They described the new licence, issued just a month before Saudi Arabia is due to join the World Trade Organisation, as a major step towards opening up competition in the kingdom's long-protected economy.

"It is a full licence," Capital Market Authority (CMA) spokesman Abdulaziz Alzoom said. "They are licenced to do everything related to the stock market -- brokerage, asset management, financial advising."

The CMA also granted more limited brokerage licences to two other firms on Saturday: a Saudi company and a joint venture between Saudi investors and Credit Suisse.

"This is a big development in the financial sector. We have never had new companies winning brokerage licences," Alzoom said.

Saudi Arabia's 11 domestic banks have so far held a monopoly on brokerage activity on the Arab world's biggest bourse, which has doubled in value this year and seen daily turnover hit nearly $7 billion on busy days.