The publication titled ‘Competitive Analysis of Top 25 Financial Brokerages in KSA - Financial & Operational Performance, Future Plans and Recent Developments’ undertakes analysis of the Saudi Arabia Capital Market Trading Industry, Business Model & revenue streams adopted by key players, Trading Channels used by participants, Investor’s Overview (Retail & Institutional) and Industry’s Future Potential.
With more than 200 companies
listed as of December 2019, Saudi Arabia is governed by one stock exchange i.e.
Tadawul. In February 2017, the government of Saudi Arabia launched parallel
equity platform “NOMU” platform with lighter listing requirements & serving
as an alternative to small scale companies wanting to go public. For a long
time the trading market in the , country was informal in nature. It was only in
2003, the government established Capital Market Authority, the regulator of the
market and thereby leading to the establishment of Saudi Stock Exchange Tadawul
in 2007. With a market cap of SAR 9 Tn, Tadawul is the largest exchange in
Middle East region and ranks among top 10 exchanges in the world.
Lagging Behind Other Countries in Product Offerings:-
However, when compared to
other emerging countries Tadawul still lags behind in terms of different
trading segments being offered to its customers. It was in July 2020 that the
market allowed trading of derivatives, starting off with Futures Contract. This
earlier limited the investor’s diversification capacity thereby forcing it to
invest in conventional alternative investments. Providing a solution to its
consumers, Brokerage Houses in the country offer investment opportunities in
international markets of US, Europe and some of Asian Pacific countries as
well. Perhaps due to high brokerage and international duty charges, affordability
becomes an issue for investors.
Launch of Aramco- biggest ever IPO and Derivative products:-
In 2019, Aramco raised USD 25.6 Bn by launching country’s biggest ever IPO surpassing China giant Alibaba. The trust in state owned oil company attracted many first time investors to the market, recording a growth of ~15% and taking total number of individual investors to 5.47 Mn. With institutional & non institutional investments pouring in market recorded growth of >300% in market capitalization making Tadawul as the largest stock exchange in the region.
In an attempt to increase sophistication of domestic capital market, Saudi Arabia announced the launch of Derivatives Trading. With derivative trading being very rare in Middle Eastern markets, the development is expected to attract retail investors from GCC and other international countries. Keeping in mind the product complexity and safety of retail investors, the government also launched the Saudi Clearing House.
Highly Fragmented Competitive Landscape
Competitive landscape in Saudi
Arabia Financial Brokerage Industry is observed to be highly fragmented with
~70% of market share occupied by top 25 players being led by Al Rajhi Capital,
NCB Capital, Aljazira Capital, HSBC Saudi Arabia and others. With prevalent
uniform brokerage commission the companies compete on parameters including
international markets offered, advisory services, Investment products, trading
channels offered. With majority of trades being placed via online channels,
major players have been investing on the development of Online trading channels
& mobile based platforms.
KSA Financial Brokerage Industry Future Growth Potential
Analysts at Ken Research
estimate the industry to grow at a CAGR of ~10% in next 5 years; attributable
to increased retail participation, new trading products introduction and
increased foreign & institutional participation. With markets hitting lows
during COVID period, there has been a surge in new account openings and
increased trading activities. Key industry players are expected to further
invest in trading channels development, offering research & technical
analysis tools and diversify product portfolios by offering more international
market opportunities.
Companies Covered:-
Al Rajhi Capital
NCB Capital
Aljazira Capital
Samba Capital
Saudi Fransi Capital
Derayah Capital
Riyad Capital
HSBC Saudi Arabia
Alistithmar Capital
ANB Invest
Albilad Investment
Alinma Investment
EFG Herms Saudi Arabia
Merrill Lynch KSA Co.
Falcom Financial Services
Morgan Stanley
Alawwal Invest
Deutsche Securities Saudi
Arabia
Al Khair Capital
Jadwa Investment
Arbah Capital
Emirates NBD Capital
Audi Capital
GIB Capital
Citigroup Saudi Arabia
Time Period
Captured in the Report:-
Historical Period: 2015–2019
Forecast Period: 2020-2024
Key Topics
Covered in the Report:-
Industry Overview- Key Trading Statistics for
Equity, Sukuk & Bonds, ETFs and Mutual Funds
Investor’s Overview
Trading Summary-Value, Volume
& Number of transactions, Online Trading and Sukuk & Bonds Trading
statistics across top 25 players
Operational Indicators- Number of Individual
Clients & portfolios, Online traders, AUM, Customer Acquisition Cost, Net
Adjusted Working Capital and Number of Investment Centres for top 25 players
Pricing parameters for local & International
Stock Exchanges
Financial Indicators covering Total Revenue,
segmental Revenue, Operating Expenses, Operating Profit, Net Profit across top
25 players
For More Information on the research report,
refer to below link:-
KSA
Financial Brokerages Market
Related Reports:-
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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