Khalid Alghamdi has been in the investment banking industry for more than two decades, starting at Merrill Lynch as a stockbroker. Subsequently, he joined Salisbury Associates as a corporate finance projects supervisor. From 2004 to 2016 he led GIB Capital’s investment banking effort in Riyadh. In January 2018, he joined Mizuho Saudi Arabia as a managing director/executive board member. In September 2019 he joined Credit Suisse Saudi Arabia (CSSA) as CEO/executive board member.
You became CEO of ANB Capital in May 2021. What is your vision for the company and what targets will characterize your operations?
Two key factors drive an investment bank’s success: people and technology. Upon joining, I inherited a strong client base and infrastructure. We also have full support from, our parent bank, which has access to a client base comprising more than 2 million Saudi-based individuals and corporates. With such capabilities and strengths already in place, my mission is to continue to diversify our product offering while also identifying synergistic acquisition and investment opportunities that bring ANB Capital to the forefront of the Saudi capital markets. Since 2019, ANB Capital’s revenue and net profit have grown at CAGRs of 17% and 68%, respectively, and we still have a long runway ahead of us. At this time, we are heavily investing in our team and technology, and we are setting up new business lines. We have bolstered our Alternative Investments, Asset Management, Investment Banking, and Brokerage Services teams with talent acquired from local and international markets, to expand our existing product portfolio and grow into areas that are new to us but where we know there is demand among investors. Within 3 years, ANB Capital will be much stronger within its existing business lines while also contributing to the Saudi capital markets by introducing new offerings and services, and enhancing the capability set of the Saudi talent through, amongst other things, the transfer of knowledge from our international partners.
ANB Capital offers the full spectrum of conventional and Shariah investment services to all client categories including private & institutional investors. How has your portfolio of services been evolving over the recent years?
The continued evolution of the Saudi capital markets and the increasing awareness of local investors compels us to continue expanding our product offering. Within asset management, while we offer Saudi equity and fixed-income funds, we also intend to bring a much more expansive suite of products to our clients including, as earlier indicated, global, thematic, and income funds. Within the space of real estate, we are diversified across Saudi Arabia and we intend to grow internationally as well. In the brokerage space, we aim to add more markets and significantly enhance the trading experience for our clients. We are well aware that the institutional business has taken on much more significance in the last 12-18 months. Towards this end, we are in the process of setting up our research desk and scaling up the trading services offered to institutional clients. This is also firmly in line with my belief that in a people-oriented business, it is our resources that will drive our momentum forward. Vision 2030 has identified the financial sector as one of the key development areas of the Saudi economy, and the increasing importance of Saudi Arabia as a global financial hub will create compelling opportunities for capital market institutions such as ourselves. With Riyadh gaining prominence as a financial center and the Saudi investor base keenly interested in innovative products and opportunities, our product offering will have to evolve to meet investor requirements. This in turn will create a virtuous cycle that enhances local know-how and our ability to create Saudi-based financial solutions linked to a global marketplace.
In the past, ANB Capital has been awarded as “the most customer-focused brokerage house in the MENA region”. What’s behind this success and how are you working to enhance the reputation of the company among the local and regional community?
Historically, the Saudi capital market has been dominated by retail traders. While institutional traders have begun to gather a larger share of Saudi brokerage volumes, retail traders continue to be of overwhelming.