The following categories of banks would be eligible to undertake PD activities:

A. Banks which meet the minimum capital adequacy ratio as set by SAMA during the ICAAP process.

B. Strong managerial /trading capabilities with treasury operations that is fully computerized, with competent and knowledgeable staff, and with relevant professional experience in main treasury /front and back offices.

C. Adequate risk management systems to measure, manage and provide for the risks emanating from the PD activity. Banks should have a trading desk that has the capacity to hedge risks arising from the PD activities.

D. Adequate physical infrastructure and skilled manpower for efficient participation in primary issues, trading in the secondary market, and to advise and educate investors.

E. SAMA no-objection to undertake Primary Dealership business.