Al Rajhi Stock: Everything You Need to Know About Performance

Al Rajhi stock represents ownership in Al Rajhi Bank, one of the oldest and largest Islamic banks in Saudi Arabia and the world. The bank was founded in the 1970s by Sheikh Saleh bin Abdulaziz Al Rajhi and his family, and the stock was listed on the Saudi financial market (Tadawul) under the symbol 1120. The stock is a cornerstone of the main market index (TASI) and serves as a mirror to the health of the Saudi banking sector due to its size and relative stability. The importance of Al Rajhi stock is highlighted by its broad customer base and its long history of providing banking services compliant with Islamic law. Additionally, the stock offers investors an opportunity to monitor the performance of the local banking sector and is often viewed as a defensive asset in the investment portfolio due to its regular dividend distributions and the bank's strong financial position.

Al Rajhi stock has shown positive performance during the period from 2024 to 2025, with the stock price reaching approximately 105.50 Saudi Riyals by the end of September 2025. The stock recorded an increase of 21.85% over the twelve months and a rise of 12.58% since the beginning of 2025. This strong performance reflects investor confidence in the bank's stability and sustainable growth, benefiting from improved financial results and increased demand for Islamic banking services. The stock's movement is closely linked to interest rate levels, as improvements in rates increase banks' profit margins, while macroeconomic changes may lead to some fluctuations in the stock price. It is important for investors to monitor price performance periodically and review the bank's quarterly reports to understand the dynamics of the stock's movement.

The market capitalization of Al Rajhi stock is approximately 422 billion Saudi Riyals according to the latest data for 2025, making it one of the largest companies listed in the Saudi financial market. This position reflects the bank's significance in the Saudi financial sector and its influential role in the main Tadawul index. Al Rajhi Bank represents a large percentage of the total market capitalization and is considered one of the important indicators of financial stability in the Kingdom. The bank's large size ensures high competitiveness and facilitates attracting local and international investments. This massive market capitalization is accompanied by high liquidity in trading the stock, providing investors with ease of buying and selling compared to many other stocks.

The price-to-earnings (P/E) ratio is one of the most important indicators relied upon by investors to evaluate Al Rajhi stock, as it measures the relationship between the stock price and the annual earnings achieved. At the beginning of 2025, the P/E ratio for Al Rajhi stock ranged between 18 and 20, reflecting the market's valuation of the bank's profitability and stability. A moderate P/E ratio indicates that the stock is not overvalued compared to its actual earnings, especially given the stable profits the bank achieves annually. It is important to note that this indicator changes with the bank's annual results and investors' growth expectations, so it is recommended to review the bank's quarterly reports for the latest and most accurate figures.

Al Rajhi Bank follows a policy of regular cash dividend distribution, typically twice a year. In 2025, the first dividend payment was made on April 24, and the second on October 2. These distributions precede ex-dividend dates set for eligible shareholders. The dividend distribution policy is one of the strengths of Al Rajhi stock, as it provides investors with regular income and reflects the bank's strong financial position. Annual dividend yields typically range between 3% and 4% of the stock price, based on the total annual dividends distributed. This policy enhances the attractiveness of the stock, especially for those seeking stability and regular income.

Al Rajhi stock belongs to the banking and financial services sector, which is one of the largest sectors in the Saudi market in terms of market capitalization and revenues. The bank faces strong competition from banks such as the National Commercial Bank (SNB), Riyad Bank, Alinma Bank, the Saudi British Bank (SABB), and Bank Albilad. Despite the competition, Al Rajhi Bank maintains a competitive advantage due to its wide reach, large customer base, and commitment to providing Sharia-compliant banking services. The Saudi banking sector is characterized by stable growth supported by government economic policies, increased lending activities, and rapid digital transformation. Reports for 2024-2025 indicate improved profits for Saudi banks, with expectations of continued growth driven by improvements in macroeconomic indicators.

During 2024 and 2025, no major crises affected the stability of Al Rajhi Bank, which recorded strong financial results and growth in net profits. Management focused on enhancing liquidity and developing digital services to keep pace with competition. In the fourth quarter of 2024, the bank showed an increase in profits supported by rising demand for personal and commercial financing. The regular dividend distribution policy continued to maintain shareholder confidence. No significant changes occurred in the executive management, with the board continuing to be led by an experienced team. Financial media continuously follow the bank's developments, affirming its stability and sustainable growth.

The performance of Al Rajhi stock is influenced by several key factors, most notably changes in interest rates, the bank's quarterly and annual financial results, developments in the local and global macroeconomy, and the bank's dividend distribution policy. Rising interest rates typically enhance banks' profitability due to the expansion of operating profit margins, while lower rates may reduce profit margins. Competition within the banking sector and regulatory developments also play a role in determining the stock's trajectory. Additionally, digital transformation and the adoption of the latest banking technologies affect attracting new customers and improving the bank's operational efficiency.

Despite Al Rajhi Bank's stability, the banking sector faces cyclical risks, including increased provisions for bad debts, slow lending growth, and global economic fluctuations such as wars or oil price volatility. The bank may also be affected by changes in monetary policy and exchange rates, although the pegging of the Riyal to the Dollar provides a degree of stability. Increasing competition and rapid digital transformation are challenges that require ongoing investments in technical infrastructure. By the end of 2025, the bank had not recorded any exceptional risks or regulatory issues, but continuous monitoring of influencing factors remains essential.

News and financial reports about Al Rajhi stock can be followed through several reliable sources, including the bank's official website, announcements from the Saudi financial market (Tadawul), and the Argaam website, which provides live data and detailed analyses of the stock. Annual and quarterly reports of the bank are published on financial market platforms, in addition to following news through the Saudi Press Agency (SPA) and financial newspapers. Annual shareholder meetings and periodic disclosures provide investors with a comprehensive view of the bank's performance and future plans. It is always advisable to rely on official sources to avoid rumors or inaccurate information.

Ownership of Al Rajhi Bank is distributed among the Al Rajhi family (founders), government institutions such as the General Organization for Social Insurance and government investment funds, as well as local and international investment funds. This diversity in the ownership base enhances the stability of the stock and reduces its volatility. Quarterly stock exchange reports provide detailed information about ownership percentages and changes, and investors can refer to them for an accurate view of the bank's ownership structure. The presence of major investors from both the public and private sectors reflects high confidence in the bank and its management.

Al Rajhi stock is often compared to major Saudi bank stocks such as the National Commercial Bank (SNB), Riyad Bank, Alinma Bank, and SABB. In terms of market capitalization, Al Rajhi ranks second after the National Commercial Bank, but it excels in geographic reach and Islamic banking services. Dividend distributions for Al Rajhi stock are similar to or higher than some of its competitors, and the stock's performance often reflects the overall trend of the banking sector. Al Rajhi stock is viewed as a stable defensive asset, making it a preferred choice for investors seeking a balance between growth and return in the banking sector.

The financial indicators for Al Rajhi stock reflect the bank's strong financial position, with the stock price at 105.50 Riyals and a market capitalization of about 422 billion Riyals. The P/E ratio ranges between 18 and 20, while the estimated annual dividend yield is between 3% and 4%. The bank has shown growth in revenues and net profits during 2024 and 2025, with improvements in capital adequacy ratios and strong liquidity. These indicators depend on the bank's quarterly and annual results, and it is always recommended to review the latest financial reports published on the Tadawul website and the bank's official site for accurate and updated details.