Prince Alwaleed told a Press conference that the decision to invest more than SR10 billion in the Saudi stock market and real estate reflected KHC's confidence in the local market. "We made a promise in the light of our government's prudent economic policies which will reflect on the Saudi stock market and now we have fulfilled our promise," he added...

"Our investments, God willing, will return trust to the Saudi stock market," he stressed.

He added that plans are in the offing with Saudi authorities to finalise the offering of some of KHC's shares for public offering in the near future.

The Prince said that currently the Saudi stock market was seeking "a new bottom," and added that he did not wish to see it return to its situation in 2006 where its roof was 20,000 points.

He said it was not the duty of the government of Saudi Arabia to directly interfere with what happens in the stock market, and cited the example of the crash of the NASDAQ stock index in the US years ago and the non-interference of the US federal government.

Alwaleed said that he had given authorities in the Capital Market Authority (CMA) three proposals to improve the situation in the Saudi stock market. The first is to allow companies to buy their shares in the market. The second is to allow non-Saudi companies and nationals to enter the stock market. The third is the need for more transparency in the market, where every company would be obliged to fulfill its expectations for its quarter or yearly results.

"It is not acceptable that a company announce that it expects profits worth SR100 million and then it only generates SR10 million. The company should be held responsible before CMA," he said.

Kingdom Holding Company also confirmed that it would be bidding for a licence to operate Saudi Arabia's third mobile network as well as its second landline. "We are working with a Turkish company (TURKCELL) to offer a bid for the licence of Saudi Arabia's third mobile network," said Talal Al Maiman, executive director for domestic affairs and development.

Of the total SR10 billion amount, SR5 billion will be invested in local companies, including the media sector — Saudi Research and Marketing Group (SRMG). Banking, industrial and consumer goods manufacturing sectors will be the other beneficiaries.

Prince Alwaleed told a press conference that the remaining SR5 billion would be channelled into real estate projects in Riyadh and Jeddah.

Giving a sectoral breakdown, he said that of the SR5 billion earmarked for the Saudi stock market, his stake in Samba Financial Group will increase to more than five per cent. As for the industrial sector, his investment will be divided between industry and consumer goods sectors through the National Industrialisation Company (Tasnee), raising his stake in that company to more than ten per cent.

The consumer goods sector, through Savola, will draw in more than 13 per cent of his stake. As for the media sector, Alwaleed said that he would invest more than SR2.1 billion in a strategic move by acquiring over 25 per cent share of the SRMG, which is  the holding company for Saudi Research and  Publishing Company. (SRPC).

As for the SR5 billion to be invested in the real estate sector, the first is the Riyadh project to be launched in the first quarter of this year. "Both the Riyadh and Jeddah projects will be the biggest ever real estate projects to be launched and will constitute a significant part of the local real estate market," he said.

He added that land for Riyadh and Jeddah projects has already been acquired by KHC, which will set up real estate companies to be traded on the Saudi stock market. The Riyadh project will be located on a 16.5 million sq.m. site on the Dammam highway, a 15-minute drive from the city centre. The project will include a leisure resort and facilities managed by Fairmont Hotels and Resorts with an area of one million sq.m.

Prince Alwaleed said the residential areas will consist of 13,500 units to accommodate 69,000 residents (8.4 million sq.m.) and will include serviced villas to be managed by one of the hotels. Commercial and retail facilities will be located close to the residential complex over an area of one million sq.m. and another retail centre with an area of 300,000 sq.m.

He said that the Jeddah project would be spread over an area of 5.3 million sq.m. in the city's northern area on the Red Sea coastline. It will be a landmark project featuring a colossal skyscraper surrounded by other facilities, such as residential and commercial complexes and the construction of a five-star hotel and offices. The residential area will be 1.5 million sq m and include schools (150,000 sq.m.) and offices (800,000 sq.m.), while the remaining site will be utilised for recreation facilities, tourism and the construction of four-star hotels.

Alwaleed said that plans are under way for the development of a diplomatic quarter on the Jeddah land. The site plans for the land were developed by HOK, a Canadian company. The project will connect the Red Sea coastline of the area to Sharm Obhur, which is known for its natural beauty.