obmar
|
Saudi’s Al Rajhi on aggressive expansionSaudi’s Al Rajhi on aggressive expansion
By B.K. SIDHU
PETALING JAYA: Barely two months after its soft launch in Malaysia, Saudi Arabia’s Al Rajhi Bank has quietly opened nine branches in the Klang Valley.
At least six more outlets are slated to open early next year in Kota Damansara, Subang, Puchong, Ampang Jaya, Bukit Bintang and Petaling Jaya, Al Rajhi Bank Malaysia said in an e-mail reply to queries from StarBiz.
Currently under renovation, the branches “would be operational soon’’, it said.
The nine branches are located in Jalan Ampang (the main branch), Taman Tun Dr Ismail, Bangsar, Cheras, Seri Hartamas, Kelana Jaya, Kajang, Shah Alam and Klang.
It is learnt that the bank also has plans to offer Islamic banking services beyond the Klang Valley next year and is eyeing Johor Baru, Malacca and Penang.
In five years, the bank’s vision is to have 50 branches throughout the country. It is said to have employed more than 300 people, including eight division heads.
That is how aggressive the 50-year-old bank is. Al Rajhi is a major player in Saudi Arabia and claims to be the largest Islamic bank in the world with a market capitalisation of US$80bil as at end-March this year.
Its core business in Saudi Arabia is in wholesale, retail, commercial banking and investment banking, all of which are guided by syariah principles. The bank has nearly 600 branches in Saudi Arabia, 1,400 automated teller machines (ATM) and over 8,00 merchant terminals.
Al Rajhi took two years to open its first branch in Malaysia after being awarded a licence in 2004 by Bank Negara.
Al Rajhi is also the second of three foreign banks that were awarded Islamic banking licences by the central bank. First to set up shop in Malaysia was Kuwait Finance House, which opened its doors last year.
Next month, the third player, a Qatar-led financial services consortium, is planning to open for business in Malaysia. It is currently assembling a team of professionals for its Malaysian operations.
“Malaysia marks the group’s first foray into the international banking scene, which coincides with its international expansion plans,” Al Rajhi said, adding that it aspired to introduce a “new Islamic banking experience” to a wider Asian market.
Leveraging on its track record in Islamic banking, the bank believes it would “play a catalytic role in support of Malaysia’s plans to evolve into a vibrant Islamic financial hub for the South-East Asian region’’.
In Malaysia, the bank said it was offering a suite of products that included personal financing, debit-ATM card, charge card with Visa Wave technology, current and savings accounts as well as fixed investment account.
Moving ahead, the bank said it hoped to introduce a broader suite of banking products to cater to a more varied customer base.
Al Rajhi was recently named the best bank in Saudi Arabia for 2006 by The Banker magazine.
|
The Inquisitor
|
obmar,
According to what I understand, it is forbidden to tax interest on the users of the bank. So how do they make their funds?
|
obmar
|
Profit sharing
|
The Inquisitor
|
I also heard that they are allowed to charge processing fees. That is entirely logical.
|
obmar
|
It was only in Feb that they got the yes to be here...
They sure move in fast...
Al-Rajhi Bank to Open 50 Branches in Malaysia
M. Ghazanfar Ali Khan, Arab News
RIYADH, 15 February 2006 — In a major move to expand its operations globally, particularly in Southeast Asia, Al-Rajhi Bank is planning to open 50 branches in Malaysia. Al-Rajhi Bank, will open its first branch in the second quarter of this year, according to a Dow Jones report, published in a section of international press.
Malaysia’s Ambassador Dr. Ismail Ibrahim, while speaking about Al-Rajhi’s plans to open branches in his country, welcomed the initiative and said that “Al-Rajhi’s operations, hopefully, would be very successful and well-responded by not only Malaysians but by Muslims and non-Muslims living in the whole region including Indonesia, Brunei and Thailand.”
He said, “Our experience shows that Islamic banking is not only meant for Muslims but non-Muslims also find it very useful. It will also boost trade and investment relations between the two countries.” Al-Rajhi Bank, the only Islamic bank in Saudi Arabia issued with a license to operate in Malaysia, will open its branches in a staggered schedule, said local banking sources.
But, Al-Rajhi Bank officials contacted by Arab News refused to divulge more details of the plan. The Dow Jones report, however, said that the bank had planned to offer retail and corporate products in Malaysia such as car and real-estate financing as well as mutual funds. Al-Rajhi’s role as an Islamic bank largely fits into the Malaysian banking framework as that Southeast Asian country is a leader in Islamic banking offering products and services that comply with Shariah.
Al-Rajhi Bank currently is one of the largest joint stock companies in the Kingdom, with a paid up capital of SR4. 5 billion. The bank was established as a Saudi share holding company in 1987 to replace Al-Rajhi Exchange and Trading Company which is one of the oldest established banking institutions in the Arab world. It is considered as one of the leading and developed banks in terms of traditional banking products and services in addition to the new electronic links and facilities.
|
|
|
|