Saudi Real Estate Sector
Investment Arguments.......................................................................................... 4
Historical Price Performance ............................................................................... 10
Relative Valuation ............................................................................................... 11
Valuation and Recommendation ........................................................................ 12
Sector Analysis .................................................................................................... 13
Population ....................................................................................................... 16
Residential Sector ............................................................................................ 21
Retail Segment ................................................................................................ 26
Hospitality Segment ........................................................................................ 28
Office Segment................................................................................................ 30
Dar Al Arkan Real Estate Development Company
Investment Case .................................................................................................. 32
Valuation............................................................................................................. 38
Business Dynamics - DAAR .................................................................................. 39
Key Projects ..................................................................................................... 41
2Q09 Result Review............................................................................................. 45
Financial Statements ........................................................................................... 46
Taiba Holding Company
Investment Case .................................................................................................. 50
Valuation............................................................................................................. 54
Business Dynamics – Taiba Holding ................................................................... 55
Key Projects ..................................................................................................... 58
2Q09 Result Review............................................................................................. 61
Financial Statements ........................................................................................... 62
Saudi Real Estate Company
Investment Case .................................................................................................. 66
Valuation............................................................................................................. 71
Business Dynamics – Al Akaria ............................................................................ 72
Land Bank ........................................................................................................ 73
2Q09 Result Review............................................................................................. 78
Financial Statements ........................................................................................... 79
Arriyadh Development Company
Investment Case .................................................................................................. 83
Valuation............................................................................................................. 86
Business Dynamics - ARDCO ................................................................................ 87
Key Projects ..................................................................................................... 89
2Q09 Result Review............................................................................................. 91
Financial Statements ........................................................................................... 92