Prince Khalid Bin Alwaleed of Saudi Arabia, the Only Son of Prince Alwaleed Bin Talal

DUE DILLIGENCE:

PERSONAL BACKGROUND:

Fifty-one year-old HRH Prince Al Waleed bin Talal (born 7 March, 1955), a nephew of the late King Fahd of Saudi Arabia, was born to Prince Talal, son of the founding king of Saudi Arabia, Abdul Aziz Al Saud, and Princess Mona El-Solh, daughter of Riad El- Solh, the first Prime Minister of modern day Lebanon. (Prince AL Waleed holds Lebanese citizenship through his mother).

AlWALEED is twice divorced. He is Currently married to Princess Ameera and has two children: Prince Khaled and Princess Reem.

CHARATERISTICS:

Prince Al Waleed is a self-made man, who used a $30,000 loan from his father to start his own business and found a business empire that is valued at around $23bln 28 years later. His drive and entrepreneur skills are legendary, as his hectic and hardworking lifestyle. (He lists his hobbies as: Working, working & working.)

Prince Al Waleed is also an international philanthropist who donates millions of dollars to various causes around the world, and also donates a lot of money to various universities to promote the study of Islamic affairs to improve cultural and social understanding between the West and the Middle East. He is certainly one of the most progressive Saudi royals, comfortable doing business both in the West and in the Arab world and has been described as a bridge between the West and the Middle East. He's not afraid to use Western business practices such as layoffs, performance standards and cost- cutting that are pretty much unheard of in Saudi Arabia.

He's also a progressive on women's issues. It was well publicized that he hired some of the women in Saudi to work for him who were arrested after protesting not being able to drive by partaking in a "drive-in" in the city streets. He also hired the first-ever accredited Saudi woman pilot in 2004.

In 2001, he offered New York City a donation of $10 million towards relief efforts after the September 11, 2001 attacks. This was rejected by Mayor Rudy Giuliani because Al-Walid suggested that the attacks were an indication that the United States 'should re-examine its policies in the Middle East and adopt a more balanced stand toward the Palestinian cause.

One of his pet causes has been toward Fostering a better understanding of Islam. With his $20 billion fortune, he has endowed American studies at Middle Eastern universities, given $40 million to underwrite Islamic studies at Harvard and Georgetown and helped fund the construction of an Islamic wing at the Louvre in Paris. He has also given nearly $25 million to tsunami and earthquake victims. In the process, Alwaleed has helped raise the profile of Islamic history and culture around the world

ALWaleed has said that one of his proudest achievements is that his company, Kingdom Holding Company, has never been involved in a scandal. The Economist did a little investigating into al- Waleed's investments a few years back and questioned his famed acumen. However, like others who have tried to dig up dirt on AlWaleed, they had little success. http://www.economist.com/displayStory.cfm?Story_ID=187913

BUSINESS:

HE has long guarded a glittering investment portfolio THAT includes stakes in dozens of blue-chip companies, including Citigroup (in which he owns a 4.3% stake worth approximately US$10bn), Apple Computer, Canary Wharf, and Disneyland Paris. The Prince is the largest individual foreign investor in the US and via his 5.46% stake in News Corp. He also owns many other companies in Saudi Arabia and throughout the Gulf. As of 2007, his net worth is estimated at US$20.3 billion, and he is currently ranked by Forbes as the 13th richest person in the world.

He alone is the largest foreign investor in New York and his extensive real estate holdings including upscale hotel chains and resorts. In July of 2005, Talal donated $20 million to the Louvre in Paris, the largest donation ever received by the museum, for the construction of a wing to house Islamic art.

POLITICAL:

Despite being part of the royal family, he has generally steered clear of politics, although he has periodically criticized the conservative Establishment that dominates the country. He's one of the few people in position of power who have criticized the past management of the Kingdom and a bit of an alarmist about the future if things don't change.

Selected Links: http://www.dailystar.com.lb/article.asp?article_ID=9145&categ_ID=2&edition_id=1

Http://www.time.com/time/specials/2007/time100powergivers/article/0,28804,1616375_ 1615711_1615694,00.html

Criticisms: In recent years, AlWaleed has Been accused of using his financial clout to influence American foreign policy, shape media portrayals and promote Islamist ideology. by donating $20 million each to Harvard University and Georgetown University, among the largest university donations in history, to finance Islamic studies and create a pro-Islamic environment among future and current policy leaders, his critics has said Prince Waleed is trying to influence U.S. Middle East policy. From a country that ironically routinely punishes practitioners of Christianity, he declared that his primary reason for bestowing the gifts was the promotion of “Muslim- Christian” understanding.

Following the 9/11 attacks, Al-Waleed offered a $10 million donation to New York City toward relief efforts and suggested that the U.S. should reexamine its allegedly pro-Israel policies in the Middle East as the root cause of the attacks. As a result, Rudy Guliani turned downed The donation.

Prince Waleed gave $500,000 to the Council on American Islamic Relations (CAIR), an organization that has been accused of having links with Hamas.

During the 2005 Muslim riots in France, Prince waleed, the fifth largest shareholder of the parent company of Fox News, called network chief Rupert Murdoch and demanded that a screen banner identifying the unrest as “Muslim riots” be changed to “civil riots.” The Prince maintained that the U.S. media is too pro- Israel and he encouraged the Arab world and media to do more to counter this tendency.

Source: http://frontpagemagazine.com/Articles/Printable.aspx?GUID=49A1BCFB-FC1A-466E- ABD5-8AA8DCA11740

He has also been accused of making his wealth through his privileged background and connections and not through his business acumen.

From an Internet forum:

“Prince Alwaleed made his fortune mainly because he is a prince that no body can stop him. He started his business mainly by buying small shares in a local bank in Saudi Arabia that gave him the fight to be in the board of the bank> becuase , he is a prince so he must be the chiarman of the board . At this high ranking position he lent a sister comapny quite good money to buy shares in citibank now called ( citi group ) He was breaking all the rules he should not use the local bank"s money to lend his shell companies abroad .... Then from there he goes ... using his power to lend his asspciated companies with money to invest directly on shares of other companies. He was breaking all rules and no body was asking ... He went on to aquair another bank in the dark >>> no body knows how u accumulated a major sharholding in the aquired bank >>> later on he mingled with SAMBA ( ANOTHER LOCAL BANK ) so he can make the second largest bank in Saudi Arabia. But The local authorities in Saudi Arabia has noticed his intentions and he was not given the right to chair board of the new bank.... This is how he built his wealth easily >> and if u would allow me to follow suit . I would be his main competitor >>>> I mean becoming one of the wealthiest persons on earth. Again , This is not meaning that he is more clever than other Saudies or he has done this by working harder than other people. In his case money has come to him so easily and without excerting that much of effort” http://www.theroyalforums.com/forums/f70/saudi-arabia-prince-al-waleed-5016-7.html

There have been also criticisms of the content of programs that his tv networks air:

From an Internet forum:

“These are the types of programs his TV network airs; you can find them on line at www.memritv.org with translations. (he owns channel Iqra--this is what they air):

"Iqra first made headlines in 2002 when MEMRI translated a program featuring a 3-year-old Saudi girl named Basmallah calling Jews “apes and pigs” — she said it was a lesson from the Koran. "

"Over the past year,Iqra has broadcast lectures by leading Saudi clerics such as Aed al-Qarni, who encourages Muslims to gain victory over the West by“slitting of throats and shattering skulls.”

"For example, on a weekly talk show, host Muhammed al-Mutwah has displayed different-sized rods to explain how to use them to beat viewers’ wives. One was 10 feet long." http://www.theroyalforums.com/forums/f70/saudi-arabia-prince-al-waleed-5016-2.html

PRINCE KHALED BIN ALWALEED

Prince Khaled bin Alwaleed of Saudi Arabia, the only son of Prince Alwaleed bin Talal, is a director of Kingdom Holding, the company his father runs. Prince Khaled is also Chairman of several other companies. He has kept a considerably low-profile in the media, preferring to stay in the background. Like his father, Prince Khaled is also considered Westernized and progressive on most issues, including that of the role of women in Saudi society. He is Said to be business-minded like his father and serious, but also simple and nice.

Prince Khaled married the daughter of the country's finance minister in 2005, an event that made the news, as his bride was a non-royal (the daughter of Saudi arabia’s Finance Minister).

KINGDOM HOLDING COMPANY:

Kingdom Holding Company (KHC), was founded in 1979, and is the investment arm of Prince AlWaleed’s business empire.

KHC and Prince Alwaleed have been involved in the creation of a diversified portfolio of strategic stakes in well-known companies around the world. substantial investments have been made in multiple sectors covering banking, hotels, media, telecommunications, technology, construction and real estate, entertainment, and upscale fashion, among numerous others.

KHC has significant investments in enterprises ranging from LBC Sat to Citigroup to London’s Savoy Hotel.

KHC started its media acquisitions in 1993, with a steady buildup of stocks in Arab media companies, eventually becoming a dominant player in that segment.The company has since gone on to partner with such well-known international companies as News Corporation, Time Warner and Planet Hollywood.

Prince Al Waleed,who already owns $10 billion stake in Citibank, invested $2 billion to acquire a 2.7 percent share of Bank of China, a move that both cemented his position as a major player in global banking, and also gave KHC a foothold in the fastest growing economy in the world.

A brief overview of KHC’s more prominent investments listed by sector then in a chronological order:

Banking

1988: The purchase of a 30% stake in United Saudi Commercial Bank (USCB). The market value increased twenty-fold. HRH merged USCB and Saudi Cairo Bank into United Saudi Bank (USB), which was merged into Saudi American Bank creating the Middle East’s largest market capitalization and most profitable bank.

1991: Investment of $590 million in Citicorp, which merged with Travelers Group in April 1998 forming the world's largest financial institution, Citigroup, with over $1 trillion of assets and around $100 billion of equity.

1996: Forming a $70 million venture with Arab Jordan Investment Bank to develop the Four Seasons Amman. The 5-star hotel comprises 175 rooms, restaurants and banquet facilities.

1996: Investment of 500 million Saudi Riyals (US$133 million) to establish Azizia Commercial Investment Company, with primary objectives to invest in the Saudi real estate and stock markets.

2003: Acquisition of nearly 5% of International Financial Advisors Company (IFA), a leading Kuwaiti investment company.

Technology

1997: Premier investment in the technology industry acquiring a 5% stake in Apple Computers Inc. for $115 million.

1997: Investment of $300 million in Motorola which specializes in wireless communications, semiconductors and electronic systems, components, and services.

2000: Investment of $400 million in Compaq Computer Corp., the world's second largest computer company. In 2002 Compaq merged with HP creating the world's leading consumer technology company.

2000: Investment of $100 million in Kodak, maker of photographic films and papers for a wide range of consumer, entertainment, professional, business, and health-related uses.

Internet

1997: Investment of $146 million for 5% of Netscape, later acquired by America Online (AOL) which merged with TIME/Warner creating the world’s largest media company, AOL Time Warner. Investment was raised to more than $1 billion in 2001 and 2002.

2000: Investment of $50 million in eBay Inc., a person-to-person trading community on the Internet. Sellers use the company's service to exchange personal items.

2000: Investment of $50 million in Amazon.com, Inc., an online retailer that sells 3 million titles of books, musical recordings, videotapes, audiotapes, and other products.

2000: Investment of $50 million. The stake was raised to $100 million. In September 2001, the shareholding was increased to 5.4%.

Media and Entertainment

1993: Invested in LBC Sat and in 2003 a 49% acquisition of LBC Sat was completed.

1994: Investment around $345 million acquiring 24% of Disneyland Paris, located outside the French capital. Current stake stands at 17.3% of the company.

1995: The purchase of 25% of Rotana Audio Visual Company, the largest Saudi recording label with the top 100 Arab artists. In 2002, the stake was increased to 48%, and in 2003 to 100%. The same year saw the conversion of ART Music Channel to Rotana Music Channel, a 24-hour free-to-air channel beaming the latest Rotana video clips.

1997: Investment of $400 million acquiring 5% of the preferred shares of News Corp., which encompasses Harper Collins, The Sunday Times-UK, Fox News, Sky, Star TV and many more. In 1999, the investment was raised to $600 million.

1997: The formation of an alliance calling for the development of up to 44 Planet Hollywood restaurants in 24 Middle Eastern and European countries. Current stake is 20%.

2000: Investment of $50 million in Walt Disney, operator of media networks, studio entertainment, theme parks and resorts, consumer products, Internet and direct marketing ventures.

Hotels, Real Estate and Construction

1994: Acquisition of a 3% stake in Ballast Nedam Group, a Dutch construction company specializing in large-scale projects such as dams, causeways, and stadiums.

1994: Acquisition of a 50% stake in Fairmont hotel chain. A share swap in 2003 has lead to a 4.9% stake in the parent company of Fairmont Hotels & Resorts.

1994: Investment of $120 million to acquire 22% of the Four Seasons Hotels Inc., a Canadian luxury hotel chain.

1995: Acquisition of a 42% stake in the landmark New York Plaza Hotel for $300 million. In 2001, the stake increased to 50%.

1995: Jointly control with a group of international investors of Canary Wharf, the largest European real estate development project valued then at $1.2 billion. 1996: Investment into 50% of Cairo Nile Plaza Complex, a luxury $300 million hospitality center comprising a Four Seasons Hotel and luxury apartments. In 2002 the $120 million Sharm El-Sheikh Four Seasons Resort was inaugurated.

1996: The purchase of the George V hotel in Paris for $185 million and renovating it for $120 million. After restoring its elegance and prestige, the hotel reopened in December 1999.

1997: Acquisition of a 27% stake in Mövenpick Hotels & Resorts. In addition to Europe, the Swiss hotel chain is managing and developing hotels in Saudi Arabia, Lebanon, Jordan, Egypt, Qatar, Morocco, Tunisia, and Libya. In 2003 the stake was raised to 33.3%.

2001: Inauguration of Kingdom City, a 400 million SR project that encompasses unique, furnished, 350-unit, self-contained housing community.

2002: Kingdom Hotel Investment Group (KHI) established to consolidate Middle Eastern hotel assets into a single investment entity. Capitalized at $211 million, KHI owns 14 properties across the Middle East and controls over $1 billion worth of assets.

2003: Inauguration of Kingdom Centre, a 1.7 billion SR project with a 300-m skyscraper and exclusive shopping, hotel, offices, and a gargantuan function hall.

Retail and Consumer Products

1993 Investment of $100 million in Saks Inc., owner of Saks Fifth Avenue, the famed upscale fashion retailer, buying approximately a 10% stake.

2000: Investment of $50 million in Procter & Gamble, a world- wide manufacturer of wide ranging products.

2000: Investment of $50 million in PepsiCo, Inc.

Automobiles and Manufacturing

1995: Acquisition of a majority in National Industrialization Company (NIC), a Saudi joint stock company with 45 subsidiaries in industrial projects. A new board was appointed and a major restructuring program was implemented.

2000: Investment of $50 million in Ford Motor Company.

Agriculture and Food Industry 1993: The year marked the takeover of Panda supermarkets and subsequent merger with Al-Azizia into Al-Azizia-Panda United (APU) for which one billion Riyal ($267 million) capital was raised. APU invested in Herfy, the local fast food chain which dominates the Saudi market with 60 restaurants. In 1998, APU merged with Savola forming the region's largest food production and services conglomerate.

1998: The purchase of 100,000 acres in Tushka, Egypt, for agricultural development through Kingdom Agricultural Development Company (KADCO). Upon completion, total investment will reach $500 million.

Health and Education

2001: Inauguration of Kingdom Hospital, a 400 million SR project with a capacity for 120 beds. In Oct. 2002, Kingdom Hospital merged with Consulting Clinics to provide comprehensive medical services.

2001: Inauguration of Kingdom Schools, an exclusive 330 million SR, K-12 institution with a capacity for 4,000 boys and girls.

Investments in Palestine

1997: Investment of $10 million in Palestine Investment and Development Company (PADICO), engaged in construction and development projects in the West Bank and Gaza Strip.

1997: Investment of $5 million in Jerusalem Development and Investment Company (JEDICO) to reinforce the Palestinian presence in Jerusalem through housing and hospitality projects.

1998: Investment of $2 million for a 4% stake in the Arab Palestinian Investment Co. Ltd. (APIC), which holds stakes in telecommunications, banking, manufacturing, agriculture and insurance.

African Investments

1998: Acquisition of a 10% stake in EcoBank which operates throughout West Africa.

1998: Acquisition of a 13.7% stake in United Bank for Africa, the largest shareholding.

1998: Acquisition, through IPO, of a 10% equity stake in the national telecommunications operator in Senegal, SONATEL. 1999: Acquisition of a 14% stake in CAL Merchant Bank Limited in Ghana, Africa.

(Source: http://groups.yahoo.com/group/alwaleed_bin_talal/message/613)

FAWAZ AL HOKAIR Group

Fawaz Abdulaziz Al Hokair Company is a Saudi-based retail franchising business group that operates in a range of sectors including fashion retail, real estate, food and entertainment, large format retail, financial services, fitness and leisure, telecom retail, healthcare and automotive.

The Company's core activities lie in the fashion retail segment with international brands such as Zara, Promod, Adams, La Senza, Aldo, Massimo Dutti and Nine west sold by over 630 stores.

The company was inherited from their father by Fawaz al-Hokair and his two younger brothers.

The shop opened for business in 1989 with a single menswear shop. The company's shops still concentrate on clothing and footwear, but they now stock fashion goods. It has since built itself into the kingdom's leading retailer by making franchise agreements with internationally- known brands.

The company's target is "the mass mid-market", Fawaz Al-Hokair says. "People who buy the expensive brands, such as Armani, travel outside Saudi Arabia and are well catered for. Part of their joy is to shop in London, Paris and New York. But for basic everyday wear, you are not going to go to Milan. You will buy it where it is handy and the mass mid-market is where the demography is going to explode in the next 10-15 years." One key feature of the firm is its focus.

"We are a Saudi company and concentrate on Saudi Arabia," says Mr Al-Hokair. "We are not interested in being a big player in Dubai or a small player in Kuwait. We prefer to be a big player in Saudi Arabia and this has been central to our mission statement."

For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SAR 1.3 billion (US$347 million), showing growth of 30% as compared to 2004-2005, with net income increasing by 41% to SAR246 million.

Fawaz Abdulaziz Alhokair & Company sold more than 15 million items in 2005-2006 and served more than 12 million customers. As of March 2006, the company had 617 stores and 42 international brands in its portfolio.

(Source: http://www.worldreport-ind.com/saudiarabia/retail.htm) Highlights of AlHokair Group include:

• Projected group turnover of more than SAR5 billion for 2006/2007

• Group staff count over 7000

• More than 1020 retail stores

• Expansion over the next three years is expected to triple the size of the business

• Over 50 international fashion brands over a network of 720 stores

• Eight international food franchises with more than 100 outlets

• Largest owner and operator of shopping malls in Saudi Arabia, with close to 650,000 sqm (7 million sqft) of prime GLA

• 5 Géant hypermarkets covering 100,000 sqm, 15 more on the drawing board

• Over 15 million customers in 2006.

• Awarded OECD MENA Investor of the Year Award for 2006 for contribution towards the generation of employment come long-term relationships based on honesty, trust and transparency.

IPO SALE:

Alhokair sold 12 million shares, or 30pc of its stock, at 110 riyals ($29.3) each in an initial public offering in October 2006. The IPO was oversubscribed in spite of debate about both its pricing and a financial restructuring under which the firm’s debt and poorly performing brands were moved to another company set up in May 2005.

(Excerpts from an article in the Saudi Gazette on the AlHokair Groups’s IPO:

FIFTY-four bankers, investors and traders were telephone-polled over the last 48 hours and were asked whether they thought Al-Hokair Company IPO, slated to take place Oct. 7-16, at SR110 a share, is fair. More than 55% of those polled thought the share was overpriced; some brought up questions of Danish boycott and the absent/present role of CMA. The main results of our telephone poll show an overall acceptance of the proposed price based on profession; all the eight bankers in the sample accepted the pricing; typical was Ammar J. Tayeb of the Arab National Bank. He said, “I trust the integrity of the institutions involved in the process.” Only 3 out of the 14 traders in the sample believed the price is right; an opposing opinion from Abdulmohsen Al-Namlah, a 20-year high school teacher. “The biggest winners of this IPO business are the company founders. Just imagine a clothes - import joint worth SR4.4 billion! How much would it be worth if it goes the Danish cheese route?”)

Link: http://www.saudigazette.com.sa/index.php? option=com_content&task=view&id=16468&Itemid=137

Fawaz Al Hokair

Fawaz Al Hokair is the President of Al Hokair Group.

Young, energetic, dynamic, ambitious, determined, go-getting are only a few words that come to mind while describing Mr. Fawaz (according to Al Hokair Group web site)

He claims to have pioneered bringing international fashion trends to Saudi Arabia by collaborating with leading international fashion labels and providing consumers choices in fashion that were never available before.

The first hyper Market in the Kingdom, Geant Hypermarket in Riyadh, is also his brain child to introduce the concept to Saudi consumers.

Some of his early critics were concerned about his daring approach to business. He admits his adventurism might have looked excessive, but in the end it paid off. “You must never be afraid of making decisions,” he says.

He gets inspiration from watching biographies of successful personalities on television, and he finds that reading and walking provide an opportunity to think.

Spending quality time with his family is one of his most important activities.

Salman Al Hokair

Salman Al Hokair is brother of Fawaz Al Hokair, and heads up the AlHokair Group’s real estate, construction and security interests. He is a Senior Vice President in the Group. He is an engineer by profession, and the “engine of growth and development” in the company.

A key part of Fawaz Alhokair Real Estate is Arabian Centres, the management organization in charge of its shopping mall network. Headed by Salman Alhokair it provides a comprehensive one-stop service for all aspects of tenant relations, including leasing, marketing, security and maintenance services Arabian centres now has a network of 11 operational Malls and a further 12 malls scheduled to open in the next five years.

A key part of the division’s work has been the signing of a facilities management business with Dalkia to launch Saudi Dalkia.

With such an enormous potential at hand the new business plans to provide leadership in the coming few years to keep pace with the vast infrastructural development in the kingdom. The division also due to sign with the Marriott Group to develop various four and five-star properties in the Kingdom, starting with the hotel at the Mall of Arabia, Jeddah.

Dr. Abdul Majeed Al Hokair

Brother of Fawaz Al Hokair and Senior Vice President of the Group. Doctor of medicine academically, but master of business by heart. Dr. Abdul Majeed Al Hokair heads up the retail operations.

Links: http://realestate.alhokair.com.sa/media-files/2007/05/29/20070529_AlHokair-LR.pdf http://www.gulfbase.com/site/interface/CompanyProfileSummary.aspx?c=634 http://www.alhokair.com.sa

Sources:

Al Hokair Group: http://www.gulfbase.com/site/interface/NewsArchiveDetails.aspx?n=40143 http://www.cma.org.sa/cma_cms/upload_sec_content/dwfile160/hokairE.pdf http://w3.nexis.com/new/results/docview/docview.do? risb=21_T2498021179&format=GNBFI&sort=RELEVANCE&startDocNo=1&resultsUrlKey=2 9_T2498021182&cisb=22_T2498021181&treeMax=true&treeWidth=0&csi=227171&docNo=1 0 http://www.gulfbase.com/site/interface/NewsArchiveDetails.aspx?n=32284 http://www.zawyamobile.com/story.cfm/sidZAWYA20070702132419 http://www.worldreport-ind.com/saudiarabia/retail.htm http://www.saudigazette.com.sa/index.php? option=com_content&task=view&id=16468&Itemid=137

KHC and AlWaleed: http://www.theroyalforums.com/forums/f70/saudi-arabia-prince-al-waleed-5016-8.html http://groups.yahoo.com/group/alwaleed_bin_talal/ http://leaders-saudiarabia.com/pdf/talal.pdf http://www.arabianbusiness.com/12532?start=2 http://www.arabianbusiness.com/richlist/list.php http://www.harpercollins.com/book/index.aspx?isbn=9780060850302 http://www.arabianbusiness.com/12445?start=0