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About SEDCO> New at SEDCO
Chairman announces selection of new CEO
15th September 2007
"I am pleased to announce the decision of the Board of Directors to appoint Mr. Ahmed Sulaiman Banaja as SEDCO's Chief Executive Officer effective 1st January 2008.
The three years contract term with SEDCO's current CEO, Mr. Shuaib Ahmed expired at the end of July, 2007. With the approval of our Board, I requested him to continue till the end of 2007 and he agreed to do so despite his desire to devote more time to his personal matters. Since then, we have been looking for suitable candidates for the position of the CEO. We looked at several names from different institutions and finally selected Mr. Ahmed Sulaiman Banaja as the new CEO.
Mr. Banaja brings valuable and broad managerial experience in financial institutions as well as in leadership role in private and public entities. He started his career with Citibank in Saudi Arabia (1971 to 1977) and subsequently worked in The National Commercial Bank, Saudi Arabia's largest bank, from 1977 to 1987 and 1994 – 1996, where his final assignment was as a member of a senior executive management team in the Office of the Chairman. He has served as Chairman of the Board of National Shipping Company of Saudi Arabia from 1999 to 2001 and as a board member till end of 2004. He is currently a board member, a member of the Executive Committee and Chairman of the Audit Committee of Saudi British Bank, the Saudi affiliate of HSBC, a board member and Chairman of the Audit Committee of Emaar Economic City, head of the Investment Committee of Jeddah City Council, which oversees the municipal services of the City of Jeddah and sits on the board of several other entities. A graduate of University of Kent in the UK with Bachelor's degree in Economics and Mathematics, Mr. Banaja has also attended several executive management programs at University of Pittsburgh, Harvard Business School.
He will be joining the Group in early November and will be assuming the CEO role effective 1st January, 2008. This will give him 4 to 6 weeks overlap with Mr. Ahmed to ensure a smooth transition.
SEDCO signs JV agreement with Keppel Land
Keppel Land Limited (Keppel Land), one of Asia’s premier property developers, and SEDCO, the Saudi Economic and Development Co. Ltd., have signed a Joint Venture Agreement (JVA) to develop luxury residences on a 3.6-ha site along the Corniche waterfront in Jeddah, Saudi Arabia.
Keppel Land and SEDCO will hold 51:49 equity respectively in the joint venture under the JVA. The total investment cost is estimated to be S$760 million.
Comprising three high-rise towers with a total of about 1,000 seafront apartments, the development will be undertaken in phases according to market demand. It will target the high-end market and is expected to be launched in 2008.
Mr Kevin Wong, Managing Director, Keppel Land, said, “We are excited that our first foray into Saudi Arabia is a landmark waterfront development in Jeddah, its commercial and recreation hub. Keppel Land will contribute our experience and expertise in developing large-scale integrated lifestyle developments for a world-class waterfront development in Jeddah.
“This development will enable Keppel Land to quickly establish its track record and open us to other opportunities both in Saudi Arabia as well as in other
fast-growing markets in the Middle East.
Sheikh Saleh Bin Mahfouz, Managing Director of SEDCO Real Estate Group, said, “We are happy to develop this prestigious landmark project with our strategic partner, Keppel Land, that we believe will add value to Jeddah’s role as a regional hub for commerce and recreation. The joint experience of the partners will give a strong boost to this and other projects that SEDCO is planning in the future.
Located at the west coast of Saudi Arabia by the Red Sea, Jeddah, with a population of 3.4 million, is also the gateway to the two holy mosques of Makkah and Medinah.
The waterfront development is located at Al Nawras, which is part of the high-end North Corniche residential precinct, and enjoys a 220-m sea frontage. The popular residential precinct also features international hotels such as The Westin, Hilton and Sheraton, and established F&B outlets.
Conveniently accessible via main roads, the site is just a 15-minute drive away from the King Abdulaziz International Airport and a 10-minute drive from the luxury retail belt - Tahlia Street. It is also a 5-minute drive from the Red Sea Mall (a 240,000 sm shopping mall being developed by SEDCO and its other partners), which is poised to be the largest retail hub in Saudi Arabia when it is completed end 2007.
Mr Ang Wee Gee, Director, Regional Investments, added, “With strong economic growth and accelerated economic reforms experienced in Saudi Arabia, Jeddah has enjoyed high growth in the real estate sector in recent years.
“In particular, its North Corniche precinct is a prime real estate location with its long sea frontage and cluster of new lifestyle developments. In Jeddah, there is also a growing trend towards high-rise luxury apartments designed and developed by reputable developers. This is where Keppel Land will bring its superior quality in execution and management to bear in this new market.
SEDCO Group acquires 22% ownership stake in Gefung Holdings Bhd of Malaysia
SEDCO Group has acquired 22% ownership stake in marble products manufacturer Gefung Holdings Bhd of Malaysia from the founder and Managing Director, Mr. Jeffery Seo Aik Leong. The acquisition involved the sale by Mr. Seo of 34 million shares. Gefung's principal operation is in Shanghai, China where its main plant has the capacity to produce 560,000 sq. m. of granite and marble products a year. It also has a local factory in Taiping Perak, Malaysia with an annual capacity of 120,000 sq. m.
SEDCO signs a partnership agreement to form a used oil Recycling Company
On Tuesday 9th May 2007, Mr. Yousuf Khayat, the Managing Director for the Direct Investment Group of SEDCO, signs a partnership agreement with Hyflux of Singapore and Lubrec (Lube Oil Refining Company) of Saudi Arabia to form a used oil recycling company in Saudi Arabia.
The new company being formed will focus initially on recycling used oil using Hyflux plasma membrane technology. The Plasma membrane technology does not use chemicals or additives that make it environmentally friendly. SEDCO's interest is not only commercial but also environmental.
This partnership falls within SEDCO's strategic direction of forming multinational partnerships that will channel international investments into the Saudi economy and bring much needed expertise in vital sectors of the economy.
SEDCO signs a partnership agreement to form a new Asset Management Company
On Sunday 6th May 2007, Dr. Adnan Soufi, the Managing Director for the Financial Investment Group of SEDCO signed a partnership agreement with the Islamic Corporation for Promotion of the Private Sector (an offshoot of the Islamic Development Bank in Jeddah) to form the new "Ewaan Asset Management Company". Other partners who signed the agreement are the International Investment Bank of Bahrain, ASEM Bankers of Malaysia and Ewaan Real Estate Development Company of Jeddah.
The new "Ewaan Capital Company" being formed will focus on asset and investment management according to Shari'ah guidelines in private equity investments giving priority to financing Ewaan Real Estate Development Company projects. The Ewaan Capital Company's initial financing will be paid by the five partners in the form of paid-up capital and later more financing will be available through other Shari'ah-compliant investments such as SUKUK. It is anticipated that "Ewaan Capital Company" will provide financing of up to one billion Saudi Riyals over a three year period.
This partnership falls within SEDCO's strategic direction of forming multinational partnerships that will channel international investments into the Saudi economy and bring much needed expertise in vital sectors of the economy such real estate.
This is the second such partnership that SEDCO, ICD and IIB have formed; the first one being Ewaan Real Estate Development Company that is designed to be a pioneer in the development of large-scale residential communities in Saudi Arabia for middle and low-middle income population.
SEDCO has purchased 49% shares of Atilim Paper Products & Printing Industry.
Atilim Group has sold 49% of its shares to SEDCO from Saudi Arabia. SEDCO's DIG Managing Director Mr. Yousuf Khayat said that "we have seen export potential. Export shall be made to Gulf countries at the first step". He also said that the agreement signed with Atilim is their first investment in Turkey, and that they continue their researches for new investments. He further added that "we are not short-term investors. As we have seen export potential in the company, we have decided to make investment. At first, export connections with Basra Gulf countries shall be established.
Atilim Group is a specialized and integrated paper products company in Turkey.
SEDCO acquires 25% private placement shares in Dar Al Fouad Hospital.
On July 22, 2006, SEDCO acquired a 25% private placement shares in Dar Al Fouad Hospital (DAF). A formal signing ceremony was held on June 29, 2006 at the Four Seasons Nile Plaza in Cairo between SEDCO and DAF management team. It was also attended by Dr. Ziad Bahaa El Din, Chairman of the General Authority for Investment and Free Zones. Dr. Mohammed Abdelwahab and Sheikh Abdulelah Bin Mahfouz stressed the importance of this partnership and the commitment of both groups to work together in order to establish a leading healthcare group in the MENA region.
Dar Al Fouad Hospital is located in Egypt and covers more than a number of medical specialties such as cardiothoracic surgery (open heart surgery), cardiology, hepatology, and oncology and organ transplants. DAF is affiliated with the Cleveland Clinic which also owns part of its equity.
SEDCO's 10% Shares Acquisition in Green Packet Bhd
On 14 June 2006, the Direct Investments Group has executed a documentation relating to the acquisition by SEDCO of a 10% private placement shares in Green Packet Berhad (GPB) In addition, SEDCO signed a JV agreement with GPB on 15 June 2006 for the setting up of a 50:50 JV company to market and sell GPB products into MENA, Turkey, Iran, Pakistan and India. Green Packet Berhad (GPB) is a listed wireless technology company in Malaysia.
SEDCO Acquires 30% Stake in
Ejada Group
In May 2006, SEDCO acquired a 30% stake in Ejada Group, which is a leading IT Services provider in Saudi Arabia. The Company provides IT systems and consulting services to a broad range of clients in the banking and oil & gas sectors as well as the government. It has been awarded prestigious contracts by the KSA Ministry of Interior and the Saudi Stock Exchange. Ejada has operations in KSA, Egypt, Jordan and Dubai.
SEDCO Chairman receives prestigious award:
Sheikh Mohammed Bin Mahfouz, Chairman of SEDCO's Board of Directors has been awarded the Sheikh Mohammed Bin Rashid Al Maktoum Islamic Finance award for his "lifetime and continuing achievements in the development of Islamic finance" and SEDCO has been awarded the Sheikh Mohammed Bin Rashid Al Maktoum Islamic Finance Award for "continuing contribution to promotion of Islamic Finance" in recognition of Islamic funds developed by SEDCO. Both awards were presented by Sheikh Hasher Bin Maktoum Al Maktoum and received by Mr. Ziad Ahmed Ali Bin Mahfouz on behalf of Sheikh Mohamed Bin Mahfouz and SEDCO during a gala dinner hosted in Dubai on 20 of March 2006.
Partnership/Alliances:
SEDCO has joint ventures with Permal Asset Management of New York and Union Bank of Switzerland (UBS). Additionally; the Company has established successful alliances in the United States, Europe, and Asia and is working on developing new links with firms in other parts of the world.
UBS SEDCO Shari'ah Compliant Timber Fund:
In 2000, SEDCO in collaboration with UBS launched the world's first Global Islamic Timber Fund. This fund adheres to Shari'ah guidelines by avoiding the use of debt and debt instruments. It provides investors with the opportunity to invest in a fairly new asset class that has no correlation to the equity markets and thus facilitates further diversification. Investment in timber aligns itself with Islamic principles relating to the protection of the environment and the utilization of agricultural lands.
Alfanar Hedge Fund:
Although many hedge fund strategies are currently not available to Islamic investors, one particular strategy, the Long-Short strategy, is Shari'ah compliant if executed under a Salam contract. Under the Islamic law, an individual cannot sell what he does not own, so an investor could not sell short any particular stock. But a Salam contract allows the investor to do that. Salam is a sale whereby the seller agrees to supply some specific commodity to the buyer at a future date in exchange for a price fully paid at spot. The quality and quantity of the commodity must be specified exactly and be generally sourced in the market.
Alfanar Family of Funds:
SEDCO in a joint venture with Permal Asset Management of New York has co-sponsored Alfanar, the first multi-manager Shari'ah compliant family of mutual funds. The multi-manager concept provides access to a cross-section of managers with multiple disciplines and specializations through one investment vehicle. Rather than creating a portfolio of different markets, sectors and managers, the investor achieves the same diversification by investing in a multi-manager fund on a cost-efficient basis. Empirical evidence has shown that the multi-manager concept works well in generating superior performance as the diversification of investment styles across sectors and markets within a fund reduces risk and volatility, and enhances long term performance.
Dow Jones Islamic Index:
SEDCO takes pride in giving early support to the creation, in 1999, of a comprehensive Islamic market index that is now recognized as the industry's premier index, a benchmark for several Islamic institutional investors for the performance of their portfolio managers. The index remedied several deficiencies in earlier industry practice. Prior to its creation, every portfolio manager had to develop his own internal Islamic screened index and every manager had to devote considerable time to updating and reviewing the index on a regular basis. Individual Shari'ah Advisor had to review in detail the constituent companies in each portfolio. There was no central and independent authority or control over the Index. SEDCO was instrumental in bringing together the Dow Jones Index management and its portfolio managers with the objective of developing an index that could be adopted as the standard benchmark for measurement of performance of Shari'ah compliant public equities portfolios.
International Islamic Finance Forum – Dubai:
Since 2002, SEDCO has been the major sponsor, along with Dow Jones Indexes, of the International Islamic Finance Forum held in Dubai. This forum has drawn attendees from across the globe and is rapidly gaining in importance because of its readiness to address all issues connected with Islamic finance and investment. Previously, SEDCO organized Islamic finance forums in London in 1998 and in New York in 2000. Known as the "Davos" of Islamic finance, the gathering attracts hundreds of senior executives, academics, and other financial experts who debate ways to further the world's fastest-growing financial sector.
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