RIYADH, 12 December 2006 — Usool Capital has become the first Saudi company to be licensed by the Capital Market Authority (CMA) to provide brokerage services.
“We got license only yesterday,” Khalid Almousa, member of the board of directors of Usool Capital, told Arab News yesterday. He said the company would be open to the public within two weeks.
The company, which is capitalized at SR100 million, will initially confine itself to providing brokerage services. However, in future it hopes to extend its mandate to asset management and consultancy services for investors.
Asked how he sees the market, Almousa said the economy is in good shape, while oil prices continue to ride high.
“A lot of projects are expected to come on stream next year. So we see bright prospects next year,” he said.
He pointed out many other companies have applied for brokerage licenses and would be entering the market next year.
“Banks already provide brokerage services,” he pointed out. “But we hope to be different in terms of speed, delivery of service and efficiency in dealing with the customers.”
Abdulrahman Al-Yahya, the company’s managing director, said his firm would make use of electronic and telephone devices to provide prompt services in the most cost-effective manner.
As for the amount of commission earned by brokerage firms, it stands at SR12 billion annually.
