Samba Financial Group was formed pursuant to Royal Decree No. M/3, dated 26/3/1400H (February 12, 1980), to take over the then existing branches of Citibank, N.A. in Jeddah and Riyadh, which were opened in 1955 and 1966 respectively. Samba was formed in accordance with a program adopted by the Kingdom in the mid-1970s, under which all foreign banks were required to sell majority equity interests to Saudi nationals. Samba commenced business on February 12, 1980 and closed its first fiscal year on December 31, 1980.

The principal terms and conditions of the deal were: 44.5% of the equity was sold to the Saudi public for cash, under rules which favored the allocation of shares to small subscribers. Share allocations were made to nearly 166,000 individual subscribers.

An additional 15.5% of the equity was sold for cash to a selected group of Saudi founders, including the original Saudi members of the Board of Directors. Thus, Saudi nationals held 60% of the total share capital. Citibank acquired the remaining 40% of the equity in exchange for assets of its Riyadh and Jeddah branches. Citibank entered into a Technical Management Agreement under which it agreed to manage the new bank.