Saudi tycoon Al-Rajhi starts assets transfer

[Chief Editor]

Saudi tycoon Al-Rajhi starts assets transfer

Thursday, 29 July 2010


JEDDAH - Saudi business tycoon Sulaiman Al-Rajhi has begun transferring some of his holdings in listed Saudi firms to his family members, the Kingdom’s Capital Market Authority said Wednesday.

He had started “executing the transfer of some shares in his portfolio to the investment portfolios of his family members,” said a statement on the Saudi bourse’s website.

It wasn’t clear which firms are involved in the transfer, according to a statement.

In addition to considerable property investments, he owns stakes worth more than $8 billion in a trio of listed Saudi companies - 24.9 percent of Al Rajhi Bank in which he is the chairman, 23.7 percent of Yanbu Cement Co and a 19.7 percent stake in agricultural firm Nadec.

According to Forbes magazine, Al Rajhi, is estimated to have a net worth of $6.5 billion.

Al-Rajhi Bank said second-quarter profit increased 0.5 percent as the Islamic lender maintained its “conservative” provisioning policies against bad loans.

Net income advanced to SR1.78 billion ($470 million) from SR1.77 billion in the year-earlier period, the Riyadh- based bank said in a statement on the Saudi bourse website.

Second-quarter profit improved, compared with the previous quarter, because “of an increase in customer deposits and the diversification of bank’s financial and investment products,” the bank said in the statement. “The bank pursued its conservative policy by increasing provisions.”

Bank lending to businesses rose in May at the fastest pace in nine months, indicating a gradual return to credit availability. Lending to the private sector increased an annual 3.9 percent in May. – SG/Agencies