The Hindu : Business : Geojit setting up brokerage firm in Saudi Arabia

Online edition of India's National Newspaper
Tuesday, May 16, 2006

Business

Business

Geojit setting up brokerage firm in Saudi Arabia

Staff Reporter

The country has an expatriate population of 15 lakhs

KOCHI: The city-based Geojit Financial Services Ltd., along with partners from Saudi Arabia, Oman and the UAE, is setting up a brokerage company in Saudi Arabia. This is the first time that an Indian stock broking company is doing business for the local population in a foreign country, according to C.J. George, managing director of Geojit. The operation and partnership contract was signed in Riyadh between the firm and Kamal and Khalid Al Johar Development Company (Al Johar Group), National Securities Company from Oman, Rasmala Investment Company from the UAE and eight Saudi Arabian investors.

The joint initiative would be a landmark in the area of financial services in Saudi Arabia, Mr. George said. Geojit's experience and information technology capabilities would be used to set up a model brokerage company in Saudi Arabia.

Geojit would be responsible for the management of the company and local partners would provide the required support. With a network of 360 offices and thee lakh clients and established Internet trading, Geojit's participation would prove beneficial to the new venture, Mr. George said. The new venture was planning to start all-women branches also.

Till recently, only banks were allowed to do stock broking business in Saudi Arabia. The Saudi Government had liberalised the norms and the company was expected to be the first non-bank brokerage to start stock broking business in Saudi Arabia.

Saudi Arabia had a population of about 2.7 crores and a per capita income of $12,900. About 60 per cent of the population invested in the financial sector. The country had an expatriate population of 15 lakhs, who were now allowed to invest in Saudi stock market. Saudi Arabia, with $ 10 billion daily trading volume, was world's third largest equity market, Mr. George said. The new venture aimed at a 10 per cent share of the Saudi Arabian equity market.

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