السعودية.. مؤشر السوق الرئيسية يتراجع بنحو 0.1% في جلسة الإثنين ليواصل التحرك ضمن نطاق ضيق ومسار عرضي
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00:00 Mohamed El Omran, the president of the Gulf Central Bank for Financial Consultations joins us.
00:05 Welcome Mohamed and thank you for being here.
00:08 As we have discussed, the options contracts were launched on the leading markets,
00:14 but the performance today is consistent.
00:17 Now we see that the STC is rising, there were previous pressures.
00:21 And perhaps the biggest questions today are the importance of these contracts being presented to investors
00:26 and what are the requirements for the success of this contract today if it is not implemented in the market?
00:32 In the name of God, the mercy of God.
00:34 There is no doubt that the Central Bank has focused today on the implementation of the options contracts
00:41 for individual stocks and focusing on the four companies that will be implemented in it.
00:45 But of course, it seems to me that there is no implementation from the website of course,
00:50 and it is still in circulation.
00:52 In general, it is a very important performance, of course,
00:55 and many have talked about it and explained it in detail,
00:58 whether for the purpose of trading or for the purpose of competition.
01:03 But of course, it is a very important development for the Saudi financial market tools and instruments now.
01:09 We have entered a new stage in the implementation of an important tool of the financial options instruments,
01:15 which completes the rest of the options and also completes the rest of the necessary financial instruments for the market.
01:21 But to succeed, of course, we need time and a gradual learning curve,
01:28 because at the beginning, many traders unfortunately lack information and experience.
01:34 I think on this side, we as analysts are also completely isolated,
01:39 we do not have any information, the information we have about these options is like any trader,
01:46 and we have been ignored, unfortunately,
01:50 but in general, we can give information that they are important tools.
01:55 From our experience, as financial experts,
01:59 there must be a seller in the first stage or underwriter,
02:02 so that the process starts and we see a buyer on the other side,
02:06 and thus the process is closed between the two sides.
02:10 The seller in such cases, whether it is call or put,
02:14 he aims to get the orbon, and therefore he is committed on the other side to buy,
02:22 he actually has the choice to implement or ignore the options contracts until the expiration date.
02:32 In general, it seems to us that until now,
02:35 there is no seller who has actually put options contracts,
02:41 whether it is call or put, or whether it is on one of the four options, even at the moment.
02:46 Therefore, even after the sale or offer process is completed,
02:50 we start to see a buyer on the other side, and this seems to me that it will not happen.
02:54 In general, it is an important tool, but I say again that it takes months,
02:59 and maybe years, to see its effect and increase the depth of future transactions more.
03:07 Of course, we emphasize that it should be used at the beginning as a transaction tool,
03:13 that is, we should completely avoid tools that are risky for the bidder,
03:18 because some may resort to the bidder without the transaction,
03:23 and this means a very big risk, because a person may lose everything he has,
03:29 because time is his main enemy at this stage,
03:33 and in the correct sense, the expiry of the option contract is his enemy,
03:38 because the closer it is to the time, and the higher or lower the strike price is not achieved,
03:45 he will certainly lose in this case, and therefore time is the enemy of the bidder,
03:51 and it is a conflicted situation, but for the transaction, the transaction is required,
03:55 and this is the main goal of such bidders and tools.
03:59 It is clear that there is a clear stage of organization in the market now, Mr. Mohamed,
04:03 by trading, aside from the issuance of these contracts as the third financial share in front of the bidders,
04:09 we are also in front of the possibility of finding opinions on the process of future bids for companies and secondary bids.
04:19 How much will this organization have an impact, in your opinion, on the market?
04:25 Of course, it is a big organizational and development stage for the Saudi financial market.
04:30 Opinions are now being consulted about the development of secondary bid tools
04:39 through the permission of the secondary public bid,
04:42 which means that in the past we used to see that companies bid for the gradual,
04:47 now we can see that there are already gradual companies in the market,
04:50 and they also make a secondary or third bid for a general bid for their shares.
04:55 This means that it will open up a wider field for the owners who have a large share in gradual shares,
05:02 to make a second general bid for the traders to sell their shares,
05:09 and this means that we can see, for example, the General Investment Fund,
05:14 which may make a second general bid for Aramco shares,
05:18 or we can see other leading companies that make a second general bid after their gradual for several years.
05:27 From my point of view, this scenario is a precedent that happened approximately in 1992-1993,
05:33 when some banks made a general bid for their shares,
05:38 although it was gradual, and thus, the capital increased.
05:42 This was the case with the British Bank, the French Bank, and others.
05:46 Of course, this was in the 1990s, before the establishment of the financial market.
05:52 But this is the first secondary public bid, if it is adopted by the regime and implemented on the ground.
06:00 Thus, we have reached an advanced stage in development, similar to the advanced markets,
06:08 in terms of public bids, whether they are primary or secondary,
06:12 as is being studied currently and the possibility of applying it in the near future.
06:18 We are also facing an important event, which will be voted on tomorrow,
06:23 as all the means of voting for Saudi Arabia's invitation to the Expo 2030 are being monitored.
06:31 Mr. Mohamed, if Saudi Arabia is elected tomorrow,
06:35 how many sectors will be very beneficial to the market,
06:39 and will it be able to move the exchanges and focus on some shares?
06:45 Of course, the market is now in a state of calm and alert,
06:51 and is moving on the ground for several days.
06:54 It is very clear that it is waiting for Tuesday,
06:57 to know the result of the vote on the Expo 2030,
07:00 in competition with Riyadh, Rome, and Busan, in Korea.
07:06 In the event of the Kingdom's victory, of course,
07:09 this means that there are great possibilities to see huge capital investments,
07:15 which are directed to infrastructure in the Kingdom, in airports, transportation, roads,
07:20 also in the neighborhoods, in hotels, for example, in telecommunications, and other sectors.
07:26 I think all sectors in the Kingdom, in the event of the Kingdom's victory,
07:30 will certainly benefit from these sectors,
07:32 and specifically in the real estate development sectors,
07:37 in the contracting sectors, the suppliers,
07:40 and also the different economic sectors that we mentioned earlier.
07:44 I think all sectors, without exception, will benefit in one way or another,
07:49 either directly or indirectly,
07:51 because we are talking about great possibilities for huge investments,
07:55 announced by the state or even private sector companies,
07:58 in a very similar way to what happened in Qatar with the World Cup,
08:02 also with Dubai when it won the Expo,
08:05 and therefore, it will be a complete turnaround,
08:10 and a complete reorganization of the infrastructure in the Kingdom.
08:13 Of course, this is in line with the Kingdom's victory in the World Cup,
08:17 the World Cup 2034, and therefore, if we also win the Expo 2030,
08:22 this means that the target of the period between 2030 and 2034
08:28 will be targeted to develop the infrastructure in general,
08:32 because of these two targets.
08:34 And if we do not win, of course, in front of us the World Cup,
08:37 there will be an investment in this area.
08:40 And this is in line with the statements we heard from the General Investment Fund,
08:44 that is, with a scary infrastructure,
08:46 we are talking about 4 trillion for the real estate sector in 10 years,
08:53 Mr. Mohamed, will this be the main driver today
08:57 also on the shares of the real estate sector in a larger way, and the building materials?
09:02 Of course, the General Investment Fund, I think, is talking in a partial way,
09:07 because when we talk about the development of the infrastructure,
09:10 we are sure that the government, with its sectors and ministries,
09:13 will play a major role.
09:15 Of course, the General Investment Fund is part of the government system,
09:19 but in general, what the 4 trillion announced by the General Investment Fund,
09:26 I think, will benefit from it in general, the real estate developers,
09:31 the contractors, the suppliers, who are connected in one way or another
09:36 with the projects of the General Investment Fund and its companies,
09:40 such as Roshan.
09:41 But the existing real estate companies are not necessarily going to benefit,
09:45 because if they are not among the developers or the main contractors,
09:51 of course, they will not benefit directly or indirectly from this amount
09:57 within a period of 10 years.
09:59 But of course, it is a message sent by the General Investment Fund to everyone in general,
10:06 that there are big investments and we should be prepared to benefit from these projects,
10:12 which will certainly be targeted to different sectors,
10:16 some of which may be related to government projects and investigations,
10:23 such as the 2030 World Cup, and some may be targeted to other sectors,
10:28 such as housing sectors, business sectors, economic activities, offices, exhibitions,
10:37 and others.
10:39 Thank you, Mr. Mohamed El Omran, the President of the Gulf Center for Financial Consultations.
10:43 You were with us from Riyadh. Thank you very much.
10:46 Thank you.
10:48 them.