Islamic Banking
Islamic law guided by Islamic economics
islamic bank

Islamic Banking

All Al Rajhi banking activities and financial transactions are in compliance with the principles of Shariah law and are overseen by a religious board comprised of Shariah scholars.

  • What is Islamic Banking?

    Islamic banking is a system of banking that is consistent with Shariah principles (Islamic rulings) and its practical application through the development of Islamic economics. Shariah prohibits the payment or acceptance of interest charges (riba) for the lending and accepting of money, trade and other activities that provide goods or services contrary to its principles.

  • History of Islamic Banking

    For centuries, Muslim communities have practiced a number of credit methods and financial techniques. They created an informal credit system for those communities and started the international trade movement. Credit methods of Islamic communities facilitated trade and provided a framework for credit as a means of investment.

The 3 Aspects of Islamic Banking

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    Ruling on Products & Services

    Ruling on products and services. Finding suitable alternatives in the event they are prohibited, based on the Qur’an, Prophet Hadiths or from the interpretations of scholars over time.

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    Concerns with Values & Morals

    Concerned with values and morals. For example: fraud, injustice and ambiguity, are considered immoral actions and thus unlawful.

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    Achieving Balance

    The bank relies on achieving the rights of God and the people together, the rights of the individual and the community as well as the world and the afterlife.

The Fundamentals of Al Rajhi Bank
Practices

  • Dependence on Sharia

    The practices of the bank are governed by Shariah laws overseen by the Shariah Board. As a result all products and services are delivered in the context of Islamic teachings with a focus on work ethics.

  • Prohibition of Ribah

    The prohibition of Riba is the fundamental basis of all Islamic money transactions whether taking, giving, assisting or witnessing. Therefore Riba transactions are prohibited directly or under any other name.

  • Source of Money Growth is Effort and Work

    This means that money is not the only source of monitary growth nor shall money generate money. In other words the development process must be achieved through a relationship between capital and labor. Exceptions are made to those who cannot work due of illness or disability.

  • Risk Sharing when the Bank enters into a partnership with its client

    The risk in any partnership contract is shared between the client and the bank. The objective is to ensure the absence of a determined rate such as that in conventional banking whereby the entrepreneur takes all the risk, regardless of the result of the project. In Islamic banking there is no guaranteed gain or loss, for one and not the other.

Shariah Group

Shariah Group

Supporting the bank’s operations

  • Shariah Policy
  • Shariah Board objectives
  • Shariah Group departments
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