The World’s Wealthiest Islamic Bank

Al Rajhi Bank, headquartered in Riyadh, Saudi Arabia, is the world’s largest Islamic bank today. It employs over 9,600 people and manages $88 billion in assets. With more than 600 branches across Saudi Arabia, Kuwait, Jordan, and Malaysia, its success is a remarkable journey from humble beginnings.

At the core of this story is Saleh Abdulaziz Al Rajhi, a visionary entrepreneur who built this institution from the ground up, turning it into a global leader in Islamic finance.

The vision and relentless drive shared by him and his brother, Sulaiman Abdul Aziz Al Rajhi, have made the Al Rajhi family one of Saudi Arabia’s and the world’s wealthiest. Despite not inheriting wealth or prestige from noble families, they lifted their family from poverty to royal affluence, making the family name one of the most prominent among wealthy families in their country and the region.

Sheikh Saleh Abdul Aziz Al Rajhi - Early days

Sheikh Saleh Abdul Aziz Al Rajhi was born in 1921 in Al-Bukayriyah, Qassim, KSA. He grew up in a poor family with his parents, Abdulaziz and Ayesha Al Rajhi, and three siblings.

Like most Saudis in the 1930s, his father moved the family to Riyadh for better prospects when Saudi Arabia was formed. Saleh received his early education at the Quranic school of Al-Jami’ Al-Kabir mosque. He completed the Quran and inculcated its teachings by the age of 13 years old. This formed the foundation for his principles in life. 

Growing up in poverty, young Saleh developed a relentless drive for identifying potential opportunities and displayed a remarkable entrepreneurial spirit. He began supporting his family’s finances by selling scrap metal in the local market. By age 16, he had secured a spot among the vendors, selling tools and hardware. He also began exchanging Riyals into smaller denominations to help other merchants in the market, earning a 5% commission for the exchange.

With a keen understanding of market dynamics, Saleh noticed an increasing demand for money exchange services among traders importing carpets from Kuwait and Iran. The lack of a proper banking or currency system in Saudi Arabia at the time inspired him to start money exchange services for the value of gold and silver pieces. As one of the few offering these services, his client base grew rapidly. In 1947, Al Rajhi opened a formal currency exchange shop in Riyadh.

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Sulaiman Abdul Aziz Saleh Al Rajhi

His younger sibling Sulaiman, was following a similar path on his own. He, too, had a strong determination and ambition to identify opportunities and grow income. Sulaiman’s first job, when he was only 10 years old, was to deliver food and groceries from the local market to customer’s homes. 

One day, while passing by the Government Palace, he noticed women sitting on the ground in the palace corners selling butter. Inspired, he took one of these corners and found ways to stand out without directly competing with them. He bought kerosene in bulk and started selling it in smaller portions. To increase his profits, he began diversifying, selling sweets alongside the kerosene.

Sulaiman worked across multiple professions, gaining insights into the market, trade methods, and the skill of dealing with people from different backgrounds. He worked in construction, as a porter, guard, and coffee maker, and established various small businesses, including selling essentials like sugar and tea in sachets. He even followed camels to collect their waste, which he sold as fuel for household use.

Recognizing his younger brother's passion for entrepreneurship and evident business skills, Saleh offered Sulaiman a job at his currency exchange business.

Founding of Saleh bin Abdulaziz Al Rajhi Exchange

Saleh understood the dynamics of the money exchange business deeply, creating systems for recording, trading, and managing money. He traveled to other countries in the region, forming partnerships with various banks. He even engaged in gold trading with Kuwait and developed a unique system for money transfers and drafts.

Around 1957, Saleh officially registered the business under the name Saleh bin Abdulaziz Al Rajhi Exchange — the first formally recognized local exchange in the Najd region - along with Sulaiman. His siblings Mohammed and Abdullah joined the operation. He sent Sulaiman to Mecca to build and run the exchange business for pilgrims and traders. Sulaiman stayed in Mecca and expanded the business to Jeddah, also experiencing economic growth.

By the 1960s, the Al Rajhi Exchange had expanded its operations across Europe, Asia, and even the U.S., establishing a strong reputation in the financial world. Even the government depended on Al Rajhi for currency exchange before the first Saudi public bank was officially founded.

As the Saudi economy grew in the 1960s and 1970s, Al Rajhi Exchange played important roles in providing financial services to key state development projects, including the Saudi Agricultural Development Fund (1963), Public Investment Fund (1971), and Real Estate Development Fund (1972).

The makings of an Islamic Bank

As their operations expanded beyond currency exchange, they set up branch offices that offered a variety of banking and commercial services in Riyadh and Jeddah. In 1978, the Al Rajhi brothers consolidated their businesses under the Al Rajhi Trading and Exchange Corporation. This consolidation marked the transition from a currency exchange operation to a more comprehensive banking entity. It was one of the first to adopt Islamic banking principles—prohibiting interest and promoting profit-sharing. This resonated deeply with the region’s cultural and religious values, attracting customers seeking ethical financial solutions.

The bank expanded rapidly, fueled by Saudi Arabia’s oil-driven economic boom, and soon became a dominant player in Islamic finance, offering a broad range of retail, wholesale, and investment banking services.

The 1990s marked a new phase of growth for the Bank, with numerous branches opening across Saudi Arabia and expansion into international markets. It also diversified its offerings by introducing personal finance products, real estate loans, and investment services.

In 2006, the family officially renamed their business Al Rajhi Bank, signifying a new chapter in its journey. Though Saleh Al Rajhi passed away in 2011, his legacy of vision, entrepreneurship, and leadership lives on. 

The wealthiest non-Royals

The Al Rajhi family is considered the Kingdom's wealthiest non-royals and ranks among the world's leading philanthropists. The family-owned bank is one of the largest in the world by market cap and the largest in the Middle East and Saudi Arabia, with total assets of SAR 801 billion.

The Al Rajhi family has a long-standing commitment to philanthropy and community service, which influenced their decision to establish a bank that would not only be profitable but also serve societal needs through charitable initiatives. Forbes estimated Sulaiman’s wealth to be $7.7 billion as of 2011, making him the 120th richest person in the world. He received the 2012 King Faisal International Prize for his dedication to philanthropy, including donating half of his fortune to charity, founding an Islamic bank, supporting charitable work, and implementing impactful national projects.

Conclusion

Saleh Al Rajhi’s life is a powerful example of how hard work, determination, and a focused vision can lead to extraordinary success. From humble beginnings, he built an empire that has touched millions of lives. His journey, alongside his brother Sulaiman’s, serves as a reminder that anybody can achieve greatness, regardless of their background. All it takes is hard work, the ability to seize opportunities, and a commitment to doing things the right way—values that still drive Al Rajhi Bank today as it continues to grow and serve communities across the world.

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