Bank Aljazira
Encyclopedia
Bank Aljazira is a joint stock company
incorporated in the Kingdom of Saudi Arabia and formed pursuant to Royal Decree No. 46/M dated Jumad Al-Thani 12, 1395H (i.e. June 21, 1975). BAJ commenced its business on Shawwal 16, 1396H (i.e. October 9, 1976) with the takeover of The National Bank of Pakistan
's (NBP) branches in the Kingdom of Saudi Arabia and operates under commercial registration No. 4030010523 dated Rajab 29, 1396H (i.e. July 27, 1976) issued in Jeddah
.
BAJ is recognized as one of the Shari'ah compliant fast growing financial institutions in Saudi Arabia, Saudi Financial Group which provides individuals, businesses and institutions with Shari'ah compliant financial services
.
BAJ began a restructuring process in 1992 with subsequent increases in capital in 1992 and 1994. The increased capital has come entirely from the Saudi shareholder
s, which resulted in significantly diluting NBP's shareholding. In 1993 BAJ continued the restructuring effort and successfully introduced state of the art technology
, modern banking products and services and revamped its staffing portfolio. As a result, the bank became profitable in 1997.
In 1998, BAJ's Board of Directors took a strategic decision to convert the Bank from conventional banking into Shari'ah-compliant banking. To ensure compliance with Shari'ah principles, BAJ established a Shari'ah department within its organic structure and formed a Shari'ah Advisory Board (SAB) composed of a number of scholars specialized in Islamic banking
to screen, monitor and endorse Bank's operations and spread-wide the Shari'ah principles throughout the working environment. The SAB includes Sheikh Abdulla Bin Suleiman Al-Mane'e as the SAB Chairman, Dr. Mohammed Bin Said Al-Ghamdi as the SAB Rappoteur, with the memberships of Dr. Abdulla Bin Mohammed Al-Mutlaq, Dr. Hamza Bin Hussain Al-Feir, Dr. Mohammed Ali Al-Guari, and Dr. Abdulsatter Abu-Ghudah.
BAJ with its consistent endeavors succeeded in turning all its branches in 2002 to operate as per Shari'ah rules and principles. BAJ started then to cultivate the results of its strategic conversion into Shari'ah-compliant banking and service excellence approach, and achieved progressive growth, remarkable market image and presence.
In 2006, BAJ launched its program " Khair Aljazira Le Ahl Aljazira " with 100 million SR fund in support of BAJ's social responsibility
towards the community. Since then, BAJ has been implementing a range of activities designed to support the community.
BAJ has been providing financial assistance to various charitable societies, launching apprenticeship
programs to train young Saudi men and women; thus providing them with working opportunities, and sponsoring programs to train the handicapped, blind
and deaf. Through many programs, BAJ successfully promoted family welfare by sponsoring a huge number of productive family projects and cultural events.
In 2007, BAJ witnessed its full conversion into a Shari'ah-compliant institution and simultaneously increased its paid up capital to become SR 3 Billion which came entirely from the Bank's profits.
To take the Bank to the next level of development, BAJ's management has embarked on an ambitious transformation plan called AFAQ2012 by the end of 2008. The objective of this four-year strategic plan is to transform the bank into a “multi-specialist” Shari'ah compliant financial group through a set of identified strategic initiatives and enablers, involving every single business and support line by the end of 2012.
2009 could best be described as a year for sustaining the foundations for BAJ's future growth and diversification
of its offerings, a period in which great progress was made in equipping the Bank and its employees with the capabilities to take full advantage of the opportunities that lie ahead. Notable among such achievements was the doubling of BAJ's retail network from 24 branches to 48. Within its ATM
network re-structuring effort, BAJ relocated some ATMs to other locations. Also, all BAJ's delivery channels were significantly enhanced including BAJ's online banking
, telephone banking
, and credit card
offerings.
In promoting its image as a multi-specialist Shari’ah-compliant financial group, BAJ has been able to communicate its new market positioning and comprehensive range of products and services. Among these is BAJ's Mortgage
Finance Program. To serve corporate customers, BAJ has set up Corporate Regional Offices in Riyadh
, Jeddah, and Dammam
to provide a one-stop service with a team of experts and a range of products. Cash Management and Trade Finance are new established areas within corporate business.
Moreover, Aljazira Capital Company (AJC), the investment
arm of BAJ, continued to strengthen its brokerage offerings through the introduction of other tradable securities, enhancing its award-winning TadawulCom platform to offer online trading across multiple regional and international markets. AJC also reinstated its sell-side research capacity by introducing an array of economic, technical, company, and sector reports. AJC has maintained its market leadership position in the Saudi share trading market over the last seven years.
BAJ was the first banking institution in Saudi Arabia to introduce Takaful
Ta'awuni (TT) in 2002 as a full-fledged Shari'ah-compliant alternative solution for the conventional life insurance
. Since then, TT proved itself as a market leader and has been growing fast to satisfy clients' needs. TT underwent dynamic improvements in infrastructure, offerings, and resources. In 2009, TT was again awarded the “Life Insurer of the Year” award by the Middle East Insurance (Insurex) for the 3rd consecutive year, adding to the great number of awards the organization has been awarded from various international and local bodies.
As the first bank in Saudi Arabia, BAJ started in 2009 the implementation process of the ISO
certification program on its Operations to ensure adoption of best practice
s on the services provided to its external and internal clients. Since then, a number of its Operations sections have received certification
and all efforts are on-going to ensure all the other sections will be ISO certified by the mid of 2010.
On the people front, BAJ invested heavily in its human capital
and thus its organic resources' potentials have been growing to match with the dynamic development of the Bank's offerings, channels and infrastructure
. BAJ has been maintaining an efficient working environment with long-term recruitment and retention programs led to uplifting the Saudization factor from 23% in 1994 to 87% by the end of 2009.
Throughout its path of success, BAJ received several awards. Some of these awards are as follows:
Saudi Investment Award for BAJ's Japanese Share Fund "Mashariq", 2004
Islamic Finance Magazine Award for Best Takaful Ta'awuni Provider, 2004
Internet International Union Award for BAJ's Tadawulcom Site "Local Share Trading Portal" Design, 2005
Euromoney Islamic Finance Award for Best Takaful Ta'awuni Provider, 2006
Policy Middle East Life Insurance Award for Best Takaful Ta'awuni Provider, 2007
Kleef Islamic Finance Policy Award for Best Takaful Ta'awuni Provider, 2007
Middle East Electronic Banking Award, 2007
Euromoney Project Year Award for Best Finance Deal, 2007
Digital Excellence Award from the Ministry of Communication and Information Technology for BAJ's Tadawulcom Site "Local Share Trading Portal", 2007
Euromoney Award for Best Takaful Ta'awuni Provider, 2008
Policy Middle East Life Insurance Award for Best Takaful Ta'awuni Provider, 2008
ISO (9001) Certification for BAJ as the First Bank Obtaining the ISO Certification on its Trade Operations and ATM Operations, 2009
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
incorporated in the Kingdom of Saudi Arabia and formed pursuant to Royal Decree No. 46/M dated Jumad Al-Thani 12, 1395H (i.e. June 21, 1975). BAJ commenced its business on Shawwal 16, 1396H (i.e. October 9, 1976) with the takeover of The National Bank of Pakistan
National Bank of Pakistan
National Bank of Pakistan is one of the largest commercial bank operating in Pakistan. It has redefined its role and has moved from a public sector organisation into a modern commercial bank...
's (NBP) branches in the Kingdom of Saudi Arabia and operates under commercial registration No. 4030010523 dated Rajab 29, 1396H (i.e. July 27, 1976) issued in Jeddah
Jeddah
Jeddah, Jiddah, Jidda, or Jedda is a city located on the coast of the Red Sea and is the major urban center of western Saudi Arabia. It is the largest city in Makkah Province, the largest sea port on the Red Sea, and the second largest city in Saudi Arabia after the capital city, Riyadh. The...
.
BAJ is recognized as one of the Shari'ah compliant fast growing financial institutions in Saudi Arabia, Saudi Financial Group which provides individuals, businesses and institutions with Shari'ah compliant financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
.
BAJ began a restructuring process in 1992 with subsequent increases in capital in 1992 and 1994. The increased capital has come entirely from the Saudi shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
s, which resulted in significantly diluting NBP's shareholding. In 1993 BAJ continued the restructuring effort and successfully introduced state of the art technology
Technology
Technology is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function. It can also refer to the collection of such tools, machinery, and procedures. The word technology comes ;...
, modern banking products and services and revamped its staffing portfolio. As a result, the bank became profitable in 1997.
In 1998, BAJ's Board of Directors took a strategic decision to convert the Bank from conventional banking into Shari'ah-compliant banking. To ensure compliance with Shari'ah principles, BAJ established a Shari'ah department within its organic structure and formed a Shari'ah Advisory Board (SAB) composed of a number of scholars specialized in Islamic banking
Islamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
to screen, monitor and endorse Bank's operations and spread-wide the Shari'ah principles throughout the working environment. The SAB includes Sheikh Abdulla Bin Suleiman Al-Mane'e as the SAB Chairman, Dr. Mohammed Bin Said Al-Ghamdi as the SAB Rappoteur, with the memberships of Dr. Abdulla Bin Mohammed Al-Mutlaq, Dr. Hamza Bin Hussain Al-Feir, Dr. Mohammed Ali Al-Guari, and Dr. Abdulsatter Abu-Ghudah.
BAJ with its consistent endeavors succeeded in turning all its branches in 2002 to operate as per Shari'ah rules and principles. BAJ started then to cultivate the results of its strategic conversion into Shari'ah-compliant banking and service excellence approach, and achieved progressive growth, remarkable market image and presence.
In 2006, BAJ launched its program " Khair Aljazira Le Ahl Aljazira " with 100 million SR fund in support of BAJ's social responsibility
Social responsibility
Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the...
towards the community. Since then, BAJ has been implementing a range of activities designed to support the community.
BAJ has been providing financial assistance to various charitable societies, launching apprenticeship
Apprenticeship
Apprenticeship is a system of training a new generation of practitioners of a skill. Apprentices or protégés build their careers from apprenticeships...
programs to train young Saudi men and women; thus providing them with working opportunities, and sponsoring programs to train the handicapped, blind
Blindness
Blindness is the condition of lacking visual perception due to physiological or neurological factors.Various scales have been developed to describe the extent of vision loss and define blindness...
and deaf. Through many programs, BAJ successfully promoted family welfare by sponsoring a huge number of productive family projects and cultural events.
In 2007, BAJ witnessed its full conversion into a Shari'ah-compliant institution and simultaneously increased its paid up capital to become SR 3 Billion which came entirely from the Bank's profits.
To take the Bank to the next level of development, BAJ's management has embarked on an ambitious transformation plan called AFAQ2012 by the end of 2008. The objective of this four-year strategic plan is to transform the bank into a “multi-specialist” Shari'ah compliant financial group through a set of identified strategic initiatives and enablers, involving every single business and support line by the end of 2012.
2009 could best be described as a year for sustaining the foundations for BAJ's future growth and diversification
Diversification
Diversification may refer to:* Diversification involves spreading investments* Diversification is a corporate strategy to increase market penetration...
of its offerings, a period in which great progress was made in equipping the Bank and its employees with the capabilities to take full advantage of the opportunities that lie ahead. Notable among such achievements was the doubling of BAJ's retail network from 24 branches to 48. Within its ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
network re-structuring effort, BAJ relocated some ATMs to other locations. Also, all BAJ's delivery channels were significantly enhanced including BAJ's online banking
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
, telephone banking
Telephone banking
Telephone banking is a service provided by a financial institution, which allows its customers to perform transactions over the telephone.Most telephone banking services use an automated phone answering system with phone keypad response or voice recognition capability...
, and credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
offerings.
In promoting its image as a multi-specialist Shari’ah-compliant financial group, BAJ has been able to communicate its new market positioning and comprehensive range of products and services. Among these is BAJ's Mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
Finance Program. To serve corporate customers, BAJ has set up Corporate Regional Offices in Riyadh
Riyadh
Riyadh is the capital and largest city of Saudi Arabia. It is also the capital of Riyadh Province, and belongs to the historical regions of Najd and Al-Yamama. It is situated in the center of the Arabian Peninsula on a large plateau, and is home to 5,254,560 people, and the urban center of a...
, Jeddah, and Dammam
Dammam
Dammam is the capital of the Eastern Province of Saudi Arabia, the most oil-rich region in the world. The judicial and administrative bodies of the province and several government departments are located in the city. Dammam is the largest city in the Eastern Province and third largest in Saudi...
to provide a one-stop service with a team of experts and a range of products. Cash Management and Trade Finance are new established areas within corporate business.
Moreover, Aljazira Capital Company (AJC), the investment
Investment
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time...
arm of BAJ, continued to strengthen its brokerage offerings through the introduction of other tradable securities, enhancing its award-winning TadawulCom platform to offer online trading across multiple regional and international markets. AJC also reinstated its sell-side research capacity by introducing an array of economic, technical, company, and sector reports. AJC has maintained its market leadership position in the Saudi share trading market over the last seven years.
BAJ was the first banking institution in Saudi Arabia to introduce Takaful
Takaful
Takaful is an Islamic insurance concept which is grounded in Islamic muamalat , observing the rules and regulations of Islamic law. This concept has been practised in various forms for over 1400 years...
Ta'awuni (TT) in 2002 as a full-fledged Shari'ah-compliant alternative solution for the conventional life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
. Since then, TT proved itself as a market leader and has been growing fast to satisfy clients' needs. TT underwent dynamic improvements in infrastructure, offerings, and resources. In 2009, TT was again awarded the “Life Insurer of the Year” award by the Middle East Insurance (Insurex) for the 3rd consecutive year, adding to the great number of awards the organization has been awarded from various international and local bodies.
As the first bank in Saudi Arabia, BAJ started in 2009 the implementation process of the ISO
International Organization for Standardization
The International Organization for Standardization , widely known as ISO, is an international standard-setting body composed of representatives from various national standards organizations. Founded on February 23, 1947, the organization promulgates worldwide proprietary, industrial and commercial...
certification program on its Operations to ensure adoption of best practice
Best practice
A best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark...
s on the services provided to its external and internal clients. Since then, a number of its Operations sections have received certification
Certification
Certification refers to the confirmation of certain characteristics of an object, person, or organization. This confirmation is often, but not always, provided by some form of external review, education, assessment, or audit...
and all efforts are on-going to ensure all the other sections will be ISO certified by the mid of 2010.
On the people front, BAJ invested heavily in its human capital
Human capital
Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
and thus its organic resources' potentials have been growing to match with the dynamic development of the Bank's offerings, channels and infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
. BAJ has been maintaining an efficient working environment with long-term recruitment and retention programs led to uplifting the Saudization factor from 23% in 1994 to 87% by the end of 2009.
Throughout its path of success, BAJ received several awards. Some of these awards are as follows:
Saudi Investment Award for BAJ's Japanese Share Fund "Mashariq", 2004
Islamic Finance Magazine Award for Best Takaful Ta'awuni Provider, 2004
Internet International Union Award for BAJ's Tadawulcom Site "Local Share Trading Portal" Design, 2005
Euromoney Islamic Finance Award for Best Takaful Ta'awuni Provider, 2006
Policy Middle East Life Insurance Award for Best Takaful Ta'awuni Provider, 2007
Kleef Islamic Finance Policy Award for Best Takaful Ta'awuni Provider, 2007
Middle East Electronic Banking Award, 2007
Euromoney Project Year Award for Best Finance Deal, 2007
Digital Excellence Award from the Ministry of Communication and Information Technology for BAJ's Tadawulcom Site "Local Share Trading Portal", 2007
Euromoney Award for Best Takaful Ta'awuni Provider, 2008
Policy Middle East Life Insurance Award for Best Takaful Ta'awuni Provider, 2008
ISO (9001) Certification for BAJ as the First Bank Obtaining the ISO Certification on its Trade Operations and ATM Operations, 2009