alrajhi bank Among the World’s Top Five Banks in Sustainability with MSCI “AA” ESG Rating

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alrajhi bank has reinforced its international reputation by earning an “AA” rating from MSCI’s global ESG benchmark, becoming the only financial institution in Saudi Arabia to achieve this distinction. This recognition places the Bank among the top five banks worldwide with an “AA” or higher ESG rating, reflecting its leadership in environmental, social, and governance practices and its role as one of the most influential banks shaping the global financial system.

As the largest Islamic bank in the Middle East by assets, alrajhi bank continues to advance sustainable development through a series of achievements. The bank has financed renewable energy projects generating more than 2,200 megawatts, invested in impactful social programs, and increased female participation to 34 percent across its operations and subsidiaries. These efforts reflect an integrated strategy that balances economic growth with environmental and social responsibility, fully aligned with Saudi Vision 2030 and the United Nations Sustainable Development Goals.

The bank’s “Integrated Banking” strategy anchors sustainability at the core of its operations by embedding ESG principles into decision-making, avoiding investments that conflict with ethical values and Shariah principles, and ensuring a responsible balance between growth and institutional commitments. alrajhi bank was also one of the earliest global financial institutions to embrace sustainability, publishing its first annual sustainability report in 1988 and setting a benchmark for transparency and accountability well before it became standard practice.

On the environmental front, the bank has implemented internal efficiency measures that save over SAR 2.5 million annually in electricity, water, and paper, while supporting Saudi Arabia’s net-zero 2060 target by financing green projects and adopting eco-friendly practices. Social contributions have been equally significant, with more than 6,065 housing units provided through the Developmental Housing Foundation, over SAR 100 million allocated to healthcare initiatives such as the alrajhi Cardiac Catheterization Center and kidney transplant surgeries, and long-term commitments to education through the Orphan Educational Sponsorship Program. In 2024, the bank also paid SAR 2.2 billion in zakat, reinforcing its dedication to social solidarity and economic equity.

alrajhi bank places strong emphasis on human capital, achieving a Saudization rate of 98 percent across its 23,406 employees in 2024. More than 500,000 hours of training have been delivered through alrajhi Academy to prepare the next generation of Saudi leaders and enhance female participation. The bank’s digital transformation has accelerated as well, with 95 percent of transactions now processed through digital channels, exceeding one billion transactions monthly, while 86 percent of personal financing is conducted digitally, cutting reliance on paper and reducing environmental impact.

In sustainable finance, the bank has issued USD 3 billion (SAR 11.25 billion) in sustainable sukuk to fund environmental and social projects. It has also adopted a sustainable procurement policy that prioritizes local content, with 94 percent of suppliers being national companies and 1,199 new suppliers registered through its digital procurement portal. These efforts have strengthened customer trust, as shown by alrajhi bank’s score of 85 points in the Voice of Customer Index, which underscores the success of blending digital innovation with high-quality service.

With this holistic approach, alrajhi bank continues to set benchmarks for the global banking sector by combining financial growth with positive social and environmental outcomes, driving progress toward a more sustainable future.