Kingdom Holding Company (KHC)

Kingdom Holding Company is one of the largest companies in Saudi Arabia. The Arab prince al-Walid ibn Talal holds five percent of the organization's shares. Stocks are also held by some large American companies: Apple, Kodak, Samba, Citigroup, and others.

Although KHC is an Arab investment company that is listed on the Saudi stock exchange, it also owns the assets of foreign companies: Twitter, Lyft, Disney ...

The team of the Arab investment company consists of experienced financial professionals, led by al-Walid and CEO Talal Ibrahim. Kingdom Holding Company speaks of itself as a transformed investment company. KHC's vital interests are financial services, hospitality, media, petrochemicals, technology, and aviation.

Kingdom Holding Company’s domestic policy includes focusing on the primary growth and value-added sectors, investing in leading global brands, maintaining a long-term investment approach, capitalizing on inefficient assets, focusing on the use of personal investment experience and the benefits of using an international network of contacts.

KHC is also the first investor in South African countries. We are engaged in investments in this region through Kingdom Africa Management, a private joint-stock company, and a subsidiary located in South Africa, Ghana, and Nigeria.

In 2005, the Kingdom Holding Company received a 96% stake in Royal Palm Hotel, a 251-room hotel in Tanzania, the most economically vibrant place in East Africa. In 2006, Kingdom Hotels International acquired Fairmont Hotels & Resorts for $ 5.5 billion in Singapore. In 2007, the company acquired a 12% stake in National Air Services Company Limited, a private Saudi airline, for $ 100 million. In 2008, ownership in the National Air Services Company increased to 37%.

Arrest of al-Walid ibn Talal

In November 2017, there were mass arrests of princes, government officials, and famous businessmen in Saudi Arabia due to suspected corruption. After the arrest, everyone was taken to the five-star Ritz Carlton hotel in Riyadh and kept there for several months, forcing them to surrender their assets in exchange for freedom outside the lawsuit.

The founder of Kingdom Holding Company was also detained. After it became known to the general public, the company’s shares collapsed, and the prince’s income fell $ 2.1 billion.

The first significant international transaction after the conclusion of the founder of KHC took place six months later. It was concluded by the Kingdom Holding Company and the French music company Deezer. $ 270 million was invested in the company.

The terms of the deal on the part of the government are as follows: the prince receives Deezer shares in exchange for unique content from his Saudi media company Rotana Group. Al-Walid said the agreement is one of the few excellent investments after the arrest.

From the time he was released, the founder of Kingdom Holding Company has been working hard to create a peaceful relationship with the Saudi government, which is suspicious and not very friendly about investing abroad. In this connection, in 2020, he plans to invest more in the development of his state, and in 2018 announced investments of 500 thousand dollars in local football clubs.

But in reality, the prospects of the Kingdom Holding Company are significant investments in new media and technologies, such as Netflix and Amazon, which are their potential partners.

Not even a few years after the damaged reputation, as early as in the first quarter of 2019, Kingdom Holding reported a profit that increased by 19.83%, which amounts to 171.4 million riyals. In its reports, KHC explains revenue growth only: return on investment and lower operating expenses.