Alinma Bank

Alinma Bank is a Saudi bank established under Royal Decree No. (M/15) issued on 28 Safar 1427 AH, corresponding to the sixth of June 2006, which approved the licence to establish it.[1]

After the decree was issued, the competent authorities proceeded with the establishment procedures, and a founding committee was formed from the bank's founders — the Public Investment Fund, the General Organization for Social Insurance, and the Public Pension Agency — to oversee the bank's legal and administrative arrangements.[1]

The bank ranks among the largest Saudi banks in terms of founding capital, which stands at SAR 15 billion, of which 70% was offered for public subscription on the seventh of April 2008.[2][3]

The founding committee approved the selection and appointment of Abdulmohsen bin Abdulaziz Al-Fares as the bank's Chief Executive Officer, which was announced on the sixth of June 2006.[1]

The bank's Chief Executive Officer described its creation as one of the fruits of the prosperous era, under the gracious guidance to establish it and enable it to carry out all its banking operations in compliance with Shariah provisions and controls.[10]

The public subscription opened on the seventh of April 2008 for one billion and fifty million shares representing 70% of the capital of SAR 15 billion, at a nominal value of SAR 10 per share without an issuance premium.[2][3]

Three entities — the Public Investment Fund, the General Organization for Social Insurance, and the Public Pension Agency — covered 30% of the capital in equal shares and paid their allocations of SAR 4,500 million; they were at the same time the underwriters for the bank's subscription.[2]

The bank completed the leasing and handover of 15 sites in different major regions of the Kingdom to form the first of its branch network, alongside the purchase of a number of plots of land on which to build independent branches.[4]

The first branch locations were distributed across the cities and regions of Riyadh, Jeddah, Dammam, Khobar, Madinah, Taif, Khamis Mushait, Al-Ahsa, Jubail, Qassim, Hail, and Tabuk.[4]

The bank's first financial year began on 26 May 2008 and ended on 31 December of the same year; net profits during it reached SAR 390 million, the net profit of the pre-operating period reached SAR 274 million, and the bank's investments amounted to SAR 14 billion and 973 million.[5]

In the first quarter of 2014 the bank recorded net profits of SAR 293 million, an increase of 32.58% over the corresponding quarter of the previous year and 4.64% over the preceding quarter, while total profit from operations and investments reached SAR 600 million.[6]

The Social Development Bank signed an agreement with Alinma Bank to implement the first savings programme for its clients, aimed at developing financial instruments compliant with the provisions of Islamic Shariah and at encouraging saving and financial planning.[7]

On the sidelines of the Money 20/20 conference held in Riyadh from 15 to 17 September 2025, the General Organization for Social Insurance signed an agreement with the bank providing digital services to digitise bank commitment certificates and clearance letters.[9]

The bank's Board of Directors is chaired by Dr. Abdulmalik bin Abdullah Al-Hogail, and Abdullah bin Ali Al-Khalifa holds the position of Managing Director and Chief Executive Officer, as of 2025.[8]

Q: What is Alinma Bank? A: It is a Saudi bank established under Royal Decree No. (M/15) dated 28 Safar 1427 AH, with a founding capital of SAR 15 billion.[1][3]

Q: Who are the founders of Alinma Bank? A: The Public Investment Fund, the Public Pension Agency, and the General Organization for Social Insurance.[1]

Q: When did the public subscription for the bank's shares open? A: On the seventh of April 2008, for one billion and fifty million shares representing 70% of the capital, at a nominal value of SAR 10 per share without an issuance premium.[2][3]

Q: What were the results of the bank's first financial year? A: Net profits of SAR 390 million, a net profit of SAR 274 million in the pre-operating period, and investments amounting to SAR 14 billion and 973 million.[5]

Q: Who leads the bank? A: The Board of Directors is chaired by Dr. Abdulmalik bin Abdullah Al-Hogail, and Abdullah bin Ali Al-Khalifa holds the position of Managing Director and Chief Executive Officer.[8]