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Brokerage Business in Saudi Stock Market

Brokerage Business in Saudi Stock Market. Dr. Adel Al Gosaibi. year. No of trans (thosands0. No of shares millions. Annual Trans. Volume bi. Stock index. 1995. 292. 117. 153. 1,368. 1996. 284. 138. 172. 1,531. 1997. 460. 314. 223. 1,958. 1998. 377. 295. 160. 1,413.

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Brokerage Business in Saudi Stock Market

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  1. Brokerage Business inSaudi Stock Market Dr. Adel Al Gosaibi

  2. year No of trans (thosands0 No of shares millions Annual Trans. Volume bi Stock index 1995 292 117 153 1,368 1996 284 138 172 1,531 1997 460 314 223 1,958 1998 377 295 160 1,413 1999 438 528 229 2,029 2000 498 555 254 2,258 2001 605 692 275 2,430 2002 1,034 1,736 281 2,518 2003 3,763 5,566 590 4,438 2004 13,320 10,298 1,149 8,206 2005 27100 21420 4139 16950 Overview المصدر:الموقع الرسمي لهئية السوق المالية www.tadawul.com.sa

  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 marketto 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 • www.etrade.com • تلفون: 1352 516 207 44 +00

  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 www.saxobank.com

  10. Sample of Interfacefrom EXX

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