- SEDCO Holding

Transcription

- SEDCO Holding

‫ننمـــــو علــــى أســــس مــــتينة‬
‫‪Building on Solid Foundations‬‬
‫‪Annual Review 2013‬‬
‫التـقــريـر السـنــوي ‪2013‬‬
‫سدكو القابضة التقرير السنوي ‪2013‬‬
‫‪SEDCO Holding Annual Review 2013‬‬
SEDCO Holding is a leading Shariah-compliant
organization, responsible for a diverse spectrum
of operating companies, real estate, and private
and public equity holdings in Saudi Arabia and
around the world.
Contents
SQS-COC-100104
12Business Review 2013
12Key Group Functions
16Direct Investments
40Real Estate
48Financial Investments
52Corporate Social Responsibility
54A Brief History of SEDCO
56Awards and industry recognition
58Contact Directory
Our Mission
Our Values
To be the global leader in
Islamic wealth management
and business creation.
To grow wealth by investing
in viable, competitive and
Shariah-compliant business
activities with best in class
people, processes, products,
and performance.
•
•
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•
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Team commitment
High performance and result driven
Leading change
Externally and internally focused
Embracing accountability
Socially responsible
Designed and produced by Origin Communications Group
2 Operational Highlights
4 Chairman’s Statement
6 Board of Directors
8 CEO’s Message
10 Executive Management
Our Vision
Annual Review 2013 1
Operational Highlights of 2013
Our focus in the past year has been on retaining flexibility and being able to respond quickly
to a new environment. Our long-term focus on expanding and diversifying our activities
is unchanged in principle, but dealing with the present was an over-riding priority in 2013.
Growth momentum sustained
Ethical investment
Investing in innovation
New projects
We welcomed a new CEO, Anees Moumina, at the beginning of the year. The restructuring
under his leadership has put in place strong growth momentum for the future. Our
focus in the past year has been on retaining flexibility and being able to respond quickly
to a new environment. Our future focus will be on expanding and diversifying our activities
through vertical and horizontal business integration.
We have invested heavily in new ideas over the past year, particularly in bringing people
together from across the wide diversity of SEDCO activities so that they can share their
mutual experience and stimulate cross-fertilization of thinking and cross-selling of the
resources and expertise of their respective operating companies.
Stars on the rise
The SEDCO Group Stars program, launched in 2013, selects 30 high-potential employees
to define areas of development and help them reach their goals through specialized
coaching. A long-term incentive program for executives has also been implemented,
along with linking individual employee performance to the annual rewards scheme.
Boosting financial literacy
SEDCO looks beyond the boundaries of the company in measuring our success, such
as the Riyali financial literacy program that was launched last year and aims to reach
tens of thousands of students across Saudi Arabia. Riyali has now entered a new phase
in its development that reinforces its already significant achievements.
2
SEDCO Capital achieved a very satisfactory return on equity. The firm launched the first
Shariah-compliant funds that combine the precepts of Islamic finance with sound
environmental, social responsibility, and corporate governance (ESG) principles by being
screened for compliance with international conventions and guidelines on environment,
human rights, and business ethics.
SEDCO Development signed a development agreement with NCB Capital for a mid-
market residential project in Jeddah. The project will begin on successful closing of a real estate investment fund being established by the client. This project is consistent
with SEDCO Development’s new business model and represents significant third-party
recognition of the company’s capabilities. In addition, the newly-built Elaf Bakkah hotel opened in time for the Hajj season in September. The four-star hotel in Makkah
has 810 rooms.
Tarfeeh goes Italian
Romano’s Macaroni Grill, a high-end casual dining Italian cuisine concept with an
impressive global presence, will join the Tarfeeh portfolio in 2014 when the first franchise
will open in Saudi Arabia. With further Applebee’s and China Gate outlets also planned,
this will bring Tarfeeh’s portfolio to 18 restaurants.
Brand-building
Nahdi Medical Company’s new brand identity was a major project of its kind in Saudi
Arabia and a highlight of extensive brand and communication activities across the Group
during 2013. Eimar Arabia was renamed and rebranded as Intimaa, while SEDCO Capital
continued its global brand-building activities, positioning the firm as a pioneer in
innovation and ethical investing.
Chairman’s Statement
Capitalising on a strong
domestic economy
Alhamdulillah, praise to almighty Allah for his many blessings. In presenting
SEDCO Holding’s annual review for 2013, I take great pleasure in reporting that
despite continuing economic uncertainty, internationally and regionally, we
succeeded in achieving the ambitious overall budget targets we had set for the year.
The operating environment was
unpredictable. Few companies
or individual investors – if any
– can forecast with any degree
of certainty how markets will
perform or respond, such is the
speed of change taking place.
Our focus in the past year has
therefore been on the shortterm, retaining flexibility and
being able to respond quickly to a new environment. In doing
so, we have drawn on the
knowledge and experience
available at all levels of the
SEDCO Group.
In the same context, we have
adopted a new and even more
rigorous approach to risk
management, seeking to
minimize and mitigate all
exposure – assessing factors
such as geography, business
sector, nature of business, or whatever form a potential
risk could take. The strength of our corporate structure and
governance has always been an invaluable SEDCO asset, and now even more so with the
renewed emphasis on effective
management of risk.
We welcomed a new CEO in
Anees Moumina, who formally
took over from Dr Adnan Soufi
at the beginning of the year. The restructuring under the new
CEO’s leadership has put in
place strong growth momentum
for the future.
While equipping ourselves to cope with such a volatile
external environment by
creating agility and speed of response, we have not
overlooked the ongoing change
in our own organization and our transition from a family
business to an institutionalized
holding company. Our emphasis
on training, skills development,
and creating an innovative
corporate culture remains
undiminished. We have invested
heavily in new ideas over the past year, particularly in bringing people together
from across the wide diversity
of SEDCO activities so that they can share their mutual
experience and stimulate
cross-fertilization of thinking
and cross-selling of the
resources and expertise of their
respective operating companies.
Our long-term focus on
expanding and diversifying our
operating companies’ scope of activities is unchanged in
principle, but dealing with the
present was an over-riding
priority in 2013. In doing so, directors and senior
management from a crosssection of operating companies
held a workshop to identify
crucial areas for collaboration.
The information and
opportunities arising have been exchanged and shared
throughout the Group.
In this respect, I am proud to highlight the continuing
achievements of the Riyali
financial literacy program
which we launched last year
and aims to reach 50,000
students by 2017. Riyali has
now entered a new phase in its development which further
cements its effectiveness. Our support for the welfare and
development of communities
across Saudi Arabia has been
further enhanced by the official
licensing of the Salem Bin
Mahfouz Foundation, which will
complement SEDCO Holding’s
social responsibility functions.
The Board of Directors expresses
its sincere appreciation to the Custodian of the Two Holy
Mosques; the Crown Prince,
Deputy Premier and Minister of Defense; the Second Deputy
Premier, Advisor and Special
Envoy of the Custodian of the
Two Holy Mosques; and all
government ministers for their
wise leadership and guidance
of the national economy.
It is also my pleasant duty to
thank the SEDCO Holding Board
of Directors, as well as the boards
of our portfolio companies, for their commitment and
outstanding effort and
performance during the year
Saleh Salem Bin Mahfouz
Chairman
However, SEDCO looks beyond
the boundaries of the company
in measuring our success.
4
Board of Directors
From left:
Shuaib Ahmed, Savio Tung, Ahmed Suleiman Banaja, Saleh Al-Turki, Ahmed Salem Bin Mahfouz,
Dr Hani Findakly, Saleh Salem Bin Mahfouz, and Abdelelah Salem Bin Mahfouz
Saleh Salem Bin Mahfouz
Chairman
Ahmed Suleiman Banaja
Director
Dr Hani Findakly
Director
Savio Tung
Director
In addition to chairing SEDCO
Holding’s Board, Mr Saleh Bin
Mahfouz is Chairman of SEDCO
Development, Nahdi Medical
Company, Al Mahmal Real Estate
Development Company, Al Mahmal
Trading Company, and Red Sea
Markets Company. He also chairs
the Board’s Investment Committee
and serves on the boards of
Al-Balad Al Ameen for Development
and Urban Recreation, Alnumu
Real Estate, and Yanbu Cement.
Mr Banaja joined the Board in 2008
and was CEO of SEDCO from 2008
to 2010. He is also a Director of
SEDCO Capital and was the firm’s
first CEO, overseeing its formation
in 2010. He began his career with
Citibank in 1971 and then held
senior positions at the National
Commercial Bank for 12 years. He also chairs the Board’s
Compensation, Human Development
and Nomination Committee.
Dr Findakly has been a NonExecutive Director of SEDCO since
2003. He is President of Potomac
Capital and has served in various
senior capacities on Wall Street
including Director and Chairman of Dillon Read Capital Management
and Vice-Chairman of the Clinton
Group, both New York-based
investment management firms.
From 1990 to 1999 he was President
and CEO of Potomac Bobson, a
global investment management firm.
Mr Tung has been a Non-Executive
Director of SEDCO since 2009,
where he currently chairs the Audit and Risk Committee. He is
one of the founding partners of
Investcorp, where he is currently
CEO, North America, and Western
Europe. He has been involved with
most of Investcorp’s corporate
buyouts during his 20 years with
the firm.
Mr Saleh graduated with a Bachelor’s
degree in Civil Engineering from
King Fahd University of Petroleum
and Minerals in Dhahran.
Abdelelah Salem Bin Mahfouz
Director
Mr Abdelelah Bin Mahfouz was
Managing Director of SEDCO
Financial Investments Group from
1997 to 2006. In addition to serving
on the Board of SEDCO Holding, he has been Chairman of SEDCO
Capital since its formation in 2010.
He began his business career in
1975 with the National Commercial
Bank, and from 1980-90 was the
bank’s Deputy General Manager
and the Riyadh Regional Manager.
Mr Abdelelah has a Bachelor’s
degree in Business Administration
from Ohio State University.
Ahmed Salem Bin Mahfouz
Director
Mr Ahmed Bin Mahfouz began his
career with SEDCO in 1983, serving
as Managing Director of the Direct
Investments Group between 1997
and 2004.
He holds a degree in Industrial
Engineering from King Abdulaziz
University in Jeddah and is also a
graduate of the Owner/President
Management Program at Harvard
Business School.
Board Committees
Compensation and
Nomination Committee
Responsible for compensation,
oversight of human development,
screening and nomination of
directors of SEDCO Holding and its subsidiaries
Chairman: Ahmed Banaja
Members: Hashim Al Mihdar and Amr Al Taher
6
Investment Committee
Audit and Risk Committee
Responsible for investment policy
and processes, performance of
asset managers, new investments
and exits, and valuation and asset
allocation.
Assists the Board to fulfill its
oversight responsibilities in the
areas of: the integrity of financial
statements and the financial
reporting system; effectiveness of internal controls for financial
reporting; surveillance of
administration and financial
practices; SEDCO Group’s
compliance with group policies
Chairman: Saleh Bin Mahfouz
Members: Ahmed Banaja, Said
Baarma, Anees Moumina, and
Issam Hamid
and procedures, legal and
regulatory requirements; Ensure independence and monitor performance of external
auditors, internal audit function;
and risk management.
Chairman: Savio Tung
Members: Shuaib Ahmad and Sameer Baarma
He is currently a Director of Al
Faisaliah Group and serves on the
Economic Advisory Team to the
Supreme Economic Council. In
early 2014 he became a Board
Director of SABB (the Saudi British
Bank) and now serves as Chairman
of the bank’s Audit Committee.
Mr Banaja has a BSc in Mathematics
and Economics from the University
of Kent.
Saleh Al-Turki
Director
Mr Al-Turki has been a Non-Executive
Director of SEDCO since 2000. He is President and Chairman of Nesma Holding Company, a
privately owned Saudi conglomerate
with operations in Saudi Arabia, the UAE, Egypt, and Turkey.
Mr Al-Turki is Chairman of Jeddah
Holding Company and Saudi Foras
Investment Company, and a Director
of the Board for Arab Poultry
Breeders Company (Ommat), Umm
Al-Qura Development Company,
ReAya Holding, and Al-Bilad
Newspaper. He has held many
trusted positions including
Chairman of the Jeddah Chamber
of Commerce & Industry, the
Council of Saudi Chambers of
Commerce, and Al-Birr Society
(Jeddah). He is also a previous
member of the Consultative Council
(Makkah Region).
In 2010, Mr Al-Turki was appointed
Honorary Consul of the Republic of Austria. In 2011, the Ministry of
Social Affairs honored him as one
of the Kingdom’s most important
supporters of social work. He
received the Prince Mohammed
Bin Fahd Award for Service of
Charitable Activities & the Crown
Prince Salman Bin Abdul Aziz
Award for Young Entrepreneurs.
Between 1975 and 1986, Dr
Findakly worked at the World Bank
where he was Director of the
Investment Department and Chief
Investment Officer. He was
previously on the faculty of MIT’s
School of Engineering and the
Center for Policy Alternatives.
Before joining Investcorp, he
worked with Chase Manhattan Bank
in New York, Bahrain, Abu Dhabi, and
London. Mr Tung is also on the board
of Tech Data Corporation and is an
independent non-executive director
of Bank of China, Hong Kong.
Mr Tung holds a BSc in Chemical
Engineering from Columbia University,
of which he is a trustee emeritus.
Dr Findakly holds Doctor of Science
and Master of Science degrees
from MIT.
Shuaib Ahmed
Director
Mr Ahmed has been a Director of
SEDCO since 2000. From 2004-07
he was the first non-family CEO of SEDCO. Before joining SEDCO,
Mr Ahmed was at Citibank for 38 years in various senior risk and
general management positions in Asia, Europe, and the USA. From
1985 to 2000, he was a member of Citibank’s Global Credit Policy
Committee and from 2001-03 was
a Managing Director of Citigroup’s
Global Risk Management. Mr Ahmed is a director of Elaf
Group and serves on the Board of Governors of the Institute of
Business Administration, Karachi.
Mr Ahmed holds an MBA from the
Institute of Business Administration,
Karachi, and a Master’s degree in Management Science from MIT.
He is also a Sloan Fellow of MIT’s
Sloan School of Management.
Mr Al-Turki has a BA in Public
Administration from the American
University of Beirut and an MA in Administration from California
State University.
CEO’s Message
Innovation fuels
another year of growth
Profound change has taken place at SEDCO Group since 2010, when the transformation
from a traditional family business first began. The journey to becoming a world-class
corporate institution gained strong momentum in 2013 as earlier strategies took
effect, and new initiatives added efficiency, streamlining decision-making and enabling
optimum use of the resources at our disposal.
From a personal viewpoint, my
first year as CEO was a voyage
of discovery, restructuring, and
growth. I look back on 2013 as a strong period in terms of
performance. Budget targets
were increased from previous
years, and we were able to exceed
them. At the same time, we
continued to absorb the changes
that have taken place while
making further progress with
the restructuring that is integral
to our evolution and growth.
Legal Department has been
restructured to make it more
efficient and business orientated.
Risk management, previously
one of the Finance Department’s
various functions, is now a
dedicated unit, which manages
risk for the entire Group. We
have also restructured the
Finance Department where we
have created a function solely
responsible for the financial
operations of the Group. We have
also restructured the Corporate
Development Department
where we established a dedicated
business acquisitions and deal-
making function. We now have
an extensive pipeline of potential
acquisitions and investments.
All our operating companies
now work to a three-year
management plan (2014-16) as we seek to optimize our
growth and return on
investments. We are looking
closely at the potential for
vertical integration within the
Group, exploiting synergies
within our existing subsidiaries
by acquiring or establishing
complementary businesses.
8
More effective horizontal
integration is also a priority,
developing cross-selling by
operating companies of their
respective services. As a result,
several business referrals are
under consideration.
Internally, we have concentrated
on developing better
understanding of the Group as
a whole, enhancing the process
of thinking as one team and
capitalizing on the synergies that
exist within our component parts.
In terms of people, our core
asset, we are focused on
developing a reward and
accountability mentality,
creating long-term incentives
for executives and introducing
special coaching and teambuilding programs. As an
example, this year we established
SEDCO Group Stars which
comprises 30 people from
across the Group who have
shown the potential for
accelerated career development.
Looking ahead, growth, and
business generation will remain a
top priority. We will seek to build
on the momentum that has been
generated and expect to conclude
several significant acquisitions
currently under evaluation.
Several new real estate projects
are also in the pipeline as we
continue to convert our land bank
to income generating assets.
At board level, we have
restructured the boards of our
operating, and direct investment
companies. Several senior
executives have been selected
to directorships of operating
companies, harnessing
experience and expertise from
different sectors within the
Group. External appointments
have also added new blood and
new thinking at board level.
Improving communications was
a constant theme during 2013.
Externally, this has created a higher level of awareness and understanding of SEDCO
Group and its activities through
increased media exposure, and executives’ participation in
local, and international forums.
The past year has seen SEDCO
Group make significant progress
towards our long-term goals, and
the principles that have shaped
our transition. I look forward,
along with all my SEDCO Group
colleagues, to continue this
challenging and exciting
journey in the coming years.
In closing, I take this opportunity
to extend sincere thanks to our Shareholders, the SEDCO
Holding Board of Directors, the Boards of our Operating
Companies, Chief Executive
Officers, and all SEDCO Group
management and staff for their outstanding performance
during 2013.
Anees Ahmed Moumina
Chief Executive Officer
Executive Management
From left:
Dr Wael Eid, Mamdouh Khawaji, Anees Ahmed Moumina, Issam Hamid,
Amro Kandil, Amr Banaja, Atif Raza, Abdullah Al-Haiqi, Nicholas Polley.
Anees Ahmed Moumina
Chief Executive Officer
Issam Hamid
Chief Investment Officer
Atif Raza
Chief Financial Officer
Mr Moumina became CEO of SEDCO
Holding in January 2013 after more
than 25 years’ experience in the
private sector and the financial
services industry. He previously
worked with Samba Financial Group,
latterly as General Manager and
Senior Credit Officer. Throughout his
banking career he gained experience
in a variety of business sectors
including contracting, trading,
manufacturing, investments, real
estate, transportation, leasing, the
public sector and Islamic banking.
He also worked with Proctor & Gamble.
He is currently Chairman of Ewaan
Global Residential Company, a Board
Member of Elaf Group, a member
of SEDCO Holding’s Investment
Committee, and a member of several
other business, educational and
community boards and committees.
Mr Hamid joined SEDCO Holding in
2010 and is responsible for leading
investment strategy, capital allocation,
proprietary direct investments, and
asset investments. He is a member
of SEDCO Holding’s Investment
Committee, Management Committee
and sits on the board of SEDCO
Development Company. He previously
worked at McKinsey and Company’s
London and Jakarta offices where
he led senior client relationships with
multinationals, family businesses,
and private equity firms. Before this,
at Shell International, he managed
several operating businesses and
led the company’s global portfolio,
strategy, and reorganization initiatives
across the world.
A UK qualified chartered accountant,
Mr Raza has close to 30 years’
experience in financial services,
commercial banking, and Islamic
finance in the Middle East and the
UK. Before joining SEDCO in 2011,
he held CFO positions with Samba
Financial Group and a major
Citigroup franchise in the UK.
Mr Moumina holds a Master of
Science in Engineering Administration
with honors and a Bachelor of Science
in Civil Engineering with honors, both
from George Washington University in
the USA. He has completed a number
of extended executive programs
including the Global Leadership
Program at Harvard University and
the Senior Executive Management
Program at Columbia University.
10
Mr Hamid has an MBA from Warwick
University and a BSc (Hons) in
Economics from the London School
of Economics. In both cases he was
awarded prestigious scholarships
by the UK government. He is now a
member of Warwick Business School’s
alumni board.
Mr Raza has had leadership roles
as CFO or COO of start-up Islamic
investment banks in Bahrain and the
UK and, while at the European Islamic
Investment Bank, was actively involved
with the development of a nascent
Islamic finance industry in London.
Mr Raza sits on the Boards of two
SEDCO operating companies:
Auto World (Al-Jazira Equipment
Company) and Intimaa Real Estate
Services Company.
Amro Kandil
Vice-President, Human
Resources
Mr Kandil has been with SEDCO
Holding since 2010, having previously
worked at Procter & Gamble, most
recently as Senior HR Manager.
He graduated with a Bachelor’s
Degree in Systems Engineering
from King Saud University in 1990.
At Procter & Gamble, Mr. Kandil
gained experience in engineering
and manufacturing before moving
to HR, where he developed expertise
in multiple practices and oversaw
areas such as organizational
excellence, training, recruitment,
compensation, and employee
services. Mr Kandil sits on the board
of Al Khaimah Commercial Center.
Nicholas Polley
Vice-President, Legal Affairs
Mr Polley joined SEDCO in 2013.
He brings 17 years’ professional
experience, most recently as a
partner of Charles Russell Law Firm
in Bahrain, where he led the MENA
International Finance practice, acting
for corporate clients on international
financial transactions and dispute
related matters. At SEDCO, he has
overall responsibility for legal
matters including drafting, reviewing,
and advising on all types of legal
agreements. He also supervises local
and international legal matters for
the Board of Directors, Executive
Committee, and Executive Management
Committee. He sits on the board
of SEDCO Development Company.
Dr Wael Eid
Head of Risk Management
Dr Eid is a risk specialist in Islamic
banking. He holds an MBA from
Warwick Business School and a PhD
in risk management from Durham
University. He has extensive
experience in risk management and
Islamic banking in the Middle East
and Europe. His expertise includes
investment and market risks, financial
analysis, financial regulation, and
capital adequacy standards.
He is a guest lecturer in various Islamic
finance programs at distinguished
universities, as well as a frequent
speaker at international Islamic
finance events and conferences.
Dr Eid began his professional
risk career at the Commercial
International Bank in Egypt.
He then completed his MBA after
being awarded the British Chevening
Scholarship. He was also deeply
involved in setting up the risk function
at the European Islamic Investment
Bank Plc in London. At SEDCO,
Dr Eid chairs the Risk Management
Committee, advising the CEO and
Board on various aspects of risk.
Amr Banaja
Vice-President, Corporate
Communications and Marketing
Mr Banaja leads the company’s
marketing, public relations and CSR
programs. He joined SEDCO Holding
in 2011, having been VP Marketing
and Communications at SEDCO
Development from 2010. Before
joining SEDCO, Mr. Banaja partnered
with Seventh Art Group, the New York
based real estate service provider,
to launch its Middle East office in
Dubai, successfully leading a number
of projects.
His earlier experience includes senior
positions across the GCC region at
Sama Dubai, the National Commercial
Bank (Investment Services Division),
Unilever, and Gillette. Mr Banaja sits
on the board of Tarfeeh (Arabian
Entertainment Company).
Mr Banaja is a BA graduate from Boston
College, USA, majoring in Economics
with a minor in Mathematics.
Mamdouh Khawaji
Vice-President, Information
Technology
Mr Khawaji joined SEDCO Holding in
2007 and has extensive experience in
information technology and leadership.
Before this, he spent seven years
at IBM Toronto Lab in Ontario where
he was a software architect working
with a global team that delivered
WebSphere Commerce. Previously,
he was a principal consultant at
Oracle in Canada, having begun his
career with Saudi Aramco as database
designer and administrator. Mr Khawaji
sits on the board of Ejada Company.
Abdullah Al-Haiqi
Vice-President, Internal Audit
Mr Al-Haiqi joined SEDCO Holding
in 2005. He has over 21 years of
experience in accounting, auditing,
Saudi tax and Zakat. Prior to that, he
worked with PricewaterhouseCoopers
in Saudi Arabia in assurance services,
Zakat and tax services.
Mr Al-Haiqi sits on the Boards of
Universal Shelves Industrial Company
and Tazweid Skills Company.
He is also a member of the Risk and
Compliance Committee of SEDCO
Capital. Mr Al-Haiqi holds a Master
degree in Professional Accounting
from King Abdulaziz University and
is an associate member of the Saudi
Organization for Certified Public
Accountants and the Institute of
Internal Auditors. He is also a licensed
Zakat and income tax consultant.
Mr Khawaji graduated from King
Fahd University of Petroleum and
Minerals with a Bachelor’s degree
in Computer Science.
Business Review 2013 / Key Group Functions
Building capabilities to
drive performance
SEDCO Employee Lounge
‘Al Majles’
Corporate Development
The Corporate Development
department is responsible for delivering the overall
investment and financial results
of the SEDCO Group. During
2013, the team developed and implemented a clear
investment strategy across all the asset classes in
collaboration with key asset
managers. It implemented
stronger investment
governance, ensured rapid
decision-making and effective
implementation in accordance
with Board approval.
Corporate Development also
built capabilities and processes
across the Group by reviewing
and restructuring subsidiary
boards, recruiting senior leaders
and ensuring effective risk
management. The team’s
involvement in key issues helped
to accelerate delivery on critical
matters and drive performance.
12
The diverse Corporate
Development team comprises
10 investment professionals
from seven nationalities with
experience ranging from global
institutions including Citibank,
Deloitte, PwC, McKinsey, Shell,
etc. Several senior members
were invited to participate as
keynote speakers and panelists
in world-class forums in Asia,
the Middle East, and Europe,
enhancing the SEDCO brand
and reputation.
Among the year’s
accomplishments was the
evaluation of more than 120
direct investment deals and
recommending three acquisition
opportunities in Saudi Arabia
for Board approval.
Group Finance
Group Finance is responsible
for maintaining SEDCO Group’s
core accounting platforms,
centralized treasury operations,
performance reporting,
budgeting, and financial
reporting, as well as maintaining
relationships with external
auditors and the Zakat authorities.
The department has completed
a three-year transformation
journey that involved a complete
re-engineering of workflows,
organizational structure,
processes, procedures, and
reporting. More technical and
specialized skills were inducted
and the new team has driven
the journey from being primarily
a transactional focused function,
to also provide ongoing strategic
business support to the Group.
There is a strong emphasis on people development and
embedding a results-oriented
and performance-driven culture.
SEDCO TEAM Build-Up Exercise
This transformation has also
strengthened the Group
Treasury team so that it meets
its objectives of maintaining
adequate and cost-effective
liquidity to support SEDCO’s
operations. Controls and
process-driven workflows govern
operations and a Quality Control
and Financial Compliance (QCC)
unit focuses on implementing
policies, procedures, and
process improvements. Group
Finance has piloted the roll-out
of the MARS (Management
Self-Awareness Rating System)
platform which encourages a culture of transparency and continuous process
improvements. Finance has also
coordinated a major transition
to new external auditors,
KPMG, across the Group.
Human Resources
Continuing the emphasis on the
development of competencies
that match Group values, in 2013
HR Department focused on five
main areas, with 26 training
sessions provided to employees
across the Group. Other
important projects included the review and simplification of employee service policies
and procedures, adopting a best
practice recruitment system and
introducing iRecruitment (internal
recruitment practice), creating
career path guides to help
employees focus on measurable
development plans, and updating
all job descriptions to reflect
actual role expectations. HR Department’s latest initiative
is recommending overseas
executive development plans.
The SEDCO Group Stars program,
launched during the year, entails
selecting 30 high-potential
employees to define areas of development and help them
reach their goals through
specialized coaching.
A long-term incentive program
for executives was also
designed and implemented,
along with linking individual
employee performance to the
annual rewards scheme.
‘SEDCO Team’ – an intensive
two-day teambuilding session
– enhanced collaboration,
synergy, and relationships
between staff members,
focusing on how we can achieve
more together. The employee
lounge ‘Al Majles’ that opened
during the year provides further
opportunity for interaction
between team members,
providing space for social and
professional exchanges during
working hours.
Staff health and fitness was the
motivation for the ‘It’s Better to Take the Stairs’ initiative,
which encourages employees to use the stairs instead of the elevators. Other fitness
initiatives included the SEDCO
football league and highlighting
the benefits of healthy eating,
such as green apples.
A Group-wide employee
satisfaction survey was
conducted at the end of
November and provided valuable
information on how to make
further improvements to the
SEDCO workplace. The survey
covered employee engagement
in three areas: involvement,
alignment, and loyalty. The
major improvement was in
alignment, up 13 percent, with
an average increase of seven
percent across all three topics.
In 2014, the focus will be on
work/life balance, teamwork,
and recognition and incentives.
Saudization was maintained at 45.3 percent and ‘Platinum’
level in the Government’s
Nitaqat program.
Business Review 2013 / Key Group Functions continued
Information Technology
Legal
Audit
Risk Management
In a year of significant activity, a total of 24 IT projects were
completed for SEDCO Holding
and the operating companies.
Service level contracts with all companies and business
units were 100 percent fulfilled,
maintaining 99.9 percent
availability of the Group’s
business systems.
SEDCO’s Legal department
advises on transactional and
dispute-related matters as well as company secretarial
and related administrative
requirements, working with the Group’s operations around
the world.
The Internal Audit department
was established by SEDCO’s
Board of Directors and its
responsibilities are defined by the Board Audit and Risk
Committee. The department
serves SEDCO Holding and its operating companies by
providing independent and
objective assurance and
consulting. It also assists
several affiliated companies by evaluating and improving
their risk management, control,
and governance processes.
Creation of a dedicated Risk
department in 2013 underlines
SEDCO’s commitment to good
corporate governance. At the
same time, a newly-established
Risk Management Committee
further demonstrates the
emphasis on this vital business
area, complementing the Board
Audit and Risk Committee
(ARC) which has overall
responsibility for ensuring
SEDCO’s risk culture and
guidelines are implemented.
Work began on implementing
business continuity management
for SEDCO Holding and SEDCO
Capital, providing the ability to efficiently respond to
unforeseeable disruptions or
crises. Other noteworthy projects
include financial performance
dashboard and reporting,
internet services upgrade, and
employee self-service systems
for Intimaa, Elaf Hotels, and
Tarfeeh restaurants.
Overall, the quality and delivery
of IT services were improved
through services upgrades,
implementation of business
processes, and IT awareness
activities that targeted desktop
and business application users.
14
Development of the specialist
resources needed to support
SEDCO’s growth continued during
2013, with the appointment of
senior staff, extensive training
for all team members, and
installation of new technology
that enables speedy retrieval of
needed legal documents.
Team members are now
assigned to serve a specific
business unit or its operating
companies, so that any legal
requirements can be swiftly dealt
with. Development of a corporate
secretarial team ensures correct
drafting of Board minutes, while
the appointment of legal counsel
with banking experience and an international background
creates additional support in arranging business deals.
Over recent years, the department
has proved to be a source of competent professionals who were transferred to other
departments or companies
across the Group. In 2013,
Internal Audit implemented a Guest Auditor program within
SEDCO Holding to leverage the
skills of employees who have
proven specific expertise.
Extensive systems and controls
are now in place to identify,
measure, monitor, and manage
risks. The key elements of
SEDCO’s risk management
culture are:
•Setting the risk management
strategy and philosophy
•Defining business risk
appetite and tolerance
•Identification and
quantification of risks
•Evaluation of and managing
identified risks
•Risk reporting and mitigation
•Business continuity planning
The new department’s primary
achievements in 2013 were:
•Audit and Risk Committee
approval of the future
blueprint and mandate for the Risk function
•Supporting IT in business
continuity management
planning and implementation
•Developing investment
scorecards and a risk
dashboard for SEDCO Holding
•Setting up MARS
(Management self-Awareness
and Rating) System
•Conducting a risk perception
survey to promote risk
awareness and culture
•Supporting the Corporate
Development department in asset allocation and risk budgeting
•Maintaining continuous review
of the portfolio to determine the
appropriate level of provisions,
status, and quantum to identify
non-performing assets;
conducting vintage analysis
and breakdown of provisions
A risk management framework
is under development and a fully
integrated risk management
function is scheduled for
implementation during 2014.
Marketing and
Communications
Corporate Communications
continued its path of strong
communication across the Group,
using a series of social and
business events to ensure the
sense of one team and aligned
goals. Events such as the annual
Multaqa, Quarterly Outlooks,
Group Directors’ Forums, and
Kheir Hewar – a casual monthly
lunch program with the CEO
– have become fixtures on the
annual calendar. Social events
ranged from the group-wide
SEDCO football league to various
Iftar and Eid gatherings.
Externally, a series of
interactions with the public and the media in thoughtleadership events contributed
to building the SEDCO brand.
The year also showcased
SEDCO’s business lines, its
working environment, and its
corporate governance and social
responsibility. SEDCO was a
main sponsor of the Jeddah
Ghair and Souq Okaz festivals.
The ongoing shift to digital media
continues to build momentum
– internally through digital
newsletters and externally
through a strong focus on social
responsibility by connecting with the community through
social media.
Nahdi’s new brand identity was one of the major projects
of its kind in Saudi Arabia and a highlight of extensive brand and communication activities
across the Group during 2013.
Eimar Arabia was renamed and
rebranded as Intimaa, while
SEDCO Capital continued its
global brand-building activities,
positioning the firm as a
pioneer in innovation and
ethical investing.
Also, Tarfeeh completed
preparatory work for the 2014
launch of its new international
franchise – Romano’s Macaroni
Grill – an up-market Italian
casual dining concept.
Branding achievements by two SEDCO companies were
recognized by inclusion in Saudi Arabia’s Top 100 Brands:
Red Sea Mall and Nahdi were
both chosen by readers of Al Watan newspaper, based on their success in reinforcing
customer approval and their competitiveness with
international brands.
Business Review 2013
Direct Investments
96%
SEDCO Capital
Wealth and asset management for private and institutional clients
100%
SEDCO Development
Real estate development,
management and advisory
services
100%
Elaf Group
Hotel management, travel and tourism services
100%
Auto World
Automobile leasing, limousines and corporate car rentals
100%
Intimaa
Real estate professional
services and property
management
100%
Tarfeeh
Casual dining franchises: Applebee’s and China Gate
50%
Nahdi Medical Company
Retail and wholesale
pharmaceutical, medical and cosmetic products
49.5%
Red Sea Markets
80%
34%
26.5%
Operation and maintenance,
janitorial, security and engineering services
Coffee shops and related merchandise
Tertiary healthcare
Al Mahmal Trading
79%
Al Mahmal Development
Established to manage the Al Mahmal Center in Jeddah
100%
Tazweid
Established in 2012 to meet
SEDCO Group companies
facility Management, Services
and Maintenance requirements
across a different range of
industries (Hotel facilities,
hospitality, food & beverage and general maintenance) Bonnon Coffee
30%
Universal Shelves
Dar Al Fouad Hospital
20%
Ewaan
Shelving and storage equipment
Residential real estate
development
30%
20.8%
Ejada
Information technology services & solutions
26%
Egypt Hydrocarbon
Company (EHC)
An ammonium nitrate plant being built in Egypt
Arabian Farms
Table eggs and fertilizer by-products
Red Sea Markets Company is the owner of Red Sea Mall
Percentages represent SEDCO
Holding’s ownership stake.
16
Business Review 2013 / Direct Investments
SEDCO Capital
Highlights included the successful transfer of private equity
investments to SCGF, creating the largest Shariah-compliant
special investment fund platform in Luxembourg.
Hassan Al Jabri, CEO of
SEDCO Capital (center),
receiving the Best Islamic
Fund award from HH
Sheikh Mohammed bin
Rashid Al Maktoum (left)
at the Global Islamic
Economy Summit 2013.
SEDCO Capital was formally
established in 2010 to extend
services to external clients,
having operated for 15 years as a private family investment
manager. As one of the few
firms globally offering Shariahcompliant services and
best-in-class expertise in asset
management, real estate
investment, and private and
public equity, SEDCO Capital
has today become the partner
of choice for a new generation
of investors. In 2013, the firm’s
Board approved an increase in
paid-up capital from SR 50 million
to SR 200 million.
The firm achieved a very
satisfactory return on equity
and launched the first Shariahcompliant funds that combine
the precepts of Islamic finance
with sound environmental, social
responsibility, and corporate
governance (ESG) principles.
18
Among the funds launched
were US Leasing Fund 1, Global
Emerging Markets Opportunity
Equities Fund, Asia Pacific
Equities Fund, Europe Equities
Fund, Income Fund, and Global
Market Sentiment Fund. New
private equity funds include
Brazil PE Opportunities Fund,
STIC Korea Opportunities Fund,
US Consumer Private Equity
Fund, and Samara Capital
Partners Fund II. Investment of SR 1 billion in six US Estate
Properties produced yields of
about eight percent.
The SEDCO Capital Real Estate
(SCRE) Income Fund 1 was
successfully closed, with
properties purchased totaling
more than SR 450 million.
Expansion into new asset
classes included agriculture
private equity products, leasing,
and Sukuk. Among the new
products are the AGF Latin
America Fund and the Insight
Global Farmland Fund.
All are approved by the Capital
Market Authority (CMA) in Saudi
Arabia and the counterpart
regulator in Luxembourg –
Commission de Surveillance du Secteur Financier.
SEDCO Capital Global Funds
(SCGF) was registered in
Switzerland and a distribution
agreement signed with Credit
Suisse Private Bank. SCGF
manages the first Shariahcompliant funds that meet ESG principles by being
screened for compliance with
international conventions and
guidelines on environment,
human rights, and business
ethics, such as UN Global
Compact and OECD Guidelines.
The funds target institutions,
high net worth individuals,
family offices, and qualified
distributors wishing to invest in
a socially responsible manner,
while complying with Shariah
principles. The funds can also
be distributed by banks.
Despite poor returns from
commodities and listed real
estate, Public Equity performed
well overall, with liquid assets
running at more than 40 percent.
New managers were added to
the Emerging Markets, Asia
Pacific, and European portfolios.
Private Equity activity included
the first investment in agricultural
farmland and supply chain, and
forming strategic relationships
with BTG Pactual, the Brazilian
multinational investment bank.
Operational highlights during
the year included the successful
transfer of private equity
investments to SCGF creating
the largest Shariah-compliant
special investment fund
platform in Luxembourg.
The firm also implemented a
strict Shariah review process
and completed policy and
procedure manuals for all the
SEDCO Capital functions to
reflect best industry practice.
The review process began for
the new Business Continuity
Plan, with the goal to complete
the strategy by the first quarter
of 2014.
Risk measurement procedures
included implementing the
CMA’s latest anti-money
laundering requirements,
formation of a CMA Authorized
Persons Committee, and a CMA inspection visit that found
no non-compliance issues.
SEDCO Capital’s third client event
– Windows on Markets – focused
on public equity opportunities
and challenges in 2013. The firm also sponsored the
Association of the Luxembourg
Fund Industry’s (ALFI) spring
conference and the 2013 Global
Islamic Finance Report.
Maintaining its high profile and
‘thought leadership’, SEDCO
Capital participated in many
global events, including: the
World Islamic Economic Forum
(London); the World Islamic
Funds and Financial Markets
Conference (Bahrain); the
Association of the Luxembourg
Fund Industry (ALFI) Spring
Conference; the HOPE Financial
Dignity Summit (Atlanta); and
Fund Forum Middle East (Dubai).
Looking ahead, SEDCO Capital
will continue to focus on business
development, particularly local
and regional equities, incomegenerating international real
estate, and local real estate
development opportunities.
Business Review 2013 / Direct Investments continued
SEDCO Development
The nature of SEDCO Development’s business was transformed
during 2013 – from providing management services for real estate
development, to becoming a developer in its own right.
Khalid Jamjoom, CEO of
SEDCO Development (left),
with NCB Capital’s Tariq
Linjawi following their
signing of a development
agreement for a midmarket residential project
in Jeddah.
20
The nature of SEDCO
Development’s business was
transformed during 2013 – from
providing management services
for real estate development, to
becoming a developer in its own
right. This entails taking the
role of principal in development
projects, controlling the
management of development
risks, being accountable for successful development
outcomes, and being rewarded on
the basis of project value creation,
rather than earning consultancy
or management fees.
The company’s value
proposition is the delivery of valuable and sustainable
environments. Achieving this
will ensure that the business
itself is sustainable. Other
stakeholders include capital
partners – who seek superior
risk adjusted returns,
employees – who look for a dynamic work environment
and potential career growth,
and parent company SEDCO
Holding – which has expectations
of strong returns and building a valuable asset.
Consistent with this
transformation, SEDCO
Development has adopted a new business model,
recognizing that, as a
developer, the company’s
customers are real estate
owners, tenants, and the
community – the end-users of developed assets.
SEDCO Development is focused
on development opportunities
in Jeddah and the Western
region of Saudi Arabia where
the company has existing
networks and relationships and
a deep understanding of market
fundamentals. Over time, the
goal is to extend activities to
other major real estate markets
in the Kingdom.
In the short to medium term, the
company will focus on residential
real estate development,
including medium-scale
development of mid-market
villas and apartments, gated
residential compounds, serviced
apartments, and mixed-use
developments incorporating
large residential components. In
the longer term, this will broaden
to include other asset classes.
The Saudi residential market is currently under supplied and
experiencing strong demand
growth. Although highly
competitive as a whole, there is less competition in the
development of medium scale
and larger projects. Reflecting
the attractive market
fundamentals, institutional
capital from Saudi Arabia and the entire GCC region is
stimulating growing demand for real estate assets.
SEDCO Development will seek
to partner land owners and a range of capital providers
through innovative structures
that are aligned with its new
business model.
Being competitive and marketdriven, real estate development
requires a high- performance
management team and
continual innovation. Recent
key hires have bolstered the company’s management
capability and further
recruitment will follow as
additional development projects
are secured.
Operational highlights of 2013 were:
Existing projects advanced on schedule:
•Completing the furbishing
phase of the Elaf Bakkah
hotel, construction having
been concluded in 2012. The hotel opened its doors in time for the Hajj season in September, 2013.
•The Galleria hotel and retail
complex on Jeddah’s Prince
Mohammed Bin Abdulaziz
(Tahlia) Street is due to open
early in 2015. It is being
developed by SEDCO Holding
and Mithak Investment Holding,
with SEDCO Development
appointed to manage the
project. The 365-room
five-star hotel in Galleria will be operated by Elaf.
•Strengthening management
capability with the appointment
of a Chief Operating Officer
and Chief Development Officer,
both highly experienced in
global real estate.
•Signing a development
agreement with NCB Capital
for a mid-market residential
project in Jeddah. The project
will begin upon successful
closing of a real estate
investment fund being
established by the client. This project is consistent with SEDCO Development’s
new business model and
represents significant
third-party recognition of the company’s capabilities.
•Um-Aljood is a proposed
residential development on
roughly 1.5 million m² of land
in Makkah, where SEDCO
Development has been
appointed by the owners
(SEDCO Holding and Mithak
Investment Holding) to provide a range of services in relation to the master
planning of the project.
Elaf Group
In a year of continuous consolidation and growth, marked by increased competition
and market challenges due to the dramatic decrease in Hajj and Umrah related visas,
Elaf was still able to meet its revenue targets.
Elaf Group honors the company’s travel and tourism partners in Turkey, with the
ceremony attended by the Saudi Consul
General (center) and the
President of Elaf Group,
Ziyad Bin Mahfouz (left).
Elaf is a wholly-owned SEDCO
subsidiary and a Saudi Arabian
leader in tourism, travel and
hotels, focused particularly on
meeting the needs of pilgrims to
the Kingdom’s holy cities. Since
its foundation in 1981, Elaf has
grown in the domestic market
as a leading hospitality group,
and expanded internationally
across Asia and North Africa,
Western Europe and North
America through its Hajj and
Umrah Division.
The company is a General Sales
Agent (GSA) for major airlines
and operates a renowned chain
of three-, four- and five-star
hotels. It offers inbound and
outbound tour packages, as
well as partnerships with a
number of Hajj and Umrah
operators around the world.
22
Growth has stemmed from
establishing new business
relationships and opening its
own offices, while Elaf’s Hotels
Division has increased the
number of properties and
rooms in its regional portfolio.
A total of 13 Elaf Hotels now
operate in the cities of Makkah,
Al-Madinah, and Jeddah with
the number of rooms more
than doubling in 2013 from
2,200 to 4,500.
A new four-star hotel Elaf
Bakkah (810 rooms) was opened
in Makkah Al-Mukaramah during
the year.
New travel markets were
developed in Libya, Kurdistan,
and Algeria while existing GSA
contracts were renewed with
Biman Bangladesh Air and Ariana
Afghan Airlines. A travel and tour
office was opened in Jakarta.
Operationally, the company
enhanced its standard
operating procedures and
training manuals, developed a new electronic dashboard for its management information
system and upgraded the Elaf
website. The hazard analysis
and critical control points
program was implemented at the Elaf Jeddah, and work is underway to integrate all Elaf
hotels with an online reservation
system through fedilo.net.
Implementation of self service
was completed for all hotels
and travel offices, and the HR
department was integrated with
Oracle financials. Saudization
maintained ‘green’ status under
the Nitaqat program.
In a year of continuous
consolidation and growth,
marked by increased competition
and market challenges due to
the dramatic decrease in Hajj
and Umrah related visas, Elaf
was still able to meet its revenue
targets and again received an
array of industry awards and
nominations such as:
•WHUC Hajj Excellence Award
•Best Business Destination
Award (Elaf Jeddah)
•Saudi Tourism ATM Award
•4th Umrah Hajj International
Tourism Fair Award
•Hotelier Magazine: Most
Powerful 50 CEOs
•Royal Caribbean Cruises:
Certificate of Appreciation
•GTA: Excellent results and
outstanding contribution and
sharing success
•Lufthansa Airline:
Achievement Award for
Valuable Support
•Turkish Airlines: Top 5
Producer Award
•Saudi Excellence in Tourism
Awards: Best Travel Agency
•Saudi Excellence in Tourism
Awards: Best Service
Excellence Personal
•Amadeus Consistent
Partnership Recognition
Priorities for 2014 are to continue
sales momentum and generate
higher revenues and profits,
acquire new properties in the
Holy cities, further expansion of religious source markets, and
the development of the domestic
Umrah program.
15
29
29
34
10,000
9,000
4,382
7,200
Auto World (Al-Jazira Equipment Company)
Auto World’s activities are divided into two main sectors: leasing and
rental. The company now has 29 branches across Saudi Arabia and
plans to add five more during 2014.
Imad Al Zain, CEO of Auto
World, at the company’s
ceremony to celebrate 30 years’ successful
operation in the Saudi
automobile leasing and
rental market.
Auto World is one of Saudi
Arabia’s leading automobile
leasing and corporate car rental
firms. Wholly owned by SEDCO
since its inception in 1983, its fleet has grown rapidly and
now comprises 9,000 vehicles.
This is expected to reach 10,000
vehicles by the end of 2014.
Operations range from
chauffeur-driven services and short-term car rental to long-term leases of up to
four years. Auto World also
undertakes transportation
projects, and wholesale and
retail used car sales.
24
The company now has 29
branches across the Kingdom
and plans to add five more
during 2014. With fully equipped
workshops in Riyadh, Al-Khobar,
Dammam, Jubail, Ras Tanourah,
Al-Jouf, Jeddah, Yanbu and
Al-Madinah, Auto World provides
after-sales service, quality
maintenance and comprehensive
insurance as prime components
of the customer service package.
Impressive performance in 2013
was highlighted by 25 percent
revenue growth and a 17 percent
increase rise in the fleet size.
The rental branch network
expanded by 20 percent, now
covering Riyadh, Al-Khobar,
Dammam, Jubail, Ras Tanourah,
Jeddah, Yanbu, Al-Madinah,
and Al-Jouf.
Auto World operations are
divided into two main profit
sectors: leasing operations,
which contribute 75 percent of revenue; and rental, which
accounts for the balance. To boost rental income, the company is focusing on developing retail rental
business and in 2013 signed
new agreements with clients
such as Riyad Bank, NCB,
American Express, Bank
Aljazira, and SABB, where
specific discounts are offered to their card holders.
The company also concentrates
on the airport and hotel
sectors, currently operating at Riyadh’s King Khalid
International Airport and
Al-Jouf International airport
with an open target on other
international airports across
the Kingdom. The chauffeurdriven service is now operating
successfully at Elaf Jeddah and
Novotel Riyadh, and more deals
of this nature are planned.
Auto World’s top priority is to build strong business
relationships that will retain
and attract clients. Customer
service is developed from
monitoring clients’ opinions,
solving daily problems, and adding value through
discounts, loyalty programs,
and special events.
Operational efficiency is targeted
through an agreement with Ernst
& Young’s automotive-focused
professionals to develop the company’s policies and
procedures by assessing core
processes and continuously
upgrading systems.
11 12 13 14F
11 12 13 14F
Auto World
rental fleet
(vehicles)
Auto World
network
(branches)
Investment in human resources
is also a vital contributor to success, maintaining a high level of professionalism
through comprehensive training programs.
The goal for 2014 is to expand
geographical coverage in the
southern and northern regions
of Saudi Arabia. This will see
five more branches open in the
major cities and fleet numbers
reach more than 10,000
vehicles, making Auto World
one of the Kingdom’s top five
rental companies.
Intimaa
The rebranding of Intimaa and the launch of its new marketing
strategy dominated the past year to introduce a stronger and more
forceful message to the marketplace.
Eng. Aidarous Al Bar,
CEO of Intimaa Real
Estate Services.
Intimaa Real Estate Services
Company, formerly known as
Eimar Arabia, is the Kingdom’s
premier provider of end-to-end
real estate services. The range
of services includes: property
management, facility
management, brokerage,
valuations and consultancy,
construction development, and others. These are designed
to give clients access to a
comprehensive set of skills and
resources to meet all their real
estate needs.
Planned improvements in
customer service processes, a wider geographic presence,
continued cultivation of human
resources, and the development
of a unique brand will further
strengthen the company’s leading
position in the Saudi market.
26
Intimaa is already growing its
business in the Riyadh region,
having opened an office and
hired a number of key staff in the capital during 2013.
Residential brokerage is a key
element of Intimaa’s services,
previously restricted to
institutional clients. It now
plans to extend residential
brokerage to the wider market
and is currently researching the most effective way to do so.
The company already leads the brokerage industry in real
estate auctions and continues
to dominate this segment, with
several high value contracts
concluded in 2013.
In its quest to continue
improving operational efficiency,
Intimaa has created an internal
IT department, further aligning
operations management with
business needs and helping to reduce costs.
The rebranding of Intimaa and
the launch of its new marketing
strategy dominated the past
year of consolidation, innovation,
and restructuring – positioning
the company to introduce a
stronger and more forceful
message to the marketplace.
This paves the way for a very
ambitious 2014 program and
projected double-digit growth in revenues and profits. This will flow from Intimaa’s
continued market penetration
in Riyadh, creation of the new retail brokerage, related
market diversification, and the
development of a mixed-used
commercial property in central
Jeddah. The company will also benefit from peripheral
activities related to the Jeddah
property for several years after
completion. The project marks
a shift in client relation
strategies, helping clients to
unlock value and unrealized
potential in their assets.
This will be put into practice
through thorough research,
initiating engagement with
clients, and tailoring services to better meet their needs.
Whether in renovation,
redevelopment, or construction,
Intimaa plans to seize
opportunities as they arise. This approach will promote
more innovative and
collaborative thinking across
the company’s business lines, enabling integrated and holistic operations.
Since 2010, Intimaa has achieved
excellent financial performance,
almost doubling revenues and
posting three-fold profit growth.
1,500
1,209
932
1,200
700
505
505
600
Tarfeeh (Arabian Entertainment Company)
Romano’s Macaroni Grill, a high-end Italian casual dining concept,
will join the portfolio in 2014 when the first franchise will open
in Saudi Arabia.
From left: Ahmed Marashde
(CEO of Tarfeeh), Anees
Moumina (CEO of SEDCO
Holding Group), Raymond
Blanchet (CEO of Ignite
Group Restaurants), Waleed
Bin Mahfouz (Chairman of Tarfeeh), Ed McGraw
(Head of Development at
Ignite), and Faisal Anani (SVP of SEDCO’s Investee
Company) following the
signing of Tarfeeh’s franchise
agreement for Romano’s
Macaroni Grill.
28
Tarfeeh is a wholly owned
SEDCO subsidiary dedicated to developing and operating
world-class restaurant chains.
Since the company was
established in 1996, it has
embarked on an aggressive
expansion plan across all
regions of the Kingdom.
With 700 employees, Tarfeeh is a leading company in Saudi
Arabia’s casual dining market,
operating the largest Applebee’s
franchise in the Middle East
with 15 restaurants, and two
outlets of its self-developed
China Gate brand – a casual
dining concept offering buffet
style inter-continental cuisines.
Romano’s Macaroni Grill, a
high-end Italian casual dining
concept with an impressive
global presence, will join the
portfolio in 2014 when the first
franchise will open in Saudi
Arabia and a second may also be
added. With further Applebee’s
and China Gate outlets also
planned, this will bring Tarfeeh’s
portfolio to 18 restaurants.
Applebee’s Saudi Arabia already
has one of the largest market
shares of all casual dining
chains in the country and the
multi-brand expansion will
further boost Tarfeeh’s growth
plans over the next five years.
The company also continues to search for opportunities with other international brands
that match its core values and
principles and can be strategic
partners in future growth.
Tarfeeh hosted more than 1.5 million guests in 2013 – up
from 1.2 million a year earlier
– and expects a further 10 percent growth in 2014.
Increased seating capacity
means that its restaurants can now accommodate more
than 3,700 guests.
The second phase of the guest
loyalty program (My Applebee’s
Club) was launched in 2013.
Customers can now apply for a loyalty card online or receive
the card instantly when dining in.
Tarfeeh is currently exploring
tie-ins with other guest loyalty
programs run by leading brands
in Saudi Arabia. This is a
differentiating point from other
casual dining restaurants and
provides the opportunity for
direct communications and
exclusive marketing channels.
Capitalizing on the success of its home delivery program,
Applebee’s has expanded this
service to more markets in the
Eastern, Western, and Central
Provinces. Home delivery has
proved to be a valuable new
revenue channel for the brand,
with catering for large events
being explored as another
potential area for expansion.
As part of a strategic drive to re-energize the Applebee’s
brand, the first restaurant to be
remodeled is Applebee’s Tahlia
Street in Riyadh. The China
Gate concept is also being
revitalized. Two new prototypes
have been developed – fast
casual dining and an express
model for food courts within
malls and shopping centers.
10 11 12 13
10 11 12 13
Applebees
staff (number
of employees)
Applebees
customers
(thousands)
Partnerships with established
brand names such as STC and Riyad Bank have given
Applebee’s extra revenue
channels, having renewed
contracts for customer loyalty programs and signed
catering deals with several
pharmaceutical companies.
Most of the restaurants also provide meeting room
facilities, which have become a major attraction for several
corporate clients.
70.0
44.6
55.0
50.4
780
665
595
526
Nahdi Medical Company
Network expansion in 2013 added 80 new outlets,
meaning that close to one in every 10 Saudi pharmacies
is now an NMC store.
Dr Bander Hamooh, CEO of Nahdi Medical
Company (left) receiving
the award for Strategic
Sponsorship of the Forum
held by the Home Health
Care Charity Foundation.
Nahdi Medical Company (NMC)
was founded in 1986 and has
grown to become the largest
pharmacy chain in the MENA
region, handling more than 60 million customer transactions
annually. SEDCO acquired a 50 percent stake in 2004 and
has been a driving force in the
company’s expansion.
With a network of 780
pharmacies in cities and villages
across Saudi Arabia, more than 200 of which provide
round-the-clock service, NMC’s
retail network is so extensive
that close to 70 percent of the
Saudi population are within five
minutes of a Nahdi pharmacy.
Planned expansion to 1,024
outlets aims to raise this figure
to 90 percent by 2016.
The company is also a major
wholesaler of medicines,
cosmetics, baby care, and
medical equipment. A worldclass supply chain links 500
suppliers across the globe to
75,000 m² of storage facilities
and a fleet of 40 refrigerated
trucks, ensuring that highquality products are properly
stored and efficiently distributed
to Nahdi’s own pharmacies and
wholesale customers.
NMC’s five-year strategic plan
– called ‘New Reality’ – places
the community at the center of attention. This new focus
represents a complete
transformation whereby the
company’s function, services,
and image are evolving to the
highest standards.
Changes to the commercial
strategy in 2013 saw widespread
expansion of the product range,
introducing new skincare items,
exclusive perfumes, and private
label cosmetics sourced from
France and Italy.
30
Application of a new retail
brand identity, developed in conjunction with one of the world’s leading branding
consultancies, is transforming
the external and internal
appearance of Nahdi pharmacies.
The colors of the logo represent
the key categories where the
company operates: blue for
babies, purple for beauty, green
for well-being and everyday
essentials, and red for
promotional activities. They are surrounded by a white
shield – symbolic of how NMC
surrounds and shields the
community that it serves.
But community care is more
than just symbolic. The launch
of the new brand identity was
accompanied by an intensive
media campaign on behalf of SANAD, the non-profit
organization that supports
children suffering from cancer.
Major improvements to supply
chain operations led to ISO
certification for quality and
occupational health and safety.
Working closely with the Ministry
of Labor, NMC maintained its high levels of Saudization,
recruiting 850 more Saudi
nationals across the business,
from supply chain to pharmacy
checkouts. Saudization has now
reached 27 percent, with an
immediate target of 30 percent
and a long-term goal of achieving
‘Platinum’ standard under the
Nitaqat system.
Network expansion in 2013
added 80 new outlets, meaning
that close to one in every 10
Saudi pharmacies is now an
NMC store. Expansion will
continue to focus on the Central and Eastern provinces,
targeting areas that have the
required population density and income levels to make new
store openings viable.
As part of NMC’s strategic
focus on becoming an integral
and innovative player in Saudi
Arabia’s healthcare system, the company has launched a five-year plan with Bostonbased Joslin Diabetes Center,
an affiliate of Harvard Medical
School, aimed at eliminating
diabetes in the Kingdom in every
way possible.
The company’s multi-million
customer base will soon be
served by one of the biggest
loyalty programs ever
undertaken in the Middle East.
After extensive IT development
work in 2013, the program is due for launch in March next year, giving customers
unprecedented access to
promotions and incentives.
Further upgrades to IT systems
have enabled improved
inventory management and control of expiry dates.
Initially, 10 pharmacies are
being transformed into Diabetes
Wellness Resource Centers in
cooperation with the Ministry of Health. They will concentrate
on diabetes awareness and
planning, providing advice on
disease risk and prevention, good
dietary habits, exercise, and
making smart lifestyle choices.
They will also provide screening
and diagnosis services, in line
with the corporate mission to provide the community with accessible, reliable, and
affordable healthcare.
10 11 12 13
10 11 12 13
Nahdi
pharmacies
network (branches)
Nahdi
pharmacies
customers (millions)
Red Sea Markets
Red Sea Mall’s popularity is evident in the footfall,
with 2013’s 14.2 million visitors up from 12.8 million
a year earlier.
Mohammed Alawi, CEO of Red Sea Markets
(right), receiving Red Sea Mall’s accolade as one of Saudi Arabia’s Top 100 Brands.
Red Sea Markets is the owner
of Red Sea Mall. The company
was established in 2004 and is 49.5 percent owned by
SEDCO Holding, with the
remaining shares held by a
group of Saudi businessmen.
Red Sea Markets leases more
than 24 outlet categories of retail
space in the mall, from shops
of different sizes to restaurants,
food court, kiosks, and storage
space. Gross lettable area
amounts to 110,000 m², with
around 485 tenants, including a five-star hotel.
32
The company also leases
advertising space, for static and digital signage inside the
mall and in the parking area,
primarily to media companies.
Red Sea Mall is the only
shopping center in the Western
region with a five-star hotel and a premium office tower
(SEDCO Tower which has a
gross lettable area of 10,549 m²).
The 156-room hotel, which has a spa and banquet and wedding
halls, is leased to Elaf, a SEDCO
subsidiary, until 2029.
Female apparel and unisex
apparel brands are the largest
tenant category in the mall,
occupying 53 percent of the
retail area.
The company aims to increase
these segments as the brands
attract a large number of visitors
from multiple consumer groups.
The mall’s popularity is evident
in the footfall, with 2013’s 14.2 million visitors up from
12.8 million a year earlier. This growth reflected the
benefits of shifting the tenant
mix up-market and attracting
teenagers and young adults
through extended entertainment
areas. The third phase of tenant
mix changes saw 123 new
brands enter the property
during the year, including 63 new concepts that are firsts
in the Saudi market.
Red Sea Mall’s market share
increased during the year from 27 percent to 34 percent,
measured by gross retail sales.
Sales per square metre rose
proportionately.
The installation of power
generation facilities during 2013
is contributing to significant
cost reduction. The plant was
established on build-operatetransfer basis and became fully
operational in September.
The mall’s achievements in
2013 were recognized by being
listed in Saudi Arabia’s Top 100 Brands. The mall was also
nominated in four categories of the International Council of
Shopping Centers’ Middle East
and North Africa awards: Cause
Related Marketing Campaign;
Sales, Promotions, and Events;
Social Media; and Global CSR.
Ewaan
Bonnon Coffee
Universal Shelves
The first phase of Alfareeda project
is scheduled for delivery in the first
quarter of 2014.
Five new Bonnon outlets were added in 2013 and
the company’s three-year strategic plan targets
further aggressive expansion.
The company invested heavily in 2013 to improve
its production capacity and introduce a steel painting
capability as a complementary line of business.
Bonnon is a homegrown Saudi
alternative to the global coffee
brands and is 34 percent owned
by SEDCO. Established in 2006,
Bonnon has evolved as a serious
competitor to the international
chains, capitalizing on high
standards of product quality and
commitment to customer care.
SEDCO holds a 30 percent
interest in Universal Industrial
Shelves. The Company’s factory
is located in the Industrial City in Jeddah and produces
bolt-free shelving, multi-tier
shelving, additional mezzanine
levels, long-span systems,
carton live systems, platform
mezzanine systems, pallet
racking, mobile shelving, lateral
mobile shelving, trolleys and
steel lockers.
From left: Mr Riyadh Al Thaqafi (Ewaan CEO)
and Mr Anees Moumina
(Ewaan Chairman) at the ceremony where
Ewaan gifted a villa to a
winner from the Jeddah
Ghair Festival.
34
SEDCO Holding has a 20 percent
interest in Ewaan Global
Residential Company, a Saudi
developer of affordable housing.
The company is a partnership
with the Islamic Corporation for Private Sector Development
(affiliated to the Islamic
Development Bank), the Public
Pension Agency, and International
Investment Bank (IIB). SEDCO
Holding’s CEO, Anees Moumina,
is also Chairman of Ewaan.
Almayaar is Ewaan’s second
project in Jeddah – a 330,000 m²
site in Dahban Village, adjacent
to Alfareeda. The overall concept is to create a fully
integrated landmark
community, with affordable
apartments for low-income
Saudis. Pre-development
activities are still in progress
with all efforts focused on
finalizing the master plan and
securing municipality approvals.
Ewaan is developing Alfareeda,
a residential project in Jeddah,
which will comprise more than
1,700 villas on a 1,000,000 m²
site to the north of the city.
Alfareeda is the largest project
of its kind in Jeddah and will
have educational and medical
facilities, mosques, a shopping
center and a sports club, all
surrounded by landscaped
gardens and green areas. The first phase is scheduled for delivery in the first quarter
of 2014.
Development for the Limas
project in Jubail – Ewaan’s first
project in the Eastern region
– is expected to begin during the second quarter of 2014,
pre-development work having
now been completed. The gated
residential compound on a total
area of 43,500 m² will have 110
villas and 20 apartments, as
well as recreational facilities.
With 14 branches, primarily in Jeddah and the surrounding
areas, Bonnon is seeking new
locations within the city and
beyond. Five new outlets were added in 2013 and the
company’s three-year strategic
plan (2013-15) targets further
aggressive expansion,
particularly in kiosk and drive-
through models.
Sales growth in 2013 ranged
from 12 percent to 35 percent in
most outlets and operating profit
increased to 28 percent, from
six percent three years earlier.
A key priority in 2013 was the
development of coffee production
and packaging facilities to secure
the required industrial and
marketing capabilities, along
with sourcing ‘green’ coffee
from international markets with high quality standards and qualifying for ISO: 22000
certification of operational and production processes.
Major renovation planning of
the Red Sea Mall branch was
completed, in cooperation with
a European firm specializing in the design and furnishing of coffee shops. An IT project
completed the development and integration of finance and operating systems, while
packaging and serving tools
were also enhanced.
For the coming year, key
priorities will be further strategic
growth with more new outlets
due to open, new packed
products introduced, and a
higher level of branding activities
focusing on the core business.
Universal’s marketing arm,
Arcoma, sells the company’s
products, mainly to domestic
customers, with 15 percent
exported to Egypt, Jordan, and
some Gulf states.
Revenues have increased by
five percent annually from 2011
to 2013. The company invested
heavily in 2013 to improve its production capacity and
introduce a steel painting
capability as a complementary
line of business.
Ejada
Al Mahmal Development
Al Mahmal Trading
Arabian Farms
Ejada now has six offices and several
channel partners across eight countries
in the MENA region.
Al Mahmal Center’s total leasable area extends to 12,000 m²
and occupancy has been running at close to 100 percent for
the past six years, with an extensive waiting list.
Significant contracts during 2013 including a
three-year deal for facility management at the
National Guard headquarters in Jeddah.
A feasibility study has been
commissioned for broiler
chicken production in the UAE.
Ejada, which is 30 percent owned
by SEDCO Holding, is one of
Saudi Arabia’s largest regional
information technology solutions
and services companies.
Headquartered in Riyadh, it was formed in 2005, the result
of a merger between three of
the Kingdom’s leading local IT
solutions and services specialists.
Al Mahmal Real Estate was
established in 2004 to manage
the Al Mahmal Center in
Jeddah, which is 79 percent
owned by SEDCO Holding. The name of the company
changed in 2013 to Al Mahmal
Development, more accurately
reflecting its activities as a
property operator and manager.
SEDCO Holding owns an 80 percent stake in Al Mahmal
Trading, a facilities management
specialist. Formed in 1988, the
company takes responsibility
for client properties such as shopping malls, bank
headquarters, hospitals, office towers and residential
buildings. Services include
operation and maintenance,
janitorial and housekeeping,
security and safety, and project
engineering and support.
The company has since built a
strong branding and expanded
its offerings, strategic alliances
with international technology
partners, client reach, and
regional presence. Ejada now has
six offices and several channel
partners across eight countries
in the MENA region, specializing
in providing large enterprises
comprehensive IT consulting,
system integration, application
development, and infrastructure
management services.
36
With strategic partners such as IBM, Oracle, Microsoft, SAP,
and HP, Ejada services cover a wide range of cross-industry
and industry-specific technology
and business solutions. Major clients include financial
institutions, telecoms companies,
the oil and gas industry,
government, education, and
healthcare sectors.
During 2013 Ejada maintained
its high level of Saudization as it
secured significant new contracts
that diversified its client base in banking, government, and
telecommunications – three of its most important sectors.
These contracts, and a growing
pipeline of new business, are
largely attributable to intensified
marketing efforts, leading to improved awareness and
perception of the company’s
resources and capabilities.
The company is responsible for leasing and management of the seven-story center, which
comprises 90 shops, 27 kiosks,
21 stands, and a food court with 23 outlets. Total leasable
area extends to 12,000 m² and
occupancy has been running at close to 100 percent for the
past six years, with an extensive
waiting list.
A 550-bay parking block is
connected to each floor of the
Al Mahmal Center, generating
income through hourly parking
fees for visitors, as well as
long-term rentals to employees
in neighboring companies.
Superior design, formidable
operations and an excellent
retail mix have made Al
Mahmal Center one of Jeddah’s
most sought after shopping
destinations, providing a
one-stop venue for fashion,
lifestyle, and food.
A three-year business plan
focuses on reduction of operating
costs and increasing revenue by controlling expenditure and developing unused space
for leasing and advertising. A marketing survey was
conducted by a specialist
marketing company in 2013 and the recommendations will
lead to new initiatives in 2014.
Several staff members from Al Mahmal Development
underwent specialist training
during 2013 and further budget has been allocated for
marketing and management
training over the next year.
The company has been ISO
certified since 1999 and
operates the latest facilities
management software.
Professionalism is fundamental
to the company’s record of
achievement, transferring skills and competence through
intensive on-the-job training,
while continuously monitoring
and evaluating its systems to
comply with the latest trends
and industry best practice.
The company signed several
significant new contracts
during 2013 including a
three-year deal for total facility
management at the National
Guard headquarters in Jeddah,
which also represents an
important step in securing
more Government projects.
Al Mahmal Trading was also
selected as a certified contractor
for Honeywell International,
responsible for installation and
maintenance of its business
management system, fire
alarms, heating, ventilation,
and air-conditioning controls,
and CCTV systems.
At the Dr Soliman Fakeeh
Hospital in Jeddah, the company
was awarded a contract to
restore and renovate the
operations and surgical rooms.
National Commercial Bank also
appointed Al Mahmal Trading to undertake branch renovations,
reflecting the company’s
expansion into restoration and
modernization projects.
Midas, Jeddah’s largest home
furniture showroom, appointed
Al Mahmal Trading to a handle a
two-year janitorial contract at its
premises in King Abdulaziz Road.
The new business secured in
2013 underlines the company’s
progress towards becoming one of the top five service
companies in Saudi Arabia and increasing its customer
diversity. In 2014, it plans to open a branch in Riyadh,
further increasing capability to
secure Governmental projects
and renovation contracts.
SEDCO Holding owns 26 percent
of Arabian Farms Development
Company Ltd which was
established more than 30 years
ago and specializes in the
production of table eggs. The company operates two
farms, one in the Al Kharj area of Saudi Arabia, about 30 km south of Riyadh, which
covers 40 hectares of fullyowned land. In the United Arab
Emirates, the farm in Lehbab
on the Hatta-Oman road is on a long-lease property of 7.2 hectares.
In the third quarter of 2013, the
company began a rehabilitation
program to replace some of the older farms in Al Kharj,
also adding two new farms in Lehbab. Arabian Farms also
signed an agreement with a
leading poultry consultant from
Belgium to prepare a detailed
feasibility study on starting its
first broiler chicken production
in the Al Ain area of the UAE.
Tazweid
Dar Al Fouad Hospital
Tazweid’s focus was initially
internal, until it began to
receive an increasing number
of external enquiries.
Dar Al Fouad’s Cairo hospital operated at roughly
90 percent of capacity throughout 2013, in line with
the previous year’s level.
Dar Al Fouad Hospital is a
tertiary healthcare specialist
concentrated on cardiology,
cardio-thoracic surgery, and organ transplants. It is
headquartered in Cairo, where
it operates a 142-bed hospital,
and also has a series of
outpatient clinics in Kuwait.
Dar Al Fouad Hospital was the first healthcare provider in Egypt to be accredited by
Joint Commission International,
the global ‘gold standard’ of healthcare quality, and has about 1,400 employees,
including doctors, nurses and
administrators.
SEDCO is a lead investor in Dar Al Fouad Hospital with a
26.5 percent stake, along with
the World Bank’s International
Finance Corporation, Kuwait
Investment Authority, National
Bank of Egypt, Bank of Cairo, and Egyptian National
Insurance Company.
A second facility planned in
Cairo – Nasr City Hospital – will
have 168 beds. It consists of
three basement levels, ground
floor, and an eight-story tower
– accommodating a five-star
hospital with five operating
theatres and 200 physician
clinics. Groundwork has been
completed, and mechanical/
electrical work is due to begin.
Construction and financing of an Oncology Centre at the main Cairo hospital has
been approved, and selection of a contractor is in process.
38
The new building will be
annexed to the existing main
building and will have a working
area of 3,500 m² spread over
four floors and accommodating
31 beds and 17 clinics.
The Cairo hospital operated at
roughly 90 percent of capacity
throughout 2013, in line with the previous year’s level.
With the volume of patients
rising, this figure may well be
exceeded in 2014. Substantial
devaluation of the Egyptian
currency during 2013 resulted
in higher expenses for the year,
while political turmoil negatively
affected budget targets.
In Kuwait, an in-vitro fertilization
license was received in March
and the number of patients
grew steadily over the remainder
of the year.
Tazweid was established in
2012 to meet SEDCO Group
companies’ requirements
facility Management, Services
and Maintenance requirements
across a different range of
industries (Hotel facilities,
hospitality, food & beverage and general maintenance). This includes maintenance and cleaning of hotels and
resorts to facility management
operations, restaurant staffing,
and tourist facilities.
Its initial focus was on servicing
sister companies within the
Group, but in 2013 it managed
to handle an increasing number
of service requests from
external customers.
Tazweid seeks to be a leader in providing the best services
within its scope of work, focusing
on Saudization and social
responsibility, maintaining a high
quality of service, and providing
competent and capable staff
who can fulfill expectations.
Egypt Hydrocarbon Company
CNA Group and Green Packet
Construction of the ammonium nitrate
plant is due for completion by the third
quarter of 2014.
SEDCO holds a 20.8 percent
share in the Egypt Hydrocarbon
Company (EHC) ammonium
nitrate plant being built in the
industrial zone at Ain Sokhna,
inland and west of the Gulf of Suez.
Construction began close to
three years ago and is due for
completion by the third quarter
of 2014. EHC will then have
annual production capacity for
386,000 tons of mining grade
ammonium nitrate, which is used in the manufacture of blasting explosives for the
mining industry.
The 200,000 m² of production
facilities are being built on a site of 500,000 m² and will
employ about 220 people when
fully operational.
Once commissioned, the plant
will operate round-the clock
and seven days a week, with
shutdowns for inspection and maintenance scheduled
every two years. The major
components of the plant have
been designed to have an
operational life of more than 30 years and a maintenance
building staffed with dedicated
skilled labor will support all maintenance activities for the facility.
For strategic reasons to
consolidate our footprint, in 2013
SEDCO exited its investments in CNA, the Singapore-based
master systems integrator for building and facilities
management, and Green
Packet, the information
technology and communications
company headquartered in Malaysia. SEDCO still retains
a small percentage in CNA’s
UAE operations.
EHC will supply producers of mining explosive in Africa,
Europe, and Asia. The location
of the plant, with convenient
access to Mediterranean and
Red Sea shipping, creates a
significant cost advantage as
freight overheads are a major
component of export pricing for the product.
Real Estate
Saudi Arabia
Europe
MENA Region
An extensive portfolio comprises
commercial, residential, and
industrial properties as well as a substantial land bank.
Prime buildings in several European capitals form the core of a portfolio that extends to
more than a dozen countries.
Developed buildings and vacant
land are held across the region,
from Morocco and Lebanon, to Bahrain and the UAE.
America
Far East and India
Holdings in the USA range from
specialized office space to a
hospital and residential units.
From tower apartments Malaysia
to a technology park in India,
assets are highly diversified by territory and usage.
40
Business Review 2013 / Real Estate – Saudi Arabia
SEDCO owns a large and diversified portfolio of real estate in Saudi Arabia – shopping malls,
hotels, apartment blocks, office buildings, industrial units and significant areas of prime
development land across the Kingdom.
Mixed-use and Retail
Red Sea Mall, Jeddah
Red Sea Mall is one of the largest
mixed-use retail developments
in Saudi Arabia with a built area
of 242,200 m². This landmark
property comprises a major
shopping mall, a five-star Elaf
hotel and SEDCO’s headquarters
office tower.
The mall is strategically
situated in an affluent area of
north Jeddah, close to the city’s
beautiful corniche, international
airport, and many of its
commercial, leisure, and
hospitality venues. Red Sea
Mall is 49.5 percent owned by
SEDCO Holding and managed
by Intimaa, a wholly owned
SEDCO subsidiary.
SEDCO conceptualized, planned
and developed Red Sea Mall
and its grand opening took
place in March 2008.
It quickly became the premier
lifestyle destination in Jeddah
and, today, it is also the city’s
entertainment hub, with many
family-oriented attractions –
from rides, games and thrills
for children, to bazaars featuring
craft shops and specialty dining.
Galleria, Jeddah
Currently under construction in Jeddah’s Prince Mohammed
Bin Abdulaziz Street (commonly
known as Tahlia Street), Galleria
combines an upscale retail mall
and a five-star hotel, totaling
79,329 m² of built area on a site
of 8,740 m².
The development consists of
eight stories, three basement
levels, a 365 room five-star hotel,
retail units, restaurants, and
assembly rooms. The awardwinning architectural design
features a classical facade that
encloses a contemporary core.
SEDCO is a co-investor in this
project, which is being developed
by SEDCO Development. Another
group company, Elaf Group, will
manage the hotel.
42
Al Nakheel Center, Jeddah
Located at the corner of
Madinah Road and Falasteen
Street in Jeddah’s Al-Mosaedyah
district, Al Nakheel Center
comprises two office buildings
supported by a retail complex
fully-owned by SEDCO. Total
built area extends to 25,417 m²
on a site of 15,437 m².
Al Mahmal Center, Jeddah
SEDCO developed the Al Mahmal
Center in central Jeddah and is co-investor in the shopping
complex that pioneered new
concepts in organized retailing
when it opened in 1985.
With more than 35,000 m² of
built area, Al Mahmal Center
has a good mix of retailers –
from luxury goods to mass
consumer products, casual
dining and fast-food outlets.
The seven-story structure is
connected to the adjoining office
tower by an elevated walkway.
Al Khaimah Commercial Center
(Tent Souk), Jeddah
SEDCO is a co-investor in Al Khaimah Commercial Center,
with 50 percent ownership of
the mixed-retail complex that
occupies a 49,602 m² site on
King Khaled Road in Jeddah’s
Al Handawia district. The center
maintains 99 percent occupancy,
contributing to average annual
revenue increases of seven
percent from 2009 to 2013.
Al Sabeel Retail, Jeddah
The Al Sabeel shopping center
is wholly-owned by SEDCO and
located on a site of 2,483 m²
close to Makkah Road in
Jeddah’s Al Sabeel district.
Al Sabeel, Jeddah
This mixed-use development
comprises a petrol station,
warehouse and offices, and is located on a 5,100 m² site on the corner of Old Makkah
Road and King Fahad Road.
Hospitality
Elaf Kinda, Makkah
Located close to the Holy
Haram, this five-star hotel
property is wholly-owned by
SEDCO and operated by the
Group’s tourism, travel and
hotels subsidiary, Elaf Group.
A range of single and double
rooms and deluxe suites are elegantly decorated and furnished in a modern
contemporary style, having
recently been renovated.
The hotel also offers four
restaurants and a range of
other facilities to enhance
visitors’ experience as they visit the Kingdom’s holy sites.
Elaf Al Sud, Makkah
Only five minutes’ walk from the Holy Haram, the four-star
Elaf Al Sud has 204 rooms and
suites, providing accommodation
types to meet all requirements,
including VIP suites. SEDCO is
a co-investor in the property.
The hotel is linked to the Holy
Haram by an underground
passage and also provides a 24-hour shuttle bus service
for pilgrims.
An extensive range of restaurants
and coffee shops can cater for
formal functions or serve as
casual meeting spots. The main
facilities can accommodate
more than 150 people and offer a variety of oriental and
international cuisine. Smaller
venues serve groups or
individuals according to their
particular needs. A fully-equipped
multifunction conference room
seats up to 100 guests, with
exclusive catering facilities.
Elaf Bakkah, Makkah
Opened in late 2013 in the
Mahbas Al-Jin district, this
impressive 15-story hotel has 810 keys, a prayer area,
retail outlets and two floors of parking. Guest facilities
include a mezzanine-level
coffee shop and a full-service
restaurant on the first floor.
The development is wholly
owned by SEDCO and managed
by Elaf. Total built area extends
to 60,000 m² on a site of 3,651 m².
Residential
Al Mojama Building, Jeddah
Fully-owned by SEDCO and
comprising serviced apartments
and strip retail, Al Mojama
occupies a site of 2,508 m² at the corner of King Abdulaziz
Road and Salahuddin Road in the Al Balad area of Jeddah.
Al Bairoti Building, Jeddah
A mix of residential units with a small retail component, Al Bairoti has a built area of
13,793 m² on a 2,755 m² site on Jeddah’s Old Makkah Road.
The property is wholly-owned
by SEDCO.
Business Review 2013 / Real Estate – Saudi Arabia continued
Business Review 2013 / Real Estate – International
SEDCO owns and manages a diverse and extensive portfolio of global real estate, ranging from
prime city center properties in some of the world’s great capitals to vacant land with good potential
for high-yield development.
Al Soror Building, Jeddah
Al Soror is located close to Al Bairoti in downtown Jeddah
and has a similar mix of
residential and retail tenants.
Built area amounts to 15,800 m²
on a site of 3,744 m².
Bab Al Shareef Building, Jeddah
Located in the Balad area of
Jeddah, Bab al Shareef includes
a mix of residential units
supported by a small retail
element. It has a built area of 4,541 m² on a 570 m² site.
Al Sohaifa Building, Jeddah
Another similar mixed-use
residential and retail property
located on the corner of Old
Makkah Road and King Fahad
Road in Jeddah, Al Sohaifa has 10,484 m² of built area on a 1,200 m² site. It is also
wholly-owned by SEDCO.
44
Golden Belt Compound,
Al Khobar
A medium-size gated compound
of 143 units, acquired in 1994 by SEDCO as a co-investor. The development is located on a prime site of 46,000 m²
beside Al-Khobar Mall in the
area between Dammam and
Al-Khobar known as the Golden
Belt district.
Investment
Industrial
Various locations across
Saudi Arabia
SEDCO has significant holdings
of prime undeveloped land
across Saudi Arabia. Individual
sites are located in Riyadh, Taif,
Madinah, Abha, Yanbu, Makkah,
Jizan and Jeddah.
Al Naseem Warehouse, Jeddah
Occupying a site of 88,533 m²
on King Abdullah Road, this
warehouse complex is whollyowned by SEDCO.
Karboos Warehouses, Jizan
Located on King Faisal Road in Jizan’s Karboos district, this warehouse and strip retail
development on a 43,904 m²
site is wholly-owned by SEDCO.
SEDCO Capital Real Estate
Income Fund – I
In 2012 SEDCO acquired a
strategic stake in this Saudi
income-generating fund. The
fund has already secured three
properties in the residential,
retail and office sectors.
Land Bank
During 2013, further compulsory
purchase by Government led to
the disposal of sites in Madinah.
The proceeds are planned to be
reinvested in various new real
estate assets, from vacant land
to developed sites within Makkah
and Madinah. Acquisitions in
Makkah included a prime piece
of land in close proximity to the
main Makkah railway station.
Several new development
projects are in the various
stages of planning. These
include a residential masterplanned community in Makkah, a luxury residential
compound in Jeddah, a retail
development in Jeddah and a
mixed-use hotel and residential
development in Jeddah.
Priorities in 2014 include
execution of the development
pipeline, ongoing replacement
of assets that were subject to compulsory purchase, and
leasing of undeveloped lands.
SEDCO Holding works closely
with its subsidiary Intimaa on land sale and lease, with
SEDCO Development on
development projects, with Elaf
on operations of hotel assets,
and with SEDCO Capital on
structuring and investments in real estate funds.
The Americas
Avion-Galderma,
Fort Worth, Texas
This mixed-use Grade A
property comprises roughly
16,000 m² of office and
industrial/distribution space on a 1.5 ha site, fully occupied
by Galderma Laboratories, the joint venture between
Nestlé and L’Oréal specializing
in dermatological care. An
income-generating investment,
it is expected to generate
double-digit return upon exit.
Sorelle, Atlanta, Georgia
The Sorelle Apartments at
Lindbergh is a 401-unit, mid-
rise apartment community in
Atlanta, Georgia. The property
is in the Lindbergh section of Buckhead, within walking
distance of the Lindbergh
MARTA station (Atlanta’s public transportation system).
RehabCare, Houston, Texas
This property is a new twostorey state-of-the-art inpatient
rehabilitation hospital with 46 private rooms and more than 613 m² of therapy space
on a land parcel of 1.38 ha.
BluePearl, Florida, Georgia,
Illinois, and Michigan
BluePearl is a portfolio of
veterinary medical properties.
The facilities are designed for
specialty care, surgery, and
animal emergency services.
Palmilla, Los Cabos, Mexico
Palmilla is one of the world’s
most luxurious master-planned
golf communities, located at
the southernmost point of Baja
California along the Pacific
Ocean and the Sea of Cortez.
The property is spread over 194 ha and includes a 115-room
five-star hotel, Jack Nicklaus
signature course, homes, villas,
and sites for custom-build.
Garrett West, Durham,
North Carolina
The newly developed Class A multi-family apartment
property is located 4.5 km
southwest of Duke University
and 8.0 km northeast of
University of North Carolina,
Chapel Hill, and is near major
employment and entertainment
hubs. The three 13-story
garden-style apartment
buildings have a total of 308
units and are 95% leased.
Business Review 2013 / Real Estate – International continued
Europe
120 High Street, New Malden, UK
This multi-tenanted office and
retail property in the southwestern London suburbs has
been held by SEDCO since 1995.
Solaris Court, Milton Keynes, UK
SEDCO has held a strategic
stake in this single-tenant
income-generating property in
the new town of Milton Keynes
to the north-west of London
since 1993. The building has
recently been refurbished and
is subject of a long-term lease.
Avio Trade Park, Hoofddorp,
Amsterdam, Netherlands
This multi-tenanted office and
industrial complex in the
Netherlands capital has been
owned by SEDCO since 2005.
Some of the space is currently
being refurbished to enhance
letting appeal.
Media Square, Brussels, Belgium
Media Square is a multitenanted and income-generating
office property in the Belgian
capital that has been owned by SEDCO since 2005.
Panorama Shopping,
Parma, Italy
Panorama is a shopping center
in the Italian region of EmiliaRomagna, anchored by a
leading supermarket with the
balance of the space occupied
by complementary retailers.
SEDCO has owned the incomegenerating property since 2004.
46
Germany funds
Two investment funds in Germany
(SEDCO has a majority stake in one of them) hold diversified
portfolios of income-generating
properties. These include a concentration of mixed-use
assets in the Berlin area.
EURX Properties Fund,
Luxembourg
SEDCO has a strategic stake in
this fund that controls 26 income-
generating retail and office
properties in 11 countries.
SEDCO has held this investment
since 2006 and now plans an
orderly realization of profits
over the next three years.
Far East and India
Grand Central, Dalian, China
SEDCO acquired the mixed-use
Grand Central property in 2008
as a capital gain investment. It comprises a site area of more
than 21,000 m² and 110,000 m²
of offices, retail space, and
serviced apartments. The
investment has been restructured
and a partial exit completed.
Limetree Beachfront Land
Fund: Thailand, Cambodia,
Vietnam, Australia
SEDCO holds limited
partnership rights in this fund
that is acquiring beachfront
sites in the Asia-Pacific region
with potential for hotel, resort
and villa development. Value is added by improving access,
zoning, and master planning.
The fund manager is currently
assessing further sites in
Indonesia and Sri Lanka.
Somerset Serviced Apartments,
Kuala Lumpur, Malaysia
SEDCO acquired a strategic
stake in this prime residential
property in 2006. Located in the
Malaysian capital’s busy Bukit
Bintang shopping district, it
offers short-stay and long-stay
accommodation to business
and leisure customers.
Bearys, Bangalore, India
Bearys Global Research
Triangle is a Platinum LEED-certified information
technology and research park development acquired by SEDCO as a capital gain
investment over 2007-09. This
project of more than 100,000 m² is now completed and leased to a multinational tenant.
Zonah’s Pearl Valley Project,
Hyderabad, India
SEDCO holds a strategic stake
in the land sub-division
development that will offer
independent housing plots. The market has been hit by the
financial crisis and political
turmoil in the state of Andhra
Pradesh. The development is
currently on hold and sales will
resume when market conditions
improve, although projected
returns are still very positive.
GCC Region and Levant
Land bank, Lebanon
SEDCO owns a land bank in the Aramon, Ras Beirut, and
Bhamdoun districts with total
area of 307,595 m². The land is close to Beirut International
Airport overlooking the sea. A sales program began in 2011
and will continue until full exit
is completed.
Land bank, United Arab Emirates
SEDCO owns plots in Sharjah’s
Al Nahda district. It has also
owned land on the Ras Al
Khaimah corniche since 2006,
which forms part of a major
government development plan
involving resorts, hotels, and
residential units.
Financial Investments
Public Equity
Private Equity
Bank Muamalat Indonesia
Public equity portfolios span the globe and are managed using
passive and active approaches.
From developed to emerging
markets, strategies appropriate
to each region and investment
class adhere to guidelines
that have been fine-tuned by
managers and Islamic scholars.
Private equity is globally
diversified by region, business
sector, management style, and
investment class. Primary funds
and direct co-investments that
are in growth or expansion are
the main focus, as well as new
opportunities in agriculture and
alternative energy.
stake in BMI, having first
acquired a 21.3 percent stake in 2005. Bank Muamalat
Indonesia (BMI) was established
in 1991 as the first Shariah bank
in Indonesia.
48
Business Review 2013 / Financial Investments
Public Equity
SEDCO is a pioneer in investing
in global Shariah-compliant
equities, having refined the
commonly-used guidelines in collaboration with Islamic
scholars and several other
institutions. We have helped
managers around the world to build Shariah-compliant
strategies, alongside their
conventional offerings.
SEDCO collaborated with Dow
Jones to make available the
extensive family of Islamic
indices used by the industry
today to benchmark Shariahcompliant equity managers. We
have also been creative in looking
into new ideas such as adding
ESG (environment, social, and
governance) screens to become
not only Shariah-compliant
investors, but also socially
responsible investors (SRI).
Three mandates have now been
converted to ESG-compliance.
50
In a year that saw developed
markets outperform emerging
markets for the first time since the financial crisis, our
overweight position in developed
markets paid off. We were also
overweight in Saudi Arabia in a year when the index returned
18.3 percent year-to-date at the end of October – the highest
rise in three years. Considering
as well our underweight
commodities since the beginning
of the year, our global liquid
assets portfolio was yielding
14.1 percent year-to-date at the
end of October.
SEDCO Capital has eight
strategies in place for investing
in different regions and asset
classes, including the USA,
global high-dividend yield,
emerging markets, real estate
investment trusts, Saudi Arabia,
and commodities. During 2013,
we added five new names to our
list of fund managers. They will
offer new strategies for investing
in emerging markets, Europe,
Asia Pacific, and global Sukuks.
Our investment philosophy is centered on the ability to
identify superior managers, as
well as adding value through
global asset allocation. A new
structure is currently being
developed based on mapping a
number of different investment
allocations (themes, styles,
regions and industries) across
liquid asset classes from
Shariah and SRI perspectives.
This will offer an asset
allocation matrix that is an
alternative to the traditional
method of solely using asset
and regional allocations, better
equipping SEDCO Capital
during different market cycles.
We remain well placed to
maintain this approach by
leveraging more than 18 years’
of experience in identifying and
managing top tier managers.
The value of these relationships
to the firm has become more
significant than ever.
Private Equity
We continue to grow our private equity program globally
across diverse industries,
structures, and geographies –
investing in primary funds and
direct co-investments focusing
on growth equity.
During 2013, we explored new
opportunities in consumer,
agriculture, healthcare, and
technology sectors with leading
international private equity
managers. We also continued
to make several co-investments
in diversified sectors as
co-managers of the SEDCO
Capital Partners Group
Opportunities Fund.
In 2013, the program made
several exits from the underlying
portfolio companies, across
different private equity
managers around the world.
The growth program generated
a total realized and unrealized
multiple of 1.6x and a realized
multiple of 2.6x.
Continuing close cooperation with
a group of top-decile private
equity managers in developed and
emerging markets has helped us
identify new investment themes
and emerging trends to sustain
the returns of our private equity
program. Our private equity team
has evaluated more than 100
private equity managers to refine
the optimum investment strategy
against the prevailing economic
and investment conditions. The firm’s diligent approach to
partnering with the top managers
places us in a strong position to meet future challenges.
Bank Muamalat Indonesia (BMI)
was established in 1991 as the
first Shariah bank in Indonesia.
It is headquartered in Jakarta
and has a distribution network
that includes 42 branches, 13 sub-branches, 83 cash offices,
and 47 service points covering
all the provinces of Indonesia.
The bank is engaged in retail
and commercial banking and
offers a wide range of Shariahcompliant financial products.
stake in BMI, having first
acquired a 21.3 percent stake in 2005. Among the other major
shareholders are the Islamic
Development Bank, Boubyan
Bank of Kuwait, Bank Rakyat of Malaysia, and prominent
individual Indonesian investors.
BMI’s total assets increased by 16.1 percent in 2013, taking
compound annual growth since
2010 to 34.3 percent, largely
due to strong growth in financing,
securities, and placement.
Asset growth for the year was
significantly higher than the
11.1 percent recorded by the
banking sector as a whole and
reflects sustained demand for
Shariah banking where BMI is estimated to hold about 22 percent market share. The performance keeps BMI on track with its strategic plan
to become one of Indonesia’s
top 10 banks by 2020.
Among many awards received
in 2013, BMI was rated Best
Islamic Financial Institution and Best Islamic Local Bank in Indonesia for the fifth
successive year, and Most
Innovative Islamic Bank for the second year running.
Arviyan Arifin, President of
(left), receiving the trophy
for ‘Best Islamic Finance
Bank’ from Siddiq
Bazarwala, CEO of Alpha
South East Asia.
BMI has produced a clear
strategic roadmap for 20092020, with detailed targets and
deliverables for each division.
Restructuring began in 2009
and focuses on all the Bank’s
business lines, products,
services, and operational and cost improvement. This
supports the long-term goal of achieving ‘Qualified ASEAN
Bank (QAB)’ status in the
Shariah category when the
ASEAN Banking Integration
project is implemented in 2020.
Corporate Social Responsibility
SEDCO is committed to supporting the welfare and development of individuals and communities
across Saudi Arabia and invests in a range of corporate social responsibility activities, recognizing
that business success brings a responsibility to contribute to advancing the economic and social
development of communities where it has a presence.
Appreciation Awards for Support
Services Employees
SEDCO’s social responsibility
efforts focus on serving its
employees, the sectors it
operates in, the environment
and the broader community.
Group companies make a very
positive impact on many aspects
of Saudi society and, internally,
SEDCO’s commitment to
sustainability takes diverse
forms. Externally, the company
seeks to propagate the values
and principles adhered to in its own business dealings. As an Islamic private wealth
management company, SEDCO
is strictly observant of Shariah
guidelines in all its transactions,
while furthering global
understanding of Saudi society’s
cultural values.
In its second year, SEDCO’s
Riyali financial literacy program has grown to become
a national movement of youth
empowerment that has been
well received by the Saudi
community and acknowledged
by the country’s leaders.
52
Riyali has won many awards,
chief among them the Makkah
Excellence Award in Social
Responsibility in 2013.
Riyali continued to educate
college students and now has reached four cities across the Kingdom with more than 300 volunteer
instructors trained and 2,500
college students completing
in-class tuition. Riyali now has more than 30,000 followers
on social media.
Further expansion will see
Riyali take full effect in 2014,
including a new curriculum for school students in Grades
4-6. Initial results from the pilot phase have been very
promising. A mobile app were
introduced late in 2013, further
building on the program’s
success and ensuring a wider
distribution of awareness as
well as tools that enable young
people to properly plan for their
future by acquiring the skills to
manage their personal income.
Emphasis on environmental
awareness continued with the
introduction of recycling schemes
for paper and plastics. Colorcoded bins are provided for
different types of office waste that
is then transferred to containers
and removed by a specialist
recycling company for processing.
Licensing of the Salem Bin
Mahfouz Foundation (SBMF) was
also completed during 2013. In
future, the foundation will focus
on initiatives in education, social
welfare, capacity building,
advocacy, and media sponsorship.
Corporate social responsibility
programs and sponsorships
Education – including programs
focusing on educational
excellence, scientific innovation,
and sponsoring talented students.
These programs are conducted
in partnership with GESTEN,
the Gifted Students School,
Jeddah Science Innovation Club,
the IQRA Foundation, and the
Nobility Center.
Social welfare – including
programs focusing on family
counseling, drug abuse
awareness, productive families,
and supporting young people
beginning employment. These
programs are conducted in
partnership with Al Ahyaa
neighborhood centers, Wa3i,
Mwddah, and the Family
Development Center.
Advocacy – including Shababi
City, Summer Beach, an
honoring ceremony for new
Muslims, and advocacy forums
and publications. These
programs are conducted in
partnership with Cooperative
Offices, the Ministry of Islamic
Affairs, and the Committee for the Promotion of Virtue and the Prevention of Vice.
Capacity building – including
initiatives to instill values and
ethics, develop skills, train NGO employees, and develop
women in the work place.
These programs are conducted
in partnership with Al Ahyaa
neighborhood centers, youth
teams, Effat University, various
community institutions, and the
Nobility Center.
Media sponsorship – including
various television program
sponsorships for Mafahim 5, Al Rasif, The Quran Competition,
Dolab Al-Alaab, Al-Khanaz and
Al-Wesam (4shbab channels 1 and 2), and Canary TV channel
for children.
SEDCO Group Stars
Launch of the SEDCO Group
Stars program in 2013 marked
the advent of a new era in
SEDCO’s approach to manpower
development. The program is
designed to recognize and
improve the skills of employees
who show exceptional
performance, behavior, and
leadership skills that have
contributed to boosting the
Group’s quality and performance.
To achieve the program’s goals,
a committee consisting of one
member from each SEDCO
company was formed to
manage the program under the
direct supervision of the Group
CEO. The committee reviews
nominations, assesses
employees’ performance, and
sets criteria for nominations
and selection.
A Brief History of SEDCO
SEDCO – Saudi Economic and Development Company – was founded in 1976 by the late Sheikh Salem Bin
Mahfouz, growing from a small trading and construction contracting business in Jeddah to become one of
Saudi Arabia’s largest conglomerates and a global force in Shariah-compliant private wealth management.
Sheikh Salem’s life story is a
remarkable tale of vision and
commitment that enabled him
to overcome a lack of schooling
and an impoverished childhood
to become founder and
chairman of the National
Commercial Bank (NCB), the
first Saudi bank, which was
established in 1953 and grew to become the Middle East’s
largest financial institution.
When Sheikh Salem died in
1994, his estate was inherited
by his widow, five sons, and
seven daughters. While his son
Khalid decided to concentrate
his assets in the National
Commercial Bank, the rest of
the family focused on SEDCO as their investment and wealth-
management vehicle.
54
In 1996 they formed the first
SEDCO Board of Directors
consisting of the four brothers –
Mohammed, Saleh, Abdelelah,
and Ahmed – as well as four
members from the local and
international business leadership.
Meantime, the scale and
diversity of SEDCO’s operations
grew apace, focusing on
long-term investments and
trade opportunities. After the
death of Sheikh Salem, the
Company’s first Executive
Committee was formed,
followed by reorganization as a holding company and the
establishment of the first Board
of Directors to include nonfamily members. With Sheikh
Mohammed as Chairman and
Sheikhs Saleh, Abdelelah and
Ahmed as Board members, the
Company set up new strategies
for growth and progress.
Sheikh Mohammed led the
transformation of SEDCO into a pioneering world-wide
corporation, diversifying
steadily into virtually every
asset class available to private
and institutional investors, in the process becoming a
major wealth management
organization working on behalf
of the Bin Mahfouz family.
Milestones on SEDCO’s
expansion path included the
release of its first product for
third-party investors outside
the company – the Al-Fanar
Fund – in collaboration with
Permal Asset Management
(1998); launch of the world’s
first global Islamic timber fund
in partnership with UBS (2000);
securing the Applebee’s
franchise for Saudi Arabia
(2001); acquiring 50 percent of Al Nahdi Pharmacies (2004);
and launching the world’s first Islamic hedge fund, in
partnership with Permal Asset
Management (2003).
In 2006, SEDCO acquired 30 percent of Ejada, a leading IT services provider in Saudi
Arabia; and 25 percent of Dar Al Fouad, a tertiary care hospital
in Egypt.
Major property developments
during the 1980s and early
1990s include the Al Mahmal
Center in Jeddah, still
considered a vibrant component
of the city’s central business
district; Metro West in Orlando,
Florida; and the JPMorgan
Chase building in Houston,
Texas, which is the state’s
highest skyscraper.
SEDCO’s first phase of
corporate restructuring and
diversification was rooted in HR development, best practice
work mechanisms, and
outcome-based performance.
The philosophy extended to the
creation of the management
hierarchy within the Company,
attracting highly skillful asset
management and investment
personnel, and the establishment
of dedicated operating groups
for Financial Investment, Direct
Investment, and Real Estate.
In 2010, SEDCO Holding was
established as the parent
company, responsible for all
wholly owned subsidiaries and
overseeing partnership holdings
in associate companies, in
adherence to a sophisticated
new governance approach based
on best international practice.
By separating the ownership and
management of the Company, a highly effective and globally
specific team was created,
contributing significantly to
SEDCO’s relentless progress to higher levels of success. In 2004, Shuaib Ahmed was
appointed as the first CEO from
outside the owning family, and
SEDCO’s resolute commitment
to corporate governance is part
of his enduring legacy. He was
succeeded in 2007 by Ahmed
Banaja and in 2010 Dr. Adnan
Soufi became CEO for the next
three-year term, with Anees
Moumina taking over from the
beginning of 2013.
SEDCO Capital was created
from the Financial Investment
Group after being licensed by
the Capital Market Authority
(CMA) to offer a range of asset
management services to
third-party investors. The Real
Estate Group was reorganized
into SEDCO Development, Elaf Group and Eimar Arabia.
Boards were appointed for all
the Group companies – each
taking a principal role in the
added-value process and
reflecting SEDCO’s response to market changes.
Today, SEDCO has successfully
bridged the old and the new,
building on a heritage foundation
of vision, hard work and integrity
to create a multinational and
multi-faceted group.
More than a century after the
founder’s birth, Sheikh Salem’s
three sons – Saleh, Abdelelah
and Ahmed – continue to
strategically lead the company.
They are joined by non-family
directors and executives who represent a formidable
assembly of talent and global
experience. Together, they are
committed to leading SEDCO to new levels of achievement,
sharing a vision to be the
largest global entrepreneur in terms of Shariah compliant
wealth management.
Awards and Industry Recognition
SEDCO Group companies figured prominently in regional and international awards that recognized their
achievements in their respective business sectors. Red Sea Mall and Nahdi Medical were named among
Saudi Arabia’s Top 100 Brands for the first time, while Elaf maintained its record of distinction in receiving
travel and tourism industry accolades.
• Best Islamic Fund award from the Global Islamic Economy
Summit 2013.
• 4th Umrah Hajj International Tourism Fair Award
• Amadeus Consistent Partnership Recognition
• Hotelier Magazine: Most Powerful 50 CEOs
• Global Award for New Identity Campaign
• Makkah Excellence award in social responsibility
• Royal Caribbean Cruises: Certificate of Appreciation
• Saudi Arabia’s Top 100 Brands
• Islamic Investment Institution of the Year award at the World
Islamic Funds and Financial Markets Conference
• GTA: Excellent results and outstanding contribution and sharing success
• International Council of Shopping Centers: Middle East and North Africa award
• Islamic ESG Award at the Global Islamic Finance Awards
• Lufthansa Airline: Achievement Award for Valuable Support
• Islamic Finance Personality of the Year at the Global Islamic
Finance Awards
• Turkish Airlines: Top 5 Producer Award
• Best Islamic Financial Institution and Best Islamic Local Bank in Indonesia for the fifth successive year
• Saudi Excellence in Tourism Awards: Best Travel Agency
• Most Innovative Islamic Bank for the second year running
• Best Private Equity Fund Award at the Partners Group Awards
• WHUC Hajj Excellence Award
• Saudi Excellence in Tourism Awards: Best Service Excellence Personal
• Best Business Destination Award
• Saudi Tourism ATM Award
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Contact Directory
SEDCO Holding
www.sedco.com
SEDCO Capital
www.sedcocapital.com
PO Box 4384, Jeddah 21491
Kingdom of Saudi Arabia
Tel +9661 2 215 1500
Fax+9661 2 215 1590
Ejada
Tel +9661 2 215 1500
Fax+9661 2 690 6599
Al Mahmal Trading
www.ejada.com
www.almahmal.com
SEDCO Development
PO Box 55471, Riyadh 11534
Tel +9661 1 472 2277
Fax+9661 1 472 4772
Tel +9661 2 644 0800
Fax+9661 2 643 8375
Tel +9661 2 690 6800
www.sedcodevelopment.com Fax+9661 2 690 6899
Al Mahmal
Development
Elaf Group
Tel +9661 2 664 1233
Fax+9661 2 665 2830
Arabian Farms
PO Box 1528, Al-Khobar 31952
Tel +9661 3 857 4007
Fax+9661 3 857 2407
Dar Al Fouad
Hospital
Tel +9661 2 215 1500
Fax+9661 2 215 1578
Tazweid
Tel +9661 2 692 9475
Fax+9661 2 682 9480
Egypt Hydrocarbon
Company (EHC)
1 Sphinx Square, Mohandessin, Giza, Egypt
Tel +202 3 344 4774
Fax+202 3 344 4776
Al Nakheel Centre
Tel +9661 2 669 6636 / 669 6632
Fax+9661 2 669 6624
www.elafgroup.com
Auto World
www.autoworld.com.sa
Intimaa
www.intimaa.com
Tarfeeh
www.aeclksa.net
Tel +9661 2 644 0800
www.almahmalcenter.com Fax+9661 2 643 8375
www.arabianfarms.ae
www.daralfouad.org
www.tazweid.com
The Touristic Zone, 6th of October City, Giza, 12568, Egypt
Tel +202 3 835 6040
Fax+202 3 835 6050
P.O.Box 3569 Jeddah 23513
Tel.+9661 2 2151500
Fax+9661 2 6906877
www.applebeeskda.com
www.chinagateksa.com
Nahdi Medical
Company
Tel +9661 2 657 6464
Fax+9661 2 657 6455
Tent Souk
Tel +9661 2 643 7924
Fax+9661 2 643 8532
Tel +9661 2 215 1551
Fax+9661 2 215 1543
Golden Belt
Compound
PO Box 30946, Al Khobar 21952
Tel +9661 3 882 6674
Fax+9661 3 882 5135
PO Box126356, Jeddah 21352
Tel +9661 2 692 9270
Fax+9661 2 234 6280
Bank Muamalat
Indonesia
Jalan Jenderal Sudirman No. 2, Jakarta 10220, Indonesia
Tel +61 21 251 1414, 251 1451
Fax+62 21 251 1517, 251 2328
Tel +9661 2 692 8102
Fax+9661 2 692 8101
Methak Investment
Holding
PO Box 55471, Riyadh 11534
Tel +9661 1 472 2277
Fax+966 1 472 4772
Salem Bin Mahfouz
Foundation
www.nahdi.sa
Red Sea Markets
www.redseamall.com
Ewaan
www.ewaan.com.sa
Bonnon Coffee
www.bonnoncoffee.com
Universal Shelves
58
www.macaronigrill.com
PO Box 14864, Dubai
United Arab Emirates
Tel +971 4 8321361
Fax +971 4 8321363
www.muamalatbank.com
www.methak.com
www.sbmf.org.sa
Tel +966 12 690 6534
Fax +966 12 690 6767
Tel +96612 2151500
Fax+96612 6906812
FRESH EGGS

- SEDCO Holding

Transcription

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