2005 News Story

Al-Bilad to be established as commercial bank

Minister of Commerce and Industry Dr Hashim Yamani has issued a statement announcing the decision to establish Al-Bilad Bank as a Saudi stock company with a capital of SR 3 billion [U.S.$0.8 billion]. Half of the 60 million shares, each with a nominal value of SR50 [$13.35], has been floated for public subscription, with the rest funded by the founders, whose shares can be exchanged only after three financial years. The Bank, to be based in Riyadh, has been licensed for a period of 99 years to carry out banking and investment activities as per Saudi rules and regulations; and will be managed by an 11-member board of directors to be appointed by the Bank's General Assembly. The establishment of the Bank comes within the framework of the government's policy to broaden the economic base and diversify sources of income.