RIYADH, 1 May — Prince Alwaleed ibn Talal, chairman of Kingdom Holding Co., announced yesterday the launch of an SR1 billion charitable fund to support Islamic, charitable and social causes around the Islamic world.
“The Kingdom Charity Fund, with a capital of SR1 billion ($267 million), has been set up to finance projects to benefit the needy,” the prince told a press conference in Riyadh. “Ten percent of the fund will be given to projects outside the Kingdom, notably to support the Palestinian cause and urgent cases in the Islamic world.”
Alwaleed said the Kingdom Holding had donated $100 million to the Palestinians over the past three years. “The holding company is looking after 6,000 Palestinian families,” he said.
“The announcement is a natural extension of our ongoing contributions. Our aim was to bring all such activities and programs under one roof,” the prince said. He said the fund will spend SR200 million annually over the next five years. Sheikh Ali Al-Nashwan, Kingdom Holding Company’s special adviser on religious affairs, will manage the fund.
Alwaleed said charity societies, mosques, the needy and the disabled and emergency schemes would be eligible for assistance. There will be scholarships to gifted children and grants for research as well rehabilitation schemes, he added.
Meanwhile, Alwaleed ruled out investing in sanctions-hit Iraq, but said he would invest in Iran at President Muhammad Khatami’s behest.
The prince said he had turned down lucrative offers for partnership from Uday, son of Iraqi President Saddam Hussein, who tried to meet him in several Arab and European countries.
“I have received an invitation from Uday to visit Iraq and invest there but I rejected the proposal,” he told the press conference.
The prince said he had received “a similar invitation from Iranian President Muhammad Khatami, to which I will respond favorably.” He said he would not deal with Uday because of Iraqi regime’s hostile policies and its refusal to implement international resolutions.
The prince stressed that he “had no investments in Israel ... conforming to the policy of Saudi Arabia.” The prince uncovered plans to build two hotels in Iran and another in Sudan at a cost of $30-40 million each.
Stakes in Daewoo, Hyundai
Prince Alwaleed said he had “withdrawn” $150 million worth of investments from South Korea’s Daewoo Motor Co. and Hyundai Motor Co. The prince held a stake in Daewoo worth $100 million and a 7.8 percent stake worth $50 million in Hyundai. “I’ve withdrawn all my investments worth $100 million .., ” after Daewoo recently “went bankrupt”, he said.
Daewoo racked up operating losses of 580 billion won ($445 million) in 2000. “I’ve decided to withdraw my investments in Hyundai after having failed in negotiations with the company to maintain the levels of dividends, settled at 13 percent in a previous agreement” in 1998, the prince added.
“Hyundai only offered me a dividend of five percent, which I refused,” he said.
Hyundai controls more than 70 percent of South Korea’s car market. In 2000, it posted a record net profit of $502 million, with sales up 29 percent to 1.51 million vehicles.
The 43-year-old prince who runs the Kingdom Holding Co. with worldwide investments said he has amassed a personal fortune of $20.3 billion.
The prince said he did not fear any fallout from the volatility of the NASDAQ Stock Market Inc. on his investments in the United States.
“What happens on the NASDAQ offers me a golden chance to invest there,” he said, adding he had investments in the banking, telecoms, high-tech, motor, agriculture and foodstuff sectors. “That’s what minimizes the dangers of a recession in one of these sectors on the whole of my investment portfolio,” he said.
