Alawwal Bank
Alawwal Bank was a Saudi Arabian commercial bank, originally established as a Netherlands Trading Society branch in 1926 and fully integrated into SABB in 2021.
Last updated August 22, 2026
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Overview
Alawwal Bank was a Saudi Arabian banking institution headquartered in Riyadh. Its history began in 1926, when the Netherlands Trading Society opened a branch in Jeddah to serve pilgrims arriving from the Dutch East Indies, now Indonesia. Because it was the only operating bank in the Kingdom at that time, the branch performed several functions that resembled central-bank activities, including holding government gold reserves and receiving oil revenues for the Saudi government. It also assisted with the introduction of the Saudi riyal in 1928. The institution expanded beyond Jeddah during the 1950s and later became part of the development of Saudi Arabia’s locally incorporated banking sector. ABN Bank, the successor to the Netherlands Trading Society, participated early in the Saudization initiatives promoted by the Saudi Arabian Monetary Agency. In 1977, Saudi Hollandi Bank was established as a joint-venture banking company with paid-up capital of SAR 35 million. The bank subsequently developed a nationwide network and served personal, corporate and institutional customers. Its principal activities included corporate banking, personal banking and treasury. Related services included trade finance, cash management, corporate finance, investment banking, brokerage, asset management, investment advisory services, securities custody, insurance distribution and home finance support. The bank also offered Islamic banking products alongside conventional banking services. Subsidiaries and associated companies supported its capital-markets, insurance and real-estate-related activities. Operational development included the opening of the Al Waha operations centre in 2009, which centralized functions and housed the SHB Academy. That year the bank also introduced Teller Cash Recycling machines, supporting its open-branch model and improving the handling of cash deposits and withdrawals. In 2011, it launched a MasterCard World credit card described as the first of its type with a silver mark in the Middle East. In November 2016, Saudi Hollandi Bank adopted the Alawwal Bank name as part of a new corporate identity. “Alawwal” means “the first” in Arabic and referred to the institution’s historical claim to being the first operating bank in Saudi Arabia. The rebranding retained the bank’s established Saudi market activities while presenting a more locally oriented identity. Alawwal Bank agreed to combine with Saudi British Bank, commonly known as SABB. The merger was legally completed on 16 June 2019 and was intended to create a larger Saudi banking institution. Integration continued after the legal merger; the combined business was planned to operate under the SABB name during the transition and later adopted the Saudi Awwal Bank identity. Alawwal Bank was fully merged into SABB on 14 March 2021 and ceased to exist as an independent operating bank or standalone brand.
History
Alawwal Bank originated in 1926 as a Jeddah branch of the Netherlands Trading Society. The branch was established partly to serve pilgrims from the Dutch East Indies, now Indonesia, and became the first operating bank in the Kingdom of Saudi Arabia. Its early role extended beyond ordinary commercial banking because there was no other bank in the country. It held Saudi government gold reserves and received oil revenues on behalf of the government. When the Saudi riyal was introduced in 1928, the Jeddah office assisted with the launch of the Kingdom’s new currency. The Netherlands Trading Society broadened its Saudi presence in 1954 by opening branches in Khobar and Dammam. Its successor, ABN Bank, was among the first foreign banking organizations to implement the Saudization measures introduced by the Saudi Arabian Monetary Agency in 1969. This experience became an example for other foreign banks operating in the Kingdom. Saudi Hollandi Bank was established in 1977 as a joint-venture company with paid-up capital of SAR 35 million. It expanded its branch network to several Saudi cities, including Riyadh, Jubail, Makkah, Hofuf, Madinah and Qatif. The bank developed three principal operating segments: corporate banking, personal banking and treasury. It also provided capital-markets and related services through Saudi Hollandi Capital, including retail equity brokerage, asset management, corporate finance, investment advice, debt arrangement and securities custody. Other related entities supported insurance distribution and real-estate title registration connected with home finance. Technology and operating infrastructure became notable parts of the bank’s development. In 2009, it opened the Al Waha operations centre, which centralized operational functions and housed the SHB Academy. The bank also introduced Teller Cash Recycling machines, designed to support its open-branch approach and enable more direct interaction between employees and customers. In 2011, it launched a MasterCard World credit card described in contemporary material as the first Middle Eastern card of its kind to carry a silver mark. In November 2016, Saudi Hollandi Bank changed its name to Alawwal Bank. The Arabic name means “the first” and was selected to emphasize the institution’s early place in Saudi banking history. The rebrand covered the bank’s corporate identity while its business remained focused on retail, corporate, treasury and related financial services. The bank later entered a merger agreement with Saudi British Bank. The proposed transaction was reported as a way to create a larger Saudi banking institution, and the legal merger was completed on 16 June 2019. Operational integration was expected to take approximately 18 months. The combined organization continued the integration process under the SABB structure and was intended to use the Saudi Awwal Bank name after the transition. On 14 March 2021, Alawwal was fully integrated into SABB. As a result, Alawwal Bank no longer operated as a separate legal or commercial banking organization.
- 2021
Full integration into SABB
[1]Alawwal Bank was fully integrated into SABB on 14 March and ceased independent operations.
- 2019
Legal merger with SABB
[1]The legal merger between Alawwal Bank and Saudi British Bank was completed on 16 June.
- 2016
Saudi Hollandi Bank becomes Alawwal Bank
[1]The bank adopted the Alawwal Bank name and introduced a new corporate identity.
- 2011
MasterCard World credit card launch
[1]Saudi Hollandi Bank launched a MasterCard World credit card described as the first Middle Eastern card with a silver mark.
- 2009
Al Waha operations centre opens
[1]The bank opened Al Waha, a centralized operations centre that also housed the SHB Academy, and introduced Teller Cash Recycling machines.
- 1977
Saudi Hollandi Bank established
[1]Saudi Hollandi Bank was formed as a joint-venture company with paid-up capital of SAR 35 million.
- 1969
Early participation in Saudization
[1]ABN Bank, the Netherlands Trading Society’s successor, became one of the first foreign banks to implement Saudi banking-sector Saudization initiatives.
- 1954
Expansion to the Eastern Province
[1]The Netherlands Trading Society opened additional branches in Khobar and Dammam.
- 1928
Support for the Saudi riyal launch
[1]The Jeddah banking office assisted the Saudi government with the introduction of the Saudi riyal, the Kingdom’s first independent currency.
- 1926
Netherlands Trading Society opens in Jeddah
[1]The institution’s history begins with a Netherlands Trading Society branch opened in Jeddah to serve pilgrims from the Dutch East Indies.
Products and positioning
A historically pioneering Saudi commercial bank serving retail, corporate and institutional customers, with capabilities spanning banking, treasury, capital markets and related financial services.
banking
Personal banking
Services for individual customers, including personal accounts, payment services, credit products and other retail financial needs. The precise product range changed over the bank’s operating history and was ultimately absorbed into SABB.
banking
Corporate banking
Banking for companies and institutions, covering financing, account services, cash management, trade-related needs and other corporate financial requirements.
banking
Treasury
Treasury activities formed one of the bank’s principal operating segments and supported liquidity, markets and financial-management requirements for the bank and its customers.
banking
Islamic banking
Sharia-compliant banking services offered to customers seeking financial products structured according to Islamic finance principles.
investment-services
Capital-markets services
Through Saudi Hollandi Capital, the group provided equity brokerage, asset management, corporate finance, investment advisory, debt arrangement and securities custody services.
financial-services
Insurance and home-finance support
Related entities supported bancassurance distribution and real-estate title registration associated with the bank’s home-finance activities.
banking-technology · 2009
Teller Cash Recycling machines
Automated Teller Cash Recycling machines were introduced in 2009 to improve cash handling and support the bank’s open-branch operating model.
Brand decisions
2019
Merger with Saudi British BankM&ABackground
Alawwal Bank and SABB proposed combining their operations to create a larger Saudi banking institution.
Action taken
The parties completed the legal merger on 16 June 2019, with integration continuing under the SABB organization.
Aftermath
Alawwal Bank ceased to operate independently and was fully integrated into SABB on 14 March 2021.
2016
Rebrand from Saudi Hollandi Bank to Alawwal BankStrategyBackground
The bank sought a new corporate identity that emphasized its historical position as Saudi Arabia’s first operating bank.
Action taken
In November 2016, Saudi Hollandi Bank changed its name and corporate identity to Alawwal Bank.
Aftermath
The Alawwal Bank brand was used until the institution was absorbed into SABB through the later merger and integration process.
Recent events
SABB and Alawwal Bank merger completed[2]
Reported:
Saudi British Bank announced completion of the merger between SABB and Alawwal banks, with their products and services merged for all customers.
Sources2 sources
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