Page 93 - Aamir Rehman Gulf Capital and Islamic Finance The Rise of the New Global Players

CHAPTER 2 Entrusted Stewards 77

Retail and consumer Saks Inc. United States 1.1%
Procter & Gamble United States 1%
Amazon.com United States 1%
eBay.com United States 1%
Priceline.com United States 1.76%
PepsiCo Beverages United States 1%
International
Media News Corporation Australia 1.8%
Time Warner United States 0.8%
The Walt Disney Company United States 1%
Saudi Research and Saudi Arabia 29.9%
Marketing Group
Real estate Kingdom Center (Riyadh) Saudi Arabia 36%
Canary Wharf Group United Kingdom 8%
Jerusalem Development Palestinian 5%
and Investment Company Territories
Real Estate Investment Saudi Arabia 38.8%
Company Limited
Technology Apple Computer United States 5%
and telecom
Motorola United States 1%
Silki La Silki National Saudi Arabia 25.4%
Telecommunications
Company

1
Zawya Company Profile; accessed March 31, 2009.

Kingdom’s portfolio companies illustrate the breadth of private
holdings by Gulf-based investors. Kingdom holds minority stakes in
leading US firms, including Apple, Disney, Citigroup, and Motorola,
among others. These investments not only provide financial returns,
but also position Kingdom (and Prince Alwaleed) as a serious
investor on the world stage. In emerging markets, Kingdom tends to
hold larger stakes in portfolio companies—taking, for example, 10 to
15 percent stakes in a number of African banks. This may reflect the
fact that overall asset values are lower in emerging markets (hence,
the minimum value required to make an investment that is worth
Kingdom’s time necessarily buys a bigger stake) and Kingdom’s
appetite for greater control in the context of riskier investments.
Kingdom’s largest stakes are—not surprisingly—in Saudi invest-
ments that are closest to home and perhaps easiest to influence. Even
at home, however, Kingdom takes minority stakes (up to 50 percent)
rather than majority ownership of portfolio companies.