Annual Report 2018 The Custodian of the Two Holy Mosques

Treasury
The Treasury Group continued to adopt a flexible strategy that leverages a conservative, flexible model that anticipates 
market conditions and related fluctuations, while focusing on exploiting available economic opportunities throughout 
the year. The group continued to manage the bank’s balance sheet efficiently and secured all requirements related 
to financing of the bank’s main activities, allowing Alinma to benefit from all market opportunities, which were 
directly reflected in achieving outstanding results in 2018. 
The group’s Investment Department continued to establish diversified investment portfolios, which focused, in 
particular, on investing in Saudi government Sukuks. This contributed to achieving fixed and stable returns. The policy 
and strategy of establishing Sukuk portfolios were developed in a conservative and gradual manner and focused on 
capturing low-risk market opportunities. The portfolio achieved positive returns in most of its investments, and is 
well positioned currently as it takes advantage of the unique investment opportunities at the local, regional and 
global levels. 
In line with the strategic plan, the Treasury Sales Desk showed positive expansion in the partner base, interacted 
directly with existing partners, and established new relationships in collaboration with other business sectors. 
Periodic visits were conducted to partners in key areas of Saudi Arabia to reflect the bank’s role as a major partner 
of large, medium and small companies. This partnership led to the emergence of strong and strategic relationships 
that have positively impacted deposits and positive flows of currencies. In implementation of Treasury plans related 
to enhancing its presence with partners, a sales desk was opened in Jeddah to serve partners in the Western Region.
Foreign Exchange Management continued its efforts to maintain its superior position in terms of providing bank 
partners with the best exchange rates for foreign currencies. A number of new currencies were added to the list of 
existing ones to meet partner needs. Additionally, the Foreign Exchange Management’s market share in the area of 
selling banknotes to banks and individuals grew substantially. 
The Financial Institutions Department, under the umbrella of the Treasury Group, continued to strengthen trade 
relations with local, regional and global financial institutions as well as with government and semi-government 
entities, which was directly reflected in diversifying and securing liquidity sources. The team also endeavored to meet 
partner requirements through their close relationships with the worldwide network of correspondents, exploring 
new markets in developed and emerging countries, and marketing the bank’s financial and commercial products in 
line with Shariah terms and conditions.
Among the most important achievements made in 2018 was the appointment by the Public Finance Bureau of the 
Ministry of Finance, of Alinma Bank as an initial trader of domestic issuances of government Sukuks out of five 
banks in the kingdom.