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Kingdom Holding Company (KHC) Announces More Than SR10 billion Investment in the Saudi Stock Market & Saudi Real Estate

January 28, 2007

KHC`s colossal investment divided between the banking, industrial, consumer goods & media sectors, & two colossal real estate projects in Riyadh & Jeddah

Kingdom Holding Company chaired by HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud announced in a press conference held at the company premises today Sunday 28th January, 2007, that it has invested SR10 billion in the Saudi stock market.

SR5 billion was invested in local companies in the various fields which includes:

Banking sector: His Highness`s stake in SAMBA increased to more than 5%,
Industrial sector: the remaining amount was divided between the fields of industry and consumer goods through the National Industrialization Company (Tasnee) raising HRH`s stake in that company to more than 10%
Consumer goods manufacturing sector: through Savola, raising the stake to more than 13%.
Media Sector: HRH and some of his companies made a SR2.1 billion new media investment by acquiring more than 25% share of the Saudi Research and Marketing Group (SRMG). The publications that fall under SRMG include Asharq Al Awsat, Al Eqtisadiah, Arab News, Hia magazine, Al Majalla magazine, Arrajol magazine and Sayidati magazine. Furthermore, other entities that fall under SRMG are Al Khaleejiya for Publicity Advertising and Public Relations and Al Madina Printing and Publishing Company.
In addition to further investments in other companies that will soon float on the Saudi stock market such as the Medgulf.

“These investments bare evidence to our confidence in these companies and the strong relationship that is held together by stable foundations,” said Prince Alwaleed.

The other SR5 billion of HRH`s colossal input in the stock market were investments in local major real estate projects that will float in the Saudi stock market. The first is the Riyadh project which will commence in the first quarter of the current fiscal year and the second, is the Jeddah project which will begin next year. The Riyadh and Jeddah projects will be the largest ever real estate projects witnessed in Saudi Arabia and will constitute a significant part of the local real estate market. The land for the Riyadh and Jeddah projects has already been acquired by Kingdom Holding Company with potential plans to transform these real estate companies to public companies that will float in the Saudi stock market in the future. Further details related to these two huge schemes will be announced in future press conferences.

The Jeddah project has an area of 5.3 million square meters and is located in the city`s northern area on the Red Sea coastline, which is a strategic area for the development of this project. The project will cost an estimated SR50 billion upon completion, comprising of a colossal sky scraper with a surrounding area for other facilities (residential, commercial, construction of a five star hotel and offices). The residential area will be 1.5 million square meters, the size of the commercial area will be 470,000 square meters, education vicinity with an area of 150,000 square meters and the size of the offices area will be 800,000 square meters. The remaining lands will be utilized for leisure facilities, tourism and the construction of four star hotels.

Furthermore, there are plans for the development of a diplomatic quarter on the Jeddah land. The site plans for the land were developed by HOK, a Canadian company that has world wide recognition. The project will also connect the Red Sea coastline of the area to Sharm Obhur, an environment of natural beauty. KHC is also currently in cooperation with the Jeddah municipality and other administrations to ensure that all the appropriate requirements are met for the success of the project. KHC is known for the high quality of their real estate projects that have won international awards.

The location of the Riyadh project (16.5 million square meters), however, will be on the Dammam highway and 15 minutes drive from the center of Riyadh. The project will include a leisure resort and facilities managed by Fairmont Hotels and Resorts with an area of 1 million square meters. The Riyadh project will cost an estimated SR25 billion upon completion. Furthermore it will consist of residential and commercial vicinities with a complete infrastructure and facilities. The residential areas will comprise of 13,500 units to accommodate 69,000 residents (8.4 million square meters), and will also include serviced villas which will be managed by one of the hotels. Commercial and retail facilities will be within easy reach of the residential area the size of which will be 1 million square meters and another retail center with an area of 300,000 square meters.

KHC`s decision to invest more than SR10 billion in the Saudi stock market and real estate was made in light of Prince Alwaleed`s confidence in the local market under the leadership of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz and HRH Crown Prince Sultan. “We made a promise in the light of our government`s prudent economic policies of Saudi Arabia which will reflect on the Saudi stock market and now we have fulfilled our promise,” said Prince Alwaleed.