Breaking: Saudi Arabia Issues First License for Forex Trading

The ever-evolving and ever-growing marketplace in the Middle East is getting even more attractive as new regulatory jurisdictions continue to emerge. The latest news from the region concerns one of the most populous countries in the area - Saudi Arabia. With a rising population reaching 32 million as of 2017, the country is a lucrative destination for Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokers.

Yesterday, on April 25, the country became even more attractive after issuing the first forex broker license. The Saudi Capital Markets Authority granted the first official permit to Riyad Capital.

يسر #الرياض_المالية الإعلان عن إطلاق خدمة التداول في منصة عقود العملات (الفوركس) كأولى الشركات المرخصة من هيئة السوق المالية لتقديم خدمات التداول في منصة عقود العملات في المملكة #مؤتمر_القطاع_المالي pic.twitter.com/xstMU2j7nv

— الرياض المالية (@riyadcapital) April 25, 2019

The company confirmed the news via its verified Twitter account around a local financial industry conference in Riyadh. The newly licensed broker for Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term in Saudi Arabia is a platform in the Kingdom.

Insider Market or Free Competition?

Despite the overall positive news for the market, the regulatory permits regime in Saudi Arabia could be the privilege of carefully selected few companies. Riyad Capital is a subsidiary of Riyad Bank, which is the third largest financial institution in the country. The Saudi state owns 51 percent of the bank.

With the first regulatory license now on the table, it remains to be seen whether other companies would be able to apply and secure the lucrative permit. While Saudi Arabia has been opening up its capital markets over the past several years, its progress has been slow and the country is still tightly controlled by the state.

The country and financial markets locally have long been preparing for the IPO listing of the biggest state-owned company Saudi Aramco. That said earlier this month, the firm managed to raise 10 times the bids it sought in a major bond sale which could have changed the country’s plans for a public listing.

Saudi Arabia has also been making headlined in the cryptocurrency space. the country's central bank has been working in conjunction with UAE monetary authorities to create a joint token.