Al Rajhi Capital Company

Al Rajhi Capital Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

Al Rajhi Capital Company was established in 2008 as a subsidiary of Al Rajhi Bank, one of the largest Islamic banks in the world. The company was created to provide a range of financial services including brokerage, asset management, and investment banking, adhering to Islamic finance principles.

Parent Company/Ownership Structure

Al Rajhi Capital is wholly owned by Al Rajhi Bank, which has a significant presence in the Saudi financial market. The parent company plays a crucial role in supporting Al Rajhi Capitals operations and strategic objectives.

Headquarters Location

The headquarters of Al Rajhi Capital is located in Riyadh, Saudi Arabia. The company operates numerous investment centers across the Kingdom, providing clients with easy access to its services.

Global Business Scope

Al Rajhi Capital has expanded its operations to cover a wide array of markets, offering services in the GCC, MENA, and international markets. By the end of 2023, the company had extended its coverage to 38 markets globally, enhancing its international brokerage capabilities.

Main Regulatory Bodies

Al Rajhi Capital operates under the supervision of several regulatory bodies, including:

• The Capital Market Authority (CMA) of Saudi Arabia
• The Saudi Arabian Monetary Authority (SAMA)
• Other relevant international regulatory bodies depending on the markets in which it operates.

2. Company History and Development

Key Milestones

• 2008: Establishment of Al Rajhi Capital as a subsidiary of Al Rajhi Bank.
• 2020: Launch of a comprehensive strategy to enhance asset management and international brokerage services.
• 2023: Introduction of the mobile super app, significantly increasing the number of active clients by 42% year-on-year.

Business Expansion Journey

Since its inception, Al Rajhi Capital has focused on expanding its service offerings. The company has successfully diversified into asset management and investment banking, launching numerous funds and participating in significant capital market transactions.

Customer Base Growth

Al Rajhi Capital has witnessed substantial growth in its customer base, with a reported increase in active clients following the launch of its mobile super app. The app facilitates seamless trading and investment management, attracting both seasoned and novice investors.

Platform Development History

The company has invested heavily in technology, launching the eTadawul trading platform for both PC and mobile devices. The introduction of the mobile super app further streamlined the user experience, allowing clients to manage their investments effortlessly.

Important Awards or Recognitions Received

Throughout its operations, Al Rajhi Capital has received various accolades, including recognition as the best debt capital markets house at the Saudi Capital Market Forum in 2023. The company has also been acknowledged for its performance in equity funds, winning awards for the best funds over multiple years.

3. Trading Services Offered

Forex Trading Options

Al Rajhi Capital offers a range of forex trading options, providing access to several currency pairs. The specific number of currency pairs available may vary, but the company is committed to offering competitive trading conditions.

Stock Trading Options

Clients can trade stocks listed on Tadawul, as well as stocks from various international exchanges, including NYSE, NASDAQ, and LSE. This broad access allows investors to diversify their portfolios across different markets.

CFD Trading Products

Al Rajhi Capital also offers Contracts for Difference (CFDs), allowing clients to trade on price movements of various assets without owning the underlying securities. This service enhances the trading flexibility for clients.

Other Financial Instruments

In addition to stocks and CFDs, Al Rajhi Capital provides access to various financial instruments, including:

• Commodities: Clients can trade in commodities, enhancing their investment options.
• Cryptocurrencies: The company is exploring opportunities in cryptocurrency trading, though specific offerings may vary.
• Sukuk: As an Islamic finance institution, Al Rajhi Capital offers sukuk investments, aligning with Shariah principles.

Special Services or Unique Advantages

Al Rajhi Capital distinguishes itself through its commitment to Islamic finance, offering Shariah-compliant investment products. The company also provides extensive research and advisory services, ensuring clients are well-informed about market trends.

4. Regulatory and Legal Background

Detailed Regulatory Information

Al Rajhi Capital is regulated by:

• The Capital Market Authority (CMA) of Saudi Arabia
• The Saudi Arabian Monetary Authority (SAMA)
• Compliance with international regulations as applicable to its global operations.

Legal Entity Structure by Region

The company operates as a single legal entity under Al Rajhi Bank in Saudi Arabia, with its international operations structured to comply with local regulations in the respective countries.

Client Fund Protection Measures

Al Rajhi Capital adheres to strict compliance measures to protect client funds, including:

• Segregation of client funds from company assets.
• Regular audits and compliance checks to ensure adherence to regulatory standards.

Countries/Regions Served

The company serves clients primarily in Saudi Arabia, with expanding operations in the GCC, MENA, and select international markets.

Compliance History

Al Rajhi Capital maintains a strong compliance history, with ongoing efforts to align with regulatory changes and enhance its governance frameworks.

5. Competitive Landscape

3-5 Main Competitors

Al Rajhi Capital faces competition from several key players in the financial services industry, including:

• Saudi Fransi Capital
• NCB Capital
• Alinma Investment
• Riyad Capital

Positioning in the Industry

Al Rajhi Capital is positioned as a leading broker in the Saudi market, with a market share exceeding 18.1%. The company has established itself as a trusted provider of Shariah-compliant investment products and services.

Market Differentiation Factors

The company differentiates itself through:

• A strong commitment to Islamic finance principles.
• A comprehensive suite of financial services, including brokerage, asset management, and investment banking.
• Advanced technology solutions, including a user-friendly mobile app that enhances client engagement.

Conclusion

Al Rajhi Capital Company stands out as a prominent player in the Saudi Arabian financial services landscape. With a strong foundation in Islamic finance, a diverse range of trading services, and a commitment to customer satisfaction, the company is well-positioned for continued growth and success in the evolving financial markets.

Back to top

Learn more about Al Rajhi Capital's services