The Saudi British Bank

The history of the banking system of the Kingdom of Saudi Arabia begins with the advent of Saudi Hollandi Bank in 1927. The bank was one of the largest financial and commercial institutions in Saudi Arabia, and then it was renamed, calling Alawwal Bank, which means “first.”

In 2018, the first Saudi bank became the property of the largest bank, Saudi British Bank. The scope of activity of the united structures is corporate services, banking services for legal entities and individuals, brokerage services, the provision of consulting services, and various types of insurance.

Financial activities can study the history of any state — established Saudi Hollandi Bank – 1927.

This financial institution was intended for the exchange of money of pilgrims from Indonesia and other countries practicing Islam. Approximately 75% of Saudi Arabia’s funds were money brought by pilgrims.

Initially, Saudi Hollandi Bank was considered a subsidiary of the Netherlands Trading Company, having a single branch in Jeddah. Then, Riyadh becomes the head office of the Bank.

The commercial enterprise provided services traditional for Muslim banks: money exchange for pilgrims, payment for export and import, money transfers.

Since its inception, Saudi Hollandi Bank has adhered to the traditions of Sharia banking.

Financial activities of Saudi Hollandi Bank

The traditions of European banking originated in Arab countries. In ancient times, speculative trade was copied by European merchants. Usury and speculation in countries living under Sharia law are now prohibited.

At the beginning of the 20th century, Arab financiers tried not to pronounce the word “bank” and replaced it with synonyms, for example, with the word “institution.”

Saudi Hollandi Bank has been providing loans to individuals and businesses. The profit on investments was legal and was considered payment, commission for the service.

In 1939, the financial situation in Saudi Arabia changed; large oil deposits were discovered. This brought a considerable income to the budget of the Kingdom. There has been an enormous demand for highly paid qualified oil engineers and expensive technical equipment.

King of Saudi Arabia Abdul Aziz introduces the Saudi riyal, a single monetary unit. The construction of an updated financial system begins.

In 1976, the Saudi rial was pegged to the US dollar. The value of the national currency of the Kingdom has been officially fixed, for one American dollar paid 3.75 riyals. This ratio is still maintained.

Financial activities of Saudi Hollandi Bank in the second half of the twentieth century

The hectic financial activities of Saudi Hollandi Bank began in the second half of the 20th century. Branches are opening in Mecca, Jeddah, Al Khobar, Medina, Katif. The Bank is becoming one of the most important financial institutions in Saudi Arabia.

In 2017, Saudi Hollandi Bank became known as Alawwal Bank, which means “first” in Arabic. In 2019, Alawwal Bank was acquired by one of the largest global banks, Saudi British Bank.

Shares of the combined Saudi British Bank in early August 2019 were quoted at 38.10 Saudi riyals per share. In terms of the American dollar, this amount corresponds to USD 10.

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