Economic Powerhouses

The largest of these holding groups is Kingdom Holding Company (KHC). KHC is one of the largest investment groups in the world as well as one of the biggest foreign investors in the US. It also targets Africa and other emerging markets and growing economic powers. KHC is active in a number of diverse sectors, including financial services and investments, real estate, hotels, aviation, petrochemicals, media and entertainment, health and education, retail, and technology. Founded in 1980, the group has acquired shares in some of the largest global hotels, including a 47.5% share in Four Season Hotels, 33.3% in Mövenpick Hotels and Resorts, 28% in Fairmont Hotel-San Francisco, and a 50% share in Breezeroad Limited, which owns the Savoy Hotel in London but is run by the Fairmont company. KHC also has shares in many companies closer to home, such as 47% share in Kingdom Schools Company in Saudi Arabia, a 74% share in Medical Services Projects Company in Saudi Arabia, a 50.4% share in Consulting Clinic in Lebanon, and a 100% share of Kingdom Agriculture Development Company (KADCO) in Egypt. In 2013, KHC attracted revenues of SAR3.13 billion ($830 million); however, this was a slight fall on the year before at SAR3.48 billion ($930 million).

Another of the major holding groups is Abunayyan Holding. It was initially established in the 1950s with the aim of supplying diesel-powered water pumps to farmers. This revolutionized irrigation methods in Saudi Arabia and the group began moving from a family-owned business into the diverse group it is today. Abunayyan Holding has 14 strategic business units over eight operational sectors. The group has grown together with the Kingdom’s economy and offers turnkey solutions through its core activities of engineering, manufacturing, supply, construction, and services. The group still largely focuses its activities on projects in Saudi Arabia. One of Abunayyan Holding’s strategic business units, Abunayyan Trading Corporation (ATC), signed an exclusive agreement with Kohler Power Systems in March 2014. ATC will become the exclusive distributor for Kohler Power Systems in Saudi Arabia and sell, service, and maintain power systems, for standby, prime, mobile, marine, and rental operations throughout the Kingdom.

Another prominent group in Saudi Arabia is Batterjee Holding. Split into four main groups—Batterjee Group of Industries, Batterjee Real Estate, Batterjee Medical, and Batterjee Trading—the company has evolved into a major group with its activities expanded throughout many areas. Batterjee Holding has spread across the region with operations and projects in the UAE, Yemen, and Egypt, among others. Some of Batterjee’s main activities include oil and gas, mining, environmental services, recycling, aviation, and auditing, as well as manufacturing pharmaceuticals, cosmetics, food and beverages, garments, lubricant oils, building materials, and dental and surgical instruments.

Zamil Holding Company is another of KSA’s large, successful holding groups. Zamil is global investment company with a diverse set of capabilities. The group is active in more than 60 countries with over 19,000 staff working in 60 different sectors. Zamil offers a wide range of services and products from air conditioning manufacturing to plastics to steel fabrication. It is also active in shipbuilding and repair, port operations and maintenance, petrochemicals and chemicals, industrial investment, and construction. While the group is already very active in a number of sectors, it is not stopping there. “We are moving into the pharmaceutical and medical sectors, and have established Cerna, US, IHS Information, and Riyadh Techno Valley. We are also moving into predominantly high-end real estate development,” Dr. Abdul Rahman Abdullah Al Zamil, Chairman of Zamil Holding Group, explained to TBY.