Best Islamic bank 2025: Al Rajhi Bank
Al Rajhi Bank proudly stands as the recipient of this year’s Euromoney award for Saudi Arabia’s best Islamic bank, on the heels of a series of remarkable achievements that emphasise the bank’s preeminent position in Islamic finance.
For the first time in history, Al Rajhi Bank has topped the charts in total financing within Saudi Arabia, marking a significant milestone by accumulating SR693.4 billion ($184.9 billion) in total financing. This expansion is not just about numbers, but reflects a strategic deepening of market influence and an enhanced capacity to serve a broader spectrum of needs in the Kingdom’s economy.
Notably, the bank has expanded its corporate finance portfolio by 31.8% year-on-year to reach approximately SR176.6 billion. This illustrates a dynamic approach to corporate lending, enabling substantial economic contributions and supporting a larger scale of business ventures.
Al Rajhi has demonstrated a strong commitment to aiding the growth of small and medium-sized enterprises (SMEs), with its SME lending increasing significantly to SR28.55 billion in 2024 from SR21 billion the previous year. This represents a growth of 36%, highlighting the bank’s pivotal role in fostering economic diversity and entrepreneurship in Saudi Arabia.
In addition to its national corporate accomplishments, Al Rajhi Capital has secured a leading position as the foremost arranger for both Saudi riyal- and US dollar-denominated sukuk in Saudi Arabia, facilitating transactions around SR122 billion equivalent in 2024. This influential role in arranging sukuk underscores the bank’s adeptness in Islamic securities, enhancing its stature on a global scale.
Al Rajhi Bank further anchored its leadership in Islamic finance by issuing the world’s first investment-grade dollar AT1 sustainable sukuk. The bank also led multiple environmental, social and governance-focused issuances, advancing the integration of sustainability in financial solutions.
Through these strategic achievements, Al Rajhi Bank continues to set benchmarks in the Islamic banking industry, ensuring its role as a frontrunner in adapting to and leading market trends.
Best Islamic bank for ESG 2025: HSBC
HSBC has secured its position as Saudi Arabia’s best Islamic bank for ESG through a series of landmark transactions and initiatives demonstrating the bank’s commitment to sustainable Islamic finance.
The bank has orchestrated several groundbreaking deals in the country in 2024, including Saudi Investment Bank’s debut international offering with a $750 million perpetual NC5.5-year AT1 RegS sustainable sukuk. HSBC also led Cenomi Centers’ SR5.25 billion ($1.4 billion) multi-tranche sustainability-linked facilities as sole financial coordinator and lead sustainability coordinator, marking the first private sector syndicated sustainability-linked financing in Saudi market history.
Regionally, HSBC has demonstrated exceptional breadth across sustainable Islamic finance, arranging Al Rajhi Bank’s facility, which stands as not just the largest Islamic sustainable financing to a financial institution globally but overall the largest Islamic financial institution financing. The bank also structured one of the most widely participated sustainability-linked AAOIFI transactions for Bahrain’s Ahli United Bank and pioneered a syndicated sustainability-linked transaction including a murabaha tranche for Turkey’s fashion retail industry through DeFacto.
HSBC’s commitment extends beyond transactions to support market development through two significant initiatives. Partnering with the Global Ethical Finance Initiative, the Islamic Sustainable Finance Initiative builds capacity within Islamic finance through expert roundtables, thought leadership reports and custom Islamic sustainable finance courses for practitioners. Meanwhile, the Global Islamic Finance Programme, in collaboration with Emirates Nature WWF, channels Islamic assets into nature-based solutions in the global south through an indigenous blended finance approach to climate-resilient investments.
The bank’s regional transaction portfolio further includes ADES’s $3 billion facility – one of the largest syndicated corporate facilities in Saudi Arabia’s history – alongside AUB’s $800 million issuance, demonstrating HSBC’s ability to arrange complex, large-scale sustainable Islamic financing structures.
HSBC’s leadership in Islamic ESG banking reflects its strategic focus on blending Islamic finance principles with sustainability objectives, creating tailored solutions that address both environmental concerns and Shariah compliance. Through these efforts, HSBC continues to strengthen its position as the Saudi Arabia’s premier Islamic bank for ESG.
Best Islamic fund manager 2025: Jadwa Investment Company
Jadwa Investment Company has been recognised as the best Islamic fund manager in Saudi Arabia, reflecting its impactful strategic manoeuvres and adherence to Islamic financial principles.
With an impressive growth in assets under management of 36.9% from the previous year to reach SR85.3 billion ($22.7 billion), Jadwa Investment Company has demonstrated robust financial health and operational excellence. This expansion has been bolstered significantly by advancements across all asset classes, with real estate being notably prolific.
Innovation in fund creation has been another stellar area for Jadwa this year. The firm has expanded its portfolio by launching 18 new local real estate funds, with a capital commitment of SR22.02 billion. Further diversifying its offerings, Jadwa introduced groundbreaking initiatives, including a dollar-denominated money market fund and specialised funds focused on private equity and multi-asset strategies.
Apart from financial endeavours, Jadwa Investment Company’s dedication to Shariah compliance solidifies its reputation as a leading Islamic fund manager. They have instituted a meticulous Shariah oversight process, evidenced by the deployment of product-specific fatwas, an annual general Shariah compliance statement, rigorous quarterly audits, and a dedicated Shariah team. The comprehensive framework ensures that all offerings are not just economically sound but also strictly adhering to Islamic principles.
Jadwa Investment Company’s innovative fund strategies, substantial growth in assets, and unyielding commitment to ethical finance practices rightly position the firm at the forefront of Islamic fund management in Saudi Arabia.
Best Islamic project finance house 2025: HSBC
HSBC has firmly established itself as a leading Islamic project finance house in Saudi Arabia, particularly evidenced by its outstanding performance in 2024.
The bank has stood out this year thanks to its leadership in closing a significant number of deals in the Kingdom. It successfully led 10 deals, of which seven are regarded as landmark transactions.
The bank’s involvement in the Saudi Aramco Total Refining and Petrochemical Company (Satorp) – Amiral project is particularly commendable. This project is poised to become one of the largest integrated complexes globally, underscoring HSBC’s pivotal role in facilitating major infrastructure advancements. The project’s scale and potential economic impact highlight HSBC’s capability to shepherd projects of considerable magnitude and complexity.
Dedication to Shariah compliance in its operations also encapsulates the bank’s respect and adherence to the principles that govern Islamic finance. Out of the 10 deals finalised this year, seven were fully Shariah-compliant. This not only illustrates HSBC’s adeptness in Islamic finance but also its commitment to upholding the financial doctrines vital to its Middle Eastern clients and stakeholders.
HSBC’s influential work in Saudi Arabia, characterised by its alignment with Shariah law and the ambitious scale of its project involvements, sets a benchmark in the realm of Islamic finance.
Its proven track record of successfully managing and closing deals that not only adhere to Islamic principles but also contribute significantly to regional development cements their status as a leader in this field.
Best sukuk house 2025: Al Rajhi Capital
Al Rajhi Capital is rightfully acknowledged as the best sukuk house in Saudi Arabia, following a year of dominant performance in structuring and executing significant and innovative sukuk transactions.
Its handling of approximately SR122 billion ($32.5 billion) worth of Saudi riyal- and US dollar-denominated sukuk transactions underscores the capability to manage high-value deals and its top position on the Kingdom of Saudi Arabia SAR and USD sukuk league table, reflecting a robust increase in activity compared to previous years.
The depth of its involvement spans a diverse array of issuers and credit profiles, highlighting their adaptable and extensive expertise.
Al Rajhi Capital’s role in facilitating major issuers is impressive. The institution has arranged significant financing for leading entities such as Aramco, Public Investment Fund, Saudi Electricity, and Al Rajhi Bank. Its pioneering efforts in arranging the world’s first investment-grade AT1 sukuk issuance for a bank set new standards in the industry and showcased innovative capabilities. This transaction, among others involving eminent regional banks like Dubai Islamic Bank, Kuwait Finance House and GFH, collectively raised close to SR51 billion in US dollar issuances in 2024 alone.
The firm has adeptly managed approximately 17 sukuk transactions in the year, tying back to its strategic acumen and detailed understanding of market dynamics.
Al Rajhi Capital’s formidable performance and strategic contributions to the sukuk market in Saudi Arabia indisputably mark it as a leader in this field.
