Saudi Arabia’s Capital Market Authority (CMA) has approved Riyad Bank’s application to raise its capital from SAR 30 billion to SAR 40 billion, in what stands as one of the most significant banking capital transactions in the Kingdom in 2026. The decision, announced through an official CMA statement, reflects the regulator’s confidence in the bank’s financial standing and the broader momentum of Saudi Arabia’s banking sector under Vision 2030.
Bonus Shares as the Mechanism for Capital Growth
The planned increase will be executed through a 1-for-3 bonus share distribution, meaning eligible shareholders will receive one free share for every three shares they currently hold. The total capital addition of SAR 10 billion will be funded equally: SAR 5 billion from the bank’s statutory reserve and SAR 5 billion from accumulated retained earnings. As a result, the total number of Riyad Bank’s shares will increase from three billion to four billion, consolidating its position as one of the most well-capitalized institutions in the Saudi market.
Eligibility and Next Steps
Shareholders eligible for the bonus issue are those registered in Riyad Bank’s books with the Securities Depository Center (Edaa) by the end of the second trading day following the official record date, which will be set at a later stage by the bank’s board of directors. Riyad Bank is required to hold an Extraordinary General Meeting (EGM) within six months of the CMA’s approval to formally ratify the capital increase, subject to all applicable laws and regulatory requirements.
Strengthening Solvency and Strategic Goals
The CMA noted that the purpose of the capital hike is to enhance the bank’s solvency and secure the financial resources needed to sustain its operational activities, thereby contributing to the achievement of the bank’s long-term strategic objectives. The bank’s board had originally recommended the increase in February 2026, and the CMA approval now moves the plan to its next operational phase.
Riyad Bank’s shares trade on the Saudi Exchange (Tadawul) under the ticker RIBL, and the bank consistently ranks among the top five listed Saudi banks by market capitalization. This capital increase reaffirms its commitment to growth, stability, and value creation for shareholders during one of Saudi Arabia’s most transformative economic phases.
