamic banking, and conservative reserve management. Nevertheless, dividend values remain subject to general economic conditions, sector performance, and board decisions, so investors should review quarterly and annual reports regularly.

Al Rajhi Bank’s dividend policy is influenced by several key factors, including annual business results and net profits, the board’s strategic direction, capital requirements and regulatory reserves mandated by authorities such as the Saudi Central Bank and CMA, as well as the general economic environment and market liquidity. In years of strong profit growth, the board often increases distributions to attract investors and support market confidence. During economic downturns or when regulatory reserve ratios are raised, the board may reduce payouts to preserve capital strength. Sector competition also plays a role, as the bank aims to maintain its competitiveness and appeal relative to peers. All these factors fall under the transparency and disclosure framework the company adheres to in safeguarding shareholder rights.

Dividend distributions play a significant role in shaping the price movement of Al Rajhi Bank shares on the Saudi financial market. Announcing high dividends typically boosts demand for the stock, attracting investors seeking stable cash income. Conversely, after dividends are paid, the share price often drops by an amount equivalent to the distributed dividend—a phenomenon known as the "ex-dividend drop." Nevertheless, a consistent and stable dividend policy supports long-term investor confidence, often leading to price stability or even appreciation over time. A high dividend yield also reflects the bank’s strong financial position and is viewed positively in financial analysis reports. It is important to note that share price movements are also influenced by other factors such as business results, growth expectations, and broader economic shifts.

In 2024, Al Rajhi Bank demonstrated robust financial performance, reflected in key indicators supporting its dividend policy. The share price at the start of 2025 was around SAR 45–50, while the bank’s total market capitalization ranged from SAR 400 to 450 billion, placing it among the largest listed companies in the Saudi market. The price-to-earnings (P/E) ratio settled between 12 and 14 by the end of 2024, indicating a balanced valuation relative to strong annual profits. Annual dividends per share reached about SAR 11.4, resulting in a dividend yield exceeding 22%. The bank achieved 11% net profit growth in Q1 2024 compared to the previous year, with annual net profits surpassing SAR 13 billion. These indicators highlight the bank’s financial strength and ongoing ability to deliver generous dividends to shareholders.

The banking sector is one of the most important in the Saudi financial market, characterized by high concentration with five major banks controlling most assets, loans, and deposits. Within this context, Al Rajhi Bank maintains a leading position in terms of asset size, customer base, and dividend value. Its main competitors include Saudi National Bank (SNB), Riyad Bank, Bank Albilad, and Bank Aljazira. Al Rajhi’s strengths lie in its strict adherence to Sharia principles, significant investment in digital infrastructure, and high financial solvency, enabling it to distribute larger dividends than competitors in most years. The bank also benefits from supportive economic policies under Saudi Vision 2030, enhancing its stability and flexibility in facing economic challenges. Competition among Saudi banks remains driven by profitability, service quality, and digital banking innovation.

In 2024 and 2025, Al Rajhi Bank witnessed several developments that reinforced its ability to maintain high dividend distributions. Notably, the bank reported record profits in recent quarters, with net profit growth of around 11% in Q1 2024 compared to the previous year. It also announced record cash dividends of SAR 5.6 per share for the first half and SAR 5.8 per share for the second half of 2024. Strategically, the bank launched advanced digital initiatives, including smart applications and electronic banking services targeting younger demographics, and formed partnerships with government entities to support housing and industrial projects. On the macroeconomic front, the bank benefited from rising interest rates and increased government spending, positively impacting profits and distribution capacity. These developments, along with post-pandemic sector stability, have strengthened investor confidence in the sustainability of Al Rajhi’s dividends.

To follow Al Rajhi Bank’s dividend news, investors can rely on several official and trusted sources. The most important is the bank’s official website (Investor Relations section), where all financial announcements, quarterly and annual reports, and dividend schedules are published. The Tadawul (Saudi Exchange) platform also provides a dedicated section for listed companies, displaying all dividend announcements and entitlement/payment dates. Additionally, local financial media such as Al Eqtisadiah newspaper and Argaam offer timely analyses and coverage of dividend announcements. Investors also benefit from research institution reports and financial analyst commentary offering regular insights into dividend trends in the Saudi banking sector. It is always recommended to rely on official and reliable sources to ensure information accuracy.

Al Rajhi Bank’s dividend distributions are subject to the tax regulations in force in Saudi Arabia. Currently, Saudi tax authorities do not impose tax on cash dividends for individual shareholders, whether Saudi or foreign, meaning the net distributed return reaches the investor in full without additional withholding. The company itself pays corporate income tax on its annual profits before distribution, but the final payouts to shareholders are not subject to further tax. This system enhances the attractiveness of investing in Saudi stocks, especially in major companies like Al Rajhi Bank. However, non-Saudi investors should review their home country’s tax laws to ensure there are no additional obligations on foreign-sourced dividends.