RIYADH: The Kingdom Holding Company (KHC) announced SR14.7 billion ($3.9 billion) operating losses for the year 2008 and said it had provided for impairment losses of SR15 billion on its investment portfolio provisions.
“Despite the global financial crisis, our projects and investments are continuing. There will be a forthcoming announcement of the mega Jeddah and Riyadh projects launch,” Prince Alwaleed bin Talal, chairman of the KHC, told a packed news conference held at his office yesterday. The prince also added that the current financial crisis has affected the whole world. “We, at Kingdom Holding Company, have investments in many countries and especially in the US market where this crisis initially began,” he noted. He pointed out that the value of the investments in these markets had declined and that is why the company has provided substantial provisions for the current year.
The chairman also said that his company enjoys diversified investments which have not been affected to the same degree. Prince Alwaleed exuded confidence that this crisis will subside and the markets will eventually recover.
Spelling out the reasons for the crisis, the prince said that most of the losses were the result of a decline in the value of shares and investments due to the financial crisis. He also added that actual projects on the ground are continuing and they will include the huge real estate projects in Jeddah and Riyadh.
Prince Alwaleed said that the announcement of losses came within the principle of absolute transparency advocated by the government of Custodian of the Two Holy Mosques King Abdullah.
Answering a question, the prince ruled out laying off of employees in any of the company’s projects. “We will continue to carry out all our projects in a successful manner,” Prince Alwaleed added.
