JEDDAH, 29 January 2004 — The growth of the Saudi Stock Market is fuelling an expansion of trading facilities for investors. After a two-month renovation and expansion of its stock-trading floors, the National Commercial Bank has now resumed activities in both of its stock exchange units in the Al-Khaldia and Bab Makkah branches.
Hisham Filimban, the Manager of NCB Stock Exchange/Share Units in the western region, said that after reconstruction and expansion, the 250-square meter floor at Al-Khaldia can accommodate 50 brokers. Three plasma screens have also been added for the display of stock movements and prices.
The Bab-Makkah branch has been expanded to 200 square meters, also with space for 50 brokers, two plasma screens and two projector screens. “This is part of a program that will extend to providing share-trading facilities Kingdom-wide,” said Salim Ajina, Head of Local Shares at NCB in Jeddah.
The new trading floors will cater mainly for large investors, he said. “But we are increasing access for smaller and younger investors to enter the market.” In the near future, there will be a dedicated toll-free number so that investors can buy and sell shares. Ajina confirmed that NCB is in the last stages of completing preparations to launch electronic stock exchange/shares via the Internet. The service should be operative in the second quarter of 2004. “We hope this will attract the 25 to 30 year-old trader,” he said. “as well as investors in the SR500 to SR100,000 category.”
Jawdat Al-Halabi, the manager of bank administration services, said that the expansion and reconstruction were part of the continued development efforts aimed at offering better services to Saudi clients in the ‘money market’. In the last half of 2003, the Saudi money market and share trading through NCB increased 70 percent due to the recent market boost.
The Saudi share market is opening up and tilting toward the rapidly expanding real estate sector. With oil hovering at the $30 mark and the interest rate about 1.5 percent, real estate provides investors with opportunities for new ventures. Real-estate investments have traditionally been handled by agents, with no central organization to coordinate or operate them in the manner of a stock market. NCB wants to establish a fund and organize the market on more formal lines.