Presentation on theme: "Brokerage Business in Saudi Stock Market"— Presentation transcript:
1 Brokerage Business in Saudi Stock Market Dr. Adel Al Gosaibi
2 OverviewThe following table shows the annual growth of Saudi stock market for the period 1995 – The annual transaction volume increased by 1354%; and stock index increased by 1040%.8,2061,14910,29813,32020044,4385905,5663,76320032,5182811,7361,03420022,43027569260520012,25825455549820002,02922952843819991,41316029537719981,95822331446019971,53117213828419961,3681531172921995Stock indexAnnual Trans. Volume biNo of sharesmillionsNo of trans(thosands0year16950413921420271002005المصدر:الموقع الرسمي لهئية السوق المالية
3 Market Volume and Challenges The annual transaction volume for the year 2005 was 4100 billion.The charge for one transaction is: 15 * 2 = SR 30 for every transaction less than SR 10000Annual brokerage charge: 0.3 * 4100 /100 = SR 12.3 billion.Daily brokerage charge: 12.3/(5.5 day * 50 week) = SR 44.7 millionNote:The above brokerage charges dose not include the following:Open Saudi stock market for foreign investorsAnnual superscription chargesBrokerage income form Saudi investor in the global marketOthers services that usually provided by brokerage companies such as consolations.
4 Brokers in Saudi Share market Al Belaad BankSAABAl Ahli bankIstethmar BankSaudi Faransi BankAl Jazziera bankArabic nation BankSaudi Holandi BankAl Rajhi BankRiyadh BankSAMBA
5 ChallengesThere are many factors that can effects on the brokerage business:Oil priceMarket stability and political crisisRegistering 30 companies to stock market out of 50 this year 2006.Give permission to more brokerage companies to be in the business.Annual daily volume for the year 2005 was 15 bil.Open the Saudi share market to non-Saudis and may be for out-sider..Establish parallel market to the current one.
6 Candidates for Partnership with Dhahran Global E*TRADEThe Charles Schwab CorporationSaxo BankEXX
7 E*TRADE 20 year experience in electronic trade 4.3 million costumer $ 8 billion share market3300 employee$ 1.6 billion annual income$ 390 million annual net benefit.Provide service worldwide..المصدر:الموقع الرسمي للشركةتلفون:
8 Charles Schwab Inc. 35 years experience. 7 million customer Company share3 volume is $ 18.6 billion14000 employees.$ 4.46 billion annual income$730 million annual net profit.Provide service worldwide
9 Saxo Bank !3 year experience in electronic stock trading 700 thousand costumer worldwide$ 860 million company share350 employees$ 250 million annual income$ 50 million annual net profitProvide service in 115 countries worldwide.المصدر:الموقع الرسمي للشركة