Al Rajhi Capital Company Profile

Background

Al Rajhi Capital, established in 2008, is a leading financial services firm headquartered in Riyadh, Saudi Arabia. As a fully-owned subsidiary of Al Rajhi Bank, one of the largest Islamic banks globally, Al Rajhi Capital offers a comprehensive suite of Sharia-compliant financial products and services, including asset management, brokerage, and investment banking. The company is regulated by Saudi Arabia’s Capital Market Authority, ensuring adherence to the highest standards of financial practice.

Key Strategic Focus

Al Rajhi Capital's strategic focus encompasses:

Asset Management: Offering a diverse range of investment products across various asset classes, including equities, fixed income, real estate, commodities, private equity, and venture capital.

Brokerage Services: Providing comprehensive trading solutions on the Saudi Stock Exchange (Tadawul) and international markets, catering to both institutional clients and high-net-worth individuals.

Investment Banking: Engaging in activities such as underwriting, managing investment funds, and offering advisory services, with a focus on structuring and managing Sukuk offerings.

Financials and Funding

As of December 31, 2024, Al Rajhi Capital reported:

Assets Under Management (AUM): SAR 123.21 billion, reflecting a significant increase from SAR 76.34 billion in 2023.

Capital Adequacy Ratio: Total capital ratio of 37.52%, indicating a strong capital position.

The company has maintained a robust financial position, supported by its parent company, Al Rajhi Bank, which reported assets of SAR 469 billion in 2024.

Pipeline Development

Al Rajhi Capital has been active in expanding its investment offerings:

Public Funds Launched in 2024:

Al Rajhi Large Cap Fund

Al Rajhi Petrochemical Fund

Al Rajhi Awaed Fund

These funds aim to provide investors with diversified investment opportunities aligned with market trends and client needs.

Technological Platform and Innovation

Al Rajhi Capital has embraced digital transformation to enhance client experience:

Super App: An all-in-one mobile application offering brokerage services, international trading, and access to a diverse range of global investment opportunities.

alrajhi Mashora: A robo-advisory platform integrated within the Super App, providing automated, algorithm-driven portfolio management services based on individual financial goals and risk tolerance.

Leadership Team

The leadership team at Al Rajhi Capital includes:

Johan Eriksson: Founder, CEO & CIO, with expertise in private equity, real estate, M&A, and equity & debt markets.

Ahmad Al Rifai: Chief Information Officer, driving digital transformation and IT excellence, pioneering trading and cloud innovations.

Competitor Profile

Market Insights and Dynamics

The Saudi financial services market is characterized by:

Growth Potential: Driven by Vision 2030 initiatives, leading to increased demand for diversified financial products and services.

Competitive Landscape: A dynamic environment with both local and international players vying for market share.

Competitor Analysis

Key competitors include:

Aljazira Capital: A leading brokerage firm in Saudi Arabia, known for its comprehensive trading solutions.

NCB Capital: Offers a wide range of investment services, including asset management and brokerage.

Samba Capital: Provides investment banking and asset management services, catering to diverse client needs.

These competitors are recognized for their strong market presence and diverse service offerings.

Strategic Collaborations and Partnerships

Al Rajhi Capital has engaged in significant collaborations:

Sukuk Issuances: Acted as a joint lead manager in the $2 billion sukuk issuance for Saudi Arabia, demonstrating its expertise in debt capital markets.

Real Estate Investment: Increased the capital of its first Real Estate Investment Traded (REIT) Fund by SAR 1 billion, marking the largest capital increase for a REIT fund in the Saudi market.

Operational Insights

Al Rajhi Capital maintains a strong market position through:

Market Share: Holding a significant share in the Saudi brokerage market, with a 15.06% market share in July 2015.

Competitive Advantages: Leveraging its parent company's resources, a diverse range of Sharia-compliant products, and a robust digital platform to meet client needs.