Competitive Analysis of Top 25 Financial Brokerages in KSA
Financial & Operational Performance, Future Plans and Recent Developments
Region:Saudi Arabia
Author(s):Vibhuti Sharma
Product Code:KR1015
Region:Saudi Arabia
Author(s):Vibhuti Sharma
Product Code:KR1015
September 2020
14
Competitive landscape in Saudi Arabia 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.
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.
Overall Trading statistics – Equity (Value of Shares Traded, Number of Transactions, Number of Shares Traded, Daily Average Number of Transactions, Daily Average Value of Shares Traded, Daily Average Number of Shares Traded, Market Capitalization), Trading statistics – Sukuk & Bonds (Value Traded, Number of Trades), Trading statistics – ETFs (Value Traded, Volume Traded, Number of Transactions), Trading statistics- Mutual Funds Public & Private Ownership (Number of Funds, Number of subscribers, Asset Base), Public Funds by Investments (Money Markets, Equities, REITs, Real Estate, Holding, Debt Instrument, Balanced, ETFs and Other)- Number of Funds, Number of Subscribers (as of Dec 2019), Value of assets, Private Funds by Investments (Equity, Real Estate, Multi-Assets, Debt Instrument, Money Markets, Financing, Commodities, Hedge & Derivatives, Feeding)- of Funds, Number of Subscribers (as of Dec 2019), Value of assets
Total number of Individuals (Male Investors, Female Investors), Number of individual portfolios, Values and Percentages of Ownership by Investor Type (Institutional Investor, Non-Institutional Investor), Values and Percentages of Ownership by Investor Type- Equity [Saudi Non-Institutional- High Net worth Investors (HNWI), Retail; Saudi Institutional- Individual Professional Investors, Individual DPMs, Corporate, Mutual Funds, Government Related Entities (GREs), Institutional DPMs); GCC Non- Institutional (Individuals), GCC Institutional- Institutions, GCC DPMs; Foreigner Institutional- SWAP Holders, QFI's, Strategic Partners, Foreign DPMs; Foreigner Non-Institutional (Foreign Residents)], Number of Owners and Ownership Values in Listed Sukuk and Bonds by Owner Type- Individuals, Companies, Government and Quasi- Government Entities, GCC Funds; Traded Values Classified by Market (Geographically)- Local Market, GCC Markets, Arab Markets, Asian Markets, USA Markets, European Markets, Other Markets); Discretionary Portfolio Management (DPM) Classified by Type of Investments- Local Shares, International Shares, Debt Securities, Investment Funds and Others; Margin Lending for Share Trading- Direct margin (Extended directly by an AP to the client) including No. of clients, Margin commitment, Outstanding balance, Indirect margin (Extended by a third party through an AP) including No. of clients, Margin commitment, Outstanding balance
Year of Establishment, Type of Brokerage (Bank/Non-Bank), Scope of Services - Domestic vs International Trading, Operations, Recent Development, Future Plans
Equity (Main Market) including Value of Transactions, Market Share (%) basis Value of Transactions, Volume of Transactions, Market Share (%) basis Volume of Transactions, Number of Transactions, Market Share (%) basis Number of Transactions; Online Activities (Main Market) including Online Value of Transactions, Market share (%) basis Online Value of Transactions, Online Volume of Transactions, Market Share basis Online Volume of Transactions, Online Number of Transactions, Market Share (%) basis Online Number of Transactions; Sukuk & Bonds including Sukuk & Bonds Value of Transactions, SAR Mn Market Share (%) basis Sukuk & Bonds Value of Transactions, Sukuk & Bonds Volume of Transactions, Market Share (%) basis Sukuk & Bonds, Volume of Transactions, Sukuk & Bonds Number of Transactions, Market Share (%) basis Sukuk & Bonds Number of Transactions for 2015-2019
Pivot Chart Analysis showcasing following relationships- Online trading as a percentage of total value traded – Including Industry Benchmark, Broker wise Average Trade Size, Broker wise Average Transaction Size Offline and Average Transaction Size Online, Market Share basis Value Traded for Equity & Sukuk/Bonds
Number of Individual Clients, Number of Individual Portfolios, Number of Online Traders, Assets Under Management, Marketing, Development and Promotion Cost, Employee Benefit Expense, IT and Communication Expense, Per Customer Acquisition Cost, Net Adjusted Working Capital, Working Capital Turnover Ratio, # of Investment Centres (Centre, West, East) for year 2019
Pivot Chart Analysis showcasing following relationships- Number of Individual Clients & Customer Acquisition Cost, Number of Individual Clients & Online Traders, Annual Value Traded and Net Adjusted Working Capital and Broker wise Regional Concentration of Investment Centres
Local Saudi Arabia Market - Equity (% of traded value), Local Saudi Arabia Market – ETFs, Local Saudi Arabia Market - Sukuk & FI Bonds (% of traded value), Dubai Financial Market – Equity, NASDAQ Dubai, Abu Dhabi Securities Exchange – Equity, Qatar Exchange Index (DSM)- Equity, Bahrain Boursa – Equity, Muscat Securities Market- Equity, Boursa Kuwait – Equity, US (Equity), US (Derivatives), Egypt Stock Exchange – Equity, Amman Stock Exchange-Equity, London Stock Exchange-Equity, Frankfurt stock Exchange-Equity, Euronext Paris-Equity, Borsa Italiana-Equity, SWISS Exchange-Equity, Brussels Stock Exchange-Equity, Luxembourg Stock Exchange-Equity, Euronext Dublin-Equity, Euronext Amsterdam-Equity, Stockholm Stock Exchange-Equity, Tokyo Stock Exchange, Stock Exchange of Hong Kong and International-Sukuk & Bonds
Total Revenue, Market Share basis Revenue, Revenue from Brokerage, Asset Management, SAR Million Other Revenue, Total Operating Expense, Operating Profit, Operating Profit Margin, Net Profit, Net Profit Margin (%) for 2015-2019
Pivot Chart Analysis showcasing following relationships- Total Revenue & Operating Expenses, Revenue Mix- Segmental revenue from Brokerage, Asset Management & Others, Operating Profit Margin, Net Profit Margin with Industry Benchmark, Top 10 players value contribution vs Top 10 players revenue contribution, AUM and Asset Management Revenue, Year of Establishment, Market share in value Traded and Revenue
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, Al Khair Capital, Jadwa Investment, Arbah Capital, Emirates NBD Capital, Audi Capital, GIB Capita and Citigroup Saudi Arabia
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