Sedco newsletter by Hussam Al Akel

1st & 2nd Quarter - 2012

News

A quarterly newsletter issued by the Marketing & Corporate Communication department Our Vision: To be the global leader in Islamic wealth management and business creation

HOLDING ADOPTS 4 SEDCO INNOVATION CULTURE

AUTO WORLd CONTINUES ITS EXPANSION PLANS IN THE SAUDI MARKET

RECEIVES 10 ELAF THE TOURISM

EXCELLENCE AWARD FOR THE BEST HOTEL & BEST TOURISM SALESMAN IN KSA

CAPITAL 14 SEDCO OPENS ITS

WINDOW ON MARKETS ROUNDTABLE

A word from

Management In The Name of God, the Most Gracious, the Most Merciful, and prayers and peace be upon his messenger Prophet Mohammad and his family and companions. Dear Readers, May peace, mercy and blessings of God be upon you all. I am overwhelmed by the enthusiasm that SEDCO Company began its new year with new established rules and developed strategic plans in hopes to achieve and accomplish the goals set for the current year, which happened after the process of change and restructuring that we have made over the past few years. SEDCO Company today is proud of its highly qualified cadres who led this transformation, contributed to its success, and took it upon themselves to face future challenges posed by changing global markets.

Dr. Adnan Soufi Chief Executive Officer SEDCO Holding

Despite our achievements so far, we are still focusing on human resources and corporate governance, where we will pay more attention to the training and development field through the development of training programs that roots the principle of corporate governance in each department and educate each member on it. Additionally, we set up â&#x20AC;&#x153;SEDCO Academyâ&#x20AC;&#x153; which will provide a wider understanding and greater capabilities in the field of training and capacity development. The strenuous efforts to get rid of all risks that might occur in shareholders investments were culminated into a great success in effectuation the decision SEDCO Board of Directors has made to mandate clear responsibilities to shareholders capital management, in order to ensure the protection of the company from risks and also to achieve financial returns. I would like to take this opportunity to thank everyone contributed to these sincere efforts. Now, there has become apparent that there is room available to search for suitable investment opportunities in the local market to seize and take advantage of. We have taken upon ourselves to build the reputation of SEDCO Holding and its brand as a leader in the field of wealth management in accordance with the principles of Islamic law and business innovation with the highest standards of corporate governance and responsibility to the community in which it operates. Finally, I would like to thank everyone for their devotion and dedication, and we shall move together towards greater innovation and harness of energies for another successful and productive year.

Message from

the Editor-in-Chief

Amr Banaja Editor-in-Chief

Dear Colleagues, This year’s second quarter was full of achievements beginning with SEDCO’s Annual Multaqa which brought together SEDCO employees and called on everyone to adopt a much more innovative working culture. This year’s event wouldn’t have served its purpose until after the fact, when we have been showered with innovative ideas from all over SEDCO. This phenomenal response with ideas and concepts is the first step to enhance the internal culture of the company and drive SEDCO’s performance to achieve better standards. We are equally looking forward to your participation in “Ebda’3 Program” during the 4th quarter which is a much more comprehensive program and will simplify the way we receive ideas, filter and evaluate them as well as reward our colleagues with the most innovative ideas. We realize SEDCO’s ability to set a path for its future with the Grace of Allah and by upholding the highest standards to innovation and the spirit of team work. After

reviewing some of the initial ideas, we have also realized our ability to innovate and maintain our market leadership in the sectors in which we are operating in. There is one key common trait during the Multaqa and after it, which is to focus on engaging with our team members and make use of the hidden talents amongst SEDCO team members. Building on that, we have announced our commitment to launch some of these commitments in which we aim to reinforce our engagement with our internal stakeholders. By end of second quarter this year, we have launched Breakfast with the CEO which aims at breaking the barriers and reinforces the open door policy adopted by the CEO. This program will cement engagement across all levels of the Group. On the other hand, our annual survey on employee satisfaction revealed the importance of developing performance. As a result, the Human Resources Department exerted its full efforts in this field and launch “Injaz” across SEDCO which will help us how we can identify our targets and goals and how to evaluate the performance of team members and reward them as well as building their capabilities and realizing their potential. In addition to that, we are committed to holding quarterly sessions to review work updates and progress and provide an open forum for interactive questions and answers around the results which we have achieved and the direction we are moving towards. These initiatives and our special innovation program will create a significant different within our Group during the 3rd quarter. At the same time, we will direct our focus externally during the third quarter launching our Financial Literacy Program targeting universities, as means to reinforce our position as a responsible local enterprise towards developing the community. We will provide you with more information on the program during the upcoming few months and we will also avail the opportunity for volunteering work for this noble social initiative. To ensure the success of the program we look forward to your full support and active participation. In closing I would like to convey my sincere wishes on the advent of the Holy Month of Ramadan and wish you many happy returns.

SEDCO HOLDING ADOPTS INNOVATION CULTURE New Strategy to Continue on the Path of Progress by Recruiting Best Local Capabilities & Transforming Working Environment to Meet the Growing Demands & Contribute to Building the Community This new direction for the Group was announced during SEDCO’s annual Multaqa event under the theme “Innovation is Key to Success,” which serves as an annual congregation for SEDCO operating companies, sister companies, and department to exchange knowledge and expertise as well as explore areas of cooperation to propel our partners with more innovation and progress. SEDCO Holding will adopt a new Culture of Innovation, as part of its continuous efforts to strengthen the company and reinforce its competitive position. This step will come following the restructuring phase and improving it to become a modern holding company that is Shari’a compliant as well as restructuring its administrative processes to be run according to a modern and institutionalized approach as well as separating ownership from management.

On this occasion, Sheikh Saleh bin Mahfouz, Chairman of SEDCO Holding explained, “During the next period, SEDCO’s key trait will be innovation which we will convert into a decisive element in the way we do our business, no matter how different our business landscape will become based on our Islamic principles.” Sheikh bin Mahfouz continued, “We will expand our horizons and explore new and innovative means and methodologies of performance and implementation our tasks. We will also take initiative to launch new ideas that

are harmonious with SEDCO’s key values which are “Taqwa Allah, Creative Work, Innovative Approach and Spirit.” Participants in the SEDCO Annual Multaqa event agreed to dedicate the Group’s human capital and other resources coupled with its ability to communicate and engage with its stakeholders in order to create a positive change in the Saudi community. With that in mind, SEDCO will become one of the agents of development and empowerment of Saudi youth. From his end, Dr. Adnan Soufi, CEO of SEDCO Holding said, “Today SEDCO is a leading economic enterprise with a good reputation locally and internationally. This is due to the grace of Allah and the efforts of the employees and their dedication and hard work.” Dr. Soufi indicated that this

success is possible due to the Group’s conservative policies and balanced strategy which the Company adopted since its formation. Dr. Soufi explained that SEDCO has a long and rich track record that started in the 70th according to the vision of the founding father Sheikh Salem bin Mahfouz, May Allah rest his soul, who established the Company according to a well planned methodology revolving around the concept of achieving financial returns and developing human capital according to the Shari’a principles. The Company committed to this credo using flexible strategies that are reviewed and evaluated on a periodic basis as well as developing these strategies that match both local and international growth trends.

Expressed their satisfaction on SEDCO’s progress in all fronts

PARTICIPANTS IN SEDCO’S ANNUAL EVENT: MULTAQA IS AN IMPORTANT ANNUAL EVENT AND SEDCO HAS A GREAT POTENTIAL FOR INNOVATION The majority of in SEDCO Holding’s employees expressed their general satisfaction on the Company’s progress today in the Saudi market in all sectors in which the Group is operating lauding the organization and quality of events that have made SEDCO’s Annual Multaqa that was held last May a unique one. Most of the participants confirmed that SEDCO’s Annual Multaqa creates a sense of pride being part of SEDCO while at the same time highlighting the great benefit from the topics and discussion from the event. These results came about during a survey that was conducted by SEDCO Holding during its Annual Multaqa which generated lots of positive comments from the participants who recommended that the event needs to be done on an annual basis to discuss what is new and interact with the various economic development in the Kingdom and the world and train on new techniques and procedures to improve the quality of work. Moreover, most of the participants indicated that innovation at SEDCO has great potential and in this section of the survey, most of the respondents expressed their appreciation in the venue in which the Multaqa took place, Leylaty Hall as well as the audio system. The respondents also mentioned that the duration of the event was reasonable and the number of sessions was adequate.

MOHAMED YOUSUF NAGHI MOTORS BMW 7 SERIES FLEET DEAL WITH AUTOWORLD Mohamed Yousuf Naghi Motors (MYNM), exclusive importer of BMW Group vehicles in Saudi Arabia, has concluded an agreement with Autoworld to add 10 new BMW 7 Series models to the luxury auto rental firm’s fleet. One of the Kingdom’s leading luxury car and limousine rental companies, Autoworld has invested in the BMW 7 Series vehicles as part of its 2012 strategy to provide more premium cars to its customers. This is the second agreement to be completed with the BMW Group importer after having successfully collaborated in 2011 for the addition of 10 MINI vehicles to its fleet. Anees Abdeljaleel Jamjoom, MD, MYNM (BMW), said: “The BMW 7 Series flagship model represents the best in comfort, luxury, power and driving pleasure. Adding this model to Autoworld’s fleet will strengthen our partnership and enable a wider segment of the public to enjoy the sheer-driving pleasure of BMW’s top-of-the-range vehicle.”

Emad Alzain, CEO, Autoworld, said: “Our ultimate objective is to satisfy our customers’ demand for premium cars both on the daily rental and on an operating lease level. Adding the flagship BMW 7 Series into our fleet is a natural fit as the model exemplifies the very best a brand has to offer. This is part of our expansion strategy for 2012, as we are also planning to reach 26 branches and service centers within the Kingdom, including King Khaled International Airport in Riyadh.” Mohamed Yousuf Naghi Motors has enjoyed a successful partnership with Autoworld since last year, having provided 10 MINIs to the company’s fleet and therefore enabling a wider segment of the public to enjoy the exciting go-kart MINI drive experience.

AUTO WORLD LAUNCHES FACEBOOK PAGE Auto World recently launched its official page on Facebook, the world’s most popular social media site. Auto World will provide its customers and followers with the latest company news and updates in addition to its special promotions. Auto World will also dedicate this page to receive comments and suggestions from its customers as well as answer their queries.

Visit Auto World’s new page on Facebook today: http://www.facebook.com/autoworld.sa

AUTOWORLD ACHIEVES 71% GROWTH DURING THE FIRST QUARTER OF 2012 AND EXPANDING ITS BRANCHES IN THE KINGDOM

“AUTOWORLD” PARTICIPATES IN DHAHRAN INTERNATIONAL FIRST MOTOR SHOW In the first quarter of this year, Autoworld participated in Dhahran International Motor Show which was held in Dhahran

Autoworld is one of the pioneer companies in auto leasing since its establishment in 1983 in Al-Khobar. During the first quarter of this year Autoworld was able to increase their revenues 71%, average gross profit grew up to 101%, while net profits grew by 38% compared to the fourth quarter of 2011 Autoworld also managed to increase its car fleet size by 83% and expand its branches by 83% to reach 22 branches, these branches include Jubail downtown branch, which is an extension to the Industrial City branch, Dammam 2nd branch located on First Street, the branch of King Fahd Road, and Riyadh International Airport branch, in addition to the new branches on Khureiss Road, Sulaymanya, Shifa, and AlHamra. Also, another new branch was opened in Jeddah Sary Road, in addition to Jeddah Nakheel Center administrative office and customer service. Today, Autoworld owns now 22 branches spread strategically in different parts of the Kingdom, compared to 14 branches in the fourth quarter of 2011. The company has been moving at a quick pace in order to achieve high profitability and reach the goals set by the end of the year. Also among the most important achievements of Autoworld during the first quarter of 2012 is the partnership with Schlumberger Company won a bid to supply 200 units of cars during the year of 2012. The company also acquired a number of new lease accounts, won Al-Hajj Ministry bid, and was ranked second in Najran Province Municipality bid, as well as being ranked third in Aseer Province Municipality bid. With the implementation of new strategic marketing and sales plans, the company expects some great and promising revenues this year, and is currently in the final stages of signing an agreement with ABS Group to supply 50 units of cars.

International Exhibition Center during Feb 20 - 24, 2012 under the patronage of HRH Prince Turki Bin Mohammed Bin Fahd Al Saud. The company’s stand attracted many exhibition visitors who attended searching for their dream car.

AUTOWORLD SIGNS AGREEMENT WITH ACE EXHIBITION Autoworld signed an annual agreement with ACE Exhibitions to be the exclusive Car Rental Company for its upcoming events during 2012 in Jeddah Exhibition center. These event include: - February 19-22

Machinex Arabia

- April 22-25

Saudi Building and Interiors

- May 20-23

Propac Arabia

- November 26-28

Saudi Infrastructure

- December 9-12

Saudi Arabia’s Int’l Trade Fair

- December 11-13

Wedding Arabia

AUTO WORK CONTINUES ITS AUTO WORLD HOSTS CLIENT EXPANSION PLANS IN THE APPRECIATION CEREMONY SAUDI MARKET As part of Auto World’s continuous efforts to engage with New Branch Opens at Al Majdouie Showroom in the Eastern Province and Two New Ones in the Western Province

Reinforcing its strategic partnership with the Hyundai distributor in the Eastern Province, Auto World opened a new branch at Al Majdouie Hyundai Showroom in Jubail in the Eastern Province, as a means to stay close to the customer and provide him with the best daily rental services using the most modern fleets in the Kingdom. The Company recently celebrated the inauguration of two new branches in Jeddah, one located in Tahliya Street and the other in Sary Street as part of the Company’s plans to expand its presence in the Saudi market. Auto World’s new office in Al Majdouie Showroom in Jubail is a clear testimony of the strategic relationship between Auto World and Majdouie Hyundai and is a clear example of a boom in the Company’s business and growth of its relations with its partners marking the beginning of more branches to be opened at Al Majdouie Showrooms in the Eastern Province.

clients and assure them of the company’s commitment to top quality business dealings, Auto World hosted over 30 loyal clients at a Client Appreciation Ceremony held last April at the Movenpick Hotel, Al-Khobar. During the event, Mr. Imad Zein, CEO of Auto World, gave a thank you speech and updated the guests on the expectations of the business relationship, after which came the Client Appreciation Awards ceremony followed by dinner.

The attendees were unanimous in expressing their enjoyment and responded with thank you letters including the following examples: “We thank you for your kind hospitality and warm welcome at the dinner on 24th April 2012. We also thank you for the excellent service we always receive in our dealings with Auto World.” Dohat Al Andalus Est. “I would like to thank you and your company Auto World for inviting us to such an enjoyable dinner on Tuesday evening. It was a pleasure to meet everyone involved, especially your CEO Mr. Imad Zein who is a very cordial and down-to-earth man and made myself and my guests feel most welcome. “It is a great pleasure to do business with your company and we look forward to many more years of business relations between GE Oil & Gas and Auto World.” GE Oil & Gas

AUTO WORLD CELEBRATES WITH ITS CUSTOMERS IN RITZ CARLTON RIYADH As part of its efforts to forge stronger relations with its customers, Auto World organized the annual dinner for its customers in the Central Province at the Ritz Carlton in Riyadh.The dinner aimed at engaging with its customers, listening to them and understanding their needs in order to fulfill their aspirations and achieve higher standards of customer satisfaction.

ELAF GROUP PARTICIPATES IN A SERIES OF INTERNATIONAL WORKSHOPS AND EXHIBITIONS SPECIALIZED IN TOURISM Elaf Group has participated in two workshops in Indonesia and Malaysia on religious tourism through a presentation highlighting the services provided in Elaf Hotels deployed in Makkah and Madinah. On the sidelines of the event, Elaf Group has discussed the issue of qualified cadres and advanced facilities available in the Kingdom as well as facilities and services provided to the highest standards to ensure meeting the needs of pilgrims coming from all over the world, with reference to the government’s efforts which play an important role in the service of those people coming to the Kingdom for the performance of their rituals and in providing maximum comfort for the visitors of the Two Holy Mosques in general. On the other hand, the Group has represented the Kingdom in a number of prominent international exhibitions including “ The 3rd Hajj & Ummrah Services Exhibition in Jakarta”, which was attended by representatives of more than 300 companies from around the world, and also “The 2nd Hajj and Ummrah Exhibition” which was held recently in Malaysia in the presence of more than 250 leading companies specialized in providing integrated services for pilgrims, as well as representing the Kingdom in numerous specialized workshops and exhibitions in Britain, France, Egypt, Morocco and Turkey. Mr. Ziyad Bin Mahfouz, CEO of Elaf, has commented on that by saying “we were keen to actively participate in a series of seminars and exhibitions held in many countries and in line with our objectives to develop strategic partnerships with travel agencies in addition to the leading and specialized Hajj and Ummrah agencies and to expand our customers base in different continents as well as opening new channels to take advantage of promising opportunities and upgrading our provided services, offers, and facilities to meet the needs and requirements of pilgrims. There is no doubt that these events constituted an important platform to promote direct communication with representatives of a number of leading companies and authorities concerned with the travel and tourism sector along with a group of specialists and experts to exchange experiences and identify the best techniques in the development of Hajj and Ummrah services”.

AT RIYADH TRAVEL AND TOURISM INVESTMENT FORUM 2012

ELAF RECEIVES THE TOURISM EXCELLENCE AWARD FOR THE BEST HOTEL & BEST TOURISM SALESMAN IN KSA Under the patronage of HRH Prince Sultan bin Salman bin Abdul Aziz, President of the Saudi Commission for Tourism & Antiquities (SCTA), Elaf Group has obtained the Tourism Excellence Award provided by the Saudi Commission for Tourism and Antiquities, which was recently held within a series of events as part of the Travel and Tourism Investment Forum 2012 in Riyadh for the category of “Best 4 Star Hotel in the Kingdom” which is “Elaf Taiba Hotel”. The award was presented to Mr. Ziyad bin Mahfouz, CEO of Elaf Group. Another Excellence Award was presented to Mr. Mohammed Sharaf, Sales & Central Reservation Manager of Hotel Division at Elaf Group for the category of “Best Tourism Salesman of the Year in the Kingdom”.

The delivery of these Tourism Excellence Awards were part of the activities and events of “The Saudi Travel & Tourism Investment Forum 2012” which was recently organized by the Saudi Commission for Tourism & Antiquities in Riyadh International Convention & Exhibition Center under the auspices of HRH Prince Sattam bin Abdul Aziz, Prince of Riyadh region.

ELAF GROUP OF COMPANIES SPONSORS THE 5TH SAUDI TRAVEL AND TOURISM INVESTMENT FORUM IN RIYADH His Royal Highness Prince Sattam bin Abdul Aziz, Governor of Riyadh Region, has opened the Saudi Travel and Tourism Investment Forum 2012 organized recently by the Commission for Tourism and Antiquities in Riyadh International Exhibition Center. The forum brought together a variety of 23 scientific meetings to discuss issues related to integrated tourism experience. A number of government agencies has participated in this event, most notably Ministry of Municipal & Rural Affairs, Ministry of Culture & Information, Saudi Wildlife Authority, Ministry of Interior, Ministry of Commerce & Industry, General Investment Authority, Arab Tourism Organization, Tourism National Committee, Advisory Committees, Trips Organizers, and Tour Guides as well as a number of travel and tourism agencies from the private sector. Mr. Ziyad Bin Mahfouz, CEO of Elaf Group, stressed on the importance of tourism development in the region, pointing out that the role of the forum focuses on highlighting the tourism potentials in the Kingdom in addition to defining approved tourism projects for the coming years. He also stressed on the importance of establishing a series of events, meetings and specialized workshops aiming to highlight the Saudi Tourism’s interest in the cultural dimension, and also developing and promoting tourism in Saudi Arabia.

“Elaf Group” participated at the 2012 Arabian Travel Market in Dubai, UAE Ealf Group participated at the 2012 Arabian Travel Market (ATM) which took place in Dubai, UAE. The various travel and tourism–related conferences, events and panel discussions being held across Saudi Arabia all concur on the need to rehabilitate and train industry professionals to keep up with global developments in areas such as IT. This, the president of the Elaf Group explain, is necessary to provide local, regional and international tourists with exceptional experiences and spur development across the Kingdom’s travel and tourism market. Ziyad Bin Mahfouz, President of the Elaf Group, discussed the radical changes currently taking place within all segments of the industry. He talked about how advances in IT have led to a shift from traditional systems and the establishment of new standards. This, Bin Mahfouz explained, requires closer monitoring of technology developments and how they can be tapped to attract more customers and better meet their needs. Industry events have been emphasizing the importance of conducting advanced training programs to produce qualified personnel and provide unique services that meet the requirements of travelers and tourists. Bin Mahfouz added that it is vital to adopt advanced IT systems that can support effective and convenient online services. “Rapid changes and fast-paced digital developments have influenced the Elaf Group of Companies to undertake major investments across the Saudi travel, tourism and hospitality sectors and beyond to keep pace with international developments and resolve competitiveness-driven challenges to reach a wider segment of customers. Some of the areas we are focusing on are the installation of better IT systems, the expansion of our hotel portfolio, and advanced training to enable our personnel to meet the many needs of our customers,” said Bin Mahfouz.

Elaf Group sponsors “Jeddah Ghair Festival 33” through valuable prizes for participants H.R.H. Prince Khalid Al-Faisal, Prince of Makkah Region, recently inaugurated “Jeddah Ghair Festival 33” held on the East Corniche in Al Hamra, in the presence of H.R.H. Prince Mishaal Bin Majed Bin Abdul Aziz, Governor of Jeddah, Chairman of the Tourism Development Council and Chairman of the Supreme Organizing Committee of the Festival, and a number of dignitaries and officials from the tourism sector. “Elaf Group” associated itself in the festival by sponsoring various activities, in line with its continuous support of all activities and initiatives that promote the growth of the tourism sector in the Kingdom. In line with previous editions of the Festival, Elaf provided an array of prizes to the participants, in collaboration with “Red Sea Mall’; the main sponsor. Prizes included free hotel accommodation, free local and international air travel tickets and free coupons to enjoy lunch or dinner in all Elaf Group hotels. On this occasion, President of Elaf Group, Ziyad bin Mahfouz said: “Jeddah Ghair Festival, which features a full schedule of events and promotional, recreational, cultural and marketing activities, plays an important role in the promotion of tourism in Saudi Arabia, as well as underlining Jeddah’s position as the top tourist destination in the Kingdom and a model for sustainable tourism. Hence, we at Elaf Group are keen on sponsoring the activities of this festival, in order to contribute effectively to enhancing the tourism potential of the Kingdom and attracting a wide range of visitors and tourists to the city of Jeddah by offering an array tourism programs and creating promising opportunities for investors from within and outside the Kingdom.”

“Al Bustan” and “Al Nakheel” new hotels of Elaf Group “Elaf Group” recently announced the opening of two new hotels during this year, April 2012, named as “Elaf Al Bustan” hotel and “Elaf Al Nakheel” hotel, which fall under the classification of 3 stars category. These two new hotels that are located in Al Madina Al Munawara, are considered to be part of the expansion plan which aims to complete the Group’s strategy. “The two new hotels are characterized by their strategically location to support the high demand, especially in peak seasons. Each of the hotels offers all hospitality services that meet the requirements of our guests. The opening of these hotels is also a sequel to the Kingdom’s plan and efforts to diversify the process of development of the tourism industry, including tourism for religious goals.” Said Ziyad Bin Mahfouz, President of the group

Elaf Group Important Accomplishments During Q1 Of 2012

• Opened Elaf Kindah hotel in Makkah after renovations. • Elaf Group has been rated No. 10 among the Top 20 companies across the Middle East - Arabian Travel News Magazine • Participated in STTIM (Saudi Travel & Tourism Investment Market) exhibition with Elaf’s booth and senior management’s presence and secured 2 Tourism Excellence awards for Best 4 star hotel (Elaf Taiba) and Best Travel Sales Professional (Mohammad Sharaf) and a Silver participant award. • Elaf participated in religious tourism workshops in both Indonesia and Malaysia via a presentation on the services provided by “Elaf” hotels in Makkah and Madinah. • Elaf Travel & Tours division received 4 awards from global airline companies, namely Lufthansa, British Airways, GTA and Ettihad Coral awards. • Our Travel & Tour division has successfully passed the ISO 9001 certification audit and the ISO certificate is renewed for a period of 3 years. • Elaf Hajj and Umrah division successfully participated in international exhibitions that specialize in this field in Cairo, Istanbul and Casablanca. • Indian Food Festival was held at the Elaf Hotel Jeddah at the Red Sea Mall.

SEDCO CAPITAL OPENS ITS WINDOW ON MARKETS ROUNDTABLE With a discussion on Strategies for Enhancing Returns in 2012

The Jeddah based Wealth Management Company conducted its first Window On Markets Roundtable with its very prestigious group of clients and friends of the firm. The roundtable focused on Strategies for Enhancing Returns in 2012 which were discussed over an evening with a panel of four experts from the Global Asset Management industry. Key issues and common questions on the minds of many investors were addressed. Commenting on this event, Mr. Hasan Al Jabri, SEDCO Capital’s Chief Executive Officer, said; “Our Window on Markets series of Roundtables is fundamental to our partnership with our clients as it allows us to bring the best minds in the investment and asset management business to directly address our clients’ concerns and to shine a light on possible solutions and opportunities. This is only one part of the overall added value we bring to our partners and clients who wrestle with the daily challenges of the current global economy such as the Euro-zone crisis, the excessive levels of public debt, possible fiscal austerity in the developed world, the forced de-leveraging of the banking system and the political transitions in many countries.”

through the Developed World’s policy stimuli such as Quantitative Easing (QE) and their effect on the economic cycles of the emerging economies. Michel Meert, Senior Investment Consultant at Towers Watson, a globally renown consultant to Pension Funds and Foundations, highlighted the differences and benefits of diversity versus diversification in asset allocation methods that can be used to mitigate the increasing volatility and market risks that have been experienced since mid of 2011. Robert Parker, Senior Advisor to Credit Suisse, one of the largest banks in Switzerland, drew attention to macroeconomic factors affecting the current investment climate and

their effect on asset allocation. He highlighted the resilience and strength of the emerging markets as well as some Northern Europe’s industrial countries. He also pointed out foreign exchange disparities in Asia compared to the US Dollar and the Euro, concluding that there remain very good medium and long term investment opportunities to benefit from. Steve Jacobs, Chief Executive Officer of BTG Pactual, one of the largest Private Equity managers in Brazil, joined the panel and highlighted the imperviousness of the Brazilian economy to the major world events experienced over the past two years and the many opportunities the Brazilian growth is offering investors today.

Michael Green, SEDCO Capital’s Chief Investment Officer, launched the panel discussion by briefly discussing the new investment realities of maneuvering

SEDCO DEVELOPMENT SIGNS MEMORANDUM OF UNDERSTANDING WITH AL-HOJORAT COMPANY TO DEVELOP INTEGRATED RESIDENTIAL PROJECT IN MAKKAH SEDCO Development has recently signed a memorandum of understanding with Al-Hojorat Real Estate Development Company to develop a housing project with integrated services at the Kudai District in Makkah, which is 1400 meters away from the Holy Mosque, in part of its strategic plan to expand its operations. The project is located on a 47,000 Meter Square land, and the total area of its buildings is expected to reach 820,000 Meter Square. The project consist of 10 luxurious residential towers that can accommodates 100,000 people, and it includes a five star hotel, shopping mall, office building, and shops, which requires providing a residential environment with the highest degrees of entertainment and comfort to its residents. The design of the new project is characterized by its innovation and it includes a parking lot, and provides all the necessary transportation and logistics services for all residents of the towers and the Hotel.

SEDCO DEVELOPMENT ACCOMPLISHMENTS FOR Q1 OF 2012 SEDCO Development signs a deal to develop second stage of Galleria Center development project: SEDCO Development signed a deal for developing the second stage of the Galleria Center development project, which will include developing electrical and mechanical operations with Jamed Co., one OF Ibrahim Juffali and Bros. subsidiary companies.

Emaar Mosque Emaar Mosque, which is located at Al Mesra Planning, will be completed soon, where the finishing works are currently underway inside and outside the mosque. Additionally, landscaping, plazas, and walkways surrounding the project are also underway, along with the provision of electricity services provided by Saudi Electric Company. The Mosque is expected to finish before the month of Ramadan.

Elaf Hotel in Makkah to be completed soon SEDCO launched a tender to furnish Elaf Hotel in Makkah on a number of companies specializing in this area, and will award the contract to the most suitable applicant by the end of the month of April 2012. Additionally, a contract for the provision of electricity service with the Saudi Electricity Company - Branch Mecca has been completed, and it will be linked to the hotel during the third quarter of this year 2012.

SEDCO Development assumes new projects to develop lands SEDCO Development signed a memorandum of understanding with SEDCO Holding to work on three different lands in Jeddah and Riyadh: Name

Location

Area

Al Saban Land

Jeddah-Chamber of Commerce area

12,000 square meters

Qadisiya Land

Riyadh Dammam Highway

2 millions quare meters

Bin Mahfooz Villa

Jeddah-Kilo10

165,000 Square meters

Lunch meet at Galleria Center SEDCO Development conducted lunch festivities for employees working on the Galleria project, which was attended by SEDCO Development employees, as well as colleagues from SEDCO Holding and Emaar Arabia

Fakeehâ&#x20AC;Śexemplary employee during Q1 at SEDCO Holding Eng. Abdullah Ba Fakeeh was granted the exemplary employee award for Q1of 2012, due to his outstanding performance at his job

2012 year of knowledge for SEDCO Development SEDCO Development team assured that 2012 will be the year of knowledge for its employees, after Dr. Abdullah Bafakeeh suggested creating a book club, in which its members will meet together on a monthly basis to read a book and exchange ideas and knowledge.

SEDCO CEO Delivers a Presentation Titled

SEDCO HOLDING ORGANIZES WORKSHOP ON FINANCIAL LITERACY SEDCO Holding recently organize a workshop with the Department of Human Resources Development Fund on the Financial Literacy program that will be directed to university students. The meeting discussed the nature of the cooperation with the Fund, the requirements to obtain approval to move forward in achieving this goal, and reviewed the proposed schedule of the program especially with regard to subjects that should be covered in training, in addition to the duration of the program in general. The two parties agreed on designing motivational factors to encourage students to enroll in the program. The meeting resulted in a number of recommendations including the establishment of a joint committee of SEDCO Holding and the Fund to prepare a training program that is guaranteed to be useful and of value to the participants, study the best ways to promote the program in the media and social media platforms, and provide the appropriate methods to enroll in the Financial Literacy program.

“The Life Cycle of an Entrepreneur” at KAUST Dr. Adnan Soufi underscores in his lecture the importance of implementing corporate governance policies to sustain corporate success and the need to spread the culture of entrepreneurship SEDCO Holding CEO, Dr. Adnan Soufi delivered a presentation titled “The Life Cycle of an Entrepreneur” at the King Abdullah University for Science and Technology as a response to the University’s invitation to take part in its 2012 Winter Enrichment Program organized by the university. This program includes various activities, lectures, and seminars that aim to stimulate and engage various members of the university’s community. This invitation came to SEDCO being one the leading companies in the Kingdom with an impressing record of achievement allowing the university to benefit from its long-stand experience in entrepreneurship. The lecture featured a engaging dialogue on the issues facing entrepreneurs in the Kingdom and supporting them on a public policy level. The lecture also features SEDCO Holding’s experience in this field. SEDCO Holding CEO presented SEDCO’s experience as a family company highlighting the Company’s clear and distinct corporate governance making a professional organization that is equipped with a solid foundation for sustaining its business practices and serving the community. Dr. Soufi presented the key factors of success for entrepreneurs while providing a detailed definition of an entrepreneur and highlighting his/her key attributes. Dr. Adnan indicated that entrepreneurship requires expanded horizons and a solution to providing capital and other necessary components to create a productive environment for entrepreneurs. Dr. Soufi also underscored the importance of activating research and scientific methodologies in the various academic institutions in the Kingdom, building capacities in the specialized sectors in transferring technology stressing on the importance of training potential entrepreneurs during the formation of these new partnerships.

SEDCO HOLDING PARTICIPATES IN GARTNER CIO LEADERSHIP FORUM IN DUBAI With your support and encouragement, Mamdouh Khawaji represented SEDCO Holding in the Gartner CIO Leadership Forum in Dubai last week. He was a panelist along with the CIO of Foreign Affairs in the Government of Emirates, the VP of Strategic Sourcing and Development in Emirates Airlines and the Deputy CEO of Technology Authority in Oman government. The panel was moderated by Gartnerâ&#x20AC;&#x2122;s John Mahoney, VP and distinguished analyst and Elias Bayeh VP Executive Partner. The main topic for the panel was: Skills Development Trends in the GCC Region: Best Practices for CIOs and the Implications for IT Organizations. The panel discussed: - Finding the IT and business skills necessary to deliver the necessary results. - Mix of skills to change in the next three years and what are we doing to prepare for that. - Skills strategy relating to outsourcing strategy? What skills do we intend to keep always in-house and what capabilities do we expect to mainly outsource? - What is the primary focus for skills development (soft vs. hard) and the need for business skills in IT. - Do we utilize any incentives, financial or otherwise, based on results? Are we able to link compensation to performance of the enterprise as a whole? The panel also discussed nationalization of IT jobs and the challenges being faced in the market and the impact on businesses in general. Another related topic was Government vs. Private companies once it comes to nationalization. Some of other topics covered in forum were: - Disruptive technologies and how to deal with them (iPad, iPhone, Android devices, etc). - Social network at work. - Cloud Computing (using the internet for software: Software As A Service (SAAS), Infrastructure As A Service IAAS, etc). - Top Infrastructure and Operations issues in GCC. - Consumer Mobilities and how to manage them remotely. - Negotiating with Mega vendors (Oracle and Microsoft as examples) - Enterprenuial CIO. - Power Politics - Technology trends and top technologies that CIO should watch for. - The key leadership skills that CIOs should really have.

RED SEA MALL RECEIVES TOURISM EXCELLENCE AWARD FOR THE BEST SHOPPING EXPERIENCE IN 2011 Red Sea Mall has won the Tourism Excellence Award for the best shopping experience for the year 2011. The awards were celebrated within the context of the 5th Saudi Travel and Tourism Investment Forum held at the Riyadh International Convention & Exhibition Center and organized by the Saudi Commission for Tourism & Antiquities (SCTA) under the patronage of HRH Prince Sattam bin Abdul Aziz, Governor of Riyadh Region, and with the presence of HRH Prince Sultan Bin Salman, President of the Saudi Commission for Tourism and Antiquities. The award was given to honor the most famous shopping center in Jeddah for holding more than 62 events that included various activities with several entities during 2011, which effectively contributed to attracting a large number of visitors to Jeddah and had the desired effect of raising the standards of tourism in the Kingdom of Saudi Arabia. The Jury of the Tourism Excellence Award 2012 emphasized the importance of the initiatives of the Saudi Commission for Tourism and Antiquities (SCTA) that aim to develop competitiveness and professionalism in the tourism and national hospitality industries. The jury included a group of internationally acclaimed hospitality and tourism experts. It was stated that the total number of candidates over the Internet this year exceeded 600, up nearly 50% compared to last year, which is a great indicator of the development of these awards and will stimulate even more entries in its next sessions.

BI-WEEKLY PUBLICATION INCLUDES RELEVANT NEWS AND ARTICLE ABOUT SEDCO IN LOCAL AND GLOBAL MEDIA

SEDCO LAUNCHES “IN THE NEWS” E-NEWSLETTER TO SHOWCASE ITS FAST PACED ACCOMPLISHMENTS Keeping up to date with the digital age, SEDCO launched the first edition of its bi-weekly SEDCO “In the News” E-newsletter, which showcases relevant articles about SEDCO that appear in the global online media. “In the News” E-Newsletter will keep SEDCO employees informed of all mentions relevant to SEDCO in the Global Media, which is an important addition to our internal staff communication tools and a vital part of our strategy to maintain a harmonious and inclusive working environment in which employees can be feel a greater sense of belonging. The “In the News” E-Newsletter will be sent to all employees and each company within the group will receive its own dedicated version reporting on news and developments that most directly concern the company and its employees, while also including selected news items about what the group is doing as a whole. By adopting a digital format, SEDCO well be able to issue “In the News” E-Newsletter every two weeks, which will keep you up to speed with the most recent and topical news on a regular basis. In addition, to “In the News” E-Newsletter, which only monitors news that appears in the Media, we will continue to publish our regular quarterly internal “SEDCO News” Newsletter, which you are familiar with, and which covers the wider spectrum of group activities. We will soon also be launching a digital format of “SEDCO News” to deliver it to you in a faster and more efficient way. The editorial team at SEDCO is hoping that “In the News” E-Newsletter provides an entertaining and beneficial content, and welcomes any idea and suggestion around its design and content, which will hopefully improve our newsletter in the future.

EIMAR ARABIA BROKERAGE DEPARTMENT COMPLETES THE SALE OF HUGE PROPERTIES During the first quarter of this year Eimar Arabia Brokerage Department completed the sale of two properties belonging to SEDCO Holding Company with a total value exceeding 135 million riyals.

SEDCO-IT 2nd Quarter NEWS 2012 1) Completed Document Management System (DMS) Project for Sedco Capital and Sedco Development The Document Management System was successfully implemented for Sedco Capital and Sedco Development. It is now LIVE for the 17 users of Sedco Capital and 21 users of Sedco Development. The project aims to deliver a centralized, secured document repository for both companies that will improve control, traceability and retrieval of documents and improved productivity by avoiding lengthy searches, lost documents, inaccuracies and other paper handling activities. The successful completion of the DMS Projects was a team effort between IT, SEDCO Capital and Sedco Development. For SEDCO Development, Engr. Khalid Jamjoom was the project sponsor with Mr. Abdulsalam Al Sagheer as the project coordinator. For Sedco Capital, Mr. Samer Abu Aker was the Project Sponsor with Mr. Mohammed Bin Afif as the project coordinator. The overall Project Manager for IT was Mr. Abdulrahman Bin Shihab and ably supported by Mr. Fadi Tayeb. 2) Employee Self-Serivce System (ESS) is LIVE for Sedco Development SEDCO-IT successfully completed the Employee Self Service (ESS) project for Sedco Development. The system is now LIVE for the 40 users of Sedco Development. The goal of the project was to improve employee productivity by streamlining employeerelated business processes. This translates to a savings of at least 3 man-days per employee on tedious paper-work and requests follow-up. ESS also provides managers the ability to approve requests on e-mail and mobile devices. ESS project is planned to be rolled out to other operating companies such as ELAF hotels (160 users), Eimar Arabia (60 users), Masalik Al-Khair (18 users) and Autoworld.

SEDCO DEVELOPMENT A KEY PARTICIPANT IN THE LOCAL MASTER PLAN WORKSHOP IN JEDDAH To review and evaluate the current Master Plan status during the past five years and its positive and negative developments a team from SEDCO Development participated in the Local Master Plan Workshop â&#x20AC;&#x153;Review & Assessmentâ&#x20AC;? which was organized by the Jeddah Municipality with the participation of key Government and private sector organizations with an aim to review and assess putting together the local Master Plan of the past five years as well as what has been accomplished and any development which may affect the Master Plan positively or negatively. The workshop discussed four key topics beginning with a briefing on the approved local Master Plan and followed by a discussion on the impact of the approved building code on services, general utilities, networks, security, and visual aspects. The participants then addressed the issue of implementing the approved building code for the local Master Plan. The view points of the various participants in the Local Master Plan Workshop have been taken into consideration to be presented in a final recommendations form to the Ministry of Municipal and Rural Affairs. The Workshop was attended by CEO Khalid Jamjoom; Dubiety CDO Adil Hassan; Eng. Ashraf Abdullah; Strategy & Business Dev. Manager Dr. Khaled Johar; and Marketing Mager Mohammed Abu Marei. It is worth mentioning that the Workshop featured key recommendations around the main topics. With regards to the approved local Master Plan key areas of discussion included the completion of the systems planning at the Jeddah Municipality, detailing of associated programs of the Master Plan, development programs for the areas and public utilities and services and building capacities in addition to recommendations on the impact of the building code on the services and utilities that deal with services, safety and security, transport and police sectors, environmental and visual studies, and other recommendations pertinent to the other topics.

Arabian Entertainment Co. Ltd. Important Accomplishments During Q1 Of 2012 AECL Annual Conference AECL hosted its Annual Conference under the theme “Champion”. The event was presided by Dr. Adnan Soufi, Mr. Waleed Bin Mahfouz and Mr. Ahmed Marashde. During the conference Mr. Hassan Moukdad was awarded GM of The Year from Operations and Mr. Muneer Meethalekalithil best employee in Head Office.

... ‫تكريم الرعاة‬

Sponsorships:

‫سمو األمير مشعل بن ماجد بن عبدالعزيز يحفظه اهلل‬ ‫يسلم درع الشكر والتقدير لشركة ترفيه العربية المحدودة‬ .‫ويتسلم الدرع سعادة الشيخ وليد بن محفوظ‬

New Applebee’s Opening

Arabian Entertainment Co. Ltd. launched Human Resource Management System (Self Service): The new system will facilitate administrative requirements of all the employees like vacations, loans, travel requests, etc.

Arabian Entertainment Co. Ltd. Added one more feather in its cap by opening a new Applebee’s restaurant in Riyadh on 28th March, 2012. The total number of Applebee’s branches in Saudi Arabia has reached 13 with the new opening. This restaurant has been constructed with new and most recent Applebee’s designs, called “Connections”.

Applebee’s sponsored three community events during the first quarter of 2012: • Jeddah Shopping Festival • American Women in Eastern Province • Community event in North Obhur (Jeddah)

Applebee’s (Heraa St.) launched Home Delivery Applebee’s for the first time in Saudi Arabia has launched Home Delivery. Currently the service is only available at Applebee’s (Heraa St.), Jeddah but soon going to be extended to other regions as well.

Arabian Entertainment Co. Ltd. Sponsored Civil Defense Day: AECL sponsored the Civil Defense Day organized at Andalus Mall (Jeddah) on 25th February, 2012. The event was inaugurated by Prince Mishaal Bin Majed Bin Abdul Aziz. During the event and on behalf of Arabian Entertainment Co. Ltd., Mr. Waleed Bin Mahfouz received a plaque of appreciation from Prince Mishaal Bin Majed Bin Abdul Aziz.

Applebee’s participation in STC Event As a marketing partner, Applebee’s participated in STC employees day event in Jeddah and Eastern Province. Applebee’s has a strong partnership with STC in the Qitaf loyalty program from 3 years.

Applebee’s Launches New Summer Menu:

Applebee’s Launches Breakfast in Andalus (Jeddah) and Nakheel (Riyadh): Applebee’s recently launched Breakfast in 2 restaurants (one each in Jeddah and Riyadh). Breakfast menu has been very much liked by the guests and response is very encouraging. Riding on the success of this new menu, Applebee’s also plans to introduce Breakfast in other Branches as well

Keeping up with the promise of bringing new tastes and always refreshing the menus, Applebee’s launched its new menu in the month of April. New items introduced are gaining much popularity ‫النكـــه‬ ‫ات احلـقيـقيـة اللي‬ ‫جتمعنـــا �ســـــوا‬

Real Flavors Together That Bring People

Applebee’s Launches new Corporate Offers for Companies: Applebee’s launched 2 different sets of Corporate offers for Companies organizing their Events, meetings and Presentations. Companies will get the facility of private meeting room, Projectors, screens with set menu offers. The offer has already attracted several companies who are now organizing their events and meetings at Applebee’s.

Applebee’s Launches Home Delivery in Dhahran and Jubail: After successfully launching and great demand of Home Delivery program in Jeddah (Applebee’s Sultan St.), Applebee’s has now launched Home Delivery program in Dhahran and Jubail as well. Both new markets are doing extremely well with the delivery program.

Applebee’s Value Campaign: Gearing up for the Summer vacation, Applebee’s has launched a Value campaign for its most famous dishes with attractive price tags. Value campaign last year received a very positive feedback and this year it has been taken a notch up.

Multaqa: During the annual SEDCO event (Multaqa), Kamran Khan, Arabian Entertainment Co. Ltd. Director Of Marketing & Business Strategy gave a presentation on “Building Brands Through Innovation”.

Applebee’s Main Sponsor for Jeddah Hospitality: Applebee’s is the main sponsor of Jeddah Hospitality 2012 organized by JCCI. Opening ceremony took place at Red Sea Mall which was attended by many restaurant chain owners and executives from JCCI. The Event will host one week each for American Cuisine week, Asian Cuisine week, European Cuisine week and Arabic Cuisine week.

SHIEKH SALEH BIN MAHFOUZ INSPECTS ELAF BAKKAH PROJECT Shiekh Saleh bin Mahfouz,Chairman of the Board of Directors at SEDCO Holding Group, has conducted a field visit to Elaf Bakkah Hotel Project in Makkah, during which he toured its facilities and inspected the progress of the project, which will be completed soon. Shiekh Mahfouz visited all areas of the project and commended the quality of the designs and the fast pace work of the Hotel. He also praised the efforts of SEDCO Development team who have spared no effort in taking into account the accuracy and committing to the highest quality standards. He also expressed his appreciation for the efforts of Elaf Group who have successfully chosen the strategic location of the hotel, and gave it a distinctive Islamic character that made it unique from other hotels.

DR. ADNAN SOUFI VISITS GALLERIA PROJECT Dr. Adnan Soufi, CEO of SEDCO Holding visited the Galleria Project location which was designed to house an up market shopping center and a Five-star Elaf Hotel. During his visit, Dr. Soufi expressed his delight in the work in progress which is expected to become a landmark in Jeddah. He also lauded the efforts of the team including engineers, contractors, and employees. At the end of the visit Dr. Soufi provided some valuable insights which will add value to the project and create better efficiencies as well.

(KHEIR HEWAR) SEDCO Holding CEO Dr. Adnan Soufi held the first meeting within the program “Kheir Hewar” as an implementation to the open-door policy. On Sunday 27 Rajab 1433, corresponding to June 17, 2012 AD, SEDCO Holding CEO Dr. Adnan Soufi held the first meeting within the program “Kheir Hewar” as an implementation to the open-door policy. The breakfast meeting was attended by a number of different SEDCO Holding employees from multiple departments, in which they talked transparently and openly about issues that concern them the most and of interest to the employees of SEDCO in general. During the meeting “Kheir Hewar” the following points were discussed: • Linking cooperate strategies to day-to-day work. • The adoption of a quarterly staff performance evaluation program. • The support of personal development. (The Chief Executive noted about a new program under the name of “Injaz” to address these issues). • The importance of staff access to training courses to hone their skills. (Dr. Soufi mentioned that SEDCO Academy “yet to be lunched” will be aimed to raise the level of the group training programs). The participants have suggested the following points as well: • Activating the customer satisfaction surveys as much as possible. • The benefit of the mobility of staff between SEDCO’s subsidiaries in order to obtain a greater understanding of the cooperation. • The development of an anonymous suggestion box on each floor of the building. • The establishment of a book club for SEDCO Holding. • Exploitation of free rooms in the building to enable a culture of innovation within it. • To allocate the area known as “Kilo Fi Kilo” for activities the employees can practice with either their peers or their families. • The adoption of an open office-hour for SEDCO’s employees to be able to exchange views and suggestions with the Chief Executive Officer. At the end of the meeting Dr. Adnan Soufi recommended the attendees to read the following books as they can benefit from the valuable content: • The 7 Habits of effective Leadership. • Who Killed Change. • Who Moved My Cheese

Dr. Adnan Soufi promised to give a serious consideration to the points raised during the first meetings of “Kheir Hewar” and to study the possibility of implementation. In conclusion, Dr. Soufi thanked and showed his appreciation to the attendees and wished them a continuous success.

DR. ADNAN SOUFI’S: Work Culture Change Is Necessary To Achieve Goals And Open New Opportunities for expansion Dr. Adnan emphasized that work culture change is necessary to achieve goals and open new opportunities for expansion

How do you assess the new business model resulting from the restructuring of SEDCO Group after two and a half years? Two and a half years passed with new operating model. We learned a lot. We now have a much better understanding of what it takes to succeed with new operating model. We learned that cultural adjustments needed to be made to implement the best practices at SEDCO. Also, as leaders we went through a learning cycle. Typically organizational transformations are multi-year events. For SEDCO, due to the circumstances, it would take longer.

Do we have the capabilities to execute or not? What needs to change? We realized that we needed new capabilities and we have been successful in the last 2.5 years to both upgrade talent and bring in missing capabilities (e.g. CD, Risk Management, etc.). However, our work is not yet done. First, we have to ensure that we continue to retain the new talent that has recently been brought in, and secondly, we still have work to do in replacing existing talent that is not performing at the expected levels.

How would you rate the performance levels at SEDCO with the new business model? What are the latest developments in this regard? A team at Holding was brought in and now being integrated and setting in and being refined to become a high performing team. Individuals are being enabled and coached to execute on new operating model. Team effectiveness is being monitored. The journey from a collection of individual performers to becoming a high performing team. During this past one year, we have started to focus going from a collection of talent to an integrated SH team. We have conducted team building sessions (on-site and off-site); developed individual commitments to each other; assigned coaches to executives; and develop expected team behaviors.

How do you promote the work culture in SEDCO? Successful transformations require focus on the triangle of strategy, leadership, and culture. Many companies have learned the hard way that: “Culture eats strategy for breakfast.”

We have learned that our culture has been quite resistant to the change. Although we are now starting to make progress, as leaders, we have to continuously monitor this and in our words and actions we have to exhibit the right signals that our corporate culture is changing. We are on a journey to build a high performance-culture.

How would you describe SEDCO’s current performance? Processes are still being built for the new operating model with team engagement. We are still in the early stages of building defined work processes and protocols to conduct our work in more standardized ways. There is a lot that needs to be done. For example, we have made good progress on our financial reporting capability.

How do different stakeholders view the top team at SEDCO Holding? It is important for me as the CEO to know how the different stakeholders view the top team at SH. So, please continue to give me feedback so I know what adjustments and changes need to be made.

What about Active owners role vs passive owners role? High-performing companies are always looking for ways to instill an “ownership” mindset and an “entrepreneurial spirit”. We have to continue to ask this question of ourselves and then make the necessary adjustments in mindset and actions.

What about Active Due Diligence (DD) with recommendations from OPCOs vs. passive DD? We need to support and coach OPCOs to be more active in conducting due diligence. For example: the role SH AM is playing in aligning the interests of owner with SD and Elaf and Eimar. This role was created 1 year ago and played an instrumental role in supporting OPCOs and aligning with shareholder interests and mitigating risks.

Does internal communication continues to be a challenge? It has been a challenge to communicate with and align all the various stakeholders across SEDCO. Managing the relationships and aligning with them is a complex task and takes significant time. We need to continuously improve our communications, with all our stake holders, and make our communication fact based. Almost two and half years into this transformation, there still continues to be uncertainty about the transition.

Finally, what are the most important accomplishments, and which areas are below expectations and need improved? Although more improvements are still needed: improvements in legal; performance appraisal; risk management, etc., we need to remind ourselves of the significant progress has already been made over the last 2.5 years. Major accomplishments include: establishing the boards; attracting new talent and recruitment; closing Dubai operation and shifting the capability to SH; assuming the responsibility for Pinnacle; managing risk; building the infrastructure and the right processes; and managing the transition smoothly while strengthening the strategic roles of our HR, Corporate Communication, IT, and Legal departments.

AUTO WORLD RECOGNIZE CEO FOR TWO YEARS OF SUCCESS

The holding of this annual gathering is a way for Auto World to show their appreciation to their

Auto World team recognized their CEO, Mr. Imad El Zein with a commemorative plaque on the occasion of completion of two years of achievement and success. The employees thanked the CEO for his efforts and wished him future successes.

AUTO WORLD 2ND ANNUAL EMPLOYEE GATHERING Auto World held its 2nd Annual Employee Gathering on April 26, 2012 at King Fahad Coastal City, Half Moon Bay Al-Khobar. The event is now firmly established as an occasion on which Auto World recognizes its employees as the company’s number one asset and thanks them for their dedication and hard work. The employees appreciation day got off to an early start with an action packed program of activities including games with prizes for the winning teams. Lunch is next on the agenda and the event concludes with the presentation of the Employee Excellence Recognition Awards ceremony and thank you gifts. Mr. Imad Zein expressed his gratitude toward the employees for the above-expected achievements the company has made, and for their performance throughout the year. Such success could be seen through the rentals. Mr. Imad spoke about this year’s theme, “Excellence”, and urged everyone to move forward toward a bright future through concerted efforts and teamwork. On the other hand, departments managers thanked the Chief Executive on behalf of their employees emphasizing that this event brought joy and happiness to the hearts of the staff. Also, all employees have shown their interest in attending and sharing next year’s gathering with their peers. At the end of the ceremony, awards were presented to the winners in the recreational activities, and exceptional employees were honored in front of their colleagues.

employees, and that priority is given to employee development and knowledge enrichment programs that will provide the highest levels of performance and achievements on an ongoing basis.

AUTO WORLD CALLS EMPLOYEES FOR INNOVATION TO IMPROVE WORK ENVIRONMENT

his objectives. This new program represents an ideal tool to discuss the individual performance of the employee in line with Company’s plans, requirements, and objectives in addition to key improvements that will ensure equally for the employee and the company a much more professional approach and path towards achievements and success.

Auto World called it employees from its various branches across the Kingdom to take part in the first of its kind Creative Ideas Competition. The Company allotted a valuable prize for the employee who comes up with a creative idea or innovative project that will assist in improving or developing the quality of work across any of the Company sectors.

This launch of this program stems from SEDCO’s belief in using the right training and awareness tools to provide the opportunity for the employee to improve his capabilities and nurture his skills as a means to elevate his performance levels in the workplace. As a first step, the Human Resources Department at SEDCO Holding will provide training and orientations sessions across the Company sectors based on the pre-set schedule.

The Company explained that it will take all the creative ideas and concepts into consideration as part of its confidence in its workforce that is the driving force in moving the Company forward. Waiting for your creative concepts…Winner to be announced soon, stay tuned

SEDCO LAUNCHES “INJAZ”

TO IMPROVE PERFORMANCE & CONTINUE PROGRESS TOWARDS SUCCESS SEDCO Holding recently launched a special program to gauge employee performance under the name “Injaz,” a new performance management program at SEDCO which aims at driving the Group forward to continue the road of success and bring about achievements. The program will involve all the employees who will be the major force in its success. As of June 23, 2012, the “Injaz” program, the new performance management program at SEDCO will be implemented as a means to improve the employee performance and provide him with opportunities to understand what is expected from him in terms of deliverables and contributions to successfully achieve

SEDCO Holding invites all team members to take part in “Injaz” and hopes that each member becomes part of the change which will benefit both the employees and company.

SEDCO EMPLOYEES TO BE APPRAISED ON IMPROVING WORK ENVIRONMENT BASED ON THEIR COMMENTS AND SUGGESTIONS SEDCO Holding Co. Organized a public meeting with all of the Group’s employees on Wednesday, May 23, 2012, following the completion of the analysis of their comments and suggestions that they have offered through their participation in the evaluation of the level of job satisfaction in the company, which aims to identify the company’s vulnerabilities and upgrade the work environment. After reviewing the comments and suggestions in full, the Company’s Administration began designing an inclusive work plan that focused on improving the points which had been a consensus by the participants in the evaluation, especially when it’s related the professional development of employees, and regulations that governs the working environment in the company. It is expected from the new action plan to contribute in improving the working environment at SEDCO and strengthening the knowledge of the employees within the company to reach the highest levels of performance and production.

Dr. Soufi & SEDCO Key Executives Participate in

“Director Development Program”

Organized by Mudara Institute of Directors to Reinforce Corporate Governance SEDCO Holding CEO, Dr. Adnan Soufi joins SEDCO’s key executives in SEDCO to participate in “Director Development Program”a training program which wasorganized to establish a comprehensive base of modern management concepts as well as educated the Board of Directors and executives in this field. This initiative aims at achieving each of their personal and career objectives alike and reinforce SEDCO’s corporate governance across the Group. The program comprises a series of training courses that provide the basic needs for the participants in their respective fields and focus on addressing these needs. These courses target managers whether in the board functions, Government agencies, or family companies. Director Development Programincludes a series of workshops over a 2-4 day period.At the end of each workshop, the content is reviewed and each participant is evaluated. If the participant passes the initial evaluation, he becomes eligible to undergo a test to be certified as a Professional Manager. The program Took place on both March and May of this year, and is expected to run again in September and October in Jeddah. It is worth mentioning that the May course witnessed maximum number of persons registering for the course.

Eimar Al Arabiya Emphasizes the Potential of Investment in Jeddah In a recent study highlighting the real estate market trends during first quarter of 2012

A recently study prepared by the Department of Consultation and Valuation at Eimar Al Arabia on the development of real estate in the Jeddah area emphasized the importance of having a futuristic look to target the available real estate investment opportunities for the Company and how to make use of them. This was clear from the mega real estate projects being executed in Jeddah including the expansion and development of slums and the transport project as well as the expansion project of King Abdulaziz International Airport all of which are linked directly to real estate investment projects. The study came about in order to understand the key trends and important developments in the real estate sector during the first quarter of 2012 aiming to learn the most important activities impacting the market and its effect on SEDCO Holding real estate portfolio in addition to displaying the most vital and modern projects in the Jeddah area and their potential impact on the Groupâ&#x20AC;&#x2122;s real estate portfolio. The study reviewed the current real estate market status in general during the last period shedding a light on the market position and trends the market was subjected to since 1997 until now in particular the increase of the price of land which took place recently and the reasons for this increase. The current real estate market status was identified by focusing on the period ending with 2011 and beginning with 2012. The study focused on the Jeddah area reviewing the key developmental projects with direct effect on the urban economic boom in the Kingdom in general terms and in Jeddah in particular. These initiatives are clearly visible through the development plans and Government directions. The study also reviewed the performance of the land sector including a market analysis of the real estate market and its direction in addition to reviewing the average price of residential and commercial plots of land in various locations across the city. The offices sector in the city was also tackled reviewing the key office buildings in the Jeddah area in addition to the market in general as well as the direction. The study also reviewed market demand and the average rent for unit for all office types. As for the residential sector, the focus was on the development in terms of number of residents and residential units and their effect on supply and demand in addition to the market status in this sector and its main direction. This includes the pattern of modern residential projects and urban growth trends. The study also focused on the changes in leasing price and sale of all types of residential units across the City. The study also included commercial cents highlighting the most significant modern residential projects in the City. The study also covered the increase and expansion and reach of these types of projects as well as reviewing the average lease price in the largest commercial centers and occupancy.

CEO OF SEDCO DEVELOPMENT: 5% EXPECTED ANNUAL GROWTH IN REAL ESTATE SECTOR ENG. KHALID ASAD JAMJOOM: WE OFFER INTEGRATED REAL ESTATE SOLUTION TO DEVELOP HEALTHY AND SUSTAINABLE REAL ESTATE PROJECTS Eng. Khalid Jamjoom, CEO of SEDCO Development, expects that the annual growth of the Saudi real estate sector to grow 5%, due to the real estate renaissance, along with its large development project, in which the Kingdom is currently experiencing. Eng. Jamjoom revealed during his interview with “Al Eqtisad wa Al Estithmar”, that the upcoming period will witness the inauguration of the SR 750 million Galleria Project, which is located at the heart of the shopping district in Jeddah, and will enrich the area with a wonderful landmark taken from classical Italian architecture. • SEDCO Development is considered one of the top Saudi companies in the field of real estate development, when and how did the company start? SEDCO Development started out as one engineering department under the umbrella of SEDCO Limited Company owned by Bin Mahfooz family, and then it was changed into EMAAR Real Estate Development Company. In 2009, SEDCO Holding began restructuring its companies after the decision was made to establish a company that serves as the financial arm and developer of its real estate projects in Saudi Arabia and that company is called SEDCO Development Company. • What are the most prominent projects currently at SEDCO Development? What are its future projects? Our current projects of which are under construction are the Galleria Development Center in Jeddah, located at Prince Mohammed bin Abdul Aziz Street

(Tahlia previously), where the project includes a commercial center and five-star hotel that consist of approximately 440 rooms and suites, as well as the development project Elaf Bakkah at the Azizia District (Mahbas Al jinn) and it includes approximately 800 rooms. In addition to another hotel project located at one of the most important sites in Al Madina Central Area is in progress of completing the licenses to start presenting the project and selecting the implementing contractor. The company has several projects within its business plan for the next five years including the development of a residential plan in Riyadh, in addition to the planned residential development in Makkah. • On what grounds do SEDCO Development operates in the local market? For our company to become the first choice for real estate development in the region, God willing, and a pioneer in the development of creative project, in addition to working with our partners to provide integrated real estate solutions for the development of healthy and sustainable real estate projects that will improve the lifestyle of the community, and surpass market expectations in terms of quality, innovation, timely delivery and profitability. • Your projects are characterized by its beautiful designs, especially the Galleria, what was the idea behind it? The project is characterized by its strategic location at the heart of luxury shopping area in Jeddah, and it cost around SR 750 million. As for the idea of the design, it was taken from the Galleria Vittorio Emanuele II in Milan, Italy, and we have chosen the name Galleria because the mall was known by that name to the people of Jeddah in the past. Note that the building will consist of 12 floors which will be completed soon.

• Since you consider yourself an expert in the field of real estate marketing, what is your estimation of the market volume in Saudi Arabia? It is Difficult to estimate of the volume of investments in real estate sector because there is significant variation in the estimates of the volume of investments in real estate, which is due to the inaccuracy of the available information. However, the number resulted out of the development plans shows that the real estate sector contributes in gross domestic product, where it is ranked second in the national economy after the petroleum sector, and contributes about SR 55 billion in the GDP, and about 9.5% gross in local non-oil products. Our expectations for the real estate sector to continue to grow at an annual rate of up to 5%, due to the presence of many development projects at Two Holy Mosques, Riyadh, Jeddah and Eastern Province. • What’s the current importance of real estate investment funds, and what’s its role in the development of the real estate sector? Real estate investment funds have an important role in providing and allocating liquidity and investments safely while avoiding risks, and at the same time controlling and securing contributors’ rights. • What are the most prominent community segments you work with? Our operations entail us to work with investors, realtors, land owners, and hopefully with real estate investment funds in the future. • Are there any plans for the comp? Any to expand its projects outside the MENA region? No, our operations main focus is on our beloved Kingdom. • In your opinion, do foreign real estate marketing company have an impact on national companies in the local market? National marketing companies are more qualified locally, because they are aware of the needs and demands of its consumers, presently and in the future as well, and they were able to win their trust more efficiently than national companies with foreign expertise.

• Every now and then crisis appear and increases the price of metal and cement in the markets. What do you think are the reasons behind that? And does it have an impact on your projects? And what are its solutions? Prices of these commodities are subject to the law of supply and demand, and the prices of raw material in the global market. As to our projects, we do allocate specific percentages cash reserves to keep up with the rise in commodity prices as much as possible. • What is your yearly estimate for home units in the Saudi market? The Kingdom needs one million new housing units during the next five years to keep up with a compound annual growth rate of 3.3% in demand for housing, while the residential development sector in the Kingdom now accounts for 70% of the total real estate market, having achieved significant growth in recent period, where the volume of demand for housing have significantly grew over recent years due to rapid population growth and the deterioration of some older housing units, as well as the increase number of youth searching for homes. The remaining 30% are distributed between various real estate sectors in the likes of offices, shopping malls and hotel sectors. • The Custodian of the Two Holy mosques launched a series of decision that favors the facilitation of housing in Saudi Arabia, did it have an impact? Will it have an impact in the future? It currently have an unstable impact, however it will have a positive impact in the future by creating a balance between supply and demand, and facilitating owning homes. • The real estate sector still suffers from various issues, especially in the field of Saudization, where does your company stand in this issue? Saudization is a national duty that must be abided, and we were successful in building a mutual trust between us and our young Saudi employees, where we depend on them on all levels since they carry a high level of training and knowledge. We feel that it is our responsibility to continue on with this approach in order to contribute in the dream of our beloved Kingdom.

SEDCO HOLDING FINANCE ROLE AND TRANSITION

The Finance function in an organisation such as SEDCO is like the immune and circulatory system in a human body: ensuring that strong and effective controls and processes are in place to protect the assets of the company while maintaining optimum levels of liquidity that can quickly move around the organisation to fund the operations and investments of the Group. Of course in a modern finance function our responsibilities are far broader than the above and encompass a range of activities from processing of payments to investment support, doing the budgeting and performance management reporting to coordinating the external audit and the management of liquidity and financing for the Group.

work flows and best practices so that we can improve the quality and effectiveness of the service we deliver to our clients. A clear goal set by the Board is that the financial database of the company must be accurate and reliable. Our principal objective in finance must be designed to ensure that this target is met. To do this we must build an agile and self corrective function that is working in an integrated fashion and is rapidly transitioning to a value added department that is an effective business partner for the Group.

The dedicated team at Group Finance at SEDCO Holding has been fulfilling this role for many years. Along the way the department has recorded many achievements - implementation of the Oracle system, involvement in conversion to new Group structure, support in closing major investments and meeting the demanding requirements of the annual budgetary, external audit and reporting cycles.

Keeping this in mind, SEDCO Holding Corporate Finance is going through a Performance Enhancement Project (PEP) whose goal is to deliver a best in class function that fully meets our customers’ requirements and creates a working culture that provides professional and personal development opportunities in an environment structured around learning and teamwork. Over time this will be reflected in the finance team across SEDCO growing into a high performing and skilled group of professionals that are recognized for their abilities, both in the Company and beyond.

But above all we are a client service unit, where our principal customers at this point in the company’s development are internal – the shareholders, the Board, CEO and colleagues in other businesses. To be successful we must constantly adapt our work methods, products and processes to synchronise with their evolving requirements. Significant changes in the SEDCO Group in recent years as well as the challenging competitive environment that we face globally, requires us to systematically adopt new

This involves constantly challenging ourselves to examine what we do so that we can identify those things that may need improvement or correction – which is natural in any process that has remained unchanged for a length of time. During the second half the PEP involved the preliminary stages of reviewing and challenging our financial database to establish confidence in its robustness. This work was done by the team in Holding Finance, supported for a period of time by an external firm. The phased execution of

the PEP project through 2012 will see the completion of this exercise as well as an increased emphasis on leveraging our excellent Oracle platforms to deliver redesigned and better reporting along with a parallel transition to a new organisation structure at Holding Finance.

I would just say that while Group Finance are one of the critical organs of the SEDCO body our success of finance is bound up in the effectiveness of our partnership with our colleagues across the group, and in this we do not set any limits to what we can achieve.

This new structure will see the department moving away from two administratively focused silos, to an organisation built around smaller clusters that are more outward focused and closely aligned with our deliverables. In addition to the focus on specific deliverables this new flatter structure will also offer more opportunities for growth to the existing team as well as providing them with avenues to acquire new skills while moving between different roles and responsibilities in the finance function across Holding and the Group.

I will end with a quotation from the boxer Mohammad Ali:

Working under the supervision of the CFO and VPs in the function, four new clusters will broadly focus on:

SEDCO HOLDING FINANCE

â&#x20AC;&#x153;When a man says I cannot, he has made a suggestion to himself. He has weakened his power of accomplishing that which otherwise would have been accomplished.â&#x20AC;? So let us not set limits to what we can achieve together.

Operational Accounting (headed by Abdullah Bataweel): Maintenance of books and records of the company, transaction processing, operation of controls to ensure integrity of database. Performance Reporting (headed by Luai Najjar): management reporting, budgeting, consolidation. Settlement & Funding (headed by Hamid AlHaj): processing of payments, liaison with banks, Group cash flow management. Quality Controls & Compliance (headed by Abdulkader Para): reconciliations, policies and processes, corrective action on audit and compliance reports. In addition, a significant change has been the addition of Risk Management as a new and critical component of Group Finance. This function is being headed by Wael Eid who has been tasked with building a risk control and reporting infrastructure in Holding, while providing support in this area to our OPCOs. Risk management is more a culture than simply the setting of rules or the ticking of boxes. It requires the awareness and participation of different stakeholders within the organization. The rest of the year should see a lot of interaction between Risk and these various stakeholders as we develop new processes and policies and establish training and reporting channels.

Mudara Institute of Directors Launches its Director Development Programme in Saudi Arabia for the First Time with the Support of SEDCO Group Mudara Institute of Directors (IoD), the sister Institute of Hawkamah, the Institute for Corporate Governance

has launched its Director Development Programme in Jeddah, KSA for the first time with the support of the SEDCO group, on March 11, 2012. Announcing the launch of the workshop, Dr. Nasser Saidi, the Executive Director of Hawkamah, the Institute for Corporate Governance said: “the Mudara Institute has trained over 150 directors and aspiring directors serving the region’s boardrooms on corporate governance. I am very pleased we are hosting the workshops in Jeddah for the first time, as it constitutes a great opportunity for us to

be closer to our partners in the Kingdom, especially the SEDCO group which has been a

supporter of our efforts since our establishment.” Dr. Saidi continued: “We look forward to future cooperation and continued partnership with the SEDCO Group who is championing the development of Corporate Governance in Saudi”.

control and develop its direct investments, SEDCO has adopted clear corporate governance principles that are used in all its operations The effectiveness of SEDCO’s corporate governance is reflected in its growing international reputation as a leading private wealth management organization that conducts its business according to Shari’ah principles.” As of February 2012, 10 distinguished directors have joined the Mudara IoD accredited directors pool which is expected to increase over next year. Mudara IoD, who has already offered its Director Development

Dr. Adnan Soufi, CEO of SEDCO Holding, expressed his strong support for the collaboration with the Institute of Directors, stating: “Organizations such as the Institute of Directors help to graduate independent certified managers, which, without a doubt, is a big step forward for corporate governance in the region, and especially the Saudi Market.” Dr. Soufi went on to say: “To ensure the sustainability of its family business and to

Programme in the UAE, Bahrain, Bangkok, Jordan and Oman and will be offering 4 workshops in Jeddah during 2012. The workshops are scheduled in March, May, September and October, with the first 2 workshops fully booked.

ENG. KHALID JAMJOOM PRAISED THE SUCCESS OF ITS INCEPTION AND CALLS ON EVERYONE TO TAKE ADVANTAGE OF IT

SEDCO READING CLUB HELD ITS 1ST MEETING AT THE INITIATIVE OF SEDCO DEVELOPMENT In one of its social initiatives aiming to upgrade SEDCO employees skills in general, SEDCO Development has launched the 1st meeting of the SEDCO Reading Club, which was the result of a proposal made by Mr. Abdullah Bafakih, in order to strengthen the role of reading and knowledge in general in the lives of SEDCO’s employees. Joining SEDCO Reading Club was open to everyone, in which the club members read a whole book each month and then discussing it. The first book to read was “Who Moved My Cheese?” The members discussed the ideas offered by this book in an open meeting in Al-Sheraa Cafe’ & Restaurant on AlCorniche Road. Eng. Khalid Jamjoom, CEO of SEDCO Development, has praised the success of SEDCO Reading Club first Meeting, thanking Mr. Abdullah Bafakih for his idea and those who supported it, and also invited everyone to participate in the club’s upcoming meetings to benefit from what it provides. Eng. Jamjoom, who attended the first meeting of the club, has mentioned that the meeting was excellent and filled with spirit of exchanging information and participation, which embodied in the one team spirit, stressing that knowledge is the basis for change. Participants in the meeting had different opinions and views coincided, in essence, to emphasize the principle of the book “Who Moved My Cheese?” that change is a duty and that life changes in its nature, so one either changes with it and adapt to that change or else he/she will get lost in it. They also learned from this book that change in life, which is required, is not necessarily negative if the goal was to continue and increase production yields. Therefore, the participants agreed on the importance of proper mindset when considering the future, and that in the event of a change, one must deal with it positively because it happens without prior warning.

The meeting was attended by Eng. Hamid Udwani, Dr. Khalid Johar, Eng. Abdullah Bafakih, Mr. Mohammed Baroum, Eng. Abdul Rahman Bagbes, Mr. Ahmed AlSayed, Eng. Hisham Haddad, Eng. Khaled Al-Massari, Mr. Alaa Al-Amoudi, Eng. Mohammed Abdul Azim, Eng. Samir Al-Thebeti, and Mr. Metaab Al-Maliki.

Badr Bafakeh deservedly obtained T &SP training certificate

Badr Bafakeeh, The Recruitment Manager at SEDCO, has recently received a training certificate for T&SP (Targeting and selection program) from DDI (Development Dimensions International) in Singapore, the Pioneer in the field of training trainers and refines their skills and knowledge. The course is designed so that only 5 trainees get enrolled in each course in order to give enough time for presentation and discussion; there was a written and presentation exam. The 5 Trainees attended the course were important officials from the following companies MTV, NASA, Lilley and SEDCO. Only 2 trainees passed the qualification and were certified, and SEDCO Recruiting manager was one of the two. Bade Bafakeh thanked his colleagues and managers for their support, and assured that his next step is to train interviews and hiring managers in SEDCO and its subsidiaries by using the competencies model ,new interviewing forms , and designing a frame work to help the organization ( SEDCO ) to ensure that they are recruiting the right talents.

SEDCO-IT COMPLETES HRMS PLEMENTATION FOR ELAF, AECL (TARFEEH) AND MASALIK AL-KHAIR EMPLOYEE SELF-SERVICE SYSTEM (ESS) IS LIVE FOR ELAF AND AECL SEDCO-IT has successfully completed the Employee Self Service (ESS) implementation project for ELAF and AECL. The system is LIVE and being used by 200 users of ELAF and 35 users of AECL . The goal of the project was to improve employee productivity by streamlining employee-related business processes. This translates to a savings of at least 3 man-days per employee on tedious paper-work and requests follow-up. ESS also provides managers the ability to approve requests on e-mail and mobile devices. It is fully integrated with the company’s corporate financial systems. Employee Self-Service System (ESS) was a joint venture project between Human Resources (HR) and Information Technology (IT) Department. The leadership of Mr. Tarik Nabulsi and Mr. Ahmed Marashde was instrumental in accomplishing the projects. For ELAF, Mr. Hussam Al Amry was the project sponsor with Mr. Wajahat Khan and Mohammed Borai as the main resources. For AECL, Shaikh Hassan was the project sponsor with Mr. Muhammad Abdulrehman and Raji Lastra as the main resources. The overall Project Manager was Mr. Ronald Reyes (IT), ably supported by Mr. Jalal Bin Talib and Mr. Abdulrahman Bin Shihab. ESS project is planned to be rolled out to other operating companies such as SEDCO Development (40 users), Eimar Arabia (60 users), Masalik Al-Khair (18 users) and ELAF hotels (160 users). Oracle HR and Payroll Project for Masalik Al-Khair The implementation of Oracle HR and Payroll for Masalik Al-Khair was successfully completed on time. The new system went LIVE within one month. It is fully integrated with SEDCO’s financial system and replaces the manual way (Excel sheet) of processing Masalik’s payroll.

2012 SEDCO FOOTBALL TOURNAMENT CONCLUDES WITH CELTIC AS CHAMPIONS The 2012 SEDCO Football Tournament saw a wide participation from employees working in companies within SEDCO Group and partner companies, to strengthen the relationship and improving the concept of team spirit between them, as well as creating communication channels outside of work. The tournament was held from the 18th of February and ended on the 7th of March, 2012. The marketing department at SEDCO Holding took the responsibility of organizing the tournament, with the support from a volunteering team who has contributed their efforts in the success of the tournament, and they are: 1. Mohammed Baroom 2. Wael bin Afif 3. Saleh Al Attas 4. Ibrahem Al Ajlaan 5. Majed bin Mahfooz 6. Nawaf AL Ghamdi 7. Abdulrahman Al Turjuman In addition to projecting entertainment and brotherhood between employees, the 2012 SEDCO Football Tournament have

focused on achieving the following tasks: • Gather employees in a social activity in part of the company’s general interest • Build team spirit between participants • Establish a sense of a fair competition between SEDCO employees The tournament saw the 16 teams and 205 players. The players who have participated were representing the following companies: 1) SEDCO Holding 2) SEDCO Capital 3) SEDCO Development 4) AECL 5) Bonnon 6) Elaf Group 7) Eimar Arabia 8) Red Sea Mall 9) Al Mahmal Center 10) Keppel Al Numu 11) AutoWorld 12) Ewaan 13) Masalek Al Khair

AS PART OF ITS SOCIAL RESPONSIBILITY TOWARDS THE KINGDOM AND THE INTERNATIONAL COMMUNITY

In order to contribute to the empowerment of the community and the development of national cadres and employment

SEDCO HOLDING SPONSORS 1ST TALENT FORUM IN JEDDAH In an effort to create the appropriate environment for the development of local talents and to contribute to the development of the individual and national cadres and employment as well as the empowerment of the community, SEDCO Holding participated in the 1st Talent Forum which was held on 5 and 6 March and organized by the private and international schools commission in Jeddah Chamber of Commerce & Industry. Held under the theme Promising Talents for a Promising Future, the forum focused on a wide range of talents such as artistic, professional, cultural, literal, scientific, leadership, sports, media and technological. The forum featured the talents of general education students under the age of 17 years and included a small exhibition displaying the work of talented individuals

SEDCO CELEBRATES EARTH DAY AND CONTRIBUTES TO ADDRESSING THE PHENOMENON OF GLOBAL WARMING Our planet nowadays lives in waves of climate variability caused by human over-exploitation of forests and increasing consumption of energy resources, resulting in the phenomenon that has become known to everyone as Global Warming. In order to fulfill SEDCO’s duty towards our beloved country and towards the world, we need to stop and think about the negative effects threatening our lives and try to find solutions and develop plans to reduce them to the minimum. In this spirit, SEDCO Company participated in the biggest international environmental event in which people all around the world turned off their electric lights for one hour in solidarity with each other in facing climate change factors and demonstrating the power each individual can possess when working as a team and as a nation. SEDCO cooperated in this global call to show responsibility towards our present and next generations and the supervisory team of the building turned off all lights and electrical facilities on Saturday, March 31, 2012 from 8.30 pm to 9.30 pm. SEDCO Company shared the event with the most famous shopping center in Jeddah, Red Sea Mall, where all of lighting was switched off on the same day and at the same time.

Commenting on the forum, Dr. Adnan Soufi, CEO of SEDCO Holding, said that the company is sponsoring this forum in order to contribute to the nation’s efforts to encourage the natural talents inherent in Saudi youth with the objective of enabling them to participate in the development and prosperity of the Kingdom of Saudi Arabia. This event was considered a way to unite the efforts of the Kingdoms’ private sector in alignment with the Ministry of Education’s great efforts to enhance development of the education process and raise the potential of Saudi students. SEDCO is committed to supporting Saudi youth and providing talented individuals with the latest learning methods to set them on the path to a bright future and uphold the name of the Kingdom both at home and abroad.

As a further expression of its ongoing commitment to environmental awareness and dissemination of

environmental culture in the community for a better future for the Earth, and under the slogan “Switching off the light saves our planet”, the Red Sea Mall in association with ALBAIK Food Systems Company, Alif Alif FM Radio and Faden Media Agency, supported Earth Hour this year with a fourday celebration which included many interesting activities directed to children and aimed at raising awareness of the need to preserve our planet and respect the environment we live in.

Under the theme “Your companions reflect your reputation” with the company of the Islamic singer Labban and the inventor Al-Hersani

RIKAZ JEDDAH OPENS WITH LECTURE BY DR AL-ARIFI ABOUT BENEFICIAL COMPANIONSHIP AND THE IMPACT OF PEERS ON EACH OTHER The 13th Rikaz Jeddah Campaign was launched last March at Al-Andalus Mall in Jeddah under the theme “Your companions reflect your reputation”. The event was hosted by Dr. Mohammad Al-Arifi, the Islamic singer Faisal Labban, and the young inventor Meshaal Al-Hersani, with the presence of a number of Jeddah’s dignitaries as well as partners of Rikaz Jeddah including Al-Subeie Charity Foundation, SEDCO Holding, and the Association of Neighborhood Centers in Makkah. In addition, there were representatives of the press and other media among more than 5,000 guests who interacted enthusiastically with the campaign. The meeting featured a lecture by Dr Al-Arifi about beneficial companionship and the effect of good and bad companions on their peers. Dr Al-Arifi also showed how the ethics and temperament of a person can change according to the ethics and temperament of his or her companions. He also insisted on positive relations that lead to Allah’s satisfaction, as well as bringing great success and maintaining social ties. Following Dr Al-Arifi’s lecture there was a talk by Meshaal Al-Hersani, a young man with excellent companions through whom he has been able to achieve many accomplishments in his life. The meeting included some Islamic links related to the theme of the campaign, which was performed by the Islamic singer Faisal Labban. The goal of the meeting was to raise public awareness of the importance of each individual choosing his or her friends carefully and not letting bad companions interfere in their life and affect their success or take them away from the worship of Allah.

At the end of the event audience members received a gift bag containing items related to the theme of the campaign including a collection of stories and CDs made by outstanding young volunteers Rikaz Jeddah’s continuous renewal and professionalism.

BIN MAHFOUZ ESTABLISHES SCIENTIFIC CHAIR FOR JOINT EROSION TREATMENT BY STEM CELLS AT KING ABDULAZIZ UNIVERSITY Dr. Ahmed Nagadi, KAU Vice President for Business and Knowledge Creativity, acting on behalf of the University Dean, inaugurated the “Salim Bin Mahfouz Chair for Joint Erosion Treatment by Stem Cells” in the main hall of the University Hospital in the presence of Mr. Saleh bin Salim bin Mahfouz.

Dr. Mohammed Abbas, The Chair Supervisor and Head of the Orthopedic Surgery Department, KAU Faculty of Medicine, explained that the Chair was designed to rebuild and repair joint cartilage through the use of stem cells, stating that its importance comes from the spread of joint erosion around the world and the failure of conservative treatments, noting that it makes patients go for joint replacement surgery which is one of the major operations incurring extremely high financial costs. Dr. Mohammed went on to point out that there is international competitiveness among research centers in this field and expressed the hope that the chair will achieve breakthrough research results that will be published in prominent scientific journals. He also lauded King Abdulaziz University Hospital for equipping a specialized laboratory for stem cells cultivation (GLP) in the operations department. The Chair will last for three years and is planned to do three projects: the establishment of an integrated laboratory for stem cells within the KAU Surgery Department; the application of the use of stem cells on selected patients; and producing research and publications of scientific excellence.

ATTRACTED FAMILY DEVELOPMENT EXPERTS AND ATTENDED BY MORE THAN 350 TRAINEES

SEDCO SPONSORING THE FIRST MASS MEETING “TOWARDS A BETTER FAMILY” In its quest to serve the community and contribute morally to the development of the Saudi family, the SEDCO Holding Company sponsored the first mass meeting “Towards a better family” organized by the Association for Social Awareness and Rehabilitation (ASAR) in Makkah, which was attended by a crowd of attendees. The meeting witnessed the participation of two family development experts: Dr. Awad Mohammed bin Merdah, Family Development Coach and Consultant, and Dr. Khalid bin Saud AL-Haleebi, Director of the Family Development Center in Al-Ahsa. The meeting that was held for three days in Palazzo Hall in Jeddah, and it covered several themes, most notably family management, violence and gentleness in education, and family relationship with technology and media. Mr. Mohammed Saleh Bamnef, Chairman of “Wa’ai” Association Branch in Makkah, has also explained that the meeting “Towards a better family” was the first public meeting of the assembly branch. The meeting attracted both Dr. Awad bin Mohammed Merdah, Family Development Coach and Consultant, and Dr. Khalid bin Saud Al-Haleebi, Director of the Family Development Center in Al-Ahsa, to participate in its lectures. The meeting launched an evening entitled “Pleasure of Family Management” presented by Dr. Awad Merdah, while Dr. Khalid Al-Haleebi presented the first two lectures entitled “Upbringing between Gentleness & Violence” and the second entitled “Family between Technology and Media”. It is worth mentioning that the meeting was supported by the General Organization for Technical and Vocational Training, and was attended by more than 350 male and female trainees who come within the objectives of the assembly seeking to spread social awareness as well as raising awareness between community members of the best ways to cope with social problems.

DR. SOUFI ATTENDS HONORING 40 REPRESENTATIVES OF JEDDAH’S EDUCATION PARTICIPATED IN EDUCATIONAL LEADER PROGRAM Dr. Adnan Soufi, CEO of SEDCO Holding, Emerged among the senior guests at the closing ceremony of the integrated educational leader program, which included the participation of 40 supervisors and commissions from Jeddah, which was organized by the Directorate General of Education in Jeddah in cooperation with the Oxford Academy, and continues over 8 weeks, in part of the staff development educational program in Jeddah. Malik Ghazi bin Taleb, member of the program’s supervising committee, clarified that the program is currently focuses on educational leaders, where it has nominated two supervisors and commissioners from each educational center, which will total the number of participants to 40. Bin Taleb pointed out that an assessment meeting for participants was attended by General of Education Assistant Director in Jeddah, training supervisor, director of educational supervision, and the representative from the sponsors. The program concluded by each participant providing a research or a project centered on the development of education or fixing the problem of education in Jeddah. He also noted that the program supporters have put an incentive for participants in the program to nominate five people to participate in an international educational trip to explore the education in other countries.

SEDCO SUPPORTS STUDENT SUMMER ACTIVITIES IN JEDDAH SEDCO continues to empower the Saudi youth and contribute in the development of their talents and enhance their capabilities by supporting student activities. An example of this support is Alwan Club organized by Al Faisaliah School for the Gifted which is the first public school that supports the gifted students in the Kingdom. The school activities included the graduation ceremony of the first batch of students in the intermediate level and recognized Dr. Saleh Badahdah the CEO of Masalik Al-Khier, the main sponsor of the school. Dr. Badahdah received a commemorative plaque in recognition of the Group’s support to the school and its commitment to the development Saudi children and youth.

JEDDAH HOSTS FIRST PROGRAM TO QUALIFY YOUNG TRAINERS IN SELF CONFIDENCE AND MIND MAPS Jeddah witnessed the launch of the first training program aimed for young men aged between 15-17 years, under the slogan of “Future Trainer” ,where more than 30 students from public and private schools participated in the program, who were picked after more than 70 candidates applied in the program. The program is supervised by the student training center at the Ministry of Education, and it is organized by “ AL Nubula Al Shamel” under the sponsorship of SEDCO, and it is presented by Dr. Hammod Al Sumaili and Dr. Abdullah bin Afif. As for the objectives of the program, Ali Saeed bin Afif, the supervisor of the program and Certified Trainer, assured that the program aims to prepare participating students to become trainers for their peers in multiple areas. He also clarified that the program includes two pillars; the first is the training and it contains a number of trainers, including a Certified Trainer, selfconfidence coach, mind maps coach, and communication art coach. The other pillar is application, and it includes positivity with the inners self, positivity with parents, and positivity with the soul. Bin Afif also added that the program seeks to provide accredited training experts in order to provide participants with the knowledge, skills, methods and systems of the training process that contribute to achieving more professionalism to the process of training in a proficient and creative way, indicating that the objective of the program is to display the coach’s human and the methods and fun tools used in the training. The program also sheds a light on the professional coach, along with design and construction of training packages, and methods to master display and delivery skills, and body language.

SEDCO Employees Participate in “World Assembly of Muslim Youth” Initiatives As part of the “One Hand” project organized by the World Assembly of Muslim Youth (WAMY) last April, more than 250 volunteers participated in a number of community initiatives in Nae’em Neighborhood in Jeddah. This project was sponsored by SEDCO Holding and supported by a various public organizations. Through this volunteer initiative a number of campaigns were exacted such as: • Cleaning and repairing three mosques, which included full cleanup, wall painting, repairing toilets and cleaning surrounding gardens • Neighborhood clean-up and awareness campaign, where volunteers cleaned some parts on Nae’em Neighborhood, while others sprayed pesticides. The campaign also included raising awareness on the importance of hygiene • Distribution of 250 food baskets to needed families, and registering those families on the list of the Charity Warehouse organization • Recruitment of unemployed youth in the neighborhood, where three were employed. • Rebuilding two parks and a football filed in the neighborhood in cooperation with Jeddah municipality • Campaign to promote reading, where volunteers distributed books and booklets in restaurants and shopping centers in the neighborhood to educate people on the importance of reading • Campaign to bring joy to the heart on an expat, where volunteers went to expat workers and let them make phone calls to their families and gave them some simple gifts. • “One Hand” Medical campaign, which provided 12 specialized mobile clinics for local residents with specialized doctors. Approximately 650 people visited the clinics. The clinics provided the following services: - Blood donation - Diabetes awareness - Medical check-up - Early breast cancer detection - AIDS Detection - Smoking and drugs awareness • Volunteers also organized a first aid training course presented by a trainer from the Saudi Red Crescent Authority • Rehabilitation of a poor family house and providing them with tools and electronics More than 250 volunteers participated in the “One Hand” initiative, which achieved great success thanks to the efforts of all who contributed to the success of this project, including SEDCO Holding, young volunteer, and project management committee under the leadership of Engineer Ryan Qurashi.

27 MALE AND FEMALE GRADUATES IN PROJECT DEVELOPMENT PLANNING FOR NONPROFIT ORGANIZATION. The city of Jeddah recently witnessed the graduation of 27 male and female leaders in project planning and development programs for non-profit organizations in a number of charitable organizations in Makkah. The Graduates attended a training workshop that lasted six consecutive days, conducted by Trainer Fally Fairouz Yani, who specializes in program design and consultancy for civil society organizations. The workshop was organized by the Nobles Development Consulting Institute, in cooperation with the SEDCO, in order to strengthen the ability of nonprofit organizations in the Kingdom in making good plans for projects and development programs. The workshop program included many themes that contributed in the consolidation of the concepts of planning, monitoring, and evaluation, as well as providing the attendees with mechanisms and tools for planning, monitoring and evaluating development projects and programs, in addition to increasing the participants’ awareness on the developmental issues that might affect their work as non-profit organization. The Executive Director of the Workshop, Mr. Mohamed Bahermez, stated that the workshop aimed to prepare specialized cadres in the work of non-profit organizations in both the charitable and development sectors, pointing out that the participants were selected according to the conditions that must be carried by the candidates on the level of the organizations they work for.

“IF YOU SAW ME”…A SAUDI SHORT FILM WITH A CAST OF BLIND CHILDREN As part of SEDCO Holding programs for community service, Badr Al-Hamoud, a young Saudi director, launched his innovative documentary film “If You Saw Me” featuring a number of blind children and offering advice to community members on how to best deal with blind people. This initiative comes from Good Paths Company in cooperation with SEDCO Holding Company and the Vision Club for the Blind - one of Prince Mohammed bin Fahd’s youth development programs – with the objective of showing what people with special needs require to help them integrate with the community in which they live. At the end of the screening, those responsible for this innovative work directed an appeal to mainstream schools through which the Ministry of Education encourages the blind to use the white cane that is made for visually impaired students, and to demand the adaption of school buildings in order to fit with their needs, as well as speeding up the provision of textbooks in Braille in time for the start of the academic year.

Name: Shadi Mohamed Labib Age: 26 Job Title: Elaf Jeddah Hotel Fitness Centre in Charge Company: Elaf Group of Companies Date joining SEDCO Group: 01/04/2010 Give us an introduction about yourself. Well, I come from Egypt; I’m married with children; a fan of sports; and a lover of all type of knowledge, especially when it’s related to science.

How did you join SEDCO? And what is your current position? I joined SEDCO after a friend advised me to apply to ELAF. I feel very fortunate to have found a job at a respected company.

What motivates you to go to work with integrity? The love for my job, and the fact that SEDCO is helping me reach the goals which I have aimed for myself.

Describe your working day, how do you start, how do you spend it, and how do you end it? My day starts at the health club every morning at 6:20, where I check guests until 7:30, which is when I start my exercise training with the G.M, Hussain Raouof, and I try to do better than him in the training but with no use. I meet the GM again at 9:30 at his office, to receive my daily briefings until 10:00, which is when my job routine starts.

What are your career ambitions? Do you think that you are able to achieve them at SEDCO? My ambitions were simple, which is improving my qualities. And now after joining SEDCO, I look forward to managing a health academy, and I’m sure that SEDCO is a very good field to achieve this dream.

Do you follow sports?

I play Basketball and lift weight

How do you spend your free time? And your weekends? I have my lovely tool box at home; I love wood crafts, electric and maintenance in general. I love my Fish aquarium which I had designed and manufacture it by my own hands; this can all be done peacefully if my two daughters did not ask me to take them for a picnic or a dinner, which is encouraged by their loving mother.

What are your hobbies? In addition to what I have mentioned previously, I also love watching movies, old and new.

What are your strong and weak points? Thanks to God, I consider myself very patient, and my weakness relays on my continuous search for perfection which is really impossible and I have a hard time realizing that.

If you are sure that your boss is wrong and you are right, how do you approach this issue? If we are talking about my current boss, I would say it is very easy to discuss anything and everything with him. If we are talking about a General Manager, I would approach him in the proper way by hinting him about my experience, and if he insists I will do exactly what he said.

Do you do any important work from your home? Yes, so many.

What was the most challenging task or moment you have faced during your work? How did you surpass it? The task for each guest and member varies from one another, so I have to be so awake and focus.

During your academic studies were there any skills or abilities you excelled at? Are you able to use these skills in your current job? Math, especially algebra, was my favourite subject, and I was good at it. And I am trying to use it in a way in my job although it doesn’t have that much connection.

Describe the working environment at SEDCO? A practical family.

What device do you wished you had invented? I wish I had invented the airplane.

What advice would you like to offer to your colleagues? Don’t forget about sports in your spare time, or it will forget you in the time you can’t do ait.nything about

FAISAL BIN MAHFOUZ GOES THROUGH A SUCCESSFUL APPENDECTOMY OPERATION The department of land management at SEDCO Development had made a group hospital visit to Mr. Faisal bin Mahfouz --SEDCO Holding’s Government Relations Officer-- after going through a successful appendectomy procedure performed on him at United Doctors Hospital. The group presented Mr.Faisal with a gift on behalf of SEDCO Holding Group for this pleasant occasion. We wish Mr.Faisal bin Mahfouz a quick recovery.

NEW APPOINTMENTS AND TRANSITIONS MOVEMENT As of May 1st, 2012 Mr. Essam Hussein Malaikah will be assigned as (Managing Director) for Tazweid Al Maharat. Mr. Essam has been part of SEDCO for over 14 years and he played an enormous role in developing the Human Resources Department. Also as of May 5th 2012 Mr. Saeed Bawazir will Join SEDCO as (Manager of personnel and services). We wish them the best as they take on new challenging and opportunities.

And Tarik Al Nabulsi To Salem bin Mahfouz Investment Co. Mr. Tarik Al Nabulsi will be joining Salem bin Mahfouz Investment Co. as of the 16th of June, 2012, where he will be assigned as SBMF Chief Operation Officer as of October 1st, 2012. Mr. Nabulsi joined SEDCO Group in 1999, and accomplished a number of achievements in the development of the Group’s strategy, especially its IT infrastructure. He was the Deputy CEO at Elaf where he had a hand in the big transformation witnessed by Elaf Group. We wish Mr. Nabulsi the best of luck at his new position.

COLLEAGUE WAEL EID RECEIVES PHD IN ISLAMIC BANKING RISK MANAGEMENT With the grace of Allah, our colleague Wael Eid has successfully passed the “FIFA” test, and received the PhD degree from the University of Durham in the United Kingdom. His thesis focused on organized performance and risk management in Islamic banking, and it was met with applause and praise from the supervisors who expressed their appreciation to him, and assured him that the thesis constitutes an important addition to the activities of risk management in the field of Islamic banking.

Mohammed Marwa & Ramiz Ferak Join SEDCO Holding Team We are pleased to announce that Mr. Mohammed Marwa the VP Treasury at SEDCO Holding, will be moving to a new position as Head of Financial Admin & Controls reporting to the CFO. In this position, Mohammed will support the CFO in streamlining policies & procedures in Finance, rationalizing the function’s processes, internal controls and workflows and standardizing quality of the function across the group. We are also pleased to announce that Mr. Ramiz Ferak will be joining as the Head of Liquidity Management in SEDCO Holding Finance, effective May 20th 2012. He will be reporting to the CFO of SEDCO Holding and will be responsible for liquidity management, building a common cash management function across the Group and in supporting the CFO in the effective and efficient management of the Group’s Balance Sheet. With his expertise in Shariah compliant products and structures he will also play an important role in supporting the evaluation of new business development and investments.

Ramiz is a Saudi national and brings a wealth of experience to SEDCO with over 20 years in treasury operations & marketing. Most recently he was the Treasurer at Aljazeera Bank where he managed a variety of treasury functions funding strategy, liquidity management, FX and commodity trading and capital market investments. We welcome Ramiz to the SEDCO family and wish both colleagues the very best in their new assignments.

And we would like to congratulate Fellow employee Murad Bashamakh For being promoted as the Secretary of Management Development, At Masalek AL Kheer Co.

Happy Occasions SEDCO would like to send it blessings To fellow employee Motasem Alharthi On his marriage on 2nd of February, 2012 We wish him the best.

SEDCO Annual Multaga “Inovation” By Mr.Abdullah Mohsen Taweel Is a science, thought and innovation that Races civilizations to the rise

PROUD FATHERS Sayel lights up the home of fellow Emmar Arabia employee Mohammed Al Shaer on January11th, 2012 Fellow employee Mohammed Nawawi from Masalek Al Kheer Co. expected his granddaughter “Hala Qasmi” on 17th of March, 2012 Magdalene lights up fellow Masalek Al Kheer employee Marwan Mahsoon on January 1st, 2012. Sajee lights up fellow Masalek Al Kheer employee Abdulkader Al Nahrawi on January 24th, 2012. Our colleague Abdul Aziz Saad Al Qarni was blessed with a baby boy named Saad during the month of April.

In order to reach objectives For the glory of success and benefits What God deposited in organisms from capabilities and its width Nothing will reconstruct the universe except for creativity And Tireless effort without interruption SEDCO had its initiatives And achieved exclusiveness without competition Here equality is everything As well as ingenuity and rejecting conflicts Here you can find significant talents In both individuality and teamwork Here you can find open fields Where competition is a fair game Congratulations to those who established its glory And thank you to those who embarked on it

Durham Islamic Finance Programme Durham has been a centre for research and education in Islamic economics and finance for over twenty-five years. The Islamic Finance Programme at Durham University is jointly run by the School of Government and International Affairs and Durham Business School and includes postgraduate research and taught degrees in Islamic economics, banking and finance. With over forty students registered, conducting research in various fields of Islamic economics, banking, finance and management, Durham University’s Islamic Finance Programme is one of the largest such PhD programmes in the world. Well-established programmes of MA/MSc in Islamic Finance are also offered. Additionally the Durham Islamic Finance Summer School (DIFSS) is offered every year and has been successful in attracting many participants from all over the world. The Durham Islamic Finance Programme also organises and sponsors international conferences on Islamic economics and finance in collaboration with leading global academic institutions including the Islamic Research and Training Institute of the Islamic Development Bank; International Shari’ah Research Academy, Malaysia; Kyoto University and others. Durham has produced many graduates from its programmes, who have gone on to either work in the Islamic banking and financial sector or contribute to the teaching of Islamic economics and finance throughout the world. Our academic staff members are renowned for their contributions to the field in the form of articles, books and professional reports amongst others, which have made Durham an important global centre for Islamic economics and finance studies. With the launch of the Durham Centre for Islamic Economics and Finance in July 2011, it aims to: • Maintain Durham University’s leadership as a provider of world-class education in Islamic economics and finance • Provide a platform from which a vibrant research environment can be developed and international collaborations can be sustained • Organise and increase resources to support the development and growth of this emerging area in partnership with other international organisations and academic institutions. You may contact Dr Mehmet Asutay for further information: E-mail: mehmet.asutay@durham.ac.uk www.durham.ac.uk/dcief

Management Skills: Effective Delegation Delegation is considered one of the most important methods in the development of managerial skills for managers, and it also gives them the ability to make decision and having their opinion heard, as well as it serves as an important incentive to raise morale and strengthen their confidence. The definition of Effective Delegation is: “Assigning a task to someone that does not fall under their original duties.” Effective Delegation can be implemented through the following steps: 1) Choosing the right person 2) Identifying the task 3) Determining the tasks 4) Determining the follow up methods (without getting into details) Delegation can benefit greatly to each manager or president, where they can save time and work on other tasks, be flexible, ease pressure at work, and increase productivity. Delegation can also be inspiring to your co-workers, where they could gain more responsibilities, gain information and skills, increase confidence and strengthening their self esteem. Questions that are often asked by managers is : What are we delegating? What don’t we delegate?. Here are five important points where delegation should be implemented:

• Routine tasks: like reports • Tasks that takes time • Tasks that could be performed better by someone else • Tasks that could benefit managers • Tasks that forms as a challenge to managers and incites them to improve their skills The following are the tasks that should not be delegated: • Problems that are related with morale and discipline, or is sensitive and confidential • Performance appraisal • Complicated tasks • Tasks that are not comprehendible to the manager • Tasks that have no objectives or unimportant : get rid of it and do not occupy yourself with it Therefore, managers can enjoy the spirit of risk and the confidence to motivate his subordinates through delegation, and reap the fruit of their mandate with the speed and quality they desire. Best Regards… Dr. Kamal Shabaan Abdulaal-Masalek Al Kheer

Management Skills: Administrative Motivation Motivation is one of the Manager’s most important functions, through which he could inspire his employees to work hard and achieving great performance. Thus, motivation is encouraging, inspiring, and igniting employees , and providing an adequate justification to perform well. In order to ensure the existence and effectiveness of motivational programs, I present to you the following indicators: • Employees are satisfied with their job performance • Employee absence and tardiness declined • Increase in teamwork and a decrease in conflicts • Increase in job performance • Employees taking their job seriously In contrast, problems with these points are an indicator the motivational approach is weak. Therefore, each manager or Director must perform this important task, which could only work by believing in it, and having the ability to motivate and encourage.

Using Motivation

To encourage

Directing attitude

To achieve the goal

Dr. Shabban Abdulaal Masalik Al Kheer

Self Improvement Series: The Art of Dealing with Others The art of dealing with people should be an acquired right, in which effective communication with others paves the way to win their hearts and even influence them. I present to you some of these practical skills in order to be reminded of and activating the skills you possess, where it is possible to acquire and apply when a person decides to do so. These skills include the following:

• Understanding others skills: It’s a skill where we can understand the other party: What does he want? And how does he think? What are his interests and his handling? Through mixing, associating, and diligence in understanding psychology, and to identify the natures and habits. The benefit of the skill is to deal with each person according to his personality, since understanding personalities will become easier to deal with them and influence them

• Respect and appreciation skills: Respect is one of the principles of communication process through which it will improve behavior and strengthen our relations with others. Respect is what we give every person his due and of his status as a human being first and appreciate physical integrity, and his nature as a productive being. Respect is measured by the extent of the true respect the person shows to others: large and small, strong and weak, rich and poor.

• Listening Skills It’s a skill needed by everyone, since it is the key to get to the hearts and winning other peoples affection. The prophet Mohammad, peace be upon him, used to listen to whomever he was talking to, until the speaker feels like he is the most important person to him. It has been said that God has created one tongue and two ears so you can listen more than you talk.Try to listen carefully to others: to your friends and families, and even try to use emotions, you will notice a significant difference in winning their affection. Dr. Shabban Abdulaal Masalik Al Kheer

A SMILE...WORSHIP…AND A BEUTY TO LIFE It is so beautiful to get used to smiles and brightness...and joy and gladness. When contemplating the beauty of life...the joy of the world...and the brightness of the soul…you will find that one of its causes was a beautiful smile that soothes the soul, comforts the chest, delights the heart and makes others happy. And why not…When the Prophet Mohammad (PBUH) said: “Smiling at your brother is a charity.” and “Do not demean a good deed, even if it is meeting your brother with a smile on your face. Smiling with all its simplicity is a charity and a way to worship and satisfy Allah the Almighty It has been confirmed by specialized doctors that people who smile a lot are the least likely to have psychological illnesses such as depression, grief, etc. Look at what a smile can do to those people you meet, starting with the joy and happiness it brings, to the feeling of love, respect and appreciation it shows to others. So, remember that a smile is a form of worship and a way of expressing the beauty of life; therefore draw that smile on your face in the best way possible. Dr. Shabban Abdulaal Masalik Al Kheer