Al Rajhi Stock Direct: Comprehensive Analysis of Financial Performance

Al Rajhi Bank is one of the oldest and largest banks in Saudi Arabia, established in 1957, and is distinguished as the largest Islamic bank by assets globally. Al Rajhi Stock Direct tops the list of the most traded stocks in the Saudi general index (TASI), due to its massive market capitalization and its impact on market movements. The bank offers comprehensive services in retail banking, Islamic financing, wealth management, and insurance services, solidifying its position as a primary choice for investors seeking stability and regular returns. It is important to note that Al Rajhi Stock is widely followed by individual and institutional investors, holding significant weight in Saudi investment portfolios and index funds.

The term 'Al Rajhi Stock Direct' refers to tracking the price of Al Rajhi Bank's stock through electronic trading platforms that offer live or near-live prices (with slight delays), such as the 'Direct' service or official sites like Tadawul. This service allows investors to monitor stock developments, executed trades, and supply and demand movements in real-time. The importance of 'Al Rajhi Direct' lies in investors' ability to make decisions based on the latest available information, especially in a market characterized by activity and volatility linked to local and global economic events. It is worth noting that the official website of the Saudi financial market (Tadawul) provides data delayed by at least five minutes, while some licensed platforms offer real-time prices through special subscriptions.

Al Rajhi Stock witnessed significant growth in its financial indicators during 2024 and 2025, supported by the stability of the Saudi economy and rising returns in the banking sector. The stock price ranged between 120 and 135 SAR in mid-2024, rising to nearly 150 SAR by the end of the year, and stabilizing around 140-150 SAR at the beginning of 2025. The bank's market capitalization reached approximately 400 billion SAR, making it one of the largest companies listed on Tadawul. The bank recorded growth in annual net profits due to the expansion of its financing portfolio, increased commissions, and improved loan and deposit rates. The price-to-earnings (P/E) ratio stabilized between 15 and 20, reflecting the bank's profitability stability compared to the sector average. These indicators reflect Al Rajhi Stock's position as a primary choice in the Saudi stock market.

Al Rajhi Bank has consistently maintained a generous cash dividend policy, announcing annual dividends of approximately 50 SAR per share in 2024, distributed in two semi-annual payments. These distributions typically cover more than 70% of annual net profits, attracting investors interested in regular income. This policy reflects the bank's commitment to maximizing shareholder value and enhancing confidence in the sustainability of stable financial performance. It is noteworthy that dividend distribution decisions are made based on annual financial results and the approval of the general assembly of shareholders, in accordance with the regulatory policies issued by the Saudi Capital Market Authority.

Al Rajhi Stock is characterized by high liquidity in the Saudi stock market, trading millions of shares daily, making it one of the most attractive stocks for individual and institutional investors. This high liquidity is attributed to its heavy weight in the general index and investors' confidence in the bank's financial strength and sustainable profits. The 'Al Rajhi Direct' service provides the ability to monitor market depth, buy and sell orders, and the number of executed trades, allowing investors to make decisions based on accurate data regarding supply and demand. These indicators are fundamental factors for assessing the ease of entry and exit for investors from the stock without significantly impacting the price.

The price-to-earnings (P/E) ratio is one of the essential indicators for analyzing Al Rajhi Stock Direct. The P/E ratio for Al Rajhi Stock ranged between 15 and 20 during 2024-2025, reflecting a balance between the stock price and the bank's profitability. This indicator is used to compare the stock with the average of the Saudi banking sector and other leading stocks, where a lower ratio indicates the stock's attractiveness from a valuation perspective, while a higher ratio may reflect strong future growth expectations or a higher stock price relative to earnings. Investors should study this indicator within the context of overall financial performance and market conditions, and not rely on it alone to make investment decisions.

The Saudi banking sector is one of the largest sectors in the Saudi financial market, comprising a group of leading banks such as the National Commercial Bank, Alinma Bank, and Bank Al-Jazira. The sector is known for its Islamic nature and diverse financial products, in addition to its vital role in financing national development projects. Al Rajhi Bank faces strong competition from major local banks; however, it retains a significant market share due to its focus on Islamic financing and digital services. The sector has witnessed growth in deposits and loans with improvements in the economic environment and rising oil prices, while digital transformation initiatives have contributed to enhancing operational efficiency and expanding the customer base.

Al Rajhi Bank has significantly invested in developing modern banking technologies, such as launching mobile applications, the Direct wallet, and digital payment platforms. These initiatives aim to enhance customer experience, accelerate banking operations, and promote financial inclusion in the Kingdom. The bank has also adopted technologies such as blockchain in trade finance and advanced risk management systems. These developments have positively reflected on the stock's performance, increasing the bank's competitiveness and attracting a broader segment of customers, especially from the digital generation and youth.

Al Rajhi Bank is committed to the highest standards of governance and transparency, in line with the regulations of the Saudi Capital Market Authority and the Saudi Arabian Monetary Authority (SAMA). In recent years, updates have been made to anti-money laundering policies, risk management, and financial disclosure, and the bank has committed to implementing them to ensure the protection of shareholders' and customers' interests. These policies enhance investor confidence and support the stock's long-term stability, as well as contribute to strengthening the bank's position as a leading financial institution in the Saudi and global markets.

The movement of Al Rajhi Stock is influenced by several combined factors, the most prominent of which are: the performance of the Saudi economy, global oil prices, local and global interest rates, quarterly business results, and dividend distributions. Government policies, Vision 2030 projects, and technological transformations also play a pivotal role in shaping the stock's trends. It is important to note that sudden changes in global markets or geopolitical events may also impact the stock's performance, necessitating continuous monitoring of news and financial data from reliable sources.

When comparing Al Rajhi Stock with the stocks of major Saudi banks such as the National Commercial Bank and Alinma Bank, it is clear that Al Rajhi enjoys stable profitability and sustainable growth in profits and distributions. The bank excels in the Islamic financing sector and has a wide customer base and strong investor confidence. While some competitors may offer faster growth in specific categories (such as digital services or corporate financing), Al Rajhi Stock remains a fundamental reference for investors seeking stability and regular returns in the Saudi stock market.

In 2024, Al Rajhi Bank announced a significant increase in net profits and recorded strong financial results. This coincided with the bank's expansion into digital services and investment in electronic payment platforms, in addition to its participation in financing Vision 2030 projects, particularly in infrastructure and tourism. The bank's position was further strengthened after its commitment to new governance policies and expanding strategic partnerships with local and global technology companies. These developments highlight the importance of following official news and analyses regarding the stock's performance, as they provide deep insights into the bank's future amid economic and technological changes.

You can follow Al Rajhi Stock Direct through several licensed electronic platforms that provide real-time or slightly delayed data (usually five minutes). Among the most prominent of these platforms is the official website of the Saudi financial market (Tadawul), in addition to trading applications offered by local banks and services like 'Direct'. These platforms allow investors to view stock prices, trading volumes, executed trades, and official disclosures. It is important to ensure the reliability of the data source and the platform used, especially when making financial decisions based on the stock's real-time movements.

The process of investing in Saudi stocks, including Al Rajhi Stock, is subject to strict oversight by the Saudi Capital Market Authority. The authority prohibits the provision of direct recommendations or unlicensed investment advice and emphasizes the importance of disclosure and transparency in all transactions. Investors are encouraged to study approved financial data, compare stock performance, and seek advice from a licensed financial advisor before making any investment decision. The regulations also impose controls on insider trading, disclosure of interests, and protection of shareholder rights to ensure market fairness and efficiency.

With the increasing investment opportunities and the diversity of financial instruments in the Saudi market, the need to consult a licensed financial specialist before making investment decisions becomes evident. A financial advisor helps analyze data, assess risks, and determine the most suitable strategy based on the investor's goals and financial suitability. Especially with the volatility that leading stocks like Al Rajhi Stock may experience, relying on expert advice becomes essential to ensure informed and studied decisions that achieve the desired objectives.