Sulaiman Al-Rajhi: Rags to Riches Story

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FACULTY OF ECONOMICS AND MUAMALAT BACHELOR OF MUAMALAT ADMINISTRATION (HONOURS)

MGC4013

ENTREPRENEURSHIP

2016/2017

Individual Assingment:

“Sulaiman Al-Rajhi: Rags to Riches Story”

NAME                         :  AMIRA SHUHADA BINTI TAMBY SUDEEN

MATRIC NO.                 : 1132056

TUTORIAL CLASS  : TMA 4

LECTURER’S NAME : ASSOC. PROF. DR. KALSOM BT ABD.WAHAB

TABLE OF CONTENTS

Introduction        3

Personal Background        3

Motivation        7

Al-Rajhi Bank        7

Al-Watania Poultry        7

Characteristics        8

Punctuality        8

Firmly with Islamic Principles        8

Patience        8

Attitude Humility        9

Skills and Abilities        9

Versatility        9

Ability to Learn from Mistakes        10

Foresight        10

Challenges        11

Conclusion        12

Reference        12

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Sheikh Sulaiman bin Abdul Aziz Al-Rajhi

1.0 Introduction

According  to  Lawrence  Robert  Dicksee,  "Business  refers  to  a  form  of  activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."  Islam Encourages Business.  Prophet Muhammad may peace & blessings be upon him, has said: “There are ten parts of earning (rizq), out of which nine parts are in business.” By doing business, once will help decreasing unemployment in a country besides generate income. It is also may help other in their daily life too.

Al-Rajhi Bank is one of the largest Islamic bank in the world that engages to carry out banking and investment activities that are Syariah compliant. Besides of it had been nominated as the winner of the Best Islamic Bank in the Middle East Award for 2012 as part of the Islamic Finance Awards, Global Finance magazine had announced Al-Rajhi Bank as World’s Best Islamic Financial Institutions in 2013. However, behind this popular Islamic Bank, Sulaiman Al-Rajhi, a Muslim entrepreneur together with his brother, Saleh Al-Rajhi, Abdullah Al-Rajhi and Mohamed Al-Rajhi are the main brains behind the concept of Al-Rajhi Bank in 1978.

2.0 Personal Background

Sheikh Sulaiman bin Abd Al Aziz Al-Rajhi, a Saudi Arabian corporate figure and billionaire, was born in 1920. He is the founder of Al-Rajhi Bank, the largest Islamic bank in the world, and one of the largest companies in Saudi Arabia. The Forbes magazine has ranked him as the 120th richest person in the world with his wealth was estimated to be $7.7 billion. He also received the 2012 King Faisal International Prize for service to Islam.

Sulaiman Al Rajhi was born in Al Bukairiyah, located in Al Qassim Region, Central Saudi Arabia. He grew up in the Nejd desert where he began his career in the age of ten as a kerosene seller, which what people rely on for lighting at night as there were no electricity known at that particular time. After he earned enough money, he then open a grocery store. Later, he and his brother Saleh began their business by changing money for pilgrims taking camel caravans across the desert to the cities of Mecca and Medina.

In the mid 1950’s Sulaiman Al Rajhi moved to Jeddah where he started his own business in currency exchange with pilgrims. He met with unprecedented success in his business and his wealth and investments grew and expanded vastly through the years. He is currently the principal stakeholder and Chairman of Al-Rajhi bank, the largest Islamic bank in the world. Besides, he owns large corporations investing in agriculture, animal production, industry and construction.

Sulaiman Al Rajhi is known for his strict adherence to Islamic principles in all his business activities as well as his personal life. Despite of his huge wealth, he leads a simple life. He is one of the world’s leading philanthropists, building mosques and homes for the poor, and supporting local and international charitable organizations. In 2011, he gave more than 50% of his entire wealth for humanitarian purposes and established a foundation to monitor this endowment, maintain it and ensure that it is spent on its intended purposes

Apart from his leading role in establishing the world’s largest and most venerable Islamic banking institution operating in accordance with Islamic teachings, Sulaiman Al-Rajhi continues to contribute to humanitarian efforts to fight poverty. His humanitarian foundation is also building non-profit colleges in his hometown, Bukairyiah, as a nucleus for a university soon to be announced. There are currently three health sciences colleges as well as other academic institutions for developing Arabic and Islamic studies curricula in different languages and for teaching Arabic language to non-Arabic speakers, in addition to a charity hospital and a centre for learning financial skills. Plans are currently underway to build a College of Economics and the Al-Rajhi Financial Center Bukairyiah, as well as three large mosques in Hail, Makkah and Al-Madinah which, like his mosque in Riyadh, are built to accommodate thousands of worshippers and provide them with places for prayers, education and seclusion. Sulaiman Al-Rajhi hopes that these mosques will eventually be converted into universities. [pic 3]

Investment in human minds is of tantamount importance in

this day and age, as human capital is the real capital for which[pic 4]

all countries will compete on.

In 2000, Sulaiman Al Rajhi was awarded King Abd Al-Aziz medal. He has been awarded the prize for:

1. Endowing more than 50% of his wealth for humanitarian purposes, and establishing a special foundation to monitor this endowment, maintain it and ensure that it is spent on its intended recipients.
2. Participating in establishing the world’s largest and most venerable Islamic banking institution operating in concordance with Islamic Syariah teachings.
3. Contributing regularly towards humanitarian efforts to fight poverty. This is accomplished by providing national and international humanitarian societies with material support and training.
4.  Encouraging Quranic memorization groups and providing them with financial support and prizes, in addition to printing hundreds of thousands of copies of the Holy Quran and distributing them free of charge worldwide, particularly in Africa.
5. Establishing non-profit colleges as a nucleus for a university soon to be announced. There are currently three health sciences colleges as well as other academic institutions for developing Arabic and Islamic studies curricula in different languages and for teaching Arabic language to non-Arabic speakers.
6. Building large mosques with places for prayers, education and seclusion, such as Al-Rajhi mosque in Riyadh and his mosque in Ha’il, each of which accommodates thousands of worshippers.
7. Investing in major projects aimed at providing food security and serving industry, construction and other sectors.
8. Contributing to the development of Muslim communities through investment and strengthening of commercial relations with the Islamic world.
9. Encouraging Muslim youth, through his talks and personal experience, to indulge in private business.

Sulaiman Al-Rajhi is still very active today and hardworking even in his 80s with youthful spirits. He begins his work daily after morning prayers and is active until Isya’ prayers before going to bed early. He is now fully concentrated on running the endowment project under his SAAR Foundation, and traveling various regions of Saudi Arabia managing activities related with it. He always carries a pocket diary containing his daily programs and activities and he is accustomed to stick on to the schedule he had prepared well in advance.[pic 5]