SAIB’s many stakeholders include its investors, customers, business partners, employees, regulators, the community, and the environment. The Bank’s stakeholders can also include “temporary stakeholders” that work on special projects or issues with the Bank and parties that have an indirect relationship to the Bank (such as environmental groups). SAIB has an obligation and is bound by the laws and regulations of the Kingdom of Saudi Arabia to protect the interests of its stakeholders. The provisions of the Saudi Companies Act, the supervisory guidelines issued by SAMA, and the Corporate Governance Rules issued by the CMA cover the rights of stakeholders and are applicable to the Bank. The CMA rules provide mechanisms for the settlement of disputes and compensation for the violation of stakeholder rights.
Investors
Investors are stakeholders who have taken an ownership stake in the Bank with the expectation of a return. The rights of investors, voting rights, rights to dividends, and right to information are defined in the Companies Act and SAIB’s Articles of Association and Corporate Governance Manual. Additionally, there are secondary groups associated with investors such as analysts and fund managers. The Bank adopts a policy of transparency and ethical behaviour in its relationship with investors and provides them with as much information about all aspects of the Bank’s performance. Investors are kept informed via the Annual General Assembly, Board of Directors meetings, and annual, semi-annual, and quarterly reports.
Customers
Customers are an important stakeholder for the Bank and maintaining a strong relationship with them is critical to the Bank’s reputation and continued growth. Customers demand convenient, useful, and accessible products and services that offer financial returns that are favourably comparable with the market. The Bank takes into consideration the requirements, perceptions, tastes, and preferences of customers when developing new products and conducts surveys like “Voice of the Customer” to better understand them and gauge their satisfaction. The Bank seeks to strengthen its relationships with its customers through customer insight activities and provides a consistent service to all customers without discrimination.
Business partners
SAIB seeks to develop lasting relationships with its vendors and service providers through mutual trust and beneficial outcomes for both parties. To achieve this, the Bank has designed its procurement policies so that the vendor and service provider take responsibility for the quality of products and services, and equal treatment for all business partners is a part of the Bank’s policies and practices. The Bank maintains regular communications with business partners, including updates about future requirements, expansion plans, and changes in systems and procedures. The Bank also maintains a seamless tendering and bidding system. Correspondent banks are also key business partners for SAIB, through which the Bank conducts overseas transactions such as opening letters of credit.
Community
SAIB assists disadvantaged groups in the societies it operates in and continued to carry out its social programs during the year under review. Social programs in 2020 focused on health and children’s education. The Bank encourages its group of staff volunteers to contribute to its social programs and had received positive responses for its volunteering work.
Employees
SAIB understands that it cannot have satisfied customers without having satisfied employees. The Bank’s employees are kept motivated, compensated in line with industry standards, and receive training to serve the Bank’s customers effectively and stay up to date with the evolving banking environment, as well as changes to the Bank’s systems and procedures, customer contracts, and relationship policies. HR policies are aligned with the Bank’s broad corporate strategy, values, and objectives and are governed by the sustainability pillar of Re’aya. Clear lines and channels of communication exist between the Bank and its employees.
Employees are bound by a rigid code of conduct, which is in accordance with our pillar of Takleef (responsibility), and are expected to conduct themselves ethically and safeguard the Bank and its customers from illegal acts, fraud, forgery, and unauthorised disclosure of information.
SAIB maintains staff morale through various mechanisms including the Employee Net Promoter Score Survey, in-house communications, a fair appraisal system, HR helpdesk, employee suggestion program, and a recognition and rewards program.
Environment
SAIB is conscious of its environmental responsibilities and strives to reduce its environmental footprint. The Bank minimizes its usage of paper, plastics, electricity, and water for internal activities to the best of its abilities and practices green principles as per the Environmental Policy.
Regulators
With ethical conduct being a cornerstone of SAIB’s corporate policy, the Bank maintains the highest level of compliance with the laws, regulations, and guidelines of its regulators. The Bank is stringent in complying with the requirements of its primary regulator, SAMA, such as maintaining the required level of capital, having Anti-Money Laundering (AML) procedures and Know Your Customer (KYC) programs, and Combatting Terrorist Financing policies in place.
The Capital Markets Authority of Saudi Arabia (CMA) governs the capital market of Saudi and the investment environment. SAIB and its subsidiaries deal with financial securities, asset management, and real estate management and is required to comply with CMA rules and regulations to safeguard the interests of its shareholders and customers.
Conformance with regulatory requirements requires regular, timely, and accurate reporting with a required level of detail. The Bank cooperates with regulators in attending meetings, arranging for on-site visits, and maintains communication via letters and emails as and when required.
