SAIB

Institutional Profile and BackgroundSaudi

Investment Bank was established on June 23, 1976 by Royal Decree No. M/31 was established with headquarters in Al-Wizarat – Al Maather Unit No: 2 AR Riyadh 12622 – 3144, Riyadh, Saudi Arabia. The Bank began operations on March 16, 1977 as a public company listed on the Saudi Stock Exchange (Tadawul) and its shareholders include the Saudi General Social Insurance Authority, the Public Pension Authority, other Saudi public and private institutions, and individual investors. SAIB provides investment banking, equity trading, asset management, leasing, mortgage, insurance and credit card services through its subsidiaries such as Saudi Orix Leasing, Amlak Global Finance and Alistithmar Capital.

SAIB's services cover the whole of Saudi Arabia and have 52 branches, 10 of which are women-only branches, located in major cities such as Riyadh, Jeddah, Dammam, etc. The bank provides more than 5,400 ATM access points through the LankaPay network, ensuring convenient deposits and withdrawals across the country. SAIB also caters to the needs of Muslim clients by offering Shariah-compliant financial products through the "Asala" program. Banks are regulated by the Saudi Central Bank (SAMA) and are subject to the Banking Law and related regulations. Its deposits are protected through the Saudi Deposit Insurance System (SDIS) and each depositor is compensated up to SAR 200,000. In 2024, Fitch Ratings gave SAIB a "BB+(lka)" rating with a stable outlook, indicating that it has a strong compliance record and no major breaches have been reported.

Historical

BackgroundThe establishment of SAIB is an important milestone in Saudi Arabia's financial modernization. In 1976, a Royal Decree approved the establishment of the SAIB to provide financing support to the government, industry and trade sectors. In 1977, the bank officially operated, rapidly expanding its branch network, and in the 1980s began offering Shariah-compliant financial products. In 2014, SAIB strengthened its market presence through strategic partnerships with organizations such as Saudia and Real Madrid. In 2024, the bank launched an innovative Travel Account in partnership with Saudia's AlForsan loyalty program, further enhancing the appeal of its retail banking services.

Financial HealthSAIB

is in a strong financial position, with total revenue of approximately SAR 4.6 billion and net profit of SAR 456 million in the first quarter of 2024, up 5.12% year-on-year. In 2023, the bank reported net income of SAR 1.31 billion, up 14% year-on-year, and total operating income up 25.8%, mainly due to higher net special commission income, foreign exchange income and income on investment disposals. SAIB's profitability remained stable despite a 49.4% year-over-year increase in operating expenses, primarily due to an increase in credit loss provisions and administrative expenses.

Fitch Ratings' "BB+ (lka)" rating and stable outlook demonstrate that SAIB's capital adequacy, asset quality and liquidity management are in line with international standards. In 2021, The Asian Banker ranked it as one of the top 50 Islamic banks in the world, rising to 37th in 2023, demonstrating its excellent performance in terms of asset size and risk management. Customers can obtain the latest financial data through the annual report on the bank's official website.

Deposits & Financing

ProductsSAIB offers a wide range of deposit products, all based on the principle of profit sharing, to meet the needs of different customers:

- Demand deposits: including ordinary savings accounts and E-Save accounts. There is no minimum deposit required for the E-Save account, but an average monthly balance of SAR 5,000 is required to earn an equivalent interest rate of 0.10% p.a., allowing unlimited deposits and withdrawals.

- Fixed Deposit: Murabaha Deposit offers profit sharing with different tenors, and the profit margin is based on the deposit amount and term. For example, an investment of SAR 100,000 can earn a profit margin of 0.400% for 1 month, an investment of SAR 1.4 million can earn a profit margin of 1.00% for 6 months, and an investment of SAR 1 million can earn a profit margin of 0.550% for 12 months.

- Featured product: Travel Account is an innovative account that allows customers to earn travel miles (0.03472 miles per Saudi riyyals) with an average monthly balance, with no minimum balance requirement, fully managed through the SAIB mobile banking app, and can be redeemed for tickets or seat upgrades with the Saudia AlFursan loyalty program.

Financing

productsSAIB's financing products follow the principles of Islamic finance, including:

- Personal financing: The annualized interest rate (APR) starts from 4.93%, such as SAR 100,000 financing with a term of 5 years and a monthly payment of about SAR 1,857.49, without the need for a guarantor, suitable for urgent financial needs.

- Vehicle Financing: Murabaha Car Finance's APR starts from 4.93%, also with SAR 100,000 financing as an example, with a term of 5 years and a monthly payment of approximately SAR 1,857.49.

- Home Finance: APR of 7.40%, loan-to-value ratio (LTV) of up to 90%, and tenor of up to 15 years. For example, a property with an appraised value of SAR 500,000 can be financed by SAR 450,000 with a monthly payment of SAR 4,037.18. Early repayment is required to pay all the profits of the first two years in the first two years, and pay the profits of the next three periods after two years.

- SME loans: The interest rate for short-term loans is 5%-7% plus SIBOR, medium-term loans are 6%-8% plus SIBOR, and administrative costs are 1.5%-3%.

- Credit Card (Visa Platinum): APR of 45.41%, credit limit of SAR 100,000, Tawarruq rate of 2.49%, annual fee of SAR 399 (no annual fee for new cards).

List of Common

FeesSAIB's fee structure is transparent, but specific fees need to be consulted by phone (800-124-8000) or at a branch. Common fees include:

- Account Management Fee: There is no minimum balance requirement for E-Save accounts, other accounts may need to maintain a minimum balance (e.g. SAR 5,000) to avoid fees.

- Transfer fee: Domestic transfers are usually free of charge, and cross-border transfer fees are shown before confirmation, which is about 2.7% of the exchange rate difference.

- ATM Interbank Withdrawal Fee: Non-SAIB ATM withdrawals may be subject to a small fee, subject to consultation.

- Hidden Fee Alert: Clients should read the account terms carefully and be aware of minimum balance requirements or other potential fees.

Digital Service

ExperienceSAIB offers modern financial services through "Flexx Click" online banking and "Flexx Touch" mobile app, available for iOS and Android. Core features include

:- Account Management: View balances, transaction history, and credit card information.

- Real-time transfers: Support for domestic and cross-border transfers in Saudi riyal and other currencies (SWIFT code: SAIBSAJE).

- Bill Payment: Pay Home Office fees, telephone bills, etc. through SADAD services.

- Investment Tool Integration: Support for fixed deposits and investment management.

Technological innovations include biometric logins and one-time password (OTP) verification, and the bank also offers a mobile point-of-sale (mPOS) service via WhatsApp, attracting 22,720 users and digitally transacting SAR 112.46 billion in 2024. However, user feedback shows that the "Flexx Touch" app has login issues and occasional crashes, and the technical stability needs to be improved.

Quality of Customer

ServiceSAIB provides a diverse range of customer service channels to ensure that customers receive timely support:

- Service channels: 24/7 contact center (800-124-8000), email (info@saib.com.sa), WhatsApp and 52 branches. Customers can also interact through Platform X ([@SAIBLIVE](

Market Position & Accolades