1. Brokerage Business in Saudi Stock Market
Dr. Adel Al Gosaibi

2. Overview
The 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%.
8,206
1,149
10,298
13,320
2004
4,438
590
5,566
3,763
2003
2,518
281
1,736
1,034
2002
2,430
275
692
605
2001
2,258
254
555
498
2000
2,029
229
528
438
1999
1,413
160
295
377
1998
1,958
223
314
460
1997
1,531
172
138
284
1996
1,368
153
117
292
1995
Stock index
Annual Trans. Volume bi
No of shares
millions
No of trans
(thosands0
year
16950
4139
21420
27100
2005
المصدر: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 10000
Annual brokerage charge: 0.3 * 4100 /100 = SR 12.3 billion.
Daily brokerage charge: 12.3/(5.5 day * 50 week) = SR 44.7 million
Note:
The above brokerage charges dose not include the following:
Open Saudi stock market for foreign investors
Annual superscription charges
Brokerage income form Saudi investor in the global market
Others services that usually provided by brokerage companies such as consolations.

4. Brokers in Saudi Share market
Al Belaad Bank
SAAB
Al  Ahli bank
Istethmar Bank
Saudi Faransi Bank
Al Jazziera bank
Arabic nation Bank
Saudi Holandi Bank
Al Rajhi Bank
Riyadh Bank
SAMBA

5. Challenges
There are many factors that can effects on the brokerage business:
Oil price
Market stability and political crisis
Registering 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*TRADE
The Charles Schwab Corporation
Saxo Bank
EXX

7. E*TRADE 20 year experience in electronic trade 4.3 million costumer
$ 8 billion share market
3300 employee
$ 1.6 billion annual income
$ 390 million annual net benefit.
Provide service worldwide..
المصدر:الموقع الرسمي للشركة
تلفون:

8. Charles Schwab Inc. 35 years experience. 7 million customer
Company share3 volume is $ 18.6 billion
14000 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 share
350 employees
$ 250 million annual income
$ 50 million annual net profit
Provide service in 115 countries worldwide.
المصدر:الموقع الرسمي للشركة

10. Sample of Interface from EXX