History of the Stock Companies in Saudi

History

The beginning of the history of the stock companies in Saudi Arabia due to the thirties, with the founding of the first joint stock company in Saudi Arabia in 1934, the Arab Company for cars, and in 1954 was the establishment of the Arab Cement Company followed by three power companies. And follow up after the founding of several companies keep pace with other contributors to the initial requirements for the economic development of that stage.

Can be identified by the onset of the stock market in the UK at the end of the seventies, when the growing number of companies contributing significantly. The Government then merges companies in the electricity companies, which led to the uniform distribution of additional shares to shareholders free of charge, in addition to its Based foreign banks operating in the Kingdom, and the subject of an IPO. These factors have contributed to the increase in the number of shares available for trading between investors, hence the need for trading in the shares. And thus created an informal market at the offices of the unlicensed practice of mediation in the activity of buying and selling shares. Because of the lack of a sound foundation on which the deal to those offices, the circulation in the context of limited to the beginning of the eighties, where the improvement in the prices of oil at that time to move the stock market for the better, which in turn led to an increase in volume and high market prices.

During 1985 the State was entrusted with handling the issue of shares to the Saudi Arabian Monetary Agency has been suspended from trading through the offices of licensed third-centered shares. And has become the role of supervision and oversight to protect the stock market from the adverse effects of excessive expectations in addition to developing into a mature financial market. Moreover, the government wants to develop the stock market in ways that contribute to development and national development and be...