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Rosenblatt, Al Rajhi Capital Announce Exclusive Pact to Bring Saudi Research to US Investors

Wednesday, December 09, 2015

Rosenblatt, Al Rajhi Capital Announce Exclusive Pact to Bring Saudi Research to US Investors

New York and Riyadh: December 9, 2015. Rosenblatt Securities, a leading North American boutique brokerage, and Al Rajhi Capital, Saudi Arabia’s biggest securities firm, are pleased to announce they have signed an exclusive arrangement to bring Saudi research, corporate access, execution services and capital markets transactions to US institutional investors.

With a market capitalization of $445 billion at the end of third quarter, the Kingdom of Saudi Arabia (KSA) represents 51% of the entire Gulf Cooperation Council (GCC) market cap and boasts the biggest stock exchange in the Middle East and North Africa (MENA).  Its market capitalization ranks 7th among all emerging markets globally, right behind Brazil, but ahead of Russia, Mexico and Thailand. The Kingdom also accounted for 80% of value traded in the GCC as of the end of Q3 and the Tadawul (Saudi Stock Exchange) is the 6th-most-liquid of all emerging equity markets, again just behind Brazil but ahead of Turkey, South Africa, Thailand and Russia.

“US investors have long been interested in Saudi Arabia but many have been sidelined by the Kingdom’s ban on foreign direct institutional participation, with the only option to access the market through swaps, or P-notes” said Rosenblatt President and COO Joe Gawronski.  “The qualified foreign investor (QFI) program instituted in June thus represents a historic opening of the market. We’re excited and honored to team with Al Rajhi to help our US customers access the market more easily and provide them with the Kingdom’s best research.  Over time, we expect even greater opportunities as the free float in the market increases and capital-markets transactions become routine, positioning Rosenblatt to be the leading conduit for US institutions to Saudi Arabia."

Evan Morgan, Managing Director and Head of Research Sales at Rosenblatt, added: “The recent volatility in commodity markets has highlighted the need for timely, in-depth analysis of the Saudi market, a major factor in the petrochemicals sector.  Between that and the QFI program, our timing for this launch couldn’t be better.”

Al Rajhi Capital’s research team is comprised of eight analysts who also provide access to C-level management of companies under coverage and key individuals in the public institutions that lie at the heart of macroeconomic developments and decision-making. Al Rajhi equity analysts cover approximately 45 Tadawul-listed companies (including soft coverage), comprising approximately 70% of the total market capitalization of the exchange. The firm is a wholly-owned subsidiary of Al Rajhi Bank (RJHI.AB), one of the world’s biggest Islamic banks, with a more than 50-year history and the largest network of branches in the Kingdom. Al Rajhi Capital was the Kingdom’s most active brokerage firm in the third quarter of 2015, accounting for 17.14% of market-wide value traded and 17.91% of share volume. EMEA Finance Magazine named Al Rajhi Capital the “Best Broker in Saudi Arabia” at the 2015 Middle East Banking Awards.

 

This collaboration agreement aims to expand Al Rajhi Capital’s international product offering and capabilities and to capitalize on its access to US institutions, who control the largest pool of investment assets globally.

The deal represents the latest of Rosenblatt’s efforts to bring best-in-class research from outside the US to its institutional customer base.  The breadth and depth of the firm’s coverage illustrates its transformation from execution-only roots to a trusted source of differentiated, valuable investment research.  Rosenblatt also has exclusive distribution partnerships with China Merchants Securities, Taiwan’s SinoPac Securities, Ak Investment of Turkey, Attijari Intermediation in Morocco, CardinalStone Partners in Nigeria, Global Investment House in Kuwait and Old Mutual Securities in Kenya.  Rosenblatt and its partners now offer clients research from dozens of analysts covering more than 1,500 companies in 19 countries.

About Rosenblatt Securities: Rosenblatt Securities is an independent institutional brokerage founded in 1979 and headquartered in New York. The firm represents clients on an agency-only basis in equities, ETFs, and listed-derivatives markets. Rosenblatt is the largest broker by volume operating on the New York Stock Exchange floor.  It also offers cutting-edge “upstairs” trading services, including both program and single-stock execution.  The firm provides industry-leading execution analytics, market-structure analysis, consulting and investment-banking services to a wide variety of clients globally, including institutional investors, exchanges, government entities, technology companies, banks, brokers and proprietary-trading firms.  Its growing research offering includes coverage of financial services, technology, media, and telecommunications and emerging, frontier and developed markets. Member NYSE, FINRA, SIPC. For more information, please go to www.rblt.com.

About Al Rajhi Capital: Established in 2008, Al Rajhi Capital (ARC) is one of the leading providers of ­financial services in Saudi Arabia, providing a comprehensive range of innovative f­inancial solutions across brokerage, asset management and investment banking. ARC is the top ranking broker and one of the largest asset managers in the KSA. As the investment banking subsidiary of Al Rajhi Bank, ARC benefits from the strength and resources of one of the largest and leading commercial banks in the GCC region. Regulated by the Kingdom’s Capital Market Authority (CMA), ARC is a Limited Liability Company organized and existing under the laws and regulations of Saudi Arabia and operates under the Authorized Persons Regulations with license number 07068-37. Further details on ARC can be found at www.alrajhi-capital.com.

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