September 18, 2013
U S S A U D I B U S I N E S S O P P O R T U N I T I E S F O R U M
Los Angeles, California
NTIALSTRICTLY...
English_General
This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client to w...
Population as of end 2012 (mm)
Population and GDP per capita comparison
1236.7
247
TIESFORUM
247
199
121
74
52 49 41 29 28...
Stock exchange market capitalization ($bn) as of July 2013
Stock exchange market capitalization comparison
% share of
top ...
Stock exchange trading volumes comparison
Average daily trading volume ($mm) as of July 2013
% share of
the market
cap.
0....
17.3
Saudi Arabian equity capital markets overview
KSA equity capital market issuance transactions since January 2007 ($bn...
Saudi Arabian debt capital markets overview
KSA debt capital market issuance since January 2007 ($bn)
3.87.5 7.5
11.2
Dome...
35.7
Saudi Arabian merger & acquisitions overview
KSA M&A transactions since January 2007 ($bn)
38 Number of disclosed dea...
Foreigners (SWAP agreement) – Total monthly trading value ($mm)
Saudi stock exchange foreign ownership evoultion
3.0%
1,80...
Upcoming SlideShare
Loading in …5
×

USSaudiForum - Panel 9 - Rayan Fayez - Opportunities in Finance and Investment

883 views

Published on

he 3rd US-Saudi Business Opportunities Forum was held Sep 16-18, 2013, bringing together officials, business people, educators and specialists highlighting the U.S.-Saudi trade relationship and how U.S. companies can participate in Saudi Arabia's expansion.

Saudi Arabia is undergoing an extraordinary economic boom. Massive public investment, rapid private-sector growth and new sector initiatives are driving an expansion projected to offer more than $1 trillion in trade and investment opportunities over the next decade.

This panel of distinguished experts highlighted the opportunities in finance and investment.

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
883
On SlideShare
0
From Embeds
0
Number of Embeds
177
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

USSaudiForum - Panel 9 - Rayan Fayez - Opportunities in Finance and Investment

  1. 1. September 18, 2013 U S S A U D I B U S I N E S S O P P O R T U N I T I E S F O R U M Los Angeles, California NTIALSTRICTLYPRIVATEANDCONFIDE
  2. 2. English_General This presentation was prepared exclusively for the benefit and internal use of the J.P. Morgan client to whom it is directly addressed and delivered (including such client’s subsidiaries, the “Company”) in order to assist the Company in evaluating, on a preliminary basis, the feasibility of a possible transaction or transactions and does not carry any right of publication or disclosure, in whole or in part, to any other party. This presentation is for discussion purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by J.P. Morgan. Neither this presentation nor any of its contents may be disclosed or used for any other purpose without the prior written consent of J.P. Morgan. TIESFORUM any of its contents may be disclosed or used for any other purpose without the prior written consent of J.P. Morgan. The information in this presentation is based upon any management forecasts supplied to us and reflects prevailing conditions and our views as of this date, all of which are accordingly subject to change. J.P. Morgan’s opinions and estimates constitute J.P. Morgan’s judgment and should be regarded as indicative, preliminary and for illustrative purposes only. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of the Company or which was otherwise reviewed by us. In addition, our analyses are not and do not purport to be appraisals of the assets, stock, or business of the Company or any other entity. J.P. Morgan makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax or accounting effects of consummating a transaction. Unless expressly contemplated hereby, the information in this presentation does not take into account the effects of a possible transaction or transactions involving an actual or potential change of control, which may have significant valuation and other effects. Notwithstanding anything herein to the contrary, the Company and each of its employees, representatives or other agents may disclose to any and all persons, without limitation of any kind, the U.S. federal and state income tax treatment and the U.S. federal and state income tax structure of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Company relating to such tax treatment and tax structure insofar as such treatment and/or structure relates to a U.S. federal or state income tax strategy provided to the Company by J.P. Morgan. J.P. Morgan's policies on data privacy can be found at http://www.jpmorgan.com/pages/privacy. J.P. Morgan’s policies prohibit employees from offering, directly or indirectly, a favorable research rating or specific price target, or offering to change a rating or price target, to a subject company as consideration or inducement for the receipt of business or for compensation. J.P. Morgan also prohibits its research analysts from being compensated for involvement in investment banking transactions except to the extent that such participation is intended to benefit investors. USSAUDIBUSINESSOPPORTUNIT IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters included herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone not affiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties. J.P. Morgan is a marketing name for investment banking businesses of JPMorgan Chase & Co. and its subsidiaries worldwide. Securities, syndicated loan arranging, financial advisory and other investment banking activities are performed by a combination of J.P. Morgan Securities LLC, J.P. Morgan Limited, J.P. Morgan Securities plc and the appropriately licensed subsidiaries of JPMorgan Chase & Co. in EMEA and Asia-Pacific, and lending, derivatives and other commercial banking activities are performed by JPMorgan Chase Bank, N.A. J.P. Morgan deal team members may be employees of any of the foregoing entities. This presentation does not constitute a commitment by any J.P. Morgan entity to underwrite, subscribe for or place any securities or to extend or arrange credit or to provide any other services.
  3. 3. Population as of end 2012 (mm) Population and GDP per capita comparison 1236.7 247 TIESFORUM 247 199 121 74 52 49 41 29 28 India Indonesia Brazil Mexico Turkey South Africa South Korea Argentina Malaysia KSA 2012 Nominal GDP per capita ($) 25,707 23,058 Source: BMI, UN, World Bank Average OECD countries1: $35,188 USSAUDIBUSINESSOPPORTUNIT Source: BMI, IMF 1 Estimated as of end 2011 from OECD Stats 11,578 11,341 10,637 10,384 9,754 7,338 3,569 1,680 KSA South Korea Argentina Brazil Turkey Malaysia Mexico South Africa Indonesia India 1
  4. 4. Stock exchange market capitalization ($bn) as of July 2013 Stock exchange market capitalization comparison % share of top 10 listed Co. 14.1% 35.6% 34.2% 54.9% 42.7% 33.5% 32.1% 53.7% 44.7% 62.6% TIESFORUM 2,033 1,105 1,008 826 508 482 446 417 233 USSAUDIBUSINESSOPPORTUNIT Source: World Federation of Exchanges 233 37 India South Korea Brazil South Africa Mexico Malaysia Indonesia KSA Turkey Argentina # listed companies 6,921 1,779 365 378 140 911 479 161 225 106 2
  5. 5. Stock exchange trading volumes comparison Average daily trading volume ($mm) as of July 2013 % share of the market cap. 0.5% 0.3% 0.1% 0.8% 0.4% 0.2% 0.1% 0.1% 0.1% 0.0% TIESFORUM 5,360 3,490 2,320 1,780 1,520 1,470 USSAUDIBUSINESSOPPORTUNIT Source: World Federation of Exchanges 1,470 740 630 540 10 South Korea Brazil India Turkey KSA South Africa Mexico Malaysia Indonesia Argentina 3
  6. 6. 17.3 Saudi Arabian equity capital markets overview KSA equity capital market issuance transactions since January 2007 ($bn) Number of deals (IPO + FO) 31 21 TIESFORUM 5.9 17.3 1.4 1.1 1.5 2.4 0.4 2007 2008 2009 2010 2011 2012 2013YTD Source: Dealogic 2012 ECM deal value as percentage of nominal GDP (%) 2012 ECM deal value as percentage of SE market cap. (%) 1.4% 0.8% 0.7% 0.5% 0.8% 0.6% 0.3% 31 13 11 7 9 4 USSAUDIBUSINESSOPPORTUNIT Source: Dealogic, BMI Source: Dealogic, World Federation of Exchanges 0.4% 0.3% 0.2% 0.1% 0.1% 0.1% 0.0% 0.0% South Africa Malaysia Mexico KSA South Korea Brazil India Indonesia Turkey Argentina 0.2% 0.2% 0.1% 0.3% 0.0% 0.0% South Africa Malaysia Mexico KSA South Korea Brazil India Indonesia Turkey Argentina 4
  7. 7. Saudi Arabian debt capital markets overview KSA debt capital market issuance since January 2007 ($bn) 3.87.5 7.5 11.2 Domestic issuance International issuance TIESFORUM 2012 DCM deal value as percentage of nominal GDP (%) 16.4% 11.8% 8.7% Source: Dealogic 3.7 2.3 3.0 4.3 3.0 7.4 2.6 2.9 3.8 0.9 1.0 3.2 1.0 2.0 3.7 7.5 3.2 4.0 7.5 4.0 4.6 2006 2007 2008 2009 2010 2011 2012 2013YTD USSAUDIBUSINESSOPPORTUNIT Source: Dealogic, BMI 8.7% 3.9% 3.6% 2.5% 2.3% 1.9% 1.5% 0.7% South Korea Malaysia Turkey Mexico Brazil India South Africa Indonesia KSA Argentina 5
  8. 8. 35.7 Saudi Arabian merger & acquisitions overview KSA M&A transactions since January 2007 ($bn) 38 Number of disclosed deals TIESFORUM 35.7 9.3 2.0 4.5 3.1 3.6 2.1 2007 2008 2009 2010 2011 2012 2013YTD 2012 M&A deal value as percentage of nominal GDP (%) 6.6% 4.7% 3.3% Source: Dealogic 34 24 31 38 43 25 USSAUDIBUSINESSOPPORTUNIT Source: Dealogic, BMI 3.3% 3.2% 3.0% 2.6% 2.5% 2.1% 1.1% 0.5% Malaysia South Korea South Africa Brazil Mexico Turkey India Argentina Indonesia KSA 6
  9. 9. Foreigners (SWAP agreement) – Total monthly trading value ($mm) Saudi stock exchange foreign ownership evoultion 3.0% 1,800 2,000 Foreigners (SWAP agreement) trading value ($mm) % of total monthly trading value TIESFORUM 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 0 200 400 600 800 1,000 1,200 1,400 1,600 USSAUDIBUSINESSOPPORTUNIT Source: Tadawul Stock Exchange 0.0%0 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 +651 +928 -311 +199 +1,293 Total Buy - Total Sell ($mm) 7

×