The share price of Al Rajhi Bank is one of the key indicators attracting the attention of investors and market followers in Saudi Arabia, as the bank is one of the largest banking institutions in the Kingdom and the region. In the first 100 words of this article, we will highlight the share price of Al Rajhi Bank and its performance in Tadawul over recent years, along with the factors influencing the stock movements and relevant financial indicators.
Founded decades ago, Al Rajhi Bank has become pivotal in the Islamic banking sector, holding a prominent position in terms of market capitalization and relative weight in the Saudi market index (Tadawul). The stock has witnessed remarkable growth in 2024 and 2025, supported by strong financial results and expansion in digital and financial services. This article aims to provide a comprehensive review of Al Rajhi Bank's share price, analyze its financial performance, review its dividends, and compare it with major competitors in the market. Additionally, we will explore the economic and regulatory factors affecting the stock, highlighting recent developments at the bank, all presented in a neutral educational language without providing any investment recommendations, in compliance with the regulations of the Saudi Capital Market Authority.
Definition of Al Rajhi Bank and Its Position in the Financial Market
Al Rajhi Bank is one of the oldest and largest banks in the Kingdom of Saudi Arabia, and it is a global leader in Islamic financing. Established in Riyadh, the bank is distinguished by its extensive network of branches and ATMs covering most regions of the Kingdom. The bank occupies a pivotal position in the Saudi financial market, being listed on Tadawul under the symbol (1120), and is one of the largest listed companies by market capitalization.
Al Rajhi Bank has a long history of commitment to Sharia and financial standards, and it recently received a high rating in the MSCI ESG index, reflecting its strong governance and environmental and social sustainability. The bank has a massive customer base and actively participates in financing major projects, supporting the national economy and aligning with the Kingdom's Vision 2030. Its ownership is distributed among major families and endowment entities, with a portion available for public subscription, enhancing its stability and transparency.
Al Rajhi Bank Share Price: Recent Performance and Volatility
The share price of Al Rajhi Bank has shown notable interactions recently, with the average share price at the end of 2025 ranging between 110 and 120 Saudi Riyals. This price range reflects investors' confidence in the bank's financial performance and its relative stability in the market, as the stock recorded annual gains of approximately 12.41% during 2025.
The movements of the share price are influenced by several factors, most notably quarterly financial results, dividend distribution policies, developments in the banking sector, and macroeconomic conditions. Additionally, the weight of Al Rajhi's stock in the general Tadawul index (TASI) adds special significance, as it is considered one of the leading stocks that influence market trends. It is worth noting that stock prices in the Saudi financial market fluctuate daily based on supply and demand dynamics, and it is advisable to check official market platforms for the updated real-time price.
Financial Indicators Analysis of Al Rajhi Bank's Stock
The attractiveness of Al Rajhi Bank's stock relies on a set of financial indicators reflecting the bank's solidity and profitability. Some of the most prominent indicators include:
- Price-to-Earnings (P/E) Ratio: Ranges between 10 and 12 times, which is considered relatively low among major banks, indicating a moderate valuation compared to the earnings achieved.
- Earnings per Share: With an annual net profit of 19.72 billion Riyals in 2024, and continuous growth during 2025, the stock shows growth in earnings per share.
- Dividends: The bank distributed cash dividends of 7.5% for the first half of 2025, reflecting a continuous policy of enhancing shareholder returns.
- Market Capitalization: The bank is valued in hundreds of billions of Riyals, placing it among the largest Saudi companies.
These figures reflect the bank's stability and the quality of its financing and investment portfolio; however, future performance remains contingent on market developments and macroeconomic conditions.
Overview of Al Rajhi Bank's Financial Results for 2024 and 2025
Al Rajhi Bank's financial results for the years 2024 and 2025 showed strong growth across most income and profit items. The bank achieved an annual net profit of 19.72 billion Riyals in 2024, with a growth rate of nearly 19% compared to the previous year. In 2025, the bank continued to achieve record profits, with a net profit of 18.42 billion Riyals for the first nine months, reflecting a 30% annual increase.
These results reflect the bank's expansion in financing for individuals and businesses, growth in banking commissions, and improved risk management. The bank also demonstrated resilience in facing interest rate fluctuations and benefited from the recovery of the Saudi economy and increased demand for digital banking services. These indicators suggest that Al Rajhi Bank continues to strengthen its financial position despite intense competition in the sector.
Al Rajhi Bank's Dividend Distribution and Shareholder Return Policies
Al Rajhi Bank places great importance on distributing dividends to its shareholders, regularly announcing cash distributions that align with profit growth. In September 2025, the board of directors announced a cash dividend of 7.5% for the first half of 2025, amounting to 0.75 Riyals per share with a nominal value of 10 Riyals.
This distribution policy reflects the bank's sustainable profitability and its commitment to rewarding shareholders, attracting investors seeking regular income. The size of the distributions depends on the bank's quarterly results and its expansion plans, considering regulatory reserve requirements. It is noteworthy that dividend distributions are subject to regulatory approval and reflect the bank's ability to achieve sustainable financial surpluses.
Market Capitalization of Al Rajhi Bank's Stock and Its Weight in the General Index
The market capitalization of Al Rajhi Bank's stock is one of the most important indicators of the bank's size and its position in the Saudi stock market. By late 2025, the bank's market capitalization exceeded hundreds of billions of Riyals, placing it among the top three listed companies in the Saudi financial market.
The weight of the stock in the general Tadawul index (TASI) is the highest among all companies, granting it significant influence on the trends of the index and the market as a whole. Institutional investors benefit from this weight when building investment portfolios, and the stock stands out as a primary choice for index funds and exchange-traded funds in both local and international markets.
The Saudi Banking Sector and Al Rajhi Bank's Position Among Competitors
Al Rajhi Bank operates within the Saudi banking sector, which is the largest in terms of market capitalization and volume in Tadawul. The sector includes major competitors such as the National Bank of Saudi Arabia (SNB), Riyad Bank, Saudi British Bank (SABB), Alinma Bank, and Bank Albilad.
Al Rajhi Bank is distinguished as the largest Islamic bank in the world by assets, with strength in Sharia-compliant products and a massive customer base. Despite the competition, the bank maintains its leading position thanks to its large balance sheet, digital innovations, and extensive reach. Competition remains a driving force for improving services and expanding the range of banking products, especially as the sector moves towards digitization and increased mergers and acquisitions.
Economic Factors Affecting Al Rajhi Bank's Stock
Al Rajhi Bank's stock is influenced by several key economic factors, including:
1. Interest Rates: Bank profitability depends on the spread between the cost of funds and the return from financing. Any change in interest rates by the Saudi Central Bank (SAMA) directly affects profit margins.
2. Economic Growth: Increased real estate projects and government spending under Vision 2030 raise demand for bank financing.
3. Regulatory Policies: Raising foreign ownership limits or updating lending rules can affect the stock's attractiveness.
4. Digital Transformation: Investment in digital services enhances operational efficiency and increases the customer base.
5. Asset Quality: A decline in non-performing loan ratios positively impacts financial results.
These factors collectively determine stock price trends and the bank's performance expectations in the medium to long term.
Impact of Digital Transformation at Al Rajhi Bank on Share Price
Al Rajhi Bank has placed great importance on digital transformation, expanding its electronic services and launching advanced banking platforms to meet customer needs. This approach has led to increased operational efficiency, reduced operating costs, and attracted new customer segments, especially among youth and entrepreneurs.
This transformation has reflected positively on the bank's financial performance, contributing to growth in commission income and enhancing customer experience. Additionally, digital solutions have strengthened the bank's ability to expand its retail and corporate banking services, positively impacting the stock's attractiveness in the market and enhancing its competitiveness in a rapidly changing sector.
Al Rajhi Bank's Role in Financing Major Projects and Vision 2030
Al Rajhi Bank actively participates in financing major projects aligned with the objectives of the Kingdom's Vision 2030, such as housing, infrastructure, and energy projects. The bank plays a pivotal role in supporting the small and medium enterprises sector, in addition to providing innovative financing solutions for individuals.
This role contributes to diversifying the bank's investment portfolio and expanding income sources, while enhancing its position as a key partner in the Kingdom's economic development. These participations reflect on the bank's revenue stability and sustainable growth, which may, in turn, impact the stock's performance and market value.
Recent Developments and News About Al Rajhi Bank
The second half of 2025 witnessed several significant developments in Al Rajhi Bank's journey, including the board's recommendation to increase capital to support expansion and growth. The bank also entered into new financing agreements with companies across various sectors, enhancing its role in financing the local economy.
The bank also received international recognition in the field of sustainability by obtaining an 'AA' rating from the MSCI ESG index, placing it among the top five global banks in governance and sustainability. The bank participated in initiatives to modernize the local financing environment and demonstrated resilience in dealing with regulatory changes, such as amending lending rules for individuals. These developments indicate the bank's commitment to responsible growth and enhancing its position in both local and international markets.
Sustainability and Governance at Al Rajhi Bank and Its Impact on the Stock
Sustainability and governance are key elements in Al Rajhi Bank's strategy, as the bank received an 'AA' rating in the global MSCI ESG index. This rating reflects the bank's commitment to environmental and social standards, transparency in risk management, and excellence in corporate governance.
This international recognition enhances investor confidence, especially among institutional investors, and attracts new capital seeking companies committed to social responsibility and sustainability. Additionally, strong governance reduces operational and financial risks, supporting the stock's attractiveness in the long term.
Prospects for Al Rajhi Bank's Stock: Opportunities and Challenges
Al Rajhi Bank's stock enjoys good growth prospects, driven by positive financial results, expansion in digital services, and support for Vision 2030. However, the bank faces challenges such as increasing competition, changing monetary policies, and the need to maintain asset quality.
The continuation of growth depends on the bank's ability to diversify income sources, enhance its role in Islamic financing, and develop strategic partnerships both locally and internationally. Additionally, a swift response to regulatory and economic changes remains a critical factor in maintaining the stock's performance and attractiveness to investors.
Conclusion
The analysis of Al Rajhi Bank's share price and its financial performance in the Saudi market illustrates the significance of this stock in the banking sector, not only in terms of market capitalization and profits but also in terms of the bank's developmental and strategic role in the national economy. The bank has demonstrated a strong ability to achieve profit growth and provide generous dividends to shareholders while maintaining high sustainability and transparency policies during 2024 and 2025.
While current indicators reflect notable stability and growth, investing in bank stocks requires continuous monitoring of market developments and the economic and regulatory factors at play. For this reason, it is always advisable to consult a licensed financial advisor before making any investment decisions. The SIGMIX platform offers neutral educational and analytical content to help you understand the market, but the final investment decision should be made based on consultation with a certified specialist and in line with your personal goals and risk tolerance.
Frequently Asked Questions
The price of Al Rajhi Bank's stock in late 2025 ranges between 110 and 120 Saudi Riyals per share, according to daily fluctuations in the Tadawul market. The stock has seen an increase of approximately 12.41% over the past year, reflecting investor confidence in the bank's financial strength and positive results. It is important to monitor the real-time price through Saudi financial market platforms for the latest data.
The P/E ratio of Al Rajhi Bank's stock currently stands at around 10-12 times, which is relatively low among major banks. This ratio is an indicator of the relationship between the stock price and the bank's profitability, where a lower ratio increases the stock's attractiveness from a financial valuation perspective. However, it is always essential to consider growth factors and risks when analyzing this indicator.
Al Rajhi Bank announced in September 2025 a cash dividend of 7.5% for the first half of the year, equivalent to 0.75 Riyals per share. These distributions reflect the bank's strong financial performance, with management keen on continuing to reward shareholders whenever results allow, while considering regulatory reserve requirements and the bank's expansion plans.
Al Rajhi Bank focuses on financing key sectors such as housing and real estate, financing small and medium enterprises, as well as consumer loans for individuals, auto financing, and credit cards. The bank also participates in financing major projects related to Vision 2030 and strives to diversify its products to meet local market needs.
Interest rates directly affect Al Rajhi Bank's profitability, as banks rely on the spread between the cost of funds (deposits) and the return from financing and loans. Any decrease or increase in interest rates by the Saudi Central Bank (SAMA) reflects on the bank's profit margins, highlighting the importance of monitoring monetary policies when analyzing stock performance.
Among the notable developments is the board's recommendation to increase capital to support expansion plans and the signing of new financing agreements with companies across various sectors. The bank also received an 'AA' rating from the MSCI ESG global index, reflecting its commitment to sustainability and corporate governance, alongside the ongoing digital transformation in banking services.
Al Rajhi Bank is the largest Islamic bank by assets in the Kingdom and the world, enjoying a wide customer base and significant geographical reach. It competes with major banks such as the National Bank of Saudi Arabia (SNB), Riyad Bank, and Alinma Bank, but its distinction lies in its specialization in Islamic products and its consistently strong financial performance.
Sustainability and governance are highly prioritized at Al Rajhi Bank, culminating in the bank receiving an 'AA' rating in the MSCI ESG index. This rating enhances investor confidence, especially among institutional investors, and reduces operational and financial risks, supporting the stock's attractiveness and reflecting the bank's commitment to social and environmental responsibility.
Al Rajhi Bank is working to enhance its international presence by opening new branches in regions such as Asia and Africa, focusing on financing Sharia-compliant businesses. The bank continues to invest in developing digital services and expanding banking products to meet the needs of its growing customer base.
It is essential to monitor the bank's quarterly results, especially net profit and financing growth, news on dividends and capital increase plans, as well as changes in monetary and regulatory policies. Additionally, keeping an eye on the stock's weight in the general index and the performance of the Saudi banking sector as a whole is crucial when evaluating the stock.