March 2021
Saudi Arabia Capital Market 2020
Capital Markets Research Report
Pages : 28
Executive Summary
The Saudi Arabia Capital Market is the largest in GCC. It constitutes 81.5% of the market capitalization and 87.9% of the region's traded value. The number of financial services firms in the KSA has increased since 2006 in the aftermath of the Tadawul stock market crash and institution of capital market reforms.KSA Capital markets are dominated by the larger players. In Asset management, the top 10 firms with the largest assets under management (AUM) had a total market share of over 80%. Investment Banking (IB) in KSA made big strides in 2019 with the top 10 firms reporting a total of SAR 643 million of revenues from IB, representing a 50.6% increase from 2018.
Out of 31 brokers in Saudi Arabia, the top 10 commands about 78% of the market share in value traded. The majority of the brokers witnessed a decrease in revenues in 2019. However, 2020 is expected to see increase in brokerage revenues as trading volumes in the Tadawul stock exchange was more than twice that of 2019.
Research services are also provided by Saudi financial firms mostly on a complimentary basis to aid investors’ decision making and increase the wallet share of trading. Most firms also have a social media presence, but the activity level varies across organizations. Twitter is the most preferred social media platform. They use the platform to popularize their products/service offerings and provide market updates regularly.
Key Highlights
- Out of the 56 Saudi financial firms analyzed in the report, twenty three (or 41% of the total) firms offer asset management, investment banking, and brokerage services. Most of them are subsidiaries of banks or financial institutions. Nine offer only investment management services, while three are pure-play asset management firms. None of the firms operate as a pure-play broker.
- The top 10 financial firms in Saudi Arabia reported total revenues of SAR 4.3 billion (USD 1.1 billion) in 2019. The year 2019 was an excellent one for the top 10 firms with only one among them reporting a decrease in overall revenues from 2018.
- In Asset management, the top 10 firms had a total market share of over 80%. The list is dominated by firms that are backed by commercial banks. In all, 42 out of the 56 firms offer asset management services.
- Investment Banking (IB) in KSA made big strides in 2019 with the top 10 firms reporting a total of SAR 643 million of revenues from IB, representing a 50.6% increase from 2018. Foreign banks like HSBC, J.P.Morgan, and Citigroup are quite active in Investment banking in Saudi Arabia.
- Out of 31 brokers in Saudi Arabia, the top 10 commands about 78% of the market share in value traded. The majority of the brokers witnessed a decrease in revenues in 2019. However, 2020 is expected to see increase in brokerage revenues as trading volumes in the Tadawul stock exchange was more than twice that of 2019.
- Research services are mostly provided for free to aid investors’ decision making and increase the wallet share of trading. Among social media, twitter is the most popular medium to popularize products/service offerings and provide regular market updates.
Why Download this Report?
This report contains- Detailed analysis of revenue and profitability of the top 10 Saudi financial services firms.
- Information about the top 10 asset managers in the KSA.
- Detailed information about mutual funds, private funds and discretionary portfolios in KSA for 2019
- Information about Investment banking deals in 2020 in the KSA
- Information about top brokerage firms in Saudi Arabia and their market share in 2020
- Analysis of research capabilities and social media presence of Saudi financial firms
- A look at the challenges facing the industries and the opportunities available going forward
Did you know that?
- Saudi Asset managers together managed SAR 500 billion in assets in 2019 and NCB Capital is the market leader managing SAR 159 billion?
- HSBC Saudi Arabia is the leading foreign financial services firm in the KSA by revenue which they grew by 53% in 2019?
- Jadwa Investment increased its revenue from Investment banking and advisory services by 7 times in 2019?
- Samba Capital derived 34% of its total revenues from Investment banking and advisory services in 2019 while NCB capital derived 64% of its 2019 revenues from asset management?
Note: To get the report, please submit the form above "Get Report on Request". Our relationship manager will confirm your information and send the report to your inbox within 24 hours. Please be sure to check your spam folder too.
Table of Content
- Introduction to Saudi Capital Market Ecosystem
- Revenue and Profitability Analysis
- Market Leaders in Asset Management
- Market leaders in Investment Banking
- Brokerage Market share Analysis
- Research services analysis
- Social Media Presence
- Way forward
Key Questions Addressed in this report
This report can add value to
Customize this report
Why Custom Research?
- Research and intelligence to suit your business requirements
- Informed decision making
What are Benefits of Customization?
- To-the-point, long or short research reports could be requested
- Reports are exclusively prepared for you
You Ask We Deliver
- Over a decade Marmore has successfully navigated this space of customized research to serve its clients and cater to their unique requirements.
- Our customized research support spans sector research, equity and credit investment notes, modelling, valuation, investment screening, periodical etc.
- We offer clients with intelligence and insights on unexplored and under-researched areas that help stakeholders take well-informed business and investment decisions.
- Our offerings marries the challenges of cost, time, scope & data availability to generate actionable outcomes that are specific to our clients’ needs.
FAQ
How can I get access to the report?To get the report, please submit the form above "Get Report on Request". Our relationship manager will confirm your information and send the report to your inbox within 24 hours. Please be sure to check your spam folder too.
How exhaustive is this report?
The report spans 28 pages
Do you have updates?
No. This is a one off report.
Can I only download certain sections of the report?
No. The report can be downloaded in full length only
Can we ask questions?
Yes, by all means. You can write your queries to us at enquiry@e-marmore.com
Who prepared this report?
Experienced and qualified team of Marmore MENA Intelligence has prepared this report. Since its inception, Marmore has published over 1000 research reports and covered more than 25 varied industries and policy segments; all focused primarily on the GCC economies.
Executive Summary
تعد السوق المالية السعودية أكبر أسواق المال في دول مجلس التعاون الخليجي. وهي تشكل 81.5٪ من القيمة السوقية و87.9٪ من قيمة تداول أسواق المنطقة (المعلومات في 6 ديسمبر 2020). وقد يُعزى هذا الارتفاع في مكانتها القيادية إلى إدراج أسهم شركة أرامكو السعودية، شركة النفط الكبرى، في السوق منذ العام 2019.
وتقدم البنوك السعودية الكبرى خدماتها المصرفية الاستثمارية منذ بدايات الحقبة النفطية في السبعينيات. وعبر تلك الأعوام، بدأت المضاربة القسرية في الأسهم. ومع تأسيس هيئة السوق المالية في عام 2003، وضعت التنظيمات لذلك التداول. ولكن السوق انهارت بعد ثلاث سنوات؛ حيث انخفض مؤشر "تداول" بنسبة 59.3٪ من أعلى مستوى له في فبراير 2006 إلى أدنى مستوى له في ديسمبر 2006. وهو ما استتبع إصدار المزيد من التشريعات. ووفقاً لها، أوكلت معظم البنوك أنشطتها المصرفية الاستثمارية إلى شركات تابعة منفصلة عنها قانوناً. كما تأسست بنوك استثمارية في المملكة خلال تلك الفترة.
