JEDDAH, 3 January 2003 — The government has bought the shares of Khaled Bin Mahfouz and his family in the National Commercial Bank, one of the biggest banks in the Arab world, for SR7 billion ($1.9 billion) at the rate of SR400 (approximately $107) per share, according to a reliable source. With the deal, 95 percent of the bank’s shares are controlled by the government. The General Investment Fund, the financial arm of the Ministry of Finance and National Economy, and the General Organization for Social Insurance will own the shares. The bank’s total capitalization is SR6 billion. Before the deal was clinched the government owned 50 percent of the shares. An official statement of the deal is expected to be made in a few weeks. The negotiations between the Bin Mahfouz family and government began 19 months ago. The source said the Bin Mahfouz family decided to sell the shares in order to diversify into areas such as real estate and manufacturing.