sedco.com · 6 SEDCO Holding Group I Annual Review 2016 SEDCO Holding Group I Annual Review 2016 7...

احدى رشكات سدكو القابضة

A SEDCO Holding Company

TARFEEH

Operational HighlightsChairman’s StatmentBoard of DirectorsCEO’s StatmentExecutive teamManagement ReviewDirect InvestmentsReal Estate Investments Financial InvestmentsCorporate ResponsibilityAccoladesContact Directory

04 I06 I08 I10 I12 I16 I24 I68 I78 I82 I88 I92 I

Content

SEDCO Holding Group I Annual Review 20164 SEDCO Holding Group I Annual Review 2016 5

Operational Highlights

Nahdi grew its Diabetes Re-source Centers to 35 from an original 11 in 2016. The Dia-betes Resource Corners are accredited by Harvard Medi-cal School’s Joslin Diabetes Centre and are Saudi Ara-bia’s first educational corner situated inside a community pharmacy.

Alshiaka posted strong growth in 2016 to register a 9% uptick in revenues de-spite a fall in disposable income among its target audience. It also grew its network of apparel outlets by 13% through the year.

9%

SEDCO Holding Group’s marketing team marked the company’s 40th birthday through initiatives including “40 days of giving”, “40 days of innovation” and “ People of SEDCO”.

AutoWorld signed a fran-chise agreement with Ger-man car rental company Sixt for short-term vehicle and limousine rentals in Sau-di Arabia. Sixt is one of the strongeszt car rental brands in Europe, with 172,000 ve-hicles operating from 2,200 branches in over 100 coun-tries.

Sixt Franchise

The Red Sea Mall welcomed 17 million visitors 2016 due to its attractive tenant mix and a year-round schedule of events, promotions and social outreach programs.million visitors

SEDCO Holding maintained its position 8th Best Place To Work in Saudi Arabia for the year and registered an 11% improvement in employee feedback to reach 90%.

During 2016, Al Mahmal Trading registered a robust rise in revenues of 21.2% over 2015. Operating profits also increased by 22.9% per-cent compared to the previ-ous year

SEDCO Capital’s Luxem-bourg platform expanded to give international investors access to 20 ethical invest-ment instruments spanning liquid and illiquid strategies.

Tarfeeh grew its customer base by 5.3% to reach 2.37 million customers in 2017.

million customers

SEDCO Holding Group’s IT department fulfilled its 100% of its SLAs while also helping implement 20 on-demand projects in 2016.

100%

SEDCO Holding Group’s em-ployee turnover fell below 6% for 2016, an improve-ment over 2015.

6%

Qatar Expansion

Arabian Farms expanded its operations to Qatar via a new sales and distribution branch in Doha.

A group picture of the board members from across the Group locally and internationally, during the SEDCO Holding Directors Forum


We focused on catalyzing a culture of innovation, communication and incisive analysis to keep pace with market movements.

Chairman’s MessageSaleh Salem Bin Mahfouz

Dear shareholders,

I am proud to present SEDCO Holding Group’s annual report for 2016, a year in which the Group emerged stronger even in the face of challenging market conditions.

It was a year where prevailing market conditions saw us take steps towards rapid decision-making and internal excellence. We focused on catalyzing a culture of innovation, communica-tion and incisive analysis to keep pace with market movements. I am pleased to say that our teams’ experience and analytical capabilities helped us stay on course. Our decision-makers had forecast current market conditions, and had streamlined business opera-tions to prepare the Group for tighten-ing market conditions.

We continued our strategy of invest-ing carefully in sound opportunities. We maintained our prudent approach, avoided pitfalls, and grew sharehold-er capital in the face of challenges. We also invested in our people, and encouraged our operating companies to hire the talent they need to succeed in current market conditions. At the same time, we put in place cost-opti-mization plans to free up resources for growth and new investments.

As before, corporate governance, re-silience, diversification and risk man-agement remained hallmarks of our investment approach. SEDCO Holding Group’s strategy of diversification held it in good stead through the year, as challenges in some economic sec-

tors were offset by gains elsewhere in theportfolio.

This was a year when the Saudi Vision 2030 and National Transformation Plan 2020 were launched by the Saudi government. Our companies strove to align themselves with the ambitions of our country’s leaders. As a Group, we focused on expanding in sectors beneficial to national prosperity, such as tourism, healthcare and education. SEDCO Holding Group is committed to investing in the future, and our teams are focusing on creating fruitful part-nerships in healthcare and education to power sustainable national growth.

As SEDCO Holding Group formal-ly turned 40 years old, we reflected on our journey to excellence that has seen us recognized among the best-run family businesses operating in Saudi Arabia. We realize that this suc-cess stems from our people – from employees and managers to CEOs and members of our boards. We are proud that many of our senior employees are continuing long and fulfilling careers with SEDCO Holding Group. We thank them for their loyalty, and appreciate the insight and experience they bring to the table.

Corporate social responsibility con-tinued being a core tenet of our op-erating philosophy. In 2016, I am pleased to say that our Riyali Program expanded its reach to new audiences. It branched out to address the skills that entrepreneurs require to run suc-cessful businesses, such as cash flow management, financial planning, and

responsible accounting.

SEDCO Holding Group has grown to become an organization known for its risk management, corporate gov-ernance and sound business philoso-phy. In the years to come, I aspire to see the Group become a benchmark for regional excellence and eventually a global concern that generates pros-perity for audiences around the world.

I am grateful to our shareholders for believing in the SEDCO Holding Group, and demonstrating the communi-cation and collaboration required to create lasting organizational success. Our shareholders’ solidarity in the last 40 years in exemplary, and these core principles of harmony will hold the Group in excellent stead over the com-ing period.

I would like to thank the SEDCO Hold-ing Group Board of Directors for their vision, the board members of our portfolio companies for their insight, our management teams for their pro-active approach to excellence, and all our members of staff for their loy-alty and dedication. Our successes through 2016 would have been impos-sible without your collective efforts.

Finally but by no means least, on be-half of the Board of Directors, I would like to express my gratitude to the Custodian of the Two Holy Mosques; the Crown Prince and Deputy Prime Minister; the Second Deputy Prime Minister; and all government minis-ters for their leadership.

Dear shareholders,

I am proud to present SEDCO Holding Group’s annual report for 2016, a year in which the Group emerged stronger even in the face of challenging market conditions.

It was a year where prevailing market conditions saw us take steps towards rapid decision-making and internal excellence. We focused on catalyzing a culture of innovation, communica-tion and incisive analysis to keep pace with market movements. I am pleased to say that our teams’ experience and analytical capabilities helped us stay on course. Our decision-makers had forecast current market conditions, and had streamlined business opera-tions to prepare the Group for tighten-ing market conditions.

We continued our strategy of invest-ing carefully in sound opportunities. We maintained our prudent approach, avoided pitfalls, and grew sharehold-er capital in the face of challenges. We also invested in our people, and encouraged our operating companies to hire the talent they need to succeed in current market conditions. At the same time, we put in place cost-opti-mization plans to free up resources for growth and new investments.

As before, corporate governance, re-silience, diversification and risk man-agement remained hallmarks of our investment approach. SEDCO Holding Group’s strategy of diversification held it in good stead through the year, as challenges in some economic sec-

tors were offset by gains elsewhere in theportfolio.

This was a year when the Saudi Vision 2030 and National Transformation Plan 2020 were launched by the Saudi government. Our companies strove to align themselves with the ambitions of our country’s leaders. As a Group, we focused on expanding in sectors beneficial to national prosperity, such as tourism, healthcare and education. SEDCO Holding Group is committed to investing in the future, and our teams are focusing on creating fruitful part-nerships in healthcare and education to power sustainable national growth.

As SEDCO Holding Group formal-ly turned 40 years old, we reflected on our journey to excellence that has seen us recognized among the best-run family businesses operating in Saudi Arabia. We realize that this suc-cess stems from our people – from employees and managers to CEOs and members of our boards. We are proud that many of our senior employees are continuing long and fulfilling careers with SEDCO Holding Group. We thank them for their loyalty, and appreciate the insight and experience they bring to the table.

Corporate social responsibility con-tinued being a core tenet of our op-erating philosophy. In 2016, I am pleased to say that our Riyali Program expanded its reach to new audiences. It branched out to address the skills that entrepreneurs require to run suc-cessful businesses, such as cash flow management, financial planning, and

responsible accounting.

SEDCO Holding Group has grown to become an organization known for its risk management, corporate gov-ernance and sound business philoso-phy. In the years to come, I aspire to see the Group become a benchmark for regional excellence and eventually a global concern that generates pros-perity for audiences around the world.

I am grateful to our shareholders for believing in the SEDCO Holding Group, and demonstrating the communi-cation and collaboration required to create lasting organizational success. Our shareholders’ solidarity in the last 40 years in exemplary, and these core principles of harmony will hold the Group in excellent stead over the com-ing period.

I would like to thank the SEDCO Hold-ing Group Board of Directors for their vision, the board members of our portfolio companies for their insight, our management teams for their pro-active approach to excellence, and all our members of staff for their loy-alty and dedication. Our successes through 2016 would have been impos-sible without your collective efforts.

Finally but by no means least, on be-half of the Board of Directors, I would like to express my gratitude to the Custodian of the Two Holy Mosques; the Crown Prince and Deputy Prime Minister; the Second Deputy Prime Minister; and all government minis-ters for their leadership.

SEDCO Holding Group I Annual Review 20168

In addition to chairing SEDCO Holding Group’s Board, Mr. Saleh Bin Mahfouz is Chair-man of SEDCO Development, Nahdi Medical Company, Al Mahmal Real Estate Devel-opment Company, Al Mah-mal 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 Devel-opment and Urban Recre-ation, Alnumu Real Estate, and Yanbu Cement. Mr. Saleh graduated with a Bachelor’s degree in Civil Engineering from King Fahd University of Petroleum and Minerals in Dhahran, Saudi Arabia.

Mr. Abdelelah Bin Mahfouz was Managing Director of SEDCO Financial Invest-ments Group from 1997 to 2006. He is now a Board member at SEDCO Holding Group, and has also been serving as Chairman of SED-CO Capital since its formation in 2010. He began his busi-ness career in 1975 with the National Commercial Bank, and from 1980-1990 was the bank’s Deputy General Man-ager and the Riyadh Region-al Manager. Mr. Abdelelah holds a Bachelor’s degree in Business Administration from Ohio State University.

Mr. Ahmed Bin Mahfouz be-gan his career with SEDCO in 1982, and served as Man-aging Director of the Direct Investments Group between 1997 and 2004. He holds a degree in Industrial Engi-neering from King Abdulaziz University in Jeddah and is also a graduate of the Own-er/President Management Program at Harvard Busi-ness School.

Mr. Hennessy’s 25 years of extensive experience and expert knowledge managing consumer facing business-es have seen him perform as Chairman or Director of several boards. His track re-cord includes serving in CEO roles for Trainline.com Ltd., Avis Europe PLC and Buy.com Ltd. (UK). Mr. Hennessy holds an MBA from Harvard Business School (1989) and a Bachelor of Arts in Econom-ics from Williams College (1984).

Ahmed Salem Bin Mahfouz,Board Director

Murray E. Hennessy,Board Director

Abdelelah Salem Bin Mahfouz,Board Director

Saleh Salem Bin Mahfouz,Board Director

The Board of Directors

Board Committees

Responsible for compen-sation, oversight of human development, screening and nomination of directors of SEDCO Holding and its subsidiaries.

Chairman: Saleh Bin MahfouzMembers: Anees Moumina, Ahmed S. Banaja and Yasser BinMahfouz

Compensation and Nomination Committee

InvestmentCommittee

Audit and Risk Committee

Chairman: Savio Tung Members: Shuaib Ahmad and Emad Kaki

Chairman: Ahmed BanajaMembers: Salim M. BinMahfouz and Amr Al Taher

Assists the Board in fulfilling its oversight responsibilities in the areas of: financial re-porting integrity; effective-ness of internal controls for financial reporting; surveil-lance of administration and financial practices; SEDCO

Group’s compliance with group policies and proce-dures; legal and regulatory requirements; ensuring in-dependence and monitoring performance of external au-ditors, internal audit func-tion; and risk management.

Responsible for investment policy and processes, per-formance of asset manag-ers, new investments and exits, and valuation and as-set allocation.

Mr. Ahmed Suleiman Ba-naja has been a Member of the Board at SEDCO Hold-ing Group since 2008. He is a Director of SEDCO Capi-tal, served as the company’s first CEO, and also oversaw the company’s formation in 2010. He alos served as the CEO of SEDCO between 2008 and 2010. He began his ca-reer with Citibank in 1971, and has held senior positions at the National Commercial Bank for 12 years. He has, in addition, served as Execu-tive Vice President of Olayan Group, and Board Member of many of the Group’s subsid-iaries. Mr. Banaja’s track re-cord includes him serving as Chairman of the publicly list-ed National Shipping Compa-ny, and as a member of the Economic Advisory Board to the Supreme Economic Council for the Saudi Gov-ernment. He holds a BSc in Mathematics and Economics from the University of Kent.

Mr. Ahmed has been a Direc-tor of SEDCO since 2000, and served as the first non-family CEO of SEDCO from 2004 to 2007. Prior to joining SEDCO, Mr. Ahmed was part of the Citibank team for 38 years in various senior risk and gen-eral management positions across Asia, Europe, and the USA. He was a member of Citibank’s Global Credit Policy Committee from 1985 to 2000, and then served as Managing Director of Citi-group’s Global Risk Manage-ment arm from 2001 to 2013.Mr. Ahmed is a Director of Elaf Group and also serves on the Board of Governors of the Institute of Business Administration, Karachi. He holds an MBA from the In-stitute of Business Adminis-tration, Karachi, and a Mas-ter’s degree in Management Science from MIT. He is also a Sloan Fellow of MIT’s Sloan School of Management.

Mr. Tung has been a Non-Ex-ecutive Director of SEDCO since 2009, where he cur-rently chairs the Audit and Risk Committee. He is a founding partner at Invest-corp, where he currently serves as Senior Advisor as well as Chairman of Invest-corp Technology Partners. His 32 years with the firm have seen him involved with most of Investcorp’s corpo-rate buyouts. Before joining Investcorp, he worked with Chase Manhattan Bank in New York, Bahrain, Abu Dha-bi, 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, and is also a trustee emeri-tus of the institution.

Dr. Abdulraouf Mohammad A. Mannaa has 25 years of di-verse experience in in Middle Eastern and GCC markets. During that time, he has helped establish several new business ventures through mergers, acquisitions and partnerships. He has deep in-sight into the Middle Eastern business environment, and keeps his knowledge up to date through constant mar-ket intelligence gathering and far-reaching relations with contemporaries across public, private and financial sectors. Dr. Mannaa was in-volved in leading the Savola Group to becoming one of the Middle East’s prominent business entities with oper-ations spanning the region. Dr. Mannaa currently advises a leading group of compa-nies active in many diverse sectors, and also serves on the boards of a number of companies. He holds a PhD in Mechanical Engineering from the University of Wash-ington at Seattle, a Master in Engineering from the Univer-sity of California at Berkeley and a Bachelor of Science from King Fahd University for Petroleum and Minerals.

Savio Tung,Board Director

Abdulraouf Mohammad Mannaa,Board Director

Shuaib Ahmed,Board Director

Ahmed Sulaiman Banaja,Board Director

SEDCO Holding Group I Annual Review 2016 9


We chose to seize the initiative during the year, and see in market movements the opportunity for growth, diversification, and expansion.

CEO MessageAnees Ahmed Moumina

The year 2016 was a dynamic and chal-lenging period for SEDCO Holding Group. The Group confronted economic challenges both in international markets and on the home front. Yet, we chose to seize the opportunities during the year, and capitalize market movements to seek venues for growth, diversification, and expansion. At the same time, we used tightening marketing conditions as a catalyst to push for greater syner-gies among our operating companies, and create better efficiencies and more streamlined processes.

The year saw a push for private sector companies to partner with the govern-ment in the pursuit of national growth. At SEDCO Holding Group, we saw this new remit as an opportunity to contribute to national prosperity while increasing the performance and market share of our operating businesses. We concluded a number of investment and acquisition opportunities during the year, particu-larly in sectors which are important to achieving the Saudi Vision 2030, such as healthcare and education. We have expanded the number of Nahdi phar-macies operating in the country, and are exploring partnerships with healthcare providers to acquire laboratories and other facilities. Through 2016, we also began dialogue with partners on oppor-tunities in the education and health sec-tors. These conversations are bearing results, and will lead to concrete devel-opments in the year ahead.

We also worked to support the Nation-al Transformation Plan 2020, which en-compasses some industries we are ac-tive in, such as Hajj, Umrah and tourism. We expanded our hospitality offerings through our Elaf hotels brand, and ac-quired three new properties in the holy city of Medina through 2016. The same year, we also completed the Phase 1 ex-

pansion of our Red Sea Mall property to attract more tourists and draw retail vis-itors. Phase 2 of the expansion – which will see leasable area increase by 25% - will be completed in 2017. We also grew our restaurant brands by opening new outlets to target fresh audiences.

2016 was also a year of cost optimiza-tion and restructuring. There was an emphasis on bringing down the cost of financing by pooling resources to a cen-tralized treasury. The common treasury extended funding to operating compa-nies at preferential rates which helped Group companies avoid the higher costs of financing. We took measures to im-prove our control over outlays, with each operating company following a cost op-timization plan, which was monitored regularly.

The well-being of our people is a core element of our organizational culture, a central pillar of our continued success, and a very important part of our cor-porate social responsibility efforts. We value our employees, and also expect them to help carry the SEDCO Holding Group ethos to the community. In 2016, we encouraged them to volunteer to-wards charitable activities, look after their health and well-being, and take advantage of professional development opportunities offered by the Group. Our efforts towards ensuring employee sat-isfaction saw us maintain our 8th place in the Great Place to Work rankings for Saudi Arabia, and saw employee motiva-tion improve further still.

There was also a focus on going leaner, and creating better cross-communica-tion in the quest for improved synergies within the Group. New communication channels were created between operat-ing companies to unlock cross-selling, and opportunities to band together for

an increase in negotiation power when purchasing common services. Vertical integration was also improved, with new projects benefitting from integrated ex-pertise.

We remained heavily focused on perfor-mance during 2016, with the goal of off-setting market headwinds through new business development and cost efficien-cy gains. I am very pleased to say that most of our businesses overachieved the market parameters.

Our dynamic new stance was supported by the appointment of new Board mem-bers. We have emphasized on the inclu-sion of additional independent external industry experts to provide fresh per-spectives on market opportunities and best practices. We also held a Director’s Forum in 2016 to encourage collabora-tive decision-making at the highest lev-els of the Group.

As we look forward to 2017, we do so with a sense of resolve and optimism. We expect it to be a year where markets will face challenges. We are, however, prepared for these challenges, and have positioned ourselves to take advantage by acquiring new businesses and gain-ing greater market share in our existing lines of operations.

In closing, I would like to extend my ap-preciation and gratitude to our share-holders, the board members of SEDCO Holding Group, the board members of our portfolio companies, our operating company CEOs, the various manage-ment teams, and our employees for their hard work and dedication. I look forward for a prosperous 2017 to overachieve our targets.

The Executive Management Team

Mr. Anees Ahmed Moumina became CEO of SEDCO Holding Group in January 2013 after accumulating 25 plus years of experience in the private sector and the financial services industry. He has previously worked with the Samba Financial Group, where he advanced to roles including General Manager and Senior Credit Officer. His bank-ing career has given him access to experience across a variety of business sectors including: contracting, trading, manufacturing, financial investments, real estate, transportation, leasing, the public sector, and Islamic banking. He has also worked with Proctor & Gamble.

Mr. Moumina is currently serving as Chairman of Dunia Alaswaf Trading LLC. (AlShia-ka) Company, Board Member of The National Commercial Bank (NCB), Board Mem-ber of Elaf Group, member of SEDCO Holding’s Investment Committee, and also as a member of several other charity, educational and community boards.

He holds a Master of Science in Engineering Administration with honors, and a Bach-elor of Science in Civil Engineering with honors, both from George Washington Uni-versity in the USA. He has also completed a number of extended executive programs including the Global Leadership Program at Harvard University, the Senior Executive Management Program at Columbia University, and the Global CEO Program at Whar-ton University.

Mr. Anees Ahmed Moumina became CEO of SEDCO Holding Group in January 2013 after accumulating 25 plus years of experience in the private sector and the financial services industry. He has previously worked with the Samba Financial Group, where he advanced to roles including General Manager and Senior Credit Officer. His bank-ing career has given him access to experience across a variety of business sectors including: contracting, trading, manufacturing, financial investments, real estate, transportation, leasing, the public sector, and Islamic banking. He has also worked with Proctor & Gamble.

Mr. Moumina is currently serving as Chairman of Dunia Alaswaf Trading LLC. (AlShia-ka) Company, Board Member of The National Commercial Bank (NCB), Board Mem-ber of Elaf Group, member of SEDCO Holding’s Investment Committee, and also as a member of several other charity, educational and community boards.

He holds a Master of Science in Engineering Administration with honors, and a Bach-elor of Science in Civil Engineering with honors, both from George Washington Uni-versity in the USA. He has also completed a number of extended executive programs including the Global Leadership Program at Harvard University, the Senior Executive Management Program at Columbia University, and the Global CEO Program at Whar-ton University.

Mr. Anees Ahmed MouminaChief Executive Officer (CEO)Mr. Anees Ahmed MouminaChief Executive Officer (CEO)


Mr. Bazzi brings over 20 years of experience in investments and strategy accrued at several international and regional reputable organizations to his role at SEDCO Holding.

He started his career with the Royal Bank of Canada, followed by stints at Deloitte Consulting, Litat Group, and Injazat Capital, where he assumed senior executive roles.

His extensive investment experience covers sectors such as healthcare, petrochemi-cals, ICT, retail, financial services, real estate, and hospitality. Mr. Bazzi returns to the Group from the Zubair Corporation, where he worked as Chief Operating Officer and was responsible for the Group’s investment activities.

Mr. Bazzi holds an MBA and MSc in Finance from Concordia University in Canada. He has also earned a BSc in Computer Science from the Lebanese American University in Lebanon. He is a Chartered Financial Analyst, and a Certified Professional Director by the Mudara Institute of Directors.

Mr. Rami BazziChief Investment Officer (CIO)

Mr. Abdullah Al-Haiqi is the Vice President for the Internal Audit Function at SEDCO Group of Companies. He leverages 23 years of extensive experience in accounting, auditing, and Zakat and Saudi Income Tax to implement systems of financial reporting that bolster the Group’s performance and transparency.

He has accumulated experience across diverse industries through his career, and has held positions of responsibility in wealth management, hospitality, automotive, financial investments, real estate, insurance, and retail. Prior to joining SEDCO, he served with PwC Saudi Arabia as Supervisor for 5 years.

Mr. Al-Haiqi holds a Master of Professional Accounting from Jeddah’s King AbdulAziz University. His has been accredited by the IIA as a Certified Internal Auditor (CIA), and has also earned the IIA’s Qualification in Internal Audit Leadership (QIAL).

He has continued his professional development and ability to manage people, struc-tures and departments through courses in emotional intelligence leadership, cor-porate governance, corporate financial strategy, high performance leadership and executive programs for prospective CFOs.

Mr. Abdullah Al-Haiqi is the Vice President for the Internal Audit Function at SEDCO Group of Companies. He leverages 23 years of extensive experience in accounting, auditing, and Zakat and Saudi Income Tax to implement systems of financial reporting that bolster the Group’s performance and transparency.

He has accumulated experience across diverse industries through his career, and has held positions of responsibility in wealth management, hospitality, automotive, financial investments, real estate, insurance, and retail. Prior to joining SEDCO, he served with PwC Saudi Arabia as Supervisor for 5 years.

Mr. Al-Haiqi holds a Master of Professional Accounting from Jeddah’s King AbdulAziz University. His has been accredited by the IIA as a Certified Internal Auditor (CIA), and has also earned the IIA’s Qualification in Internal Audit Leadership (QIAL).

He has continued his professional development and ability to manage people, struc-tures and departments through courses in emotional intelligence leadership, cor-porate governance, corporate financial strategy, high performance leadership and executive programs for prospective CFOs.

Mr. Abdullah Al-HaiqiVice-President, Internal AuditMr. Abdullah Al-HaiqiVice-President, Internal Audit

Mr. Amer brings over 22 years of experience in corporate finance, investment man-agement, and financial management across multiple industries to his role at SEDCO Holding. He started his career with a CPA from Chicago, and then worked for global firms PWC and IBM. Prior to joining SEDCO, he served as Group CFO, and member of the Board and audit committees, for a number of companies. He is a founding ex-ecutive team member of Jadwa Investment, where he served as CFO for 8 years. At Jadwa, he oversaw the company’s growth from a small startup to a regional Private Equity and Asset Management powerhouse.

Mr. Amer holds an MBA from Strayer University in the USA, with his post graduate studies involving e-commerce, strategy, and leadership courses from world-class in-stitutions. He has completed an executive Leadership Program at Stanford University, is a CFA Charter holder (2004), and also a Certified Public Accountant (1996).

Mr. Amer brings over 22 years of experience in corporate finance, investment man-agement, and financial management across multiple industries to his role at SEDCO Holding. He started his career with a CPA from Chicago, and then worked for global firms PWC and IBM. Prior to joining SEDCO, he served as Group CFO, and member of the Board and audit committees, for a number of companies. He is a founding ex-ecutive team member of Jadwa Investment, where he served as CFO for 8 years. At Jadwa, he oversaw the company’s growth from a small startup to a regional Private Equity and Asset Management powerhouse.

Mr. Amer holds an MBA from Strayer University in the USA, with his post graduate studies involving e-commerce, strategy, and leadership courses from world-class in-stitutions. He has completed an executive Leadership Program at Stanford University, is a CFA Charter holder (2004), and also a Certified Public Accountant (1996).

Mr. Tharwat AmerChief Financial Officer (CFO)Mr. Tharwat AmerChief Financial Officer (CFO)


SEDCO Holding Group I Annual Review 2016 15SEDCO Holding Group I Annual Review 201614

Dr. Zaid qualified as a lawyer in Quebec in 2002, and has been working in the Kingdom of Saudi Arabia since 2005. He holds a Bachelor of Law (in French) from the Univer-sity of Montreal (Canada), a Master’s degree in Petroleum Law from the University of Dundee (UK), and a PhD on Saudi Arabian capital market regulation from the Univer-sity of Leicester (UK). Dr. Zaid has been a registered arbitrator with the Saudi Arabian Ministry of Justice since 2008 and also holds a Postgraduate Diploma in Internation-al Commercial Arbitration from the Queen Mary University of London (UK). He has teaching experience at university level as an assistant professor, and has published numerous articles on Saudi Arabian legislation.

As from February 2017, Dr. Zaid has continued the role of Mr. Nicholas Polley as SED-CO Holding Group’s Chief Legal Officer and Board Secretary.

Dr. Zaid MahayniChief Legal Officer

Mr. Kandil has been with SEDCO Holding Group since 2010, and joined the Group after working with Procter & Gamble for over 20 years. Mr. Kandil commenced his HR ca-reer in 2001, and served as Senior HR Manager before assuming his current post. At Procter & Gamble, Mr. Kandil gained experience in manufacturing, engineering, plan-ning, procurement and SAP before moving to the field of human resources. There, he developed expertise in areas including organizational excellence, talent development, talent supply, compensation, and employee services. Mr. Kandil holds a Bachelor’s Degree in Systems Engineering from King Saud University.

Mr. Amro KandilVice-President, Human Resources

Mr. Nicholas Polley Chief Legal OfficerMr. Nicholas Polley Chief Legal Officer

During 2016, Mr. Polley acted as the Chief Legal Officer for SEDCO and had joined the company in 2013. He has over 20 years of professional international experience in commercial banking, private equity, asset management, financial services and Is-lamic finance to his role. Mr. Polley’s career has seen him assume roles of increasing responsibility.

Prior to working with the SEDCO Holding Group, Mr. Polley had served as Partner and Head of the MENA International Banking & Finance Practice for international law firm Charles Russell LLP.

His track record has seen him be recognized as a leading lawyer in his field by publi-cations of the stature of The Legal 500, IFLR 1000, and Chambers. In 2015, The Legal 500 ranked him as one of the 100 most influential legal counsels in the Middle East.

Mr. Polley holds a BSc in Developmental Economics and International Politics with honors (including law) from the University of Bristol, UK. He qualified as an English solicitor in 2000, and is also a member of the Chartered Institute of Arbitration (CIA-rb).

For personal reasons, Mr. Polley decided to leave SEDCO to pursue personal endeav-ors. He was replaced by Dr. Zaid Mahayni as from February 2017.

During 2016, Mr. Polley acted as the Chief Legal Officer for SEDCO and had joined the company in 2013. He has over 20 years of professional international experience in commercial banking, private equity, asset management, financial services and Is-lamic finance to his role. Mr. Polley’s career has seen him assume roles of increasing responsibility.

Prior to working with the SEDCO Holding Group, Mr. Polley had served as Partner and Head of the MENA International Banking & Finance Practice for international law firm Charles Russell LLP.

His track record has seen him be recognized as a leading lawyer in his field by publi-cations of the stature of The Legal 500, IFLR 1000, and Chambers. In 2015, The Legal 500 ranked him as one of the 100 most influential legal counsels in the Middle East.

Mr. Polley holds a BSc in Developmental Economics and International Politics with honors (including law) from the University of Bristol, UK. He qualified as an English solicitor in 2000, and is also a member of the Chartered Institute of Arbitration (CIA-rb).

For personal reasons, Mr. Polley decided to leave SEDCO to pursue personal endeav-ors. He was replaced by Dr. Zaid Mahayni as from February 2017.

Mr. Khawaji joined SEDCO Holding Group in 2007, bringing extensive experience in in-formation technology and leadership to his new role. He also sits on the board of SED-CO Group company Ejada. Prior to his move, he spent seven years at IBM’s Toronto Lab in Ontario, where he was a software architect with the global team that delivered IBM’s flagship WebSphere Commerce product for e-business. He has also served as Principal Consultant for Oracle in Canada, and started his professional career with Saudi Aramco as database designer and administrator.

Mr. Khawaji graduated from King Fahd University of Petroleum and Minerals with a Bachelor’s degree in Computer Science, and holds an Executive MBA from Madrid’s IE University in Spain. He is an active member of Toastmasters Saudi Arabia, and chaired the 2015 Saudi Arabia Toastmasters Annual Conference (SATAC).

Mr. Mamdouh KhawajiVice-President, Information Technology

Dr. Eid chairs the Risk Management Committee at SEDCO Holding Group, advising the CEO and Board on various aspects of risk. He also sits on the Board of Tazweid Skills Company. He is a risk specialist in Islamic banking who holds an MBA with Dis-tinction from Warwick Business School, and a PhD in risk management from Durham University.

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 Schol-arship. He was also deeply involved in setting up the risk function at the European Islamic Investment Bank Plc. in London.

He has extensive experience in risk management and Islamic banking in the Middle East and Europe. Areas of specific expertise include investment and market risks, financial analysis, financial regulation, and capital adequacy standards. Dr. Eid is also a guest lecturer on Islamic finance at distinguished universities and also speaks reg-ularly at international risk management events and conferences.

Dr. Wael EidHead of Risk Management

Mr. Banaja leads the SEDCO Holding Group’s marketing, corporate communications and CSR programs, which include the Riyali Financial Literacy Program that aims to reach over 2 million Saudi youth by 2020. He joined SEDCO Holding Group in 2011, having previously served as VP Marketing & Communication at SEDCO Holding Group operating company SEDCO Development. He currently serves on the Board of Tarfeeh, a SEDCO Holding Group owned company focusing on the casual dining market in Sau-di Arabia. He is a board member of Oqal, a nonprofit organization that brings young business entrepreneurs together with angel investors. Mr. Banaja is also current-ly the deputy head of the Corporate Social Responsibility Committee for the Jeddah Chamber of Commerce.

Before joining SEDCO, Mr. Banaja partnered with New York based real estate service provider Seventh Art Group to launch its Middle East office in Dubai, and successfully lead a number of projects. His diverse career across the real estate, financial services and consumer goods sectors includes senior positions at SAMA Dubai, the National Commercial Bank (Investor Services Division), Unilever and Gillette in the GCC.

Mr. Banaja holds a BA graduate from Boston College, USA, where he majored in Eco-nomics with a minor in Mathematics.

Mr. Banaja leads the SEDCO Holding Group’s marketing, corporate communications and CSR programs, which include the Riyali Financial Literacy Program that aims to reach over 2 million Saudi youth by 2020. He joined SEDCO Holding Group in 2011, having previously served as VP Marketing & Communication at SEDCO Holding Group operating company SEDCO Development. He currently serves on the Board of Tarfeeh, a SEDCO Holding Group owned company focusing on the casual dining market in Sau-di Arabia. He is a board member of Oqal, a nonprofit organization that brings young business entrepreneurs together with angel investors. Mr. Banaja is also current-ly the deputy head of the Corporate Social Responsibility Committee for the Jeddah Chamber of Commerce.

Before joining SEDCO, Mr. Banaja partnered with New York based real estate service provider Seventh Art Group to launch its Middle East office in Dubai, and successfully lead a number of projects. His diverse career across the real estate, financial services and consumer goods sectors includes senior positions at SAMA Dubai, the National Commercial Bank (Investor Services Division), Unilever and Gillette in the GCC.

Mr. Banaja holds a BA graduate from Boston College, USA, where he majored in Eco-nomics with a minor in Mathematics.

Mr. Amr BanajaVice-President, Marketing and Corporate Responsibility

Dr. Eid chairs the Risk Management Committee at SEDCO Holding Group, advising the CEO and Board on various aspects of risk. He also sits on the Board of Tazweid Skills Company. He is a risk specialist in Islamic banking who holds an MBA with Dis-tinction from Warwick Business School, and a PhD in risk management from Durham University.

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 Schol-arship. He was also deeply involved in setting up the risk function at the European Islamic Investment Bank Plc. in London.

He has extensive experience in risk management and Islamic banking in the Middle East and Europe. Areas of specific expertise include investment and market risks, financial analysis, financial regulation, and capital adequacy standards. Dr. Eid is also a guest lecturer on Islamic finance at distinguished universities and also speaks reg-ularly at international risk management events and conferences.


Management Review

Agile management and innovation helped SEDCO Holding succeed in a challenging year.

Risk Management

SEDCO Holding Group is a market pioneer in creating Risk Management standards far more stringent than those associated with a conventional family owned business. The dedicated Risk Management Department was created in 2013 as part of SEDCO Hold-ing Group’s thrust towards high standards of corporate governance. It is supported by the Risk Management Committee (RMC) and the Board Audit and Risk Committee (ARC).

The need for a robust Risk Management department comes from SEDCO Holding Group’s significant financial and real estate investments worldwide and diverse spec-trum of operating companies locally.

In 2016, Risk Management was further

integrated into SEDCO Holding Group Group’s strategy. The team continued put-ting in place mechanisms to identity, mea-sure, monitor, and manage risks. It also carried on systematically matching risk to SEDCO Holding Group’s investment ap-proach and risk appetite. 2016 also saw the department continue its evaluation of all Group assets from a risk perspective.

The core of the risk management process lies in the department’s customized and fully integrated risk management frame-work, where investment scorecards feed into an overall risk dashboard for the entire Group. This proactive approach embeds risk calculations within SEDCO Holding Group’s asset allocation and sets guideline

risk limits for all investments, markets and operations.

The Risk Management department also operates as a center of excellence that car-ries out independent risk reviews for the Group’s portfolio companies. It regularly conducts in-house training for Group em-ployees with the aim of helping them em-bed the idea of quantifiable risk into daily processes.

SEDCO Holding Group is considered a market leader in Risk Management, and its team is highly experienced and well regarded. Team members are regularly invited to speak at industry events and con-ferences on the importance of effective risk management.

The Corporate Investments team is respon-sible for structuring the overall investment strategy and targets of the SEDCO Group. It manages and grows direct investments and local real estate investments, and also oversees the Group’s financial invest-ments.

In 2016, the market continued a trend to-wards dampening that had kicked off the year before. In response, the Corporate Investments team focused on efficiency improvements and excellence in prod-ucts and services. The aim was to win in an increasingly competitive market and help the Group capture market share and growth opportunities as a whole. The team supported portfolio companies in building capabilities and upgrading processes to support future growth. A special focus was given to filling senior positions, and to the development of C-Level executives within the Group.

During the year, the team also collaborated with portfolio companies to revisit existing business models and align longer-term strategies with the opportunities stemming from the Saudi Vision 2030.

Despite difficult market conditions both regionally and globally, the Corporate In-vestments department successfully deliv-ered on its strategic targets. The team built a strong pipeline of opportunities in key growth sectors, and also concluded fol-low-on investments in existing companies to support continuous growth.

Through the year, the Corporate Invest-ments team supported investment in growth opportunities for portfolio compa-nies. For instance, Auto World was given the green light to acquire the Sixt Franchise for Saudi Arabia, the Red Sea Mall continued its expansion to cater for increased mar-ket demand, Arabian Farms expanded into

Qatar, and Al Nahdi invested in new online distribution channels to improve speed and convenience.

The team also completed feasibility studies and initial concept designs for a number of real estate projects designed to meet consumer demand and address real estate shortages in Saudi Arabia. The projects aim to build a vibrant society with higher household spending on cultural activities.

In 2017, The Corporate Investments team will continue to work with SEDCO’s port-folio companies on implementing their strategies and increasing their operational efficiency. The team will focus on channel-ing investment towards opportunities with long-term growth potential, and will also kick off real estate development projects in partnership with portfolio companies as per current plans.

Corporate Investments


Group Finance

The Group Finance team, led by SEDCO Holding’s Chief Financial Officer, charts the Group’s financial strategy. It is responsible for the integrity of SEDCO’s financial plat-forms, accounting records, performance reporting, budgeting and financial report-ing systems. The function also oversees the company’s liquidity and funding re-quirements while managing relationships with external auditors, zakat consultants and tax authorities.

SEDCO Holding had, in 2015, implemented a Group Treasury function to reduce bor-rowing costs for operating businesses and optimally allocate unused liquidity. Since, the Group Finance function has also over-seen the effective functioning of the trea-sury, and has helped make decisions on

allocation.

In 2016, the Group Finance mandate evolved to include business analysis, big data processing, and involvement in the Group’s asset allocation decisions. The year saw Group Finance analyze and tab-ulate the performance of each asset class under the Group’s portfolio. This ground-work created insights into effective allo-cation that will facilitate performance in 2017 and beyond. Through the year, the team also investigated international asset consolidation to create more streamlined management structures.

Group Finance also laid the foundation for a broad-based maturation across all pro-

cesses in 2016. Processing capabilities, and IT systems were upgraded and the Or-acle Financials solution implemented. As a next step, Group Finance will turn its atten-tion to the Decision Support Systems re-quired to assist with investment decisions.

Thanks to the team’s focus on financial oversight and cost optimization, SEDCO Holding breezed through a cash-tight 2016 even as market liquidity shrank. In 2017 and beyond, Group Finance is going to fur-ther strengthen SEDCO Holding’s financial management to create efficiencies and cost savings. The team also aims to contin-ue its outreach towards banks and financial institutions to facilitate lower borrowing costs for the Group.


Information TechnologySEDCO Holding Group’s centralised IT de-partment delivers support services for 12 companies in the group. The team pro-vides services including managed desk-tops, enterprise licensing, corporate email, telephony, Internet and website hosting services as per SLA agreements. The de-partment also provides on-demand ser-vices to facilitate project implementation, consulting and training, and conducts awareness programs to enhance service delivery.

In 2016, the team’s core focus was on ser-vice delivery improvement, Disaster Recov-

ery readiness and User IT Awareness. The department completed the Disaster Re-covery implementation for SEDCO Holding Group and SEDCO Capital. It also upgraded IP Telephony across the Group to reduce telecommunications costs. Meanwhile, Oracle Financials and HR systems were rolled out to hotels and restaurants owned by the Group’s operating companies.

Through the year, the IT department met all its SLAs 100% while also delivering a further 20 on-demand projects. The team reported 91% overall customer satis-faction, 94% on-time resolution for over

3,584 requests, and 99.82% uptime for the Group’s business systems. Successful cost rationalisation saw the department come in under budget for the year. The team’s strong performance through 2016 saw two employees win “Employee of the Month” award during the year.

In 2017, the IT department will focus on delivering process automation and keeping costs under control. The team will also im-plement strategic systems to include Busi-ness Intelligence, Decision Support and Performance Management.

Legal

The legal department includes advisory, litigation, compliance, board secretarial, and document custody functions. It con-tinues to support SEDCO Holding Group Group’s business units in the evaluation, negotiation, and implementation of both local and international transactions.

2016 saw the department work on a wide

spectrum of private equity acquisitions, franchise arrangements, real estate devel-opment deals, marketing agreements, and other transactions in multiple jurisdictions worldwide. It continued handling litigation cases involving Group interests through a world-class contingent of experienced litigators. The team also created substan-tial cost savings by relying on in-house re-

sources as opposed to outsourcing.

In 2016, the legal department was ranked one of the most influential and innovative in-house legal teams working in the Middle East by The Legal 500 - GC Powerlist: Mid-dle East. It was also shortlisted by The Oath Legal Magazine for the “Large Legal Team of the Year” award.

Audit, Assurance and ConsultingThe Audit, Assurance and Consulting (AAC) team is responsible for maintaining SEDCO Holding Group’s excellent corporate gover-nance, enhancing overall group manage-ment, and maintaining the effectiveness of internal control mechanisms. The team comprises expert members who have been sourced from blue-chip firms and glob-al consultancies such as PwC, and who have excellent track records within SEDCO Holding Group.

In 2016, the team evolved its role from pure auditing to consulting. The team’s back-ground knowledge and expertise in process mapping, financial accounting, taxation and Zakat regulations in Saudi Arabia make

it an invaluable resource when setting up new businesses or dealing with changing regulatory frameworks. The team has built relationships of trust with SEDCO Holding Group’s operating companies and internal functions, and assists decision-makers throughout the Group with restructuring as needed.

Through the year, the team also enhanced its Guest Auditor Program. The initiative sees the team joined by external experts from other departments when auditing specific functions. 2016 saw 10 auditors join the team for specific projects. The secondment program also kicked off in the year. The Board-approved program sees

SEDCO Holding Group employees transfer to the Auditing function for a year to gain a comprehensive understanding of inter-nal policies before rejoining their original teams. 2017 will see 10 new members transfer to the Audit team under the pro-gram.

AAC also has a strong tradition of incu-bating talent before seeing it transferred to other areas of the Group. Over six de-cision-makers at managerial and VP level have graduated from AAC and are currently serving in positions of responsibility Group-wide, where they act as ambassadors for the function.

Human Resources

The HR department attracts, trains and retains the talent that powers SEDCO Holding’s success. It also delivers support services to SEDCO Holding operating com-panies through SLAs, and advises on policy at board level when asked.

2016 was a year where HR focused on core capability building and professional devel-opment to hold the Group in good stead when confronting a tightening market. The HR team also focused on employee satis-faction, and maintaining SEDCO Holding’s status a preferred employer in the market.

The team’s efforts meant that SEDCO Hold-ing held on to its position as 8th best place to work in Saudi Arabia as per the Great

Place to Work (GPTW) rankings. Mean-while, employee satisfaction improved 11% over 2015, and employee turnover fell be-low 6%.

The team also continued building on its new corporate curriculum, which was first introduced in 2015. The curriculum is based around the three pillars of Inter-action, Influence and Intelligence – also called the 3Is. The “Interaction” pillar has already been operationalized, and regular training courses were delivered through 2016.

In other training initiatives, a C-level de-velopment plan was initiated across the Group’s operating companies, with18 de-

cision-makers enrolled in executive pro-grams at the Imperial College and Harvard Law School.

In 2016, the HR department formalized its commitment to Group employees by launchings its EVP – or employee value proposition. The EVP defines SEDCO Hold-ing’s obligations towards its employees, and helps define the firm as an employer of choice.

In 2017, the HR team will continue invest-ing in executive development, and will ex-tend its C-level development program to other operating companies under the SED-CO Holding umbrella.


Building on the theme of innovation, the marketing team launched a collaborative platform called Fikra to spur new idea de-velopment. Fikra is a platform for anyone – from any stratum of the organization – to submit ideas to improve performance. Other members on the platform can then like, dislike, upvote, comment and build on those ideas. Ideas that gather momentum rise upwards and are investigated by inno-vation champions for viability. Viable ideas are then sent to the CEO and Management Committees for vetting and implementa-tion.

Through 2016, the marketing team also geared up to strengthen digital communi-cation. The standalone digital function was eliminated. Instead, digital was brought of its silo and integrated into all channels, and put at the heart of all communication.

The marketing department took the lead in encouraging tech adoption across operat-ing companies, with new mobile apps facil-itating consumer interaction for properties such as the Red Sea Mall. Internal commu-nication channels were also strengthened, and advances such as newsletter automa-tion were put into place.

The department also served as a central-ized resource for SEDCO Holding’s operat-ing businesses, which in 2016 were fighting for market share in a challenging market. The availability of marketing as a central-ized function helped SEDCO companies fo-cus on their core business while allowing marketing to create Group-wide efficien-cies. Through the year, the marketing team also continued supporting other internal Group functions such as audit, IT, HR and risk management in marketing internal

projects and products.

Through 2016, the marketing department’s PR activities were instrumental in posi-tioning SEDCO Holding as a best in class partner for opportunities in education and healthcare – sectors that are considered strategically important to the Saudi Vision 2030. The PR outreach helped highlight SEDCO Holding’s strengths in corporate governance, ability to expand investee businesses to create mutual value, and optimize business processes for long-term success.

The marketing team also took the lead in encouraging and arranging submissions for international awards – which resulted in the Group and its companies winning a slew of recognitions through the year that improved industry awareness of SEDCO Holding’s high operating standards.

The “40 days of giving” initiative showed SEDCO Holding’s commitment towards benefitting the community. The compa-ny showcased its societal commitment by doubling down on all its CSR programs – from volunteering and Riyali to individual operating company initiatives – for a period of 40 days. The aim of the initiative was to make SEDCO Holding’s broader commu-nity a key pillar of the company’s 40-year journey.

The marketing team also spearheaded a new “People of SEDCO” initiative to mark the 40-year milestone. The video series went behind the scenes to narrate the sto-ries of SEDCO’s unsung heroes. The aim was to recognize the diligence and com-mitment that goes into making the SEDCO success story, and salute the everyday he-roes powering the brand’s success.

SEDCO Holding’s marketing team also ini-tiated a “40 days of innovation” campaign to build on SEDCO Holding’s credentials as progressive concern, and as a family busi-ness managed to world-class standards. A program of innovation training was initiat-ed, with a regular schedule of outside ex-perts invited in to talk to SEDCO teams on ways of catalyzing new ideas.

Marketing and Communications

2016 was the year that SEDCO formally turned 40. The marketing department took the lead in celebrating the company’s 40th birthday through three major initiatives.

everyone has one!!لک شخص یملکها

Realistic

LOGIC

Control

mathmatician

Practical

Days of Innovation

یوم من االبداع

Business ReviewDirect Investments 2016 saw SEDCO Holding companies compete successfully for increased market share, backed by the Group’ssynergy and resources.


A strategically balancedinvestment portfolio


100%Intimaa

Real estate professional services and property management

25.8%

Dar Al Fouad

Hospitals in Egypt and Kuwait

20.8%

Egypt Hydrocarbon Co.

Ammonium Nitrate plant in Egypt

24.2%

Bank Muamalat

Leading Islamic Bank in Indonesia

20%

Ewaan

Residential real estate development

100%SEDCO Development

Real estate development, management and advisory services

100%Auto World

Automobile leasing, limousines and corporate car rentals

100%Elaf Group

Hotel management,travel and tourism services

100%TARFEEH

Casual dining franchises: Applebee’s,China Gate, Ocean Basket and Romano’s Macaroni Grill

100%SEDCO Capital

Wealth and asset management for private and institutional clients.

50%Nahdi Medical Company

Retail and wholesale pharmaceutical, medical and cosmetic products

49.5%Red Sea Markets

Red Sea Markets Company is the owner of Red Sea Mall

40%Alshiaka

Leading brand in the Saudi market for ready-made thobes.

30%Ejada

Information technology services & solutions

Bonnon

Coffee shops and related merchandise

34% 100%Tazweid

Established to meet SEDCO Group companies’ Facility Management, Services and Maintenance needs across a diverse range of industries

100% 80%Al-Mahmal Facilities Services Co.

Operation and maintenance, janitorial, security and engineering services

80%Al Mahmal Development

Established to manage the Al Mahmal Center in Jeddah

50%Arabian Farms Development Company

Table eggs and fertilizer by-products in Saudi Arabia and UAE

21.4%

Khomasiat Tabah Ltd.

Real estate developers


AutoWorld is one of Saudi Arabia’s largest car rental companies, with a fleet projected to grow to +15,000 vehicles by 2020.

Auto World (Al Jazira Equipment Co. Ltd)

Founded in 1983, AutoWorld is a whol-ly-owned SEDCO Holding subsidiary and one of the Saudi Arabia’s biggest car rental players. The company operates 25 branches in Saudi Arabia across the country’s Eastern, Western and Central regions.

AutoWorld’s business model sees it de-rive revenue from operating leases and car rentals. Currently, 80% of the firm’s revenues come from its leasing lines, with shorter-term rentals contributing 20%. AutoWorld has seen robust fleet growth over the last few years – from 2,575 vehicles in 2010 to 12,063 in 2016. The company is targeting a fleet size of 15,644 by 2020 to cope with increasing demand.

In 2016, the company enjoyed growth op-portunities despite a tightening market and fierce competition. In a highly pos-itive development for long-term growth, AutoWorld signed a franchise agreement with German car rental company Sixt for short-term vehicle and limousine rent-als in Saudi Arabia. Sixt is one of the strongest car rental brands in Europe,

with 172,000 vehicles operating from 2,200 branches in over 100 countries. The agreement also provides AutoWorld the right of first refusal for any potential franchise availability under Sixt across other GCC countries.

The Sixt franchise agreement has opened up new sales channels for AutoWorld. The company is developing sales oppor-tunities through local and international travel agents and via Global Distribution Systems such as Amadeus, Galileo and Sabre. Online reservations are also being received through the Sixt Saudi Arabian website.

During the year, AutoWorld also signed an agreement with Riyadh International Airport for a new branch situated in In-ternational Terminal 1. Meanwhile, suc-cessful business development activity saw the management sign new leasing agreements with key customers includ-ing Halliburton, Bechtel Company, Velosi and Baker Hughes.

Internal efficiencies coupled with busi-ness growth saw AutoWorld post over

30% gross profit margin ratio for 2016, with the operating profit margin ratio over 11% for the year.

Internally, the company reorganized its Business Development team and re-newed its focus on marketing and cus-tomer service. On the human resources front, AutoWorld improved its Saudiza-tion percentage to 27%, putting it in the green zone, and implemented training programs in Munich in co-ordination with Sixt to align on values and service levels. In the year ahead, the company will aim to hit 40% Saudization levels.

In 2017, AutoWorld expects its branch network in the country to grow to 32 from the current 25, with the addition of Sixt properties and its new airport branch. The brand will update all its outlets to reflect Sixt branding, and will also con-tinue to increase its presence at hotels and airport terminals. The Company aims to grow its fleet by 8% and increas-es revenues by 10% annually, as part of its 5-year plan.

Imad Zein, CEO

AutoWorld operates 25 branches

AutoWorld’s revenue (80% leasing lines, 20% rentals

contributing)

20%

80%

Direct Investments

The Sixt franchise agreement has opened up new sales channels for AutoWorld


Elaf is a premier provider of tourism, travel and hospitality services, and also runs its own chain of hotels.

Elaf Group

Ziyad Bin Mahfouz, CEO

Elaf is a wholly-owned SEDCO sub-sidiary and a Saudi Arabian leader in tourism, travel and hotels. The com-pany 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, and partners with a number of Hajj and Umrah operators around the world.

Since its foundation in 1981, Elaf has grown in the domestic market as a leading hospitality group, and has expanded internationally through its Hajj and Umrah Division. It is also one of the oldest companies in the SEDCO Holding Group.

In 2016, the company continued its growth despite challenging market conditions. For the Elaf Group, the year offered growth opportunities by expanding to new markets, and increasing penetration in existing ones.

Not only did Elaf Group sign a lease for a 600-plus room property in Ma-dina at a prime location, but the brand also completed its all-star

standard operating procedure roll-out for its Citiline properties, and those based in Saudi Arabia’s holy cities. The concern also expanded its reach through its debut travel and tourism office in the Eastern Region.

The Elaf Group took advantage of the market slowdown to invest in laying a solid foundation for future growth. It expanded in key territo-ries, focused on continuous training, and investing in upgrading operating standards and policies.

On the operational front, the Elaf Group continued prioritizing excel-lence throughout the year. All-star hotel technical design was rolled out for hotels and service apartments, with an emphasis on environmental sustainability. A group-wide custom-er loyalty program was also initiat-ed, while consumer satisfaction was assured through a mystery shopper program. Meanwhile, staff training was implemented at all levels as per the Kaizen continuous improvement program. The brand also guaranteed full compliance with the Kingdom’s

new MOL, MOH and SCTA regula-tions.

Despite a relatively sluggish market, the Elaf Group’s focus on excellence saw it net a number of accolades, in-cluding the Best Receptionist award at STTIM (Saudi Travel & Tourism Investment Market), the Carlton Award, and the Emerging Perfor-mance Award from Qatar Airways.

In 2017, Elaf aims to capitalize on its momentum to generate higher revenues and launch new properties. The Group’s flagship Elaf Galleria property is set to open in Jeddah, as is the Elaf Majeedi project in Madi-na. The Group is set to acquire new properties in Riyadh and Al Khobar, while bolstering its competitive ad-vantage in religious tourism traffic. In the year ahead, Elaf Group will also completely align its business and HR goals with Saudi Arabia’s Vision 2030 and National Transfor-mation Plan that calls for diversi-fication and investment in sectors strategically important to the King-dom – such as tourism.

Direct Investments


Tarfeeh develops and operates well-known restaurant brands such as Applebee’s, Macaroni Grill, and Ocean Basket in Saudi Arabia.

Direct InvestmentsTARFEEH (Arabian Entertainment Company)

TARFEEH is a wholly-owned SEDCO sub-sidiary that develops and operates well-known international and domestic F&B brands. Established in 1996, TARFEEH is now leading company in Saudi Arabia’s hospitality sector, and operates brands such as Applebee’s, Ocean Basket and Romano’s Macaroni Grill.

In 2016, TARFEEH successfully relied on its brand strength and customer loyalty to combat aggressive competitor pen-etration in Saudi Arabia’s F&B market, with the company’s brands capitalizing on their first-mover advantage in the ca-sual dining arena.

The company focused on maintaining its leadership position in the casual dining category with its Applebee’s properties, and also expanded its Ocean Basket seafood brand while strengthening its Romano’s Macaroni Grill assets. De-spite economic tightening and a fall in disposable income, TARFEEH saw suc-cess through 2016 due to prudent growth plans that targeted high-potential and high-traffic areas, and reached into un-tapped markets.

Through the year, the company saw a

5.3% growth in customers across all brands despite challenging economic conditions, and also expanded its em-ployee base by 8.6% to meet demand.

The company opened a new Applebee’s in the city of Hail, tapping a brand new territory, and expanding its roster of Ap-plebee’s branches to 20 across the King-dom. It also launched a new Ocean Bas-ket branch in Dhahran to bring its tally of branches across the country to 3.

Meanwhile, the company invested in the development of a new head office and state of the art support centre in Jeddah to support future growth and brand posi-tioning. The new head office has neared completion, and will include a new Ap-plebee’s branch based on a prototype design on the ground floor.

On the marketing front, TARFEEH solidi-fied its position by partnering with estab-lished brands for B2B and co-marketing opportunities. It tested new online sales channels for gift voucher distribution – a move that is paying dividends. The brand also aggressively promoted its home de-livery offerings across all its brands by partnering with expert providers

in the market.

Operationally, the company invested in HR improvements, with an emphasis on talent development, training initia-tives and leadership enhancement – with the aim of developing a highly-trained workforce to power future expansion. The company also doubled down on its Saudization activities by employing Saudi nationals not just in restaurant branch-es but also in the head office. TARFEEH expanded its internship and part-time job programs for college and university students, and increased its outreach ac-tivities to attract more Saudi nationals.

Technologically, an Enterprise Man-agement project was implemented for all brands, and a system of automated alerts and recordkeeping initiated for government-related permits.

In 2017, TARFEEH will solidify sales in its existing restaurants while continu-ing to take advantage of prudent growth opportunities. The concern will combat lower consumer confidence by initiating financially smart restaurant models and leveraging economies of scale in its sup-ply chain to drive down operating costs.

Ahmed Marashde, CEO The opening of one of Romano’s Macaroni Grill restaurants

Best Marketing Practices Award


SEDCO Capital offers investors Shariah-compliant asset management services across a range of exciting investment instruments.

SEDCO Capital

SEDCO Capital was formally established in 2010 to extend asset management services to external clients, and is wholly owned by SEDCO Holding. The concern also manages SEDCO Holding’s public equity and international real estate in-vestment portfolios.

SEDCO Capital offers clients world-class asset management services in both ad-visory and discretionary portfolio man-agement capacities, helping investors access investments in local and interna-tional real estate, international private equities, MENA-based liquid assets and international public equities.

In 2016, SEDCO Capital’s asset managers and strategists successfully predicted key market movements in response to geopolitical changes, and safeguarded investor returns by adapting their asset

allocations. Emerging market volatility saw SEDCO Capital continue its over-all thrust towards investing in the more developed European, American and Asia Pacific markets.

The firm’s international private equity arm focused on direct and co-direct in-vestments, and closed five new deals during the year. The new assets were selected in strategic sectors with lon-ger-term income generation capabilities and low downside risk, such as manufac-turing, healthcare, IT and F&B.

In local real estate, the company con-tinued seeing investor interest in well-structured opportunities. Through 2016, the company continued to de-ploy investor funds and debt through its successful SC Real Estate Income Fund II. The Fund, which had raised SAR 445 million in investor capital matched by an equal amount of debt equity. Interna-tionally, SEDCO Capital explored secure income-stream real estate in the United States, Europe and Australia.

2016 was a strong year for SEDCO Capi-tal’s international liquid assets arm, with 67% of the active fund managers on the firm’s Luxembourg platform overper-forming their targets. On the public equi-ties front, the team followed a core-sat-ellite approach where a passive regional core allocation was bolstered by more aggressive satellite investments to boost alpha.

SEDCO Capital’s local equity arm also performed well despite challenging market conditions and stock market vol-atility. The firm saw significant increase in its money markets operations, with assets under management (AUMs) dou-bling by the end of 2016. In May 2016, the local equity team also launched the Elite Flexi Saudi fund – a unique product that provides investors with returns that are protected from volatility. This makes the fund capable of capturing most of the market upside while being very defensive on the downside. The fund closed 2016 up by 9%.

In 2106, SEDCO Capital enhanced its rep-utation as an asset manager of choice globally from a Sharia and ethical in-vestment perspective. SEDCO Capital’s innovative Prudent Ethical Investment (PEI) approach, which combines the best tenets of ethical investing with Shari-ah-compliant focus, gained international traction through the year.

At the same time, the firm bolstered its international presence through its Lux-embourg platform, which brings inno-vative offerings to global investors. The platform, which was launched in 2014 to give international investors access to SEDCO Capital’s investment instru-ments, now offers over 20 liquid and il-liquid strategies to clients, with 3 new liquid strategy products added in 2016.

Hasan AlJabri, CEO

Direct Investments

Global Islamic Finance Award 2016

By Best Islamic Fund manager

MENA Fund Manager Performance Awards 2016

By Saudi Asset Manager of the year

active managers on the Luxembourg platform outperforming the

benchmark across

67%


SEDCO Development develops ambitious real estate projects in Saudi Arabia, and is focusing on the country’s Western region.

SEDCO Development

Zuhair Hamzah, CEO

SEDCO Development is a wholly-owned subsidiary of the SEDCO Holding Group that in 2013 changed its business focus from development manager and service provider to direct developer. A 5-year business was accordingly laid out, and capitalization improved significantly to tackle large projects.

Since, the company has been capital-izing on the significant real estate de-velopment opportunities posed by the Saudi Arabian market, particularly in the Western Region, where investment in transportation, tourism and other in-frastructure continues apace.

In 2016, SEDCO Development refined and expanded its business model to cov-er the following tenets:

• Adding value to projects through the

application of its core skills in origina-tion, financing, project management and marketing and sales.

• Investing and co-investing with third party capital partners to fund promising developments.

• Using its balance sheet to secure de-velopment opportunities that fit with its investment criteria and capability.

• Generating revenues from develop-ment fees, development profits, income from operations and capital gains.

During the year, SEDCO Development made significant progress in secur-ing additional projects, partnering with capital providers, and continuing work on existing flagship developments. It retained its focus on its 372-residential

unit Gardenia Residence on Salamah District 2 in Jeddah, and its 364-room five-star Galleria hotel and retail com-plex on Tahlia Street in Jeddah, built on land owned by SEDCO Holding and Mithak investment Holding.

The year also saw SEDCO Development start work on two new projects – a retail development on the Jeddah Corniche, and another retail property in the city’s Al-Rawdah Dist.

In 2017 and beyond, SEDCO Devel-opment expects to maintain prudent growth despite market challenges and a tightening of economic conditions. It is looking at spurring business growth by partnering with capital providers while exploring new opportunities in Jeddah, Makkah, Yanbu and Taif.

Direct Investments


Intimaa is Saudi Arabia’s premier provider of integrated services across the entire real estate value chain.

Intimaa Real Estate Services Company

Intimaa Real Estate Services Com-pany is the premier provider of full-spectrum real estate services in Saudi Arabia. The company was founded in 1997 as a wholly-owned SEDCO Holding subsidiary and has since evolved its services and strat-egies to keep abreast of changing market requirements.

The company currently offers a diver-sified range of facility management, property management, brokerage, valuations, renovation, and consul-tancy services to its client portfolio. It also offers a comprehensive set of real estate solutions to clients wish-ing to buy, sell and invest in real es-tate, or otherwise improve the per-formance of their existing real estate assets.

Through 2016, Intimaa followed through with its five-year strategic plan of improving operational effi-ciency and cost optimization while

streamlining its organizational struc-ture, improving communication chan-nels, and acquiring new clients. The company also laid the groundwork for acquiring client properties interest-ed in being listed through the public REIT funds set for launch in Saudi indices.

The year posed environmental chal-lenges brought about by austerity, decreasing spend, and the introduc-tion of white land taxes – which col-lectively suppressed real estate mar-ket demand. Despite these hurdles, Intimaa saw a successful year where a new retail property – the 10,000 m2 Yanbu Mall - was added to its portfolio. All the company’s service lines also achieved strong sales and book-building activities through 2016.

Operationally, the company made improvements to prepare for a more streamlined future. A new property management system accelerated au-

tomation to deliver efficiency gains, while a new help desk tracking sys-tem benefitted the IT department. Measures were put in place to im-prove service cross-selling to create integrated solutions for clients. On the HR front, the firm invested in soft skills, negotiation, leadership and productivity training for its teams to prepare for challenges ahead.

In 2017 and beyond, Intimaa will fo-cus on improving its profit bottom line by acquiring new business while finding further cost efficiencies. It is gearing up for further structural opti-mizations where departments will be merged and streamlined. The firm’s business approach is leaning towards longer-term contracts to ensure sus-tainable revenue streams. It is also evolving its service contracts to in-clude the provision of a wider array of integrated services.

Aidrous Albar, CEO

10% expense reduction across certain categories

10%

Yanbu Mall, a new retail property was added to Intimaa›s portfolio

Yanbu Mall

Direct Investments


Nahdi Medical Company is the largest pharmacy chain in the MENA region. 90% of Saudi Arabia’s population has a Nadhi pharmacy reachable in 5 minutes.

Nahdi Medical CompanyDirect Investments

Nahdi Medical Company (NMC) was founded in 1986 and has grown to be-come the largest pharmacy chain in the MENA region. In 2004, SEDCO Holding acquired a 50 percent stake in the con-cern and has since become a driving force in Nahdi’s expansion. 90% of Sau-di Arabia’s population now has a Nadhi pharmacy reachable in 5 minutes.

In 2016, Nahdi dedicated its capabilities to converge with the Kingdom’s 2030 vi-sion by easing the burden on Saudi Ara-bia’s existing healthcare apparatus. The company also operationalized the sec-ond year of its 5-year strategic plan that, by 2020, sees it:

•Enhance the lives of 5 million people through health and wellness education and empowerment programs

•Demonstrate a substantial shift in pa-tient knowledge and management of chronic disease, specifically diabetes

•Promote healthier lifestyles through improvements in nutrition and fitness. These will address lifestyle disease oc-currence and management as well as

promote healthy maternal and infant care.

•Improve the emotional and physical well-being of women, pregnant women, mothers and children.

In 2016, Nahdi also improved accessibil-ity to medication, molded store design around customer service. CSR remained at the very heart of the business, with Nahdi improving its collaboration with the Ministry of Health (MOH) across var-ious levels. The pharmacy brand also gained MOH approvals to expand its Di-abetes Resource Centers nationally af-ter a very positive response. By the end of 2016, Nahdi had grown its Diabetes Resource Centers to 35 from an original 11. The Diabetes Resource Corners are accredited by Harvard Medical School’s Joslin Diabetes Centre and are Saudi Arabia’s first educational corner situated inside a community pharmacy. They de-liver diabetes-related awareness, coun-seling and guidance.

Nahdi also focused on its people and teams through the year. It enhanced

its talent management to create future leaders, and renewed its commitment to developing Saudi employees for senior positions. Nahdi’s Saudization initiatives continued apace, with new jobs created at all levels – including brand manag-ers, accountants, pharmacy assistants, beauty specialists, and female produc-tion line workers.

2016 was the year that Nahdi concep-tualized its “Store of the Future” idea and debuted the first outlet at the Red Sea Mall. The new stores reflect Nadhi’s brand values of Care, Innovation and Community, and are designed to move the brand towards becoming a major drugstore player competing with inter-national retailers. The stores will serve as a lynchpin in Nahdi’s goal of becoming a trusted partner in the general health, wellness and beauty space.

On the marketing front, Nahdi set a new world record for its Hajj Campaign, which provided medical check-ups for 4,049 pil-grims to Makkah in 12 hours at a single location. The company also tied up with transport app Careem to give women in Riyadh free rides to their nearest Nahdi pharmacy at any time. The initiative, de-signed to raise the bar on customer ex-perience, convenience and accessibility, won global awards.

In 2017, Nahdi will continue delivering a better customer experience to clients while positioning itself as the regional health, wellness and beauty partner of choice. The year will see more “Stores of the Future” being launched. New CSR initiatives are being planned, and exist-ing campaigns will be strengthened.

NMC provided medical check-ups for 4,049 pilgrims

5 min

Saudi Arabia’s population has a Nadhi pharmacy reachable in 5 minutes

the end of 2016, Nahdi had grown its Diabetes Resource Centers to 35 from

an original 11.

Yasser Johari,CEO


Red Sea Markets is the owner and operator of the Red Sea Mall, the Western region’s only mall with a connected 5-star hotel and premium office tower.

Red Sea Markets

Red Sea Markets is the owner and operator of Red Sea Mall. Established in 2004, the company is 49.5% owned by SEDCO Holding Group. Red Sea Markets leases over 24 categories of space in the mall, ranging from restaurants and food court outlets to retail units, kiosks and storage space.

Red Sea Mall is the Western region’s only mall with a connected five-star hotel and a premium office tower (SEDCO Tower, which has a gross leasable area of 10,549

m²). The 156-room hotel, which offers spa, and banqueting and wedding hall facilities, is leased to SEDCO subsidiary Elaf.

2016 was a busy and successful year for Red Sea Markets. Internal expansion on its signature Red Sea Mall property continued apace, with a new parking structure delivering 1,350 additional bays opening in March 2016 to take total parking capacity to 4,000 plus vehicles.

The additional parking is part of an overall SAR 200 million expansion, which will add around 32,000 m² to the mall’s area, taking the total space available to 145,000 m². The expansion, which aims to make room for more brands and entertainment options to boost the visitor experience, will see tenant numbers rise by 20% when it completes in mid-2017.

The Mall attracted 17 million visitors through 2016 due to its attractive tenant mix and a year-round schedule of events, promotions and social outreach programs. A new Red Sea Mall mobile app was launched in early 2016 to bolster

customer engagement. Red Sea Markets also continued its strategy of active social media communication to drive footfall to the Mall, and was awarded for effective digital channel use on more than one occasion through the year.

On the CSR front, the Mall continued its movement to save and redistribute food to the underprivileged in partnership with Saudi food bank Ita’am. The campaign reduced waste and benefitted those in need through the year. 2016 also saw the launch of another successful CSR program – the “Productive Family Booth” – which gained traction to host 100 families during its first year. Meanwhile, the Red Sea Mall’s “Ibnaa Alkahri Ifrta” campaign to ward orphans grew apace. The initiative, which started in 2013 with 50 children, crossed the 1,000 ward milestone in 2016.

In 2017, Red Sea Mall will continue revaluating and optimizing its tenant mix as per a strategy first introduced in 2011. Work on the new extension is continuing apace, and is expected to complete during that year.

Direct Investments

Mohammed Alawi,CEO


Alshiaka is a Saudi Arabian outfitter specializing in designing and crafting thobes for men.

Alshiaka is a Saudi Arabian outfitter for men that specializes in designing and crafting thobes. The brand was first launched in 1971 as Dunia Alaswaf Est. and in 1987 changed its name to Alshia-ka. The brand has cemented a presence in the Saudi market over three decades of operation and in 2015 became the re-cipient of a direct investment from SED-CO Holding. The Group currently holds a 40% stake in Alshiaka.

Alshiaka posted strong growth in 2016 to register a 9% uptick in revenues de-spite a fall in disposable income among its target audience. It also grew its net-work of apparel outlets by 13% through the year. Despite economic fluctuations, menswear remains a promising apparel category, expected to hit SAR 58 billion in the Kingdom by 2021 to demonstrate a 4% CAGR. In 2015, the total menswear market was estimated at SAR 45 bil-lion, with apparel taking an SAR 34 bil-lion share. The thobe market alone was worth SAR 11 billion in 2015.

With SEDCO as a partner, 2016 was the year for AlShiaka to complete its corpo-rate transformation under a program first launched in 2015. The company

implemented a comprehensive change management approach, and hired new department heads at Director level. An 8-year strategic plan was approved and kicked off, mapping the company’s growth path to 2025.

Through the year, the company also up-graded its budgeting, new store opening, design planning, product pricing, mer-chandising, planning and buying pro-cesses. The expansion plan development and approvals process was also stream-lined.

The year saw a renewed focus on product innovation. The brand introduced its new “Alfakher” fabric to tackle the shrinkage and wrinkling concerns associated with pure cotton products. The innovative new fabric preserves cotton’s premium feel while improving wearability, comfort and durability.

Alshiaka also became Saudi Arabia’s first apparel company to introduce “Club’s Thobe Products” for Al Hilal FC & Al It-tihad FC, the top two teams in the Saudi Football League. The exclusive sponsor-ship arrangement makes Alshiaka the first thobe provider in the region to affil-

iate with football – a platform that offers powerful access to its core target audi-ence of males between 16 and 30 yeas of age. Football is considered the main source of entertainment in Saudi Arabia, with a penetration of 75% among youth - who collectively also account for 75% of the total population. Al Ittihad FC and Al Hilal FC are also very popular nation-wide, with a 23% and 39% fan following respectively out of the game’s total fan base in the country.

The brand also launched its products on popular regional e-commerce mar-ketplace Souq.com to gain a new sales and distribution channel. The move is a precursor to developing Alshiaka’s own e-commerce offering. Meanwhile, the “Tablet Project” optimized the brand’s online presence and stock information for consumption on smaller screens and mobiles.

In 2017, the brand will continue expand-ing its offerings, innovating new market-ing and sales channels, and revamping its line of designer thobes to stay abreast of market trends.

The first thobe provider in the region to affiliate with football

SAR 45 Billion is the total KSA menswear market

Network growth of apparel outlets

13%

Walid Alandijani, CEO

45billion

AlshiakaDirect Investments


Ejada is one of Saudi Arabia’s leading information technology solutions and services companies.

Mahmoud El leissy, CEO

Ejada

Ejada is one of Saudi Arabia’s largest regional information technology solu-tions and services companies. Head-quartered in Riyadh, the company was formed in 2005 through a merger be-tween three of the Kingdom’s leading local IT solutions and services special-ists. SEDCO Holding currently has a 30% stake in the concern.

Ejada delivers complex system inte-gration, implementation, consulting and support services to over 150 en-terprises, and has grown to become a market leader in the IT services space. It serves a diversified clientele of large government bodies, private sector firms and blue-chip companies from five offices and delivery centers in Saudi Arabia and Egypt. Ejada’s tech-nology partners include global lead-ers such as IBM, Oracle, Microsoft, SAP, Informatica and HP. By the end of 2016, the concern was employing over 950 professionals, of which 70% were experienced and certified technical professionals.

During the year, Ejada enhanced its offerings to help clients benefit from new technologies, such as Big Data, the Internet of Things (IoT), cloud based solutions and cognitive com-puting, to enhance operational effi-

ciencies and lower their Total Cost of Ownership (TCO).

Collectively, the firm’s business de-velopment and new service innovation helped it offset revenue challenges stemming from liquidity squeezes at two of its major clients. Ejada promot-ed new solutions for medium and large clients in the private sector, and se-cured new contracts within that mar-ket segment. The brand increased its portfolio across the government, telco and private sectors, expanded in Egypt and also started investigating oppor-tunities in other African markets.

The company targeted new managed services contracts to improve reli-able revenue generation, and secured a large deal with Saudi Post during 2016. Other big client wins through the year included Al Jasriyah Trading and Installment Company, Saudi Industrial Property Authority (MODON) and the King Salman Humanitarian & Relief Center (KSHARC).

Meanwhile, the company continued supporting strategic large-scale proj-ects related to the Saudi Vision 2030 and the National Transformation Pro-gram 2020. Most of these projects are based on Build-Operate-Transfer

(BOT) and revenue sharing models.

Ejada benefitted from its strong local brand equity to score highly on the IDC 2016 Saudi IT Services Market Rank-ing. The company was recognized as the market leader for Combined Fi-nance solutions, Application Consult-ing & Customizations, and Custom Ap-plication Development.

Ejada’s commitment to HR devel-op-ment and Saudization contin-ued apace through the year. A new teleworkers initiative is helping the brand employ female Saudi nationals in fields where they can work from home. 17 teleworkers were employed through the year for IT support, trans-lation services and technical support. Overall professional development was boosted via a KPI program backed by quarterly assessments, with high-per-formers given financial incentives.

In 2017 and beyond, Ejada will respond to a competitive and economically un-certain environment by focusing on larger deals based on Build-Oper-ate-Transfer (BOT) and Public to Pri-vate (P-to-P) models. It will continue innovating new solutions while explor-ing opportunities regionwide.

70%of the employees are certified technical

professionals.

Ejada delivers services to over 150 enterprises

Direct Investments


Bonnon is a homegrown Saudi alternative to global coffee brands and is very popular with the Saudi audience.

Bonnon

Bonnon is a homegrown Saudi alterna-tive to global coffee chains and is 34% owned by SEDCO Holding Group. Es-tablished in 2006, Bonnon has evolved as a serious competitor to interna-tional chains by capitalizing on its high standards of product quality and com-mitment to customer care. The brand continues to benefit from increasing consumer interest in specialty coffee and a perfectly brewed cup.

In 2016, increasing consumer aware-ness of specialty coffee, combined with a growing coffee culture in Saudi Arabia, saw Bonnon continue its expansion via kiosks in prominent locations. Simulta-neously, Bonnon’s wholly owned coffee roaster helped the brand meet consum-er demand for premium freshly roasted coffee beans.

A drive towards innovation and expansion saw Bonnon chalk up revenue growth despite challenging market conditions. Internally, Bonnon continued rolling out improvements to its Point of Sale (POS) system, and implementing dependable centralized systems integrating data from the brand’s nationwide branches.

The year also saw Bonnon once again meet its Saudization targets in line with the Ministry of Labor’s stipulations.

Bonnon coffee products have recently revamped their packaging to improve freshness and consumer desirability. 2016 saw the brand reap further bene-fits from its improved packaging - with new consumers drawn to the brand, and existing ones demonstrating increased loyalty and brand recall.

In 2017 and beyond, Bonnon is looking to benefit from growth in Saudi Arabia’s specialty coffee sector, where coffee

shops are high-performing channels growing at around 10% a year (CAGR) in terms of sales. Cafes too are record-ing market-beating sales growth, with demand for high quality specialty cof-fee beans rising. Bonnon is aiming for profit margin and volume growth while looking to expand in local and regional markets. Menu enhancements are also being planned to introduce new and im-proved food offerings across all Bonnon branches.

Direct Investments

Salem Bin Mahfouz,Chairman


Tazweid delivers facilities management, maintenance and manpower to keep real estate assets operating in prime condition.

Essam Malaikah,CEO

TazweidDirect Investments

Tazweid was established in 2012 to pro-vide facility management and mainte-nance services to its sister companies and external clients. The company offers

clients a range of services, from cleaning and maintenance for hospitality and F&B establishments to handling restaurant staffing and operation and tourist facil-ity management. Since establishment, Tazweid has played a key role in assisting Group companies with their manpower requirements and operation solutions management.

Tazweid delivers support to SEDCO Hold-ing Group companies when extra mem-bers of staff are needed on projects, and in some instances provides up to 40% of the total manpower employed by its sis-ter companies. The company is also ex-panding its portfolio of external clients.

Despite economic headwinds, the F&B market in Saudi Arabia stayed robust in 2016, putting Tazweid in good stead for

rapid growth. Building on its momentum from 2014 and 2015, the company contin-ued providing operational staff for hotels and residents, as well as maintenance and cleaning teams for commercial and residential facilities. Business develop-ment activities continued apace, with the team approaching new clients in the hos-pitality sector.

Saudization remains a key focus for Tazweid during 2017. The company has recently signed a new training partner to give its Saudi employees the skills to perform well in the company’s current portfolio of contracts. Expansion will also remain a key theme for 2017, with Tazweid tapping new opportunities in a growing market by proactively approach-ing new clients and increasing the reach of its operations.


Al Mahmal Facilities Services Co. is a facilities management specialist providing services to major clients including shopping malls, banks, hospitals, office towers and residential buildings.

Al Mahmal Facilities Services

CEO

22.9%

During 2016, Operating profits increased

Training perks were revised to make the company an attractive proposition for Saudi nationals

Al Mahmal Trading Company started implementing its Five

Years Strategic Plan

Direct Investments

Emad Kaki, CEO

SEDCO Holding Group owns an 80 per-cent stake in Al-Mahmal Facilities Ser-vices Company (AMFS), a specialist facil-ities management concern. Founded in in 1988, the company takes responsibility for client properties such as shopping malls, banks, hospitals, office towers and residential buildings. Its services include operation and maintenance, janitorial and housekeeping, security and safety, and project engineering and support.

During 2016, Al Mahmal registered a ro-bust rise in revenues of 21.2% over 2015. Operating profits also increased by 22.9% percent compared to the previous year. The concern added to its client portfolio with several contract wins, including:

•Stars Avenue

•National Guards – Head Quarter

•National Guards - Utilities

•Red Sea Mall - Parking

•Omar Gasim Al Esayi

•Madina Square

•Center Mog Plaza

•Al Khabeer Capital

•MIDAS (Riyadh)

•Shell Jumeiyah Company (Riyadh)

•Unique Vision (Riyadh)

Operationally, Al-Mahmal Facilities Ser-vices Company started implementing its Five Years Strategic Plan, which positions the company to face future challenges and safeguard its long-term future. The plan includes developing and implement-ing quality and performance services, and upgrading the brand’s software (OR-ACLE) capabilities as per ISO 9001:2008 standards.

Through 2016, the company also bol-stered its brand presence and upgraded its marketing program. It implemented a media outreach strategy through con-ventional advertising and social media

channels, and also updated its brand strategy for the first time in 28 years of successful operation.

On the manpower front, Al Mahmal in-vested heavily in training civil engineer-ing talent to bolster operations. It also met increased market demand by re-cruiting 329 new employees from Asia and the MENA region. Staff members were rigorously trained to deliver quality services via a robust on-the-job training program delivered by experts.

Through the year, Al-Mahmal Facilities Services Company also doubled down on its commitment to Saudization. Salary scales and training perks were revised to make the company an attractive propo-sition for Saudi nationals, while an out-reach program was conducted through advertising, liaising with technical col-leges and universities and partnering with the Chamber of Commerce.


Al Mahmal Development is the property operator and manager behind Jeddah’s Al Mahmal Shopping Center.

Al Mahmal Development CO.

Al Mahmal Development Co. (AMD), for-merly known as Al Mahmal Real Estate Co., is a property manager and devel-oper established in 2004 to manage Al Mahmal Shopping Center in Jeddah. The Centre, which opened in 1987, is 80% owned by SEDCO Holding.

Al Mahmal Shopping Center comprises approximately 145 shops, 51 kiosks, 19 stands and a food court, over a leasable

area of 12,000 m2 spread over seven sto-ries.

AMD’s operations span two main streams - leasing and managing the seven-story shopping center, and operating the con-nected Al Mahmal Parking building to generate revenues through hourly fees as well as long-term rentals.

After maintaining the shopping center’s showroom occupancy rate at 100% for

2015, 2016 saw AMD implement a new tenant mix plan – developed by Canadian consultants R2E - to optimize diversifica-tion and drive visitors.

60% of the plan was operationalized during the year, with implementation on the remaining 40% expected to conclude by the end of 2017. The vibrant new retail mix will boost visitor footfall and help re-tailers meet their business goals.

Al Mahmal Shopping Center comprises approximately

145 shops

AMD’s operations span two main stream to generate

revenues

145

Direct Investments

Emad Kaki, CEO


Ewaan Global Residential is one of Saudi Arabia’s leading real estate developers.

SEDCO Holding owns a 20% stake in Ewaan Global Residential, one of the leading real estate developers in the Kingdom of Saudi Arabia. Ewaan was launched in 2008 with a capital base of SAR 400 million, and benefitted from a partnership between 4 major Saudi cor-porations - the Islamic Corporation for Private Sector Development (ICD), Al Numu Real Estate Development Com-pany (a SEDCO Holding subsidiary), the Saudi Public Pension Agency and the In-ternational Investment Bank (IIB).

The company offers real estate develop-ment management, and real estate sales and marketing as discrete services. Ewaan also invests and develop real es-tate properties on its own.

2016 saw Ewaan continue its business strategy of developing real estate via sev-eral business models, including through funds, and also by assuming the role of master developer. The company contin-

ued its primary purpose of offering qual-ity residential and commercial solutions for middle-income households in the Kingdom.

Despite a general market slowdown driv-en by government austerity measures and a fall in disposable income in its target market, Ewaan accelerated client and product development. The company responded to changing market condi-tions by focusing on existing projects, and developing new designs and con-struction methods to be implemented through 2017.

External innovation was matched with an internal quest for efficiencies through the year.

Through the year, Ewaan continued work on its flagship real estate projects such as Al Fareeda, Al Jawaan, Limas, and Safa Gardens.

Ewaan also continued working on its Jeddah based Al Safa project, which will deliver a residential apartment project stretching over 79,283 m2. 2016 saw the design and authority approvals complete successfully, with Ewaan moving to for-malizing contractor and consultant se-lection.

Simultaneously, construction has start-ed on the pioneering Riyadh-based Al Jawaan project to deliver 282 prime residential villas within a self-sufficient community.

Through 2017, Ewaan will continue deliv-ering high profile projects that contrib-ute to Saudi Arabia’s economic growth and add genuine value to residents and business tenants. At the same time, the company is adapting to market condi-tions by launching smart solutions that will come online through the year.

Ewaan Global Residential

Fadi Al-Qassim, CEO

Direct Investments


Khomasiah Tabah is a Jeddah-based real estate developer focused on Saudi Arabia’s urban development.

Khomasiat Tabah Limited Company

Expected growth driven by increasing demand in the affordable

housing segment of the market

fully injected paid up capital to fund its operations

Khomasiat Tabah is a Jeddah headquar-tered real estate developer that is 21.4% owned by SEDCO Holding Group. The remaining shares are divided between leading Saudi companies and well-re-garded businessmen. The firm benefits from SAR 700 million of fully injected paid up capital to fund its operations.

Khomasiat Tabah’s business activities focus on urban development in Saudi Arabia, particularly in Makkah and Ma-dinah. The company generates returns by selling attractive commercial and residential plots post development.

In 2016, the white land tax introduction caused uncertainty in the real estate market, leading to a drop in land prices and a slowdown in significant transac-tions. However, Khomasiat Tabah’s con-

servative projections and rigorous land selection processes held it in good stead through the year.

In the year, the real estate developer completed development on its Morouj Al-Sultan project in Madinah, which is situated on 470,000 m2 of land. The company commenced project handover to the Municipality, and expects to ac-quire title deeds and start plot sales in the first quarter of 2017.

During the year, Khomasiat Tabah also acquired a prime plot of land in Madi-nah, within close proximity of the Holy Haram, and a mere 2.8 km away from the Haramain High Speed Railroad’s main station. The 683,859 m2 land asset will comprise 59% sellable area upon completion, and will be developed under

a Special Project Vehicle (SPV) named Khomasiat Al Ghraa Co. Development activities are slated for an early 2017 start, with sales expected to kick off by 2019.

Overall, Khomasiat Tabah burnished its market reputation as a developer with the ability to develop, operationalize and deliver premium land plots in key cit-ies. Going forward, the firm is expecting growth driven by increasing demand in the affordable housing segment of the market. The firm will rely on its strong resource bank and managerial exper-tise to power growth as it contributes to Saudi Arabia’s economic development by turning static landholdings into viable and contemporary urban projects.

Development completion ofMorouj Al-Sultan project

Direct Investments


Arabian Farms is a producer and supplier of premium eggs and poultry products for GCC markets.

Arabian Farms Development Company

SEDCO Holding Group owns 50 percent of Arabian Farms Development Compa-ny Ltd, which was established in 1978 in the south of Riyadh. In 2001, the com-pany relocated to a site closer to Saudi Arabia’s capital city on a fully-owned plot covering 40 hectares. In 1999, the company expanded its operations into the UAE via a Dubai branch in Lahbab on the Hatta-Oman road, occupying 7.2 hectares leased for 25 years.

The company kick-started with a pro-duction capacity of 40 million table eggs an annum in 1978. It was produc-ing 140 million eggs a year by the time it expanded to the UAE. Arabian Farms has currently reached 200 million eggs, and aims to hit a total production of 270 million eggs across all its facilities by 2020.

Arabian Farms confronted a challeng-ing market in 2016 due to a confluence of factors including a drop in consumer spending changes in the global poul-try market that created a glut of cheap

eggs dumped in GCC markets, and Sau-di Arabian taxes on egg exports.

Yet, the company continued its success-ful policy of expansion and upgrades, and consolidated its position as the only pasteurized shell eggs producer in the UAE. The line, first introduced in 2015, saw continuing traction with hotels and luxury establishments.

Both Al Kharj and Dubai farms added new poultry houses to jointly increase production capacity by 10%. Both prop-erties also upgraded old machinery and improved building structures to upgrade product and process quality.

Q1 2016 also saw the opening of a new sales and distribution branch in Doha Qatar. Meanwhile, a greenfield broiler chicken site commenced construction in Al Ain, UAE, at an estimated cost of AED 120 million. The site includes a previous facility, and rests on an 800,000 sq. me-ter plot of land that has been leased for 30 years. When finished, the state of the

art project will produce 6 million tons of broiler meat an annum, helping Arabian Farms capture 2% of the fresh chicken market in the UAE.

On the process front, Arabian Farms implemented high biosecurity standards to protect its birds from the poultry disease outbreaks impacting regional farms. It also executed a well-planned raw material sourcing strategy to keep the feed prices down despite volatility in the international commodities mar-ket. A new feed mill was established on the Al Kharj farm to reduce feed costs, increase feed quality, and improve bios-ecurity. The new mill will also help the brand develop premium products such as Omega-3 eggs.

In 2017, the company will continue its policy of responding proactively to price changes, customer preferences, and volatility in the international commod-ities market. It will further expand its egg business while entering the chicken meat production market.

Suheel Ahmed, CEO

Direct Investments


Dar Al Fouad Hospital is a tertiary healthcare institution specializing in cardiology, cardiothoracic surgery and organ transplants.

Dar Al Fouad

SEDCO Holding Group operating com-pany Dar Al Fouad Hospital is a tertiary healthcare institution specialized in car-diology, cardio-thoracic surgery, and or-gan transplants. It is headquartered in Cairo, where it operates a 142-bed hos-pital, and also has outpatient clinics in Kuwait. SEDCO Holding Group Company has a 25.8 percent stake in the concern, making it Dar Al Fouad’s second largest shareholder.

Dar Al Fouad Hospital was the first healthcare provider in Egypt to be ac-credited by the Joint Commission In-ternational, considered the global ‘gold standard’ of healthcare quality. In 2016, the concern’s roster of doctors, nurses and administrators expanded to total 1,489 employees – with 241 physicians, 343 nurses, 660 administrative staff and 245 blue-collar support workers.

In 2016, the concern saw expansion in operations across key areas of demand. Bone marrow transplants increased by 39%, while orthopedic surgeries in-creased by 17.5%, driven by investment in the roster of consultants and ortho-pedics subspecialties. Meanwhile, out-patient visits also rose by 5.6% as the brand increased service availability to include Fridays and extended its avail-ability during the working week.

Dar Al Fouad Hospital also renewed its focus on expansion through 2016. It concentrated its resources on the Nasr City Hospital - its second Cairo facili-ty. The complex will accommodate 168 beds, once launched, and comprises three basement levels, a ground floor,

and an eight-story tower that makes room for a five-star hospital with 5 op-erating theatres and 200 physician clin-ics. Despite falls in the Egyptian Pound impacting investment costs, Nasr City is on track for a 2017 completion.

Operationally, the DAFH Training Centre continued building staff capabilities to world-class standards. It offered DAHF staff members access to a variety of non-degree educational opportunities and training programs benchmarked to international standards. A total of 71 internal training courses, 18 external training courses and 3 overseas training courses were delivered through 2016 to employees in core, functional and man-agerial competencies. A total of 1,274 attendees benefitted from the cours-es through the year, with the training schedule scoring an average of 4.6 on a 5-point scale on attendee satisfaction.

Overall, the brand’s market position is helping it gain traction in the Egyptian healthcare market despite a more com-petitive environment brought about by the availability of more specialized cen-

ters and tertiary care facilities, and cash patients becoming more price-aware. During 2016, Dar Al Fouad offset some of these revenue challenges by develop-ing tailored market channels to access sports clubs, syndicate members, and nearby residents to increase its cus-tomer base. It also offered promotional incentives on examination fee, labs and scanning services. The brand’s sales and marketing efforts expanded geo-graphically to target patients residing outside of Cairo – for instance in Alex-andria, the Delta and the Canal - to at-tract more cash-paying patients. These initiatives were successful in expanding the brand’s revenue base and improving brand loyalty.

In 2017, Dar Al Fouad Hospital will en-hance its strategies to contain opera-tional cost, reduce waste, increase rev-enue, better identify stakeholder needs and refine its patient-centric approach. It will also seek to increase hospital staff satisfaction in the knowledge that exceptional customer service gives the brand a competitive advantage.

employeesoutpatient visits

rose by 5.6%

5.6%

1,490 internal training courses

71

Direct Investments


Established in 1991, Bank Muamalat is the largest independent Shariah Bank in Indonesia.

Bank Muamalat Indonesia

• Indonesia Good Corporate Governance 2016;

• Best Islamic Financial Institution in Indonesia Global Finance World’s Best Islamic Financial Institutions Awards 2016;

• Best Islamic Finance Bank in Indonesia 2016 Best Financial Institutions in Southeast Asia;

• The Champion of Service WOW Service Excellent Award 2016;

• The Champion of Solo WOW Service Excellent Award 2016;

• The Champion of Pekanbaru WOW Service Excellent Award 2016;

• The Champion of Medan WOW Service Excellent Award 2016;

• The Champion of Denpasar WOW

Service Excellent Award 2016;• The Champion of Bandung WOW

Service Excellent Award 2016;• Digital Innovations for Dharia

Banking - Indonesia Digital Innovations Awards 2016;

• Peringkat II Best Overall Performance Islamic Commercial bank - service Excellence Banking 2016;

• Silver Champion of Jabodetabek WOW Service Excellence Award 2016;

• Peringkat II Bank Umum Syariah - Digital Brand of The Year 2016;

• The Net Promoter Score Leader Customer Loyalty Award 2016.

SEDCO Holding owns 17.9 percent of Bank Muamalat Indonesia (BMI), Indonesia’s first Shariah Bank. BMI has an operating history stretch-ing back to 1992, and continues to transform its business positioning from traditional Islamic bank to a modern retail banking institution.

In 2016, the bank confronted a chal-lenging climate by streamlining its loan portfolio and aggressively set-ting bad debts. The bank refined its bad debt portfolio processes by add-ing to its remedial team and devel-oping special legal support.

The bank’s efforts saw its Non-Per-forming Financing portfolio drop to 4.43% gross and 1.92% net, marked-ly better than the respective 5.50% and 4.22% targets that had been set.

Bank Muamalat Indonesia also opti-mized processes and improved ser-

vice level capability across all oper-ations. It created a balance between new business development and risk management, and also implement-ed rigorous cost management dis-cipline to regulate CAPEX and OPEX.

As a result of these improvements, the bank posted a before-tax profit of IDR 50.61 billion (SAR 14.25 million) by the end of Q3 in 2016 – beating its target by 112.46%. Return on Assets (ROA) and Return on Equity (ROE) came in at 0.13% and 1.89% respec-tively – also beating set targets.

Through the year, the bank focused on measured and sustainable busi-ness growth. In the retail fund-ing segment, the bank tapped into community programs to improve its CASA ratio, and also geared up its Hajj funding acquisition program. It also identified new target audiences and revamped its policies on pen-

sion financing, mortgage financing and SME financing.

To improve its wholesale business, the bank recruited high-caliber re-lationship managers with the ability to source clients whose risk profile matched the bank’s risk appetite. Fee-based income was driven by boosting trade-related facilities and syndication activities.

Bank Muamalat Indonesia also launched a number of new products through 2016-for instance, a new Arsenal FC co-branded Shar-e Deb-it card that appealed football fans. The bank also started a forfaiting scheme where it purchased the right to collect future payment obligations from other banks. Shariah-com-pliant forward and swap services mechanisms were introduced, as was a Shariah-compliant interbank repo scheme.

The bank’s performance and its previous track record saw it net a slew of awards during

2016, including:

Direct Investments


The EHC plant produces high-grade ammonium nitrate for use in the mining industry.

Egypt Hydrocarbon Company

the plant will operate 24/7 all the week

the plant achieving full specifications at 100 percent

capacity during trial tests.

SEDCO holds a 20.8% share in the Egypt Hydrocarbon Company (EHC) ammoni-um nitrate plant currently under con-struction in the industrial zone at Ain Sokhna, inland and west of the Gulf of Suez.

Construction began about six years ago, with substantial completion registered by end of 2016. The year-end marked with 200,000m² of production facilities built on a 500,000m² site. Plant commis-sioning is currently underway, with the plant achieving full specifications at 100

percent capacity during trial tests.

Once operational, the EHC plant is ex-pected to have an annual production capacity of 386,000 tons of mining grade ammonium nitrate used by the mining industry worldwide.

On commissioning, the plant will operate 24/7, with inspection and maintenance shutdowns scheduled every two years. The major components of the plant have been designed with an operational life of over 30 years, and an administration

building staffed with dedicated skilled labor will support all operational main-tenance activities for the facility.

EHC will supply mining companies with products in Africa, Europe, and Asia. The location of the plant, with convenient ac-cess to Mediterranean and Red Sea ship-ping, will create a significant cost advan-tage by reducing the freight overheads that are a major component of product export pricing.

expected annual production capacity

24/7 386,000TONS 100%

Direct Investments


SEDCO Holding Group owns and manages a diverse portfolio of real estate assets in Saudi Arabia and key international markets.

Business ReviewReal Estate Investments


Saudi Arabia Real Estate

SEDCO Holding Group’s Saudi Arabian real estate portfolio includes shopping malls, hotels, apartment blocks, office buildings, industrial units, and prime land for development.

2016 was a challenging year in general for Saudi Arabia’s real estate sector. However, the local real estate investment team’s focus on future-proofing, low downside risk and diversification helped SEDCO Holding Group post excellent returns while also growing its portfolio. The team took advan-tage of stressed market conditions to search for viable opportunities at advantageous prices. It also implemented a strategy of offering differentiated products to stoke investor interest.

Nawras mixed use development, Jeddah

This mega development is scheduled in two phases and is situated on a 32,178m² parcel of land located on the intersection of Cornish Road and Prince Naif Street, Jeddah. Phase one offers a unique mix of innovative retail and F&B offerings, including upscale gourmet outlets ben-efitting from both indoor and outdoor settings. Retail offerings contribute ap-proximately 15,100 m² of rentable area spread over three levels, and deliver a variety of retail spaces, with a sea view as standard for all outlets. Recreation-al and outdoors sitting areas combined with service amenities comprise 16,000 m² of the site’s total area. Nawras is attempting to redefine the dining expe-rience for Jeddah’s population. The proj-ect’s retail element has been allocated to a professional management company with extensive experience in delivering premium service to tenants and visitors. This project is expected to be revealed in 2021.

Galleria, Jeddah

Construction will be completed in 2017. A five star hotel operated by Elaf with a retail outlets located in Jeddah’s Prince Mohammed Bin Abdulaziz Street (com-monly known as Tahlia Street)

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. It was

conceptualized and developed by SED-CO Holding Group, and opened in March 2008. The property is 49.5% owned by SEDCO Holding Group Group.Red Sea Mall is the Western region’s only mall with a connected five-star ho-tel and a premium office tower (SEDCO Tower, which has a gross leasable area of 10,549 m²). The 156-room hotel, which offers spa, and banqueting and wedding hall facilities, is leased to SEDCO subsid-iary Elaf until 2029. The mall is strategically situated in an affluent area of north Jeddah, close to the city’s beautiful corniche, internation-al airport, and many of its commercial, leisure, and hospitality venues.The Red Sea Mall is expanding its 110,000 m² area and 500-tenant count. Expansion work started in 2015, and will add 30,000 m² to the property, and in-crease car park capacity to 1,350 when complete. The upgrade is also expected to boost tenant numbers by 20%.

Al Mahmal Center, Jeddah

SEDCO developed the Al Mahmal Center in central Jeddah in 1985, and owns an 80% stake in the shopping complex. The property is managed by SEDCO Holding Group Group operating company Al Mah-mal Development. With more than 35,000 m² of built area, Al Mahmal Center offers a mix of retail-ers – from luxury goods to mass con-sumer products, casual dining and fast-food outlets. The seven-story structure is connected to its adjoining office tower by an elevated walkway.Al Mahmal Development is currently

repositioning and remerchandising Al Mahmal Center to refresh its product mix and drive revenue increases. A new strategy is in place, and will be imple-mented in phases over the next 5 years.

Al Nakheel Center, Jeddah

Located at the corner of Madinah Road and Falasteen Street in Jeddah’s Al-Mo-saedyah district, this fully owned SEDCO property Center comprises office tower, medical clinics and some retail shops

Al Khaimah Commercial Center (Tent Souk), Jeddah

SEDCO Holding Group is a co-investor in Al Khaimah Commercial Center, with 50% ownership of the mixed-retail com-plex that sits on a 49,602m² site on King Khaled Road in Jeddah’s Al Handawia district. The center maintains 99% occu-pancy.

Al Rawdah, Jeddah

A new development that is located in the intersection between prince Sultan street and Prince Saud Alfaisal street in Jeddah. The concept will be focusing on F&B and fashions outlets with an outdoor design that offers the market some great recreational features and some open areas. the design has been articulated by world class designers and should bring some high standards to be known as a family oriented hub.

Mixed-use and Retail


Al Mojama Building, Jeddah

Fully owned by SEDCO Holding Group and offering serviced apartments as well as strip retail, Al Mojama occupies a 2,508m² site at the corner of King Ab-dulaziz Road and Salahuddin Road in Jeddah’s Al Balad area.

Al Bairoti Building, Jeddah

Al Bairoti offers a mix of residential units with a small retail component. It has a built area of 13,793 m² on a 2,755m² site, and is situated on Jeddah’s Old Makkah Road. The property is wholly owned by SEDCO Holding Group.

Golden Belt Compound, Al Khobar

SEDCO Holding Group co-invested in this 143 unit medium gated compound in 1994. The development is located on a prime site of 46,000 m² beside Al-Kho-bar Mall, in the area between Dammam and Al-Khobar that is known as the Golden Belt district.

Al Soror Building, Jeddah

Al Soror is located close to Al Bairoti in downtown Jeddah and offers a mix of residential and retail spaces. A built area of 15,800m² rests on a 3,744m² site.

Al Sohaifa Building, Jeddah

This mixed use residential and retail property is located at the corner of Old Makkah Road and King Fahad Road in Jeddah. Al Sohaifa offers 10,484 m² of built area on a 1,200 m² site. The prop-erty is wholly owned by SEDCO Holding Group.

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 ele-ment. It has a built area of 4,541m² and sits on a 570m² site.

Residential

Elaf Bakkah, Makkah

Opened in late 2013 in the Mahbas Al-Jin district, this 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 Holding Group and managed by operating company Elaf. The total built area extends to 60,000 m² on a 3,651m² site.

An extensive range of restaurants and coffee shops cater to formal functions and also serve as casual meeting spots. The main facility accommodates over 150 people, while smaller venues are designed to serve compact groups and cater for individuals. A fully-equipped multifunction conference room seats up to 100 guests and offers exclusive cater-ing facilities.

Elaf Kinda, Makkah

Located close to the Holy Haram area of Makkah, this five-star hotel property is wholly owned by SEDCO Holding Group, and operated by the Group’s tourism, travel and hospitality subsidiary Elaf Group. A range of single and double rooms and deluxe suites are elegantly crafted in contemporary style and have recently been renovated. The hotel has 4 restaurants and a range of amenities to enhance the visitor experience as when visiting Makkah’s holy sites.

Hospitality

Elaf Al Sud, Makkah

Only five minutes’ walk from the Holy Haram, the four-star Elaf Al Sud offers 204 rooms and suites to cater for di-verse accommodation needs . The hotel is linked to the Holy Haram by an un-derground passage and also provides a 24-hour shuttle bus service for pilgrims. SEDCO Holding Group is a co-investor in the property.

Karboos Warehouses, Jizan

Located on King Faisal Road in Jazan’s Karboos district, this warehouse and strip retail development occupies a 43,904 m² site and is wholly owned by the SEDCO Holding Group.

Al Naseem Warehouse, Jeddah

Occupying a site of 88,533 m² on King Abdullah Road, this warehouse com-plex is wholly owned by SEDCO Holding

Group Group.

SEDCO Capital Real Estate Income Fund – I

In 2012, SEDCO acquired a strategic stake in this Saudi income-generat-ing fund. The fund has already secured properties in the Kingdom’s residential, retail and office sectors.

SEDCO Capital Real Estate Income Fund – II

The success of the first Real Estate In-come Fund saw the Group’s asset man-agement arm SEDCO Capital launch the income Fund II. The fund, now closed to investors, had accumulated SAR 445 million in capital by the end of 2015, and was matched by an equal sum in debt funding. Clients largely comprise insti-tutional investors high-net worth individ-uals and sovereign wealth funds.

Land Banks

SEDCO Holding Group has a significant bank of prime undeveloped land across Saudi Arabia, with sites in Riyadh, Taif, Madinah, Abha, Yanbu, Makkah, Jizan and Jeddah.

Regulatory changes, including Saudi Arabia’s white land tax, have increased momentum behind developing unused land into projects that increase nation-al prosperity. Priorities in 2016 include speeding up the development pipeline to convert land assets into income gen-erating propositions, the acquisition of new income generating properties, and the leasing of undeveloped lands.

Several projects are currently in various stages of planning. These include a res-idential master-planned community in

Makkah, a luxury residential compound in Jeddah, and a mixed-use hotel and residential development in Jeddah.

SEDCO Holding Group embraces synergy and works closely with its subsidiary In-timaa on land sale and lease, SEDCO De-velopment on development projects, Elaf on operations of hotel assets, and SED-CO Capital on structuring investments through real estate fund structures.

Khomasiah Taba

SEDCO is the single largest investor in this partnership, which primarily invests in Madinah’s development real estate. SEDCO Holding Group subsidiary Kho-masiah International manages the part-nership.

Industrial

Investment


International Real EstateSEDCO Holding Group owns and manages a diverse portfolio of global real estate - from income-generating developments and capital-gain investments to land banks for future development.

vion-Galderma, Fort Worth, Texas

This mixed-use Grade A property com-prises roughly 16,000 m² of office and industrial/distribution space on a 1.5 ha site, and is fully occupied by dermato-logical care specialist Galderma Labora-tories, the joint venture between Nestlé and L’Oréal. This is an income generating investment that is expected to offer dou-ble-digit returns upon exit.

RehabCare, Houston, Texas

This property is a new two-story state-of-the-art inpatient rehabilitation hospital with 46 private rooms and over 613 m² of therapy space on a land parcel of 1.38 ha.

Village at Woodlands Waterway, Houston, Texas

The ‘Village’ is a newly built luxury senior housing facility in the prestigious Wood-lands master planned community in Houston, Texas. The property is an 8-sto-

rey mid-rise residential building with 207 independent, assisted and memory care units. The property is of institution-al quality, with attractive amenities not seen in most senior housing facilities. It belongs to an asset class that has gath-ered significant attention given the age-ing demographic trends in the US.

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.

Garrett West, Durham, North Caro-lina

This Class A multi-family apartment property is located 4.5 km southwest of Duke University and 8 km northeast of University of North Carolina, Chapel Hill, near key employment and entertainment hubs. The three 13-story garden-style apartment buildings offer a total of 308 units.

Coral Landings III, Coral Springs/ Margate, Florida

Coral Landings is a grocery-anchored shopping center in Coral Spring/Margate, Florida. Anchor tenants include Home-Goods, Best Buy, Jo Ann Fabrics and Aldi, while other national and regional tenants bolster the mix. The Center was devel-oped between 2008 and 2011 in an in-fill location with regional accessibility.

Palmilla, Los Cabos, Mexico

Palmilla is one of the world’s most lux-urious master-planned golf communi-ties, located at the southern tip of Baja California along the Pacific Ocean and the Sea of Cortez. It is spread over 194 ha and includes a 115-room five-star ho-tel, Jack Nicklaus signature golf course, homes, villas, and sites for custom-build. SEDCO Holding Group has successful-ly sold most of the developments in the property.

The Americas


Colne Valley Retail Park, Watford, UK

Colne Valley is the dominant furniture park in Watford with tenants including DFS, Dreams, Harveys, Carpetright, Oak Furnitureland, and ScS. Originally devel-oped in 1989, Colne Valley was substan-tially refurbished in 2002 to provide two detached retail warehouse terraces split into seven units totaling 88,168 sq. ft.

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.

Avio Trade Park, Hoofddorp, Am-sterdam, Netherlands

This multi-tenanted office and industrial complex in the Netherlands capital has been owned by SEDCO since 2005.

Media Square, Brussels, Belgium

Media Square is a multi-tenanted and income-generating office property in the Belgian capital owned by SEDCO since 2005.

Blakelands Industrial Estate, Tan-ners Drive, Milton Keynes, UK

This is a high profile and institutional grade industrial estate located in the center of the UK. Well positioned close to Junction 14 of the M1 motorway, it offers excellent access to the UK motorway network and places half the UK popula-tion within a 2 hour drive.

Panorama Shopping, Parma, Italy

Panorama is a shopping center in the Italian region of Emilia-Romagna, and is anchored by a leading supermarket with the balance of the space occupied by complementary retailers. SEDCO has owned the income-generating property since 2004.

Germany funds

Two investment funds in Germany (SED-CO has a majority stake in one of them) hold diversified income generating prop-erty portfolios. These include a concen-tration of mixed-use assets in the Berlin area.

EURX Properties Fund, Luxem-bourg

SEDCO holds a strategic stake in this fund that controls 26 income-generating retail and office properties in 11 coun-tries. SEDCO has held this investment since 2006 and now plans an orderly re-alization of profits over the next years.

Land bank, United Arab Emirates and Lebanon

SEDCO owns prime land plots in Beirut, Ras Al Khaimah and Sharjah.

Europe/Middle East

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 offers 110,000 m² of offices, retail space and serviced apartments. The investment has been restructured and a major portion of the exit completed.

Bearys, Bangalore, India

Bearys Global Research Triangle is a Platinum LEED-certified information

technology and research park develop-ment acquired by SEDCO as a capital gain investment between 2007 and 2009. The project, spanning over 100,000 m², is now completed and leased to multina-tional tenants.

Zonah’s Pearl Valley Project, Hy-derabad, India

SEDCO holds a strategic stake in this land sub-division development that is creating independent housing plots for sale.

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 po-tential for hotel, resort and villa develop-ment. Value is being added to the project by improving access, and creating effec-tive zoning and master planning.

1 Lahrs Road, Brisbane, Australia

The project is a blue chip, newly built and tenanted cold storage distribution facil-ity in a prime industrial location in the Greater Brisbane Area. The property has been purpose-built for an international frozen seafood supplier who will contin-ue to occupy all of it for 11 years to gen-erate attractive yields.

Far East and India

Asia-Pacific

Business ReviewFinancial Investments SEDCO Holding Group successfully key predicted geo-political changes and corresponding market swings, and optimized its strategies to outperformthe benchmark.

SEDCO Holding Group I Annual Review 2016 81SEDCO Holding Group I Annual Review 201680

international private equity investments retained a 40%

commitment to growth

SEDCO Capital’s investmentsgoing up 11% in book value

through the year

allocation in emerging market opportunities

International Private Equities

Meanwhile, SEDCO Holding’s interna-tional private equity investments were once again managed through its SEDCO Capital asset management arm through the year. 2016 was a strong year for SED-CO Holding’s international private equity investments, which avoided emerging market volatility to generate returns through the efforts of the SEDCO Capital team.

SEDCO Capital’s international private equity investments retained a 40% com-mitment to growth, small and mid-cap investments in developed markets such as the US and Europe, and a 60% allo-cation in emerging market opportunities. Yet, there was a thrust towards deploying capital in developed markets and limiting exposure to developing ones.

Despite currency declines in China’s markets, SEDCO Capital’s investments in

the country still posted positive results, going up 11% in book value through the year. The team’s commodity investments also held solid. In particular, private eq-uity investments in Brazilian timber held their value despite surges in currency value and increases in the stock market.

Currently, SEDCO Capital’s global pri-vate equity portfolio is showing realized performances of 2.5x, leading to overall capital gains of 150%.

In 2016, SEDCO Capital concentrated on co-investments in mid-market compa-nies across specific sectors - such as consumer, education, healthcare, in-dustrial, and tech-enabled industries. Co-investments offer the benefit of fast-er implementation and additional layer of due diligence due to both parties in the investment conducting their own assess-ment

In 2016, the private equity team complet-ed five direct and co-investments that included a top-tier manufacturer of alu-minium die-casting and machining prod-ucts based in Korea, the operator of the largest chain of dialysis centres in India, the largest medical scribe provider in the U.S, a leading provider of cloud-based software delivering sales tax, excise, VAT, and other transactional tax compliance solutions, and a specialty juice business based in China focused on the production of healthy beverages.

2017 will see SEDCO Capital continue developing new co-investment opportu-nities, particularly in Europe, on behalf of clients including SEDCO Holding. De-spite assigning heavier weight to devel-oped markets, the team will stay open to opportunities presented by emerging markets.

SEDCO Holding Group has direct equity stakes operating companies and real estate assets in Saudi Arabia. In 2016, SEDCO Holding’s operating companies performed strongly despite prevailing market conditions. On the real estate front, there was a move to convert white land into developed assets offering a reliable stream of income generation.

40% 60% 11%

active managers on the Luxembourg platform outperforming the

benchmark across

Milltrust SEDCO MENA Fund, closed up 4.5% by year-end

Elite Flexi Saudi Fundclosed up 9% by year-end

Public equities and liquid assets

67% 9% 4.5%

SEDCO Holding is a pioneering investor in global Shariah complaint public equi-ties, money markets and other liquid as-sets through its asset management arm SEDCO Capital.

The year saw SEDCO Holding’s inter-national liquid portfolio subject to vola-tility due to swings in the public equity markets worldwide. However, the SED-CO Capital International Liquid Assets team successfully predicted geo-political changes and their corresponding market movements with success, allowing asset managers to optimize their allocations.

2016 saw the International Liquid Assets team upgrade to a core/satellite strategy to cater for a diversity of investor pref-erences on the risk/reward curve. The core, which accounts for the bulk of the allocation, is passively managed to follow the market benchmark and reduce cost overheads and active risk for investors. This core was expanded by three regional passive funds in 2016 to total four strate-gies targeting indices in the US, Europe, Asia Pacific and emerging markets.

Meanwhile, a proactive satellite strate-gy delivered a more specialized actively managed approach designed to outper-form the benchmark. The satellite strat-egy is designed to catalyze higher returns

further along the risk curve to meet a wide range of investor appetites. The SEDCO fund portfolio currently includes six satellites that are set to outperform the general market over the longer term.

2016 was a successful year for SEDCO Holding’s international liquid portfolio due to SEDCO Capital’s performance, with 67% of active asset managers on the Luxembourg platform outperforming the benchmark. The year’s performance pro-duced a vote of confidence in the team’s asset allocation approach, based on strategic positioning and cyclical moves while avoiding company-centric stock picking.

Meanwhile, SEDCO Capital’s MENA Liq-uid Assets team continued managing SEDCO Holding’s liquid investments in MENA markets. 2016 posed invest-ment-side uncertainties for the team, but also offered opportunities for business growth. The apartment adjusted to the new norm of local austerity driven by oil price weaknesses, which required a shift towards defensive strategies.

On the other hand, the team’s money market lines saw significant growth, with product yield rising from 1.76% at the end of 2015 to 3% by December 2016. At the same time, Assets Under Management

(AUMs) also doubled through the year.

The year was also punctuated by new fund launches. The Liquid Assets team introduced its Elite Flexi Saudi Fund, which is unique in providing investors with market returns capped by volatility. The fund captures most of the market upside while being very defensive on the downside, and closed the year up by 9% since its inception in June. Meanwhile, the high-conviction benchmark-indif-ferent Milltrust SEDCO MENA Fund, launched in June 2016, also closed up 4.5% by year-end despite a 19% down-turn on Saudi Arabia’s main bourse in September 2016.

During the year, the department also built its income asset team to deal with global sukuk products. A new portfolio manager was headhunted from Malaysia and added 14 years of financial experi-ence to the team. With this new inclusion, the SEDCO Capital’s Liquid Assets arm is now poised to provide sukuk offerings to clients in 2017.

In 2017, SEDCO Holding will continue using SEDCO Capital’s specialized ex-pertise and network of asset managers to make rewarding investments in liquid asset opportunities worldwide and in the MENA region.


Corporate Responsibility

SEDCO Holding Group’s CSR philosophy rests on the 3 main pillars of community,employees and environment.


Giving back to the community is a key element of SEDCO culture. It was this thrust towards empowering communi-ties that first gave rise to the Riyali finan-cial literacy scheme.

In 2016, Riyali moved to an online and mobile e-learning model to bring the scheme to a wider audience. The Riyali app was upgraded to offer a full Learning Management System where participants can now study and complete courses in-app. The Riyali scheme has traditionally empowers two key demographics - col-lege students, and young people aged between 10 and 12. In 2016, the program was expanded to include entrepreneurs, with Riyali helping startups overcome fi-nancial hurdles. The program started de-

veloping links with incubators, accelera-tors and Chambers of Commerce within Saudi Arabia to help empower entrepre-neurs and facilitate business success. Riyali also expanded its agreements with Ministry of Education to spread finan-cial awareness and culture to around 2 million students Kingdom wide between 2017 and 2020.

By the end of 2016, Riyali had crossed the milestone of having 150,000 people suc-cessfully pass through its financial liter-acy course.

Volunteering remained a core part of SEDCO Holding’s community programs through the year. The organization’s em-ployee volunteering program was for-malized in 2016, and became a part of

employee KPIs. Volunteering for at least 25 hours a year now counts towards 5% of employees’ overall evaluations.

In 2016, the CSR department actively cul-tivated relationships with non-profit con-cerns to give employees additional ave-nues for volunteering. The department also asked employees for their sugges-tions on how best they’d like to make a positive difference.

2016 was the year that SEDCO Holding formally turned 40. The marketing de-partment marked the occasion through the “40 days of giving” initiative that made the community a central pillar of SEDCO Holding’s journey, and accelerat-ed all CSR programs for a period of 40 days.

Corporate Social Responsibility is a core element of SEDCO Holding’s organiza-tional culture, and also permeates the Group’s operating companies. While the CSR department initiates and supports many CSR programs, social responsibil-ity is a group-wide activity where all de-partments take on CSR activities in their own fields.

SEDCO Capital, for instance, has strengthened its pioneering Prudent Ethical Investment (PEI) approach, com-bining best practices from ethical invest-ing with Shariah compliance. Pharmacy chain Al Nahdi extended its Diabetes Resource Centers to 50 from an original 11 in 2016. The Centers, situated within Nahdi branches, provide free information

on diabetes avoidance, diagnosis and management. Meanwhile, F&B concerns such as TARFEEH run food donation pro-grams for the underprivileged in associ-ation with Saudi food banks.

Centrally, SEDCO Holding’s CSR ethos rests on the 3 main pillars of community, employees and environment.

CSR

Community

Employee motivation and well-being is a central tenet of SEDCO Holding’s CSR efforts. In 2016, employee-centric CSR efforts were expanded substantial-ly. The employee health and well-being program was grown through campaigns encouraging them to exercise, take the stairs instead of the elevator, and eat a balanced diet with regular portions of fruit. Green apples continued being made freely available throughout the company to encourage healthy snacking. SEDCO Holding also offered regular tips and advice on healthy lifestyles, particularly during the month of Ramadan.

2016 saw the Mizan Al Khair Ramadan weight loss campaign gain further trac-tion. Employee health benefits were also expanded through the year, with sub-sidies on gym memberships and more frequent sporting activities such as the SEDCO Football League. SEDCO Hold-ing also opened its football leagues and billiard tournaments to employees’ chil-

dren, and actively encouraged family participation.

On the communication front, SEDCO Holding’s Tawasul program of employee outreach was expanded. Tawasul sees SEDCO teams visit employees on special occasions such as marriages and births, and also call in on convalescing employ-ees who have suffered health concerns. The program encourages employees and SEDCO’s leadership to regularly visit re-tired SEDCO alumni to maintain a strong bond and strengthen organizational cul-ture. In 2016, outreach activities were ex-tended to include ex-employees of SED-CO Holding’s operating companies.

Progress was also made on the profes-sional development front. The SEDCO Group Stars program, which identifies high-potential employees and fast tracks them to leadership roles program, is gathering pace. Two waves of members have already graduated from the pro-gram, benefiting from continuous men-

toring and development opportunities.

SEDCO Holding also continued its tra-dition of transparency, with a number of fora and platforms ensuring regular communication between SEDCO teams and the company’s leadership. In 2016, quarterly outlook meetings, town halls, the annual Multaqa and “Lunch with the CEO” initiatives fostered closer com-munication between employees across departments, ranks and operating com-panies.

These employee-centric initiatives com-bined to make the SEDCO Holding Group an employer of choice for the year. The company maintained its 8th position in the Great Place to Work rankings for 2016 despite increased competition. Meanwhile, employee satisfaction was maintained at 90%, with overall positive employee feedback increasing by 11%. The company’s employee turnover rate also fell below 6% for the year.

Employees

In 2016, SEDCO Holding continued its mission to become more environmentally conscientious in its everyday operations. The Group measured its water, electric-ity and paper use, and put conservation benchmarks in place. Conservation ef-forts were bolstered by an awareness raising campaign called SEDCO Environ-

ment that disseminated strategies for reduced resource use. All employees in the SEDCO Holding were asked to attend workshops, and adhere to resource-use targets. The year also saw SEDCO Hold-ing’s recycling program reinstated.

Externally, SEDCO Holding and its op-erating companies marked Earth Hour strongly. The Group’s key properties, in-cluding the Elaf Hotel, Red Sea Mall and Mahmal’s landmark building, turned off their lights to send a loud message in fa-vor of responsible energy use.

Environment


In 2016, SMBF allocated approximately SAR 13.2 million in educational grants for targeted projects. The Foundation of-fered undergraduate and graduate schol-arships to 147 students of both genders to encourage human development. The initiative also rolled out capacity building training programs to 50 charities and 40 other beneficiaries. Through the year, the Foundation also focused on teach-er development at the Riad Al Quran schools through training programs that benefitted 68 teachers and 615 students.

The Foundation also reached out to Ta’if University and Jizan University to expand its program of volunteer student units. The program encourages students to

volunteer for causes to gain teamwork experience and develop a sense of purpose.

In 2016, SBMF allocated part of its bud-get towards the Medina Academy, where it began construction on a new kinder-garten. The project was 65% completed by the end of the year.

At Taibah University, 465 students of both genders became involved in student volunteering programs to reach out to an audience exceeding 153,000 people. The Foundation also published a guide at the University explaining the mecha-nisms by which private universities and government institutions could catalyze academic and vocational units to speed

up targeted learning.

A further 800 students were selected for an arts, sports and cultural education program, which empowered them to take part in local and international competitions.

The foundation continued its supported the implementation of Kagan’s coopera-tive learning models as a teacher class-room management system, reaching 810 male and female teachers across 26 schools to benefit 16,640 students. Sev-en projects were also launched through the year to help the broader community develop creative ideas to promote educa-tional institutions.

Three axes of achievement

The Foundation’s performance management plan enabled it to effectively improve program delivery and management across education, third sector organizational empowerment, and community development.

Education

The Salim bin Mahfouz Foundation (SBMF) was established in 2013 (1434H) as a charitable organization fully licensed by Ministry of Social Affairs to operate within the boundaries of Saudi Arabia.

With a stated vision of offering “Lead-ership in giving towards sustainable development”, SBMF has laid out an operational framework in its mission

statement. The organization’s mission is to “Empower targeted communities through sustainable, qualitative and in-stitutional grants in a stimulating envi-ronment in accordance with the best in-ternational standards.”

SBMF fulfills this mission by focusing on three core areas – maximization of grant impact, managing the Foundation’s

brand image and reputation, and deliver-ing institutional excellence.

2016 was a very active year for the Foun-dation, as it gave out grants and initiated projects across all three axes. As in pre-vious years, the Foundation focused the bulk of its activities in the Mecca, Madina and Jazan areas.

Salim bin Mahfouz Foundation

The Foundation empowers communities through grants that help third sector organizations improve program delivery and development results.

The Foundation continued allocating resources to improve third sector orga-nizations by developing their human re-sources and organizational structures. In 2016, SBMF allocated approximately SAR 4 million to third sector organization uplift, with the aim of facilitating them in delivering their developmental goals and achieve excellence in implementation.

In 2016, SBMF allocated funds to help 22 third sector organizations adopt the

Practical Quality Assurance System for Small Organizations (PQASSO) as a way of improving management and quality control.

The year saw the Foundation develop its Athar Academy – a non-profit organiza-tion working to nurture competences in media, art and leadership. Simultane-ously, the Foundation also participated in developing Al Ber Mecca Association, and helped the institution gain accredi-

tation from Global Reporting Initiatives (GRI). The Foundation also focused on its own Bin Mahfouz Mosques. It select-ed 80 participants from its Bin Mahfouz Mosques cadre, and gave them access to advanced qualifying courses on manage-ment systems.

Meanwhile, female leadership in third sector organizations was pushed into the spotlight through personalized training for 25 carefully chosen leaders.

2016 saw the Foundation retain its em-phasis on community development. It in-vested around SAR 11.7 million in imple-menting an array of programs targeting family development, individual economic empowerment, youth participation in sports, and volunteering.

The Foundation reached out to 10,000 people through Quran memorization classes and neighborhood activities channeled through its Bin Mahfouz Mosques. A further 1,200 people were reached through intensive scientific summer courses held at the King Saud Mosque and delivered by religious schol-ars and imams

3,400 people benefitted from a public forum held in Youth City to guide young people towards training programs, and cultural and sports activities. Meanwhile, 1,500 young Muslims were familiarized with their faith under a program called My Deliverance, My Life. The initiative also qualified new preachers post an in-

tensive training program.

The Foundation approached 20 homes with a message of safety under its Safe Home program, which also saw safety ambassadors assigned to schools.

In the Ta’if region, a cadre of 155 volun-teers was encouraged to get involved in volunteering and community projects to benefit the community and prepare for the job market.

Under its Go! Program, the Foundation qualified very small business owners via a training program that empowered them to effectively manage their busi-nesses. SBMF also gave out 20 loans to help business expansion and sustainable income generation.

In the Montazahat District, SBMF worked towards economic empowerment for families by giving girls and women the training needed to set up small cottage industries that could generate a second

source for the household.

SBMF had in 2014 financed a study of attributes that professional players pos-sess, and used that to benchmark role models across Saudi Arabia’s football clubs. In 2015, this program was expand-ed, and 2016 saw it grow further still. Around 120 players from popular foot-balling clubs including Al-Ittihad, Al-Hi-lal and Al-Wahdah were encouraged to develop the skills, behavior and knowl-edge to act as role models for young fans.

In a far-ranging effort, the Foundation’s Our Club initiative benefitted over 13,455 people, helping them develop the skills to integrate into the community, strengthen their role in it, and serve it better.

Through 2017, the Foundation will con-tinue investing resources across its three pillars of action while prioritizing mea-surable projects with the maximum im-pact.

Empowering Third Sector Organizations

Community Development

Accolades

SEDCO Holding Group continued its tradition of excellence by winning local and international awards that highlighted its achievements andburnished its market reputation.


# Entity Award Bestowed by

1 SEDCO Holding Business Excellence 2016 Arabian Business

2 SEDCO Holding Best CSR 2016 Arabian Business

3 SEDCO Holding 8th Great Place To Work in 2016 Great Place To Work©

4 SEDCO Holding Best Shari’ah-compliant Corporate Governance Award” 2016 in the Gulf region Capital Finance International (CFI)

5 SEDCO Holding Top 100 companies with strong legal competency in the Middle East

The Legal 500 organization

6SEDCO Capital Asset Manager of the Year: Saudi Arabia Global Investor/ISF MENA Awards

7 Tarfeeh – Applebee’s Best Marketing Practices Award DineEquity

8 Elaf Group The Ritz Carlton Award Ritz Carlton

9 Elaf Group Qatar Airways Award Qatar Airways

10 Elaf Group Leading Travel Agency (Amadeus) Award Amadeus

11 Red Sea Mall Best Islamic Private Wealth Management Company

the World Finance magazine at the 2016 Islamic Finance Awards

12 Red Sea Mall Best Use of Social Media in Marketing the Asian Retail Union

13 Red Sea Mall Shopping Center of the Year the Asian Retail Union

14 Red Sea Mall Strategic Website for a Shopping Mall the annual Pan-Arab awards

15 Red Sea Mall The Saudi Excellence in Tourism Awards - Best shopping mall in KSA

the ninth ceremony Forum of Travel and Tourism Investment market

16 Red Sea Mall Best initiative in the corporate social responsibility field

the Global CMO Asia Awards for Excellence in Marketing 2016

17 Red Sea Mall Most committed mall towards society the Global CMO Asia Awards for Excellence in Marketing 2016

18 Red Sea Mall Most popular shopping center in 2016 the Global CMO Asia Awards for Excellence in Marketing 2016

19 Arabian Farms Inspirational Company for 2016 BIZZ AMEA

20 Nahdi Best Saudization Initiative awardthe 11th annual human resources summit in the Middle East and North Africa, organized by Naseba

21 Nahdia Guinness world record for providing medical checkups for 4049 pilgrims in only 12 hours in one location in Mina.

Guinness World Record

22 Nahdisilver award for the best interior design in the retail sector for Nahdi pharmacy located in Red Sea Mall.

International Council of Shopping Centers (ICSC)

List of Awards 2016

CONTACT DIRECTORY

PO Box 4384 Jeddah 21491Kingdom of Saudi ArabiaTel +966 12 690 6666Fax +966 12 215 1590www.sedco.com

سدكو القابضةSEDCO Holding

PO Box 140667 Jeddah 21333Kingdom of Saudi ArabiaTel +966 12 690 6800Fax +966 12 690 6899www.sedcodevelopment.com

سدكو للتطويرSEDCO Development

PO Box 13396 Jeddah 21493Kingdom of Saudi ArabiaTel +966 12 690 6555Fax +966 12 690 6599www.sedcocapital.com

سدكو كابيتالSEDCO Capital

PO Box 13541 Jeddah 21414Kingdom of Saudi ArabiaTel +9661 2 664 1233Fax +9661 2 665 2830www.elafgroup.com

مجموعة إيالفElaf Group

PO Box 1528 Al-Khobar 31952Kingdom of Saudi ArabiaTel +966 13 857 4007Fax +966 13 857 2407www.autoworld.com.sa

عالم السياراتAuto World

PO Box 15575 Jeddah 21454Kingdom of Saudi ArabiaTel +966 12 215 1500Fax +966 12 215 1578www.intimaa.com

إنتماءIntimaa

PO Box 17129 Jeddah 21484Kingdom of Saudi ArabiaTel +966 12 653 5353Fax +966 12 657 6455www.nahdi.sa

شركة النهدي الطبيةNahdi Medical Company

PO Box126356Jeddah 21352Kingdom of Saudi ArabiaTel +966 12 234 6280Fax +966 12 234 6310www.ewaan.sa

إيوانEwaan

PO Box 54320 Jeddah 21514Kingdom of Saudi ArabiaTel +966 12 215 1551Fax +966 12 215 1543www.redseamall.com

أسواق البحر األحمرRed Sea Markets

PO Box 55161 Jeddah 21534Kingdom of Saudi ArabiaTel +966 12 692 8102Fax +966 12 692 8101www.bonnoncoffee.com

قهوة بونونBonnon Coffee

PO Box 1231Kingdom of Saudi ArabiaTel +966 12 654 2222Fax +966 12 612 4477www.alkhomasiah.com

خماسية طابة المحدودةKhomasiat Tabah Ltd.

PO Box 12238 Jeddah 21473Kingdom of Saudi ArabiaTel +966 12 670 5544Fax +966126705544 / 200www.alshiaka.com

الشياكةAlShiaka

دلـيـل اإلتــصــال

The Touristic Zone, 6th of October City, Giza, 12568,Egypt - Tel +202 3 835 6040Fax +202 3 835 6050www.daralfouad.org

مستشفى دار الفؤادDar Al Fouad Hospital

P.O.Box 4384 Jeddah 21491Kingdom of Saudi ArabiaTel. +966 12 2151500Fax +966 12 6906877www.tazweid.com

تزويدTazweid

1 Sphinx SquareMohandessin, Giza, EgyptTel +202 3 344 4774Fax +202 3 344 4776

الشركة المصرية (EHC) للهيدروكربونEgypt HydrocarbonCompany (EHC) PO Box 23959 Jeddah 21436

Kingdom of Saudi ArabiaTel +966 12 669 6636 Tel +966 12 669 6632Fax +966 12 669 6624

مركزالنخيلAl Nakheel Centre

PO Box 30997Jeddah 21487Kingdom of Saudi ArabiaTel +966 12 643 7924Fax +966 12 643 8532

سوق الخيمةTent Souk

Muamalat Tower Lt. 18Jl. Prof. Dr. Satrio Kav. 18Jakarta 12950Tel +62-21-8066 6000www.muamalatbank.com

بنك معامالت إندونيسياPT. Bank MuamalatIndonesia, Tbk.

PO Box 30946Al Khobar 21952Kingdom of Saudi ArabiaTel +966 13 882 6674Fax +966 13 882 5135

مجمع الحزام الذهبيGolden Belt Compound

PO Box 3027 Jeddah 23612Kingdom of Saudi ArabiaTel +966 12 690 6668Fax +966 12 2151558www.sbmf.org.sa

مؤسسة سالم بن محفوظ الخيريةSalem Bin Mahfouz Foundation

PO Box 51994 Jeddah 21553Kingdom of Saudi ArabiaTel +9661 2 692 9475Fax +9661 2 682 9480www.tarfeehksa.com

ترفيهTarfeeh

PO Box 141, Al-Kharj-11942Old Kharj Riyadh Road, Riyadh KSA - Tel +966 11 542 3111Fax +966 11 542 [email protected]

PO Box 19981 Jeddah 21445Kingdom of Saudi ArabiaTel +966 12 644 0800Fax +966 12 643 8375www.almahmalcenter.com

المحمل للتطويرAl Mahmal Development

PO Box 4384 Jeddah 21491Kingdom of Saudi ArabiaTel +966 12 690 6534Fax +966 12 690 6767www.methak.com

ميثاق القابضةMethak Investment Holding

PO Box 55471Riyadh 11534Kingdom of Saudi ArabiaTel +966 11 472 2277Fax +966 11 472 4772www.ejada.com

إجادةEjada

PO Box 22474 Jeddah 21495Kingdom of Saudi ArabiaTel +966 12 692 9470Fax +966 12 692 9472www.almahmal.com

المحمل لخدمات المرافقAl Mahmal Facilities Services Company

شركة إنماء المزارع العربية المحدودة )المقر الرئيسي(Arabian Farms Dev. Co. Ltd., (Head Office)

sedco.com · 6 SEDCO Holding Group I Annual Review 2016 SEDCO Holding Group I Annual Review 2016 7...

Documents

Transcript of sedco.com · 6 SEDCO Holding Group I Annual Review 2016 SEDCO Holding Group I Annual Review 2016 7...