Alawwal Bank
| Company type | Banking institution (defunct) |
|---|---|
| Industry | Banking, Financial services |
| Predecessor | Netherlands Trading Society, Saudi Hollandi Bank |
| Founded | 1926 |
| Founder | Netherlands Trading Society |
| Defunct | 14 March 2021 |
| Fate | Merged with Saudi British Bank (SABB) |
| Successor | Saudi Awwal Bank |
| Headquarters | Riyadh , Saudi Arabia |
Area served | Saudi Arabia |
| Products | Corporate Banking, Personal Banking, Treasury, Brokerage, Asset Management, Investment Banking |
Number of employees | 1417 (2010) |
The Alawwal Bank (), previously known as Saudi Hollandi Bank, was a banking institution based in Riyadh, Saudi Arabia. Established in 1926 as a branch of the Netherlands Trading Society, it holds the distinction of being the first bank to operate within the Kingdom.
On 14 March 2021, Alawwal completed its full merger with SABB.
Netherlands Trading Society (1926)
Founded in 1926 to provide financial services to Hajj pilgrims from the Dutch East Indies (present-day Indonesia), the bank initially operated solely from its Jeddah branch. As the sole banking entity in Saudi Arabia at that time, it effectively acted as a central bank by safeguarding gold reserves and overseeing government oil revenue management. In 1928, it played a crucial role in introducing the Saudi Riyal, the Kingdom’s first independently issued currency, commissioned by King Abdulaziz.
By 1954, the Netherlands Trading Society had expanded its presence by opening branches in Khobar and Dammam, located in the Eastern Province.
Saudi Hollandi Bank (1977)
In 1969, ABN Bank—the successor to the Netherlands Trading Society—was among the earliest foreign banks to comply with Saudization directives issued by the Saudi Arabian Monetary Agency (SAMA), setting an example for other international banks operating in the Kingdom. The Saudi Hollandi Bank was officially established in 1977 as a joint venture, with an initial paid-up capital of SAR 35 million.
The bank broadened its footprint by launching branches across Riyadh, Jubail, Makkah, Hofuf, Madinah, Qatif, and various other locations.
In 2009, it inaugurated the Al Waha operations center to consolidate centralized functions alongside training activities conducted at SHB Academy. That year also saw the introduction of Teller Cash Recycling machines (TCR), enhancing its Open Branch concept aimed at fostering direct interaction with customers.
By mid-2010, paid-up capital had increased to SAR 3,307 million. The workforce numbered 1,417 employees with Saudization exceeding 87%. The bank operated a network comprising 43 branches, including 15 Ladies Sections and 30 Preferred Banking Centres, supported by 246 ATMs nationwide.
In June 2011, Saudi Hollandi Bank became the first institution in the Middle East to launch a MasterCard World Credit Card featuring a Silver Mark.
Alawwal Bank (2016)
In November 2016, Saudi Hollandi Bank underwent rebranding to become Alawwal Bank, honoring its legacy as Saudi Arabia’s inaugural bank established in 1926. The rollout of this new brand identity occurred over the subsequent three months.
Merger with Saudi British Bank (2019)
On 4 October 2018, announcements confirmed plans for a merger between Alawwal Bank and the Saudi British Bank (SABB), aiming to create the third-largest banking group in Saudi Arabia. The legal completion of this merger occurred on 16 June 2019. The integration phase was projected to span approximately 18 months, culminating in a unified entity named Saudi Awwal Bank. By 14 March 2021, Alawwal had been fully absorbed into SABB.
Operations
SHB’s activities are organized into three principal segments: Corporate Banking, Personal Banking, and Treasury. Additionally, it delivers brokerage, asset management, and investment banking solutions through its subsidiary Saudi Hollandi Capital.
Principal divisions and subsidiaries
- Saudi Hollandi Capital: engaged in retail equity brokerage, asset management, corporate finance advisory, investment consultation, debt structuring, and securities custody services
- Wataniya Insurance Company: holds a 20% stake owned by Saudi Hollandi Bank
- Saudi Hollandi Insurance Agency Company: fully owned bancassurance distributor licensed for insurance operations
- Saudi Hollandi Real Estate Company: entirely owned subsidiary supporting SHB’s Home Finance through managing real estate title deed registrations
Branches and ATMs
Saudi Hollandi Bank maintains a network of more than 265 ATMs, which includes Teller Cash Recycling (TCR) devices. The bank also features 6 Business Banking Centres, 30 Preferred Banking Centres tailored for VIP clients, and 45 branches distributed across the country. Among these branches, 16 are specifically designated as women-only sections.