The Alawwal Bank ( ar, البنك الأول), previously known as Saudi Hollandi Bank, was a Saudi Arabian
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
based in
Riyadh
Riyadh (, ar, الرياض, 'ar-Riyāḍ, lit.: 'The Gardens' Najdi pronunciation: ), formerly known as Hajr al-Yamamah, is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the R ...
,
Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
. It was the first operating bank in the Kingdom of Saudi Arabia and was founded in 1926 as a branch of the
Netherlands Trading Society
The Netherlands Trading Society ( nl, Nederlandsche Handel-Maatschappij or NHM) was a Dutch trading and financial company, established in 1824 in The Hague by King William I to promote and develop trade, shipping and agriculture. For the next 140 ...
.
On 14 March 2021, Alawwal &
SABB fully integrated in historic bank merger.
History
Netherlands Trading Society (1926)
It began as a branch of the
Netherlands Trading Society
The Netherlands Trading Society ( nl, Nederlandsche Handel-Maatschappij or NHM) was a Dutch trading and financial company, established in 1824 in The Hague by King William I to promote and develop trade, shipping and agriculture. For the next 140 ...
in 1926 to serve the
Hajj pilgrims from the
Dutch East Indies
The Dutch East Indies, also known as the Netherlands East Indies ( nl, Nederlands(ch)-Indië; ), was a Dutch colony consisting of what is now Indonesia. It was formed from the nationalised trading posts of the Dutch East India Company, which ...
, now
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
, and operated out of one office in Jeddah. As it was the only bank in the Kingdom at the time, it acted as the central bank, keeping the Kingdom's gold reserves and receiving oil revenues on behalf of the
Saudi Arabian government
The politics of Saudi Arabia takes place in the context of a unitary absolute monarchy along Islamic lines, where the King is both the head of state and government. Decisions are, to a large extent, made on the basis of consultation among the Ki ...
. In 1928 the
Saudi Riyal
The Saudi riyal ( ar, ريال سعودي ') is the currency of Saudi Arabia. It is abbreviated as
or SAR ''(Saudi Arabian Riyal)''. It is subdivided into 100 halalas ( ar, هللة '). The currency is pegged to the US dollar at a constant rate ...
, a new silver coin commissioned by
King Abdulaziz
Abdulaziz bin Abdul Rahman Al Saud ( ar, عبد العزيز بن عبد الرحمن آل سعود, ʿAbd al ʿAzīz bin ʿAbd ar Raḥman Āl Suʿūd; 15 January 1875Ibn Saud's birth year has been a source of debate. It is generally accepted ...
, became the Kingdom's first independent currency. The Netherlands Trading Society office in Jeddah assisted the government with the launch of the local currency.
In 1954 the Netherlands Trading Society expanded its operations in the Kingdom by opening two additional branches, in
Khobar
Khobar ( ar, ٱلْخُبَر, translit=al-Khobar) is a city and governorate in the Eastern Province of the Kingdom of Saudi Arabia, situated on the coast of the Persian Gulf. With a population of 457,748 as of 2017, Khobar is part of the 'Triple ...
and
Dammam
Dammam ( ar, الدمّام ') is the fifth-most populous city in Saudi Arabia after Riyadh, Jeddah, Mecca, and Medina. It is the capital of the Eastern Province. With a total population of 1,252,523 as of 2020. The judicial and administrative ...
, in the Eastern Province.
Saudi Hollandi Bank (1977)
In 1969,
ABN Bank, the successor of the Netherlands Trading Society, was one of the first foreign banks to implement the Saudization initiatives set forth by the
Saudi Arabian Monetary Agency
The Saudi Central Bank ( ar, البنك المركزي السعودي), previously known as the Saudi Arabian Monetary Authority (SAMA; ar, link=no, مؤسسة النقد العربي السعودي), established in 1952, is the central bank of ...
(SAMA) and became the model for other foreign banks in the Kingdom. In 1977 the Saudi Hollandi Bank was established as a joint-venture company with a paid-up capital of SAR 35 million.
The branch network was expanded to include Riyadh, Jubail, Makkah, Hofuf, Madinah, Qatif and other regions.
In 2009, the bank opened its new operations center Al Waha, which houses the bank's centralised operations functions as well as the SHB Academy. Also in 2009, SHB was the first bank in the Kingdom to deploy the automated Teller Cash Recycling machines (TCR), which was introduced to enhance the Open Branch concept that allows direct contact between the bank's employees and its customers.
At the end of June 2010, the bank's paid-up capital amounted to SAR 3,307 million. Saudi Hollandi Bank employs 1,417 staff with a Saudization ratio of over 87.44% and operates 43 branches, 15 Ladies Sections, 30 Preferred Banking Centres and 246 ATMs providing banking services throughout the Kingdom.
In June 2011, Saudi Hollandi Bank Launched The First MasterCard World Credit Card With A Silver Mark in the Middle East.
Alawwal Bank (2016)
In November 2016, Saudi Hollandi Bank changed its name to Alawwal Bank as part of a new corporate identity that will be rolled out over the next three months, according to a statement. Alawwal, meaning “The First” in Arabic, which refers to the bank’s status as the first bank to launch in the country in 1926.
Merger with Saudi British Bank (2019)
On 4 October 2018 ''
Arab News
''Arab News'' is an English-language daily newspaper published in Saudi Arabia. It is published from Riyadh. The target audiences of the paper, which is published in broadsheet format, are businessmen, executives and diplomats.
At least as of ...
'' reported that the Alawwal Bank and the
Saudi British Bank (SABB)
Saudi Awwal Bank (SAB - Alawwal) ( ar, البنك السعودي الأول) is a Riyadh-based Saudi joint stock company in which global banking group HSBC owns a minority stake. The bank traces its origins to the British Bank of the Middle ...
are about to become one with a merger proposal from both sides in order to create Saudi Arabia's third largest bank. On 16 June 2019, the merger was legally completed.
The integration was planned to completely took place in about 18 months, which will result in retention of the brand name "
Saudi British Bank
The Saudi British Bank (SABB) ( ar, البنك السعودي البريطاني (ساب)) is a Riyadh-based Saudi joint stock company in which British banking firm HSBC Holdings PLC owns a minority stake. The bank traces its origins to the ...
" only.
On 14 March 2021, Alawwal was fully integrated in to SABB.
Operations
SHB is organized into three main business segments: Corporate Banking, Personal Banking and Treasury. In addition, the Bank provides brokerage, asset management and investment banking services through its subsidiary Saudi Hollandi Capital.
Principal divisions and subsidiaries
* Saudi Hollandi Capital: engages as principle and agent in retail equity brokerage, asset management, corporate finance and investment advisory activity, debt arrangement and securities custody services
* Wataniya Insurance Company: with 20% ownership for Saudi Hollandi Bank
* Saudi Hollandi Insurance Agency Company: entirely owned as its bancassurance distribution arm with licensed in insurance activities.
* Saudi Hollandi Real Estate Company: entirely owned in support of SHB’s Home Finance by being involved in the registration of real estate title deeds
Branches and ATMs
Saudi Hollandi Bank has over 265 ATMs, 6 Business Banking Centres, 30 Preferred Banking Centres and 45 branches across the kingdom, in which 16 are women-only sections. Amongst Saudi Hollandi’s ATMs are Teller Cash Recycling machines (TCR). Preferred Banking Centers are for Saudi Hollandi’s VIP clients.
See also
*
List of banks in Saudi Arabia
In Saudi Arabia, a total of 31 banks are currently licensed by the Saudi Arabian Monetary Authority (SAMA): 11 local banks and 20 branches of foreign banks.
National-Licensed commercial Banks in Saudi Market
There are 11 local licensed banks in ...
References
{{Reflist
External links
Official website
1926 establishments in Saudi Arabia
Banks established in 1926
Companies listed on Tadawul
Banks of Saudi Arabia
ABN AMRO
Companies based in Riyadh
2019 mergers and acquisitions
HSBC acquisitions