NCB Capital publishes first Saudi Factbook as guide for investors

The Factbook includes an in-depth analysis of every market sector as well as full profiles of all 127 companies listed on the Saudi stock exchange.

This new publication highlights the attractiveness of the Saudi market for local and international investors and confirms an optimistic outlook for the future.

Commenting on the launch, Raul Biancardi, Chief Operating Officer of NCB Capital said, "We are publishing the Saudi Factbook 2009 at a time when investors are showing increased interest in looking down the market-cap curve for opportunities in the Kingdom's stock market. With this in mind, the individual profiles of every company on the Tadawul will be especially valuable."

The Saudi Fact Book provides investors with solid information and statistical data that can assist them in making investment decisions to help achieve their financial objectives. It is presented in four main sections: KSA Economy and Nation, the Saudi Stock Exchange, Sector Performance and Company Profiles. The latter two sections comprise full statistical data.

In the first section, Dr. Jarmo Kotilaine, Chief Economist of NCB Capital, evaluates the Kingdom of Saudi Arabia as an increasingly attractive proposition for investors.

He stated, "The Kingdom's impressive economic status is supported by three main factors: strong petrodollar reserves, regulatory and institutional reforms, and its sheer size and regional importance. The Saudi Stock Exchange is the cornerstone of GCC equity markets, accounting for more than 45% of the GCC's total market capitalization and is the most liquid market in the region with an average daily turnover of $2.08bn in 2008."

Commenting on the growth drivers of the Kingdom's major sectors, Pravin Rajendran, Senior Analyst of Equity Research at NCB Capital writes, "Saudi banks are the strongest in the region with healthy capital adequacy ratios and well-provisioned balance sheets. A low penetration of banking services, coupled with strong demographics are potential catalysts for long-term credit growth in the Kingdom."

He also considers that Saudi Arabia's petrochemical industry is on a better platform for growth compared to global peers due to its absolute feedstock advantage, a relatively young cracker fleet, and an expanded production base that offers economies of scale.

The Factbook identifies the Saudi telecommunications industry as another sector in which low levels of penetration provide opportunities for growth driven by strong demand for mobile phones from the Kingdom's young population, a rising per capita income and increasing popularity of value-added services.

In addition, strong growth in the retail sector is projected due to the rapidly increasing population along with the rise in individual purchasing power and a growing interest in international brands that is leading to increased consumer spending.

In summary, NCB Capital's Saudi Factbook 2009 combines statistical data, factual listings and analytical opinion, making it a useful tool for investors looking to take advantage of the wealth of opportunities available in the Saudi stock market.