• 6.7 billion riyals for domestic stock trading by the end of 2018


    * Majed Al Khalidi from Riyadh


    The value of facilities used and provided through authorized persons "Brokerage firms" has increased in the Saudi stock market by 21 percent, equivalent to about 1.18 billion riyals, by the end of last year 2018 that to reach about 6.7 billion riyals, compared to about 5.51 billion riyals by the end of 2017.

    According to the analysis of the report unit in the newspaper "AlEqtisadiah" that is based on SMA data, the facilities used are equivalent to 70 percent of the total amount available to customers at the end of the year of SR 9.56 billion.


    The facilities used at the end of 2017 were about 67.2 per cent of the amount available to customers at the time of 8.2 billion riyals with an increase of 17 per cent.

    According to the analysis, facilities used by the end of 2018 grew for the first time after three years of declines by the end of 2018 about 6.7 billion.

     While by the end of 2017, it was about 5.51 billion, about 6.84 billion riyals by the end of 2016, while the facilities used by the end of 2015 amounted to about 13.7 billion.


    This decline is due to the decision of the Capital Market Authority of Saudi Arabia by the end of 2015, which prohibits licensed companies from offering financial facilities to equity traders with more than 100 per cent of the value of the portfolio after some brokerage firms provided financing of up to 200 and 300 per cent of the value of portfolios to customers.

    The first quarter of 2018 recorded the highest utilization rate by available data or since 2015.

    The utilization ratio was 72.9 per cent of the available funding of SAR 8.97 billion with 6.5 billion riyals being used.


    The financing of authorized persons in the Saudi Stock Exchange is divided into two categories.

    The first direct financing is from the person licensed to the direct customer.

    The second category is indirect financing provided by a third party through the authorized person.


    Direct financing was made up of licensed persons and available to customers directly to stock traders, as 91.4 percent of the total by the end of 2018 by about 8.7 billion riyals.

    While third-party financing accounted for 8.6 per cent of the total amount of SR 818 million.


    The number of customers receiving facilities through authorized persons in the market increased by 29 per cent by the end of 2018.

    The number of customers reached 2153 as the highest customers since the third quarter of 2016, with 1666 customers by the end of 2017, with an increase of 487 customers during the year.



    * Economic Reports Unit​

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