SHUAA Capital Saudi Arabia, the Saudi Arabian subsidiary of SHUAA Capital psc, the region's leading financial services institution, has received final approval to commence operations from the Saudi Arabian Capital Markets Authority, the company said in a statement on Tuesday. SHUAA Capital Saudi Arabia is a closed joint stock company with a paid-up capital of SR150 million. SHUAA Capital holds 60 percent of the shares, with the remaining 40 percent divided equally among prominent Saudi business Groups. The company is licensed to conduct all investment banking activities, including asset management, advisory, raising of capital, corporate finance, private equity, underwriting as well as custody services and has already applied for a license to perform dealing as agents. The company's head office is located in Riyadh and it expects to open additional offices in the Western and Eastern regions of the Kingdom. Iyad Duwaji, chief executive officer of Dubai-based SHUAA Capital, said: “SHUAA Capital's strong roots in the GCC span nearly 30 years. We hold a GCC passport and have taken particular pride in promoting the GCC as a destination of capital rather than just a source. We see strong growth opportunities for the Kingdom of Saudi Arabia and for SHUAA Capital. Our Saudi Arabian operations, together with our regional presence across the GCC and Arab world, will expand our ability to offer our clients advanced financial services - both locally and internationally.” Omar Al-Jaroudi, chief executive officer of SHUAA Capital Saudi Arabia, added: “We are dedicated to serve the growing needs of issuers, intermediaries and investors in the Kingdom. Saudi Arabia will be an important part of SHUAA Capital's future and we can now provide the full spectrum of investment banking activities, manage investment funds and client portfolios, custody services and assume financial and corporate advisory services as well as a cross-border M&A.” Today, SHUAA Capital's Dubai-based equity research team already covers 45 percent of the market capitalization of the Saudi market and will increase its research coverage to 70 percent in the near future. In June 2007, SHUAA Capital psc launched the Saudi Gateway fund which provides non-Saudi investors access to all listed companies in the Kingdom. In anticipation of final approval from the Capital Market Authority, SHUAA Capital Saudi Arabia plans to manage a Shariah-compliant $550 million hospitality fund that will build 5,500 hotel rooms across the entire Kingdom. “We hope to mirror the success of our UAE business model in Saudi Arabia. SHUAA Capital will leverage the expertise, experience and reputation of its various business lines to play a significant role in the development of sophisticated investment banking products and services in Saudi Arabia,” Jaroudi added. __