Communique pgs.qxd - Olayan Group

Building
for
theFuture
Issue No.14, Winter 2002
IN Side
Olayan In the News
3
Milestones
4-7
New President of OFC
16
Inside Olayan
22-23

Editor’s Note:
2
Building Bridges
This issue of Communiqué is devoted
entirely to the activities of The Olayan
Group in Saudi Arabia during 2001. It
profiles Olayan Financing Company (OFC),
which manages all of the Group’s
businesses and investments in the Kingdom
and the wider region. It also highlights recent
developments at some of OFC’s 40 affiliated
companies.
The theme of this issue, “Building for the
Future,” can be taken both literally and
figuratively. On the one hand, OFC took
occupancy during the year of a brand new
office complex in Riyadh, featured on our front
and back covers. Open, airy and spacious,
Olayan Plaza was built for growth and gives
expression to a certain progressive, pioneering
quality, which has long characterized the
Communiqué is published for the employees and friends of
The Olayan Group.
Group’s approach to business in Saudi Arabia.
On the other hand, OFC is building for the
future on many other fronts – in human
resources, information technology, industrial
investments, and marketing, for example.
Each is touched on in these pages.
Since its beginnings in 1947, The Olayan
Group has been building something else –
bridges between economies and cultures.
Today, Olayan’s key commercial partners
include companies based in the UK, Sweden,
Finland, France, Switzerland, Pakistan, Japan,
Australia, and, of course, the US.
The Group’s global perspective was
reinforced recently through its participation in
the 2002 World Economic Forum, held Jan.
30-Feb. 4 in New York. The Group sent three
delegates – Hutham Olayan, Lubna Olayan,
and Samir Toubassy – and, for the second year
running, was a corporate sponsor of this
high-profile event. This year’s theme was
“Leadership in Fragile Times: a Vision for a
Shared Future.”
In the wake of the tragic events of Sept. 11,
Khaled Olayan sent a letter to all of the Group’s
key US commercial partners. “We at Olayan
are proud to have contributed for over five
decades to the creation of close business and
personal ties between the United States and
Saudi Arabia,” he stated. “In this time of need,
especially, these ties are an unassailable bridge
of sympathy and support.”
That spirit applies across the board to all the
Group’s business relationships.
This edition of Communiqué was in
preparation well before Sept. 11. In the flood
of reportage and commentary on Saudi Arabia
since, there has been little focus on the
Kingdom’s diverse and dynamic private sector.
We hope this issue helps bridge the gap.
Editor: Richard Hobson, New York Associate Editor: Dr. Sunhat Al-Otaibi, Riyadh Editorial Assistant: Victoria Schmidt, New York
Correspondents: Christine Childs, Athens; Talal Munshi, Jeddah; Gaye Rackham, London
Design and Production: VAMCOM & Partners, Parsippany, New Jersey

Coverage in the Saudi press put The Olayan Group and
Olayan family members in the limelight during 2001. Among
events reported were a symposium on the life and times of
Suliman Olayan, separate in-depth interviews with Khaled and
Lubna Olayan, an award from the Riyadh Chamber of
Commerce, and the inauguration of the Olayan Educational
Complex in ‘Unayzah.
Luminaries Hold Forth on Olayan Saga photo a
The life and times of Suliman S. Olayan, founder and chairman
of the Group that bears his name, was the sole topic of
discussion at a weekly gathering of leading Saudi minds called
Ethneiniah (Mondays). The symposium,
held in May 2001, had as its
theme “The Journey of Olayan.” It
took place at the home of esteemed
scholar, Othman Al Saleh (left),
who chairs the weekly gathering.
His son, Bandar Al Saleh (center),
supervised the event.
Khaled Olayan (right), stood in for
his father at the gathering.
He gave a talk on the origin,
history, and present operations
of the business, now in
its 55th year.
Many of the
attendees
recounted their
experiences
with Suliman
Olayan. Among
the speakers
were Muhammed
Al-Tunsi,
editor-in-chief of
Al-Eqtisadiya; Dr.
Ghazi Al-Gosaibi,
ambassador to
Britain; Dr. Solaiman Al-Solaim,
former minister of Finance &
▲b
National Economy; Dr. Abdulrahman
Al-Zamil, chairman of Al-Zamil Group;
and Hamad Al-Qadi, editor-in-chief of
Al-Majallah Al-Arabiya.
▲d
Khaled and Lubna Olayan
Give Wide-Ranging Interviews photos b
Khaled Olayan, in an extensive interview with the newspaper
Al-Eqtisadiya, discussed important business issues of the day
with journalist Tariq Al-Ghamdi. In the article, published in
question-answer format on Jan. 21, 2001, Khaled stated his
views on everything from foreign investment to privatization,
import taxes to international investing, manpower development
to the pros and cons of membership in the World Trade
Organization. Khaled is well-positioned to address such topics.
He is not only chairman of Olayan Financing Company and a
director of its international parent company, but also a board
member of several leading businesses in the Kingdom in which
OFC is invested and a member of the Consultative Council for
the Eastern Province, where he has chaired the Economic
Development Committee.
▲a
Olayan in the News
An interview with Lubna Olayan in the April 2001 issue of
Hia (She), a leading Saudi women’s magazine, got up close
and personal. Lubna Olayan not only gave her views on the
Saudi economy, but also told of her personal experience as
the daughter of Suliman Olayan, mother of three children, and
chief executive officer of one of Saudi Arabia’s largest
businesses. The article chronicled her childhood, education,
career, and the profound
influence of her father on
her life. She also spoke
about the investment
arena, both locally and
internationally, the trend
toward Saudization of
the work force, and the
charitable work of The
Olayan Foundation.
▲c
Chamber Honors
The Chairman photo c
Suliman S. Olayan was among the
former chairmen and board members of the
Riyadh Chamber of Commerce & Industry
who were recognized for their contributions
at an awards ceremony in late April 2001.
Mr. Olayan served as chairman of both the
Riyadh Chamber from 1981 to
1989 and the Council of Saudi
Chambers of Commerce &
Industry from 1984 to 1987.
HRH Prince Salman bin
Abdulaziz, governor of Riyadh,
presided over the event. He is
shown here presenting the
award to Suliman Olayan
(far right), accompanied by
Khaled Olayan (center).
Olayan School Inaugurated photos d
The inauguration of the Olayan Educational
Complex took place last May in ‘Unayzah, the
Olayan family’s ancestral hometown. Celebrants
included Qasim Governor HRH Prince Faisal bin
Bandar bin Abdul Aziz, Deputy Governor HRH
Prince Abdul Aziz bin Majed bin Abdul Aziz, Minister
of Education Dr. Muhammad bin Ahmad Al-Rasheed,
and ‘Unayzah Governor Abdullah Al-Yehia Al-Salim.
The complex was made possible through a SR 13 million
($3.5 million) grant from The Olayan Foundation. It accommodates
about 1,400 elementary, middle, and secondary school
students. It has 48 classrooms, a soccer field, basketball and
volleyball courts, theater, and cafeteria.
In an address, Khaled Olayan described his father’s passion
for his hometown and the effect it has had on the family.
“Unayzah taught us the meaning of true values, high morals,
brotherly love, and philanthropy,” he said. “This educational
structure signifies our humble duty toward ‘Unayzah and her
people.”
3

4
Olayan Paves the Way:
First Saudi Commercial Paper Issued
The Olayan Group has
taken a major step to
diversify its funding base
in Saudi Arabia while
helping to pioneer a new
method of corporate
financing in the Kingdom.
Saudi American Bank
(SAMBA) has issued SR
100 million ($26.6 million)
of guaranteed corporate
obligations or GCOs on
behalf of three of the
Group’s major Saudi entities:
Olayan Financing
Company, Olayan Saudi
Holding Company, and
Olayan Saudi Investment Company.
Sealing the deal. Standing, left to right:
Hussein Akeil, Thomas Cotton, and
Hasan Ali of SAMBA. Sitting, left to right:
Mike de Graffenried of SAMBA, Frank
Vermeulen of Olayan, and Gus Felix of
SAMBA. Not shown: Lubna Olayan, a
signatory of the transaction; and Loulwa
Bakr of SAMBA, who spearheaded the
bank’s effort to complete it.
GCOs, which are commercial paper guaranteed by the bank,
are a new product for the Saudi market. SAMBA developed the
product in close consultation with the Saudi Arabian Monetary
Agency (SAMA) and invited Olayan to participate in the groundbreaking
initiative.
“It is an important milestone in the development of the Saudi
capital market as it provides quality corporate borrowers with a
welcome option to diversify their funding base,” said Frank
Vermeulen, chief financial officer of Olayan Financing Company.
“Until the introduction of the GCOs, companies effectively were
restricted to bank loans for their debt funding.”
The deal was inked in late 2000 and the offering made during
2001. It was instantly popular with SAMBA’s private clients. Since
then, it has also caught on with institutional investors.
“GCOs have now become a permanent feature of our funding
base,” said Vermeulen. “Undoubtedly, other banks will follow
SAMBA’s example and launch their own programs. We will welcome
this, since it will help familiarize the market with commercial
paper and broaden the investor base.”
GCC Recognized for Service
Beyond the Call of Duty
At the July awards ceremony, from left: GCC Northern Region Manager Atef
Shabana, Regional Controller Mohammad Yousuf, Sales Engineer Mohanad
Al-Shalabi, Sabu Abraham of Accounts, Capt. Jeff Coleman of the U.S. Army, Parts
Manager Ahmed El-Araby, Central Region Manager Mohamed Rajab, and
Saad Al-Qahtani of Accounts.
As the original Olayan enterprise, General Contracting
Company has a proud 55-year tradition of superior performance.
The company has proved its mettle again of late, this time by
providing power generation systems to the U.S. Army, both in the
Gulf and farther afield – in Kosovo.
In July 2001, GCC received a medal and certificate of appreciation
from the U.S. Army Central Command for professionalism in
the maintenance of the Army’s generators in both the Kingdom
and Kuwait.
That came on the heels of another awards ceremony in April in
Dammam. Employees from all branches of the company throughout
Saudi Arabia were honored for their participation in an
extraordinary project to provide 30 megawatts of power to U.S.
peacekeeping forces (KFOR) in Kosovo. The contract, awarded
in January 2001, was valued at SR 20 million ($5.3 million) and
involved the provision of 25 generator sets manufactured by
Cummins Power Generation, a long-time GCC partner. The client
was Rezayat Projects Ltd., based in Al-Khobar, also a long-time
partner.
GCC was fully aware of the humanitarian significance of the
project for the troubled Balkan region and went to great lengths to
make sure it went well. “GCC stationed a team of engineers on
site for up to 60 days to ensure a smooth startup and commissioning,”
said Emad Mukhalalaty, manager of GCC’s Power
Division. “GCC’s flexibility and support of Cummins helped give
the client a total solution to his demanding applications and delivery
requirements.”
In addition to GCC General Manager Yusuf Lahhud and
Deputy General Manager Abdellateif Al-Mubarak, two senior
executives of The Olayan Group in Saudi Arabia attended the
April awards banquet – Salman Khan and Emil Jabbour.

ABM Receives Toshiba Medal
Arabian Business Machines
tacked on another prestigious service
award in 2001 from Toshiba
Corporation, receiving the Bronze
Medal for overall performance during
the prior year. The honor was given
during the computer maker’s biannual
Distributors Service Management meeting for the Middle East,
Africa, and Asia, held in Bangkok last spring.
In addition, eight ABM employees received honors. Best
Marketers are Mohammed Al Shaikh, Hazem Abu-Saleh and
Mohammed Asfan Jaleel. Inducted into the Champions Club were
Fahad Al-Harbi, Nabel Shaheen, Samir Ibrahim, and Hussain
Solaiman. Mohammed Al-Shaikh received the Access Your
Dream Trophy.
ABM’s past honors from Toshiba include the Best Marketers
Award in 2000, Excellent Supporting Company Award in 1997,
and the Golden Service Award in 1993, 1994, and 1995.
Olayan Ups Stake in UACAN,
Venture Gets ISO Quality Mark
Peter Crichton, Khaled
Olayan, and UACAN Acting
General Manager Ronnie
Lewis inspect the facilities.
Above: Entrance to UACAN.
In keeping with Reynolds International’s recent decision to exit
the can-making business globally, United Arab Can Manufacturing
Company (UACAN) and Reynolds have parted ways.
Reynolds’ share of the former joint venture has been acquired
by three of the four remaining shareholders: Olayan Financing
Company, The Coca-Cola Bottling Company of Saudi Arabia, and
A.W. Aujan & Brothers. The fourth shareholder is Al-Jabr Trading
Company. With Reynolds’ exit, UACAN has become a 100%
Saudi operation.
“UACAN is enjoying consistent growth and is currently utilizing
in excess of 80% of its can-making capacity,” reported Peter
Crichton of Olayan Financing Company, who negotiated the buyout
on behalf of the shareholders. “Planned growth over the next
few years will take UACAN to full capacity.”
Quality in the two-piece manufacture of aluminum beverage
cans and easy-open ends will remain the company’s hallmark.
In June 2001, UACAN was awarded the prestigious ISO 9002
Quality Management System Certification after just five years in
operation. The one-line manufacturing operation at its plant in the
Second Dammam Industrial City can churn out close to 2,000
cans per minute.
Aluminum Execs Scope Saudi Market
From left: William Riley,
Ruth Mack, and Omar
Al-Jifri tour old Jeddah.
Keeping in step with the Kingdom’s
recent trade developments, executives
Ruth Mack, president of Alcoa
Consumer Products, and William Riley,
director of Global Consumer Products
for Reynolds Consumer Products,
visited Riyadh, Jeddah, and Al-Khobar
in May.
The pair met with Andy Armenian,
group vice president for consumer products
at Olayan Financing Company, and
was escorted on visits to the marketplace
by Omar Al-Jifri of Olayan’s
General Trading Company. Since 1998,
GTC has been the exclusive distributor
of Diamond Aluminum, an Alcoa/
Reynolds product and the leading foil
brand in the market.
Olayan Joins Forces with Tibbett & Britten
The Olayan Group is
forming a joint venture
with Tibbett & Britten
Group plc, a world leader
in supply chain management.
The move will build
upon Olayan’s long experience
in the distribution
of both consumer and
industrial products
throughout Saudi Arabia. Initially, the venture is bringing its
expertise to bear on international food, personal and household
products from Colgate-Palmolive, Kimberly-Clark, Kraft, Nabisco,
and Nestlé, all of which are affiliated with Olayan in Saudi Arabia.
The talks leading up to a final agreement have been spearheaded
by Emil Jabbour, group vice president at Olayan
Financing Company, and by Colin Wain, director of International
Supply Chain Ltd., a Tibbett & Britten affiliate. Samir Toubassy,
president of Olayan Development Corporation Ltd., initiated
contact early on from his London base.
The new venture will be called Olayan Tibbett & Britten
Saudi Arabia.
Tibbett & Britten is a UK-quoted international logistics service
provider with focus on food and beverages, fashion, and other
branded consumer merchandise.
It describes itself as one of the world’s top 10 logistics and
supply chain management companies. It handles major
distribution operations in the UK and Ireland, Canada, the US,
Eastern Europe, sub-Saharan Africa, and China. As a provider
of world class supply chain solutions, its motto is “intelligent
logistics in action.”
5

6
Xerox DocuCruise
Sails Toward Sales
In an unprecedented demonstration
of its commitment to the
Middle East market, Xerox Corp.
last April made a $1 million voyage
in the Arabian Gulf to showcase
the company’s latest products
and services to key customers
in the region.
During the four-week voyage,
the specially outfitted ship traveled
to the UAE, Kuwait, Bahrain,
Saudi Arabia, Oman, Iran, and Qatar,
where customers could try out the latest
document management systems or
attend specialized seminars. When the
ship arrived at Dammam in Saudi
Arabia, executives of The Olayan
Group and its subsidiary, Saudi Xerox
Agencies Ltd., were on hand to host the
port call.
“Xerox DocuCruise reinforces and reiterates
our commitment to the region,”
said Gustavo Leite, vice president and
Burger King Receives Top 10 Award
Burger King recently was named
one of the top 10 restaurants in
Saudi Arabia and among the
top five fast-food eateries.
The award is sponsored
by the Council of Saudi
Chambers of Commerce,
MBC FM Radio, The
Handicapped Society,
and Aswaq Al Alam business
magazine. It recognizes
Saudi Arabia’s five
best fast-food and five best
formal dining restaurants.
The nominations were
based on a survey of
90,251 participants, 41%
of whom voted for Burger King. The prize committee consists of
12 marketing experts who screened the nominations for product
and service quality, marketing excellence, and contribution to the
community.
“This came at the turnaround stage for us,” commented Samer
Khawashki, general manager of Olayan’s Burger King operations
in the Middle East. “It reconfirms the opportunity we have to take
the brand to new heights.”
From left: Micheh Makram, Saudi Aramco account
manager for Saudi Xerox; Sinval Medeiros, GM of Saudi
Xerox; Gustavo Leite, VP of Xerox Corp.; Ian Ibbotson,
Saudi Xerox regional manager in Al-Khobar; Abdulmohsen
Al-Ajaji, VP for customer relations at Olayan Financing
Company; and Zafar Iqbal, SABIC account manager for
Saudi Xerox.
general manager of Xerox distributor
operations in the Middle East and
Africa. “It symbolizes our long-term
investment in the region and our rich
tradition to be first to market by bringing
the latest Xerox state-of-the-art solutions
and products to our customers here.”
Among the products showcased were the
DocuColor 2060, a machine that can produce
60 pages per minute, making it the fastest
sheet-fed digital color press available,
and the DocuTech 6135 production
publisher, which is capable of printing
English and Arabic books on demand.
Onboard seminars went well beyond
new equipment to new ways of
managing information. “We are no
longer just looking at the equipment
needs of customers, but playing a key
role in improving business processes,”
explained Saudi Xerox General
Manager Sinval Medeiros.”
Such innovative strategy seems to be
working for Xerox. Its revenues have
increased by double digits in the Middle
East within the last three years.
And the APPCO Award Goes to...
M.H. Enterprises
APPCO General Manager Zeid Al-Nazer (left) presents the sales award to H.C.
Gandhi (center), owner of M.H. Enterprises, and Sunil Varghese, sales manager.
Arabian Paper Products Company, a joint venture between
Olayan and the Huhtamaki Group of Finland, has awarded M.H.
Enterprises of Dubai an award for sales excellence. Since M.H.
took on APPCO’s paper cup products, it increased sales volume
more than fivefold in four years. M.H. Enterprises sells APPCO
products in both the UAE and Oman.

New Oreo Line Puts It Together...
So You Can Take It Apart
NAARCO General Manager
Steve Davies presides at
the Oreo launch (above).
Khaled Olayan escorts dignitaries
at new facility
(right).
A famed way to eat an Oreo cookie is to peel it apart, devour
the sweet vanilla cream inside, then dip the chocolate halves in
milk before gobbling them down too. Nabisco Arabia Company
Ltd. (NAARCO), an Olayan joint venture, in 2001 commissioned
a new line for the manufacture of sandwich creams, including
Oreo, the world’s largest biscuit brand. Since locally made Oreos
first hit store shelves in Saudi Arabia last April, the factory has
been working hard and fast to put together the cookie that
consumers of all ages just love to take apart.
Oreo was inaugurated with fanfare in March 2001 at NAARCO’s
newly expanded facility in the First Dammam Industrial City.
The ceremonial ribbon was jointly cut by Khaled Olayan and by
Eastern Province dignitaries Fares Al-Harbi of the Chamber of
Commerce, Ibrahim Al-Thabit of the Ministry of Industry &
Electricity, and Mohsen Al-Sikhan of the Ministry of Commerce.
The $3 million plant upgrade included a whole new production
line, new offices, additional warehousing, and new mess rooms
for the increased work force. Equipment from Spain, Italy, India,
France, and Austria went into the world-class facility, under the
supervision of Nabisco Technical Director Frank Willemsen and
the Technical Services Manager Anselmo Codina.
An earlier expansion, in 1996, enabled NAARCO to introduce
Ritz, the world’s favorite cracker. It soon became the fastestgrowing
brand in the company’s portfolio.
The joint venture between Olayan and Nabisco, now with
United Biscuits, was formed in 1995. In addition to well-known
international offerings, the company also makes popular local
brands like Gulf Kleija, a traditional biscuit flavored with
cardamom.
NAARCO’s products are distributed throughout Saudi Arabia
and exported to other Gulf countries as well as Yemen, Lebanon,
Egypt, and Jordan.
Coca-Cola, Alphagraphics
Promote Clean Beaches
Two Olayan affiliates teamed up recently with two other
organizations in an environmental awareness promotion under
the banner of the Saudi Ministry of Education. The Coca-Cola
Bottling Company of Saudi Arabia featured its Sprite brand, while
the Global Company for Modern Printing & Copying highlighted
the services of its Alphagraphics franchise on special posters
designed and printed by the company.
The posters thank individuals and organizations like the Boy
Scouts for pitching in to keep the beaches of Saudi Arabia’s
Eastern Province clean. The Kingdom has great stretches of
beach on its Arabian Gulf coast, including both undeveloped
shoreline and tracts developed for public and private recreation.
Kraft Execs Survey Saudi Market
Olayan Financing Company hosted a group of senior
executives from Kraft Foods International in Jeddah in April 2001.
The Kraft delegation was led by Roger Deromedi, president
and CEO.
The intinerary included a visit to a leading wholesaler and to
Watani, a key retailer in the major Red Sea commercial hub.
At a luncheon, Huw Morris, general manager of Olayan Kraft
Foods, gave an overview of the business in Saudi Arabia. Olayan
executives Khaled Olayan, Hayat Olayan, Clive Minto, Salman
Khan, Peter Crichton, and Andy Armenian also attended.
Inspecting a local supply of Tang, a leading seller in Saudi Arabia, are, from
left: Nick Bunker, Kraft managing director for the Gulf Cooperation Council
countries; Pierre Iweins, Kraft VP for marketing in Central & Eastern Europe,
Middle East & Africa (CEEMA); Roger Deromedi, president of Kraft
International; Maurizio Calenti, Kraft group VP and president of CEEMA;
Clive Minto, then president of Olayan Financing Company; and Vijay Kumar,
trade marketing manager for Kraft Foods Saudi Arabia.
7

8
AS REPRESENTED BY ITS SPARKLING NEW BUILDING IN RIYADH, OLAYAN FINANCING COMPANY
is literally as well as figuratively “building for the future” in Saudi Arabia and the Middle East. The company
is profiled in the pages that follow.
The Olayan Group was
founded in Saudi Arabia
in 1947, but Olayan
Financing Company did
not come along until
1969. It was established as the
Group’s investment vehicle for Saudi
Arabia and, to a lesser extent, for the
greater Middle East.
Today, with some 40 affiliated
businesses, OFC is a fully diversified
industrial, trading, services, and
investment conglomerate. It is
responsible for all of the Group’s
activities in the region, both financial
and commercial, including joint
ventures with major multinationals.
Through the joint efforts of
management, employees, and critical
support teams such as business
information systems, OFC has seen a
great deal of growth recently in nearly
all of its business units. The company
is also a leading investor in Saudi
Arabia’s still developing industrial
economy, and, therefore, in the future
of the Kingdom.
In an annual survey of top Saudi
companies known as the Saudi 100,
OFC was ranked eighth in each of the
last two years. Its assets stand at
about SR 8 billion ($2.13 billion), with
revenues during 2001 of about SR 4
billion ($1.06 billion). When all of its
affiliated companies are counted,
OFC covers about 8,800 employees.
Olayan has long been a leading
investor in Saudi Arabia as well as a
pioneering operator of businesses in
the Kingdom. Its commitment to its
home market is steadfast.

The Saudi economy is by far the
largest in the Middle East, excluding
Turkey, and Saudi Arabia, with the
world’s largest petroleum reserves,
remains the world’s largest oil
exporter. Recent developments point
to an exciting new chapter in Saudi
Arabia’s economic life. They include
the creation of the Supreme Economic
Council and the General Investment
Authority, promulgation of new
investment and tax laws, lowering of
tariff barriers, acceleration of
privatization, and increased focus on
concluding negotiations on accession
to the World Trade Organization.
This transitional period poses many
challenges and opportunities to the
Kingdom’s private sector (see “New
Era, New Challenges,” page 18).
OFC’s involvement in the region
extends to the other Gulf Cooperation
Council countries (Bahrain, Kuwait,
Oman, Qatar, and the United Arab
Emirates) and to the greater Middle
East. This involvement takes any of
various forms: as an investor in public
and private equities, partner in joint
venture manufacturing and importing,
exporter, and master franchisee of
fast-food restaurants.
Olayan is well positioned to play a
leadership role at this critical juncture
in Saudi Arabia’s and the region’s
development. Backed by 55 years of
experience in the Saudi market, a
strong and progressive management
team, and ample financial wherewithal,
Olayan Financing Company embraces
the road ahead.
9

10
Investments
OFC’s investments in Saudi Arabia are diversified in many sectors, including financial, industrial,
commercial, and real estate. These investments range from sole direct ownership of operating
businesses to joint ventures, private placements, and public equities.
The Group was an early participant in the Saudi stock market and today holds shares in all of the
Kingdom’s biggest and most important joint stock companies with particular emphasis on financials and
industrials. The Group manages its portfolio through its subsidiary, Olayan Saudi Investment Company.
Saudi British Bank, an affiliate of HSBC, anchors the portfolio. Olayan is the bank’s biggest private
shareholder.
OFC is a leading private investor in Saudi industry. Its non-controlling investments in this sector include:
● National Petrochemical Industrialization Company (NPIC)
● Saudi Basic Industries Corporation (SABIC)
● Saudi Industrial Exporting Company (SIEC)
● Saudi Industrial Investments Group (SIIG)
● Saudi International Petrochemical Company (SIPC)

Olayan also has substantial investments in the commercial sector. Examples are:
● Azizia Commercial Investment Company (Panda supermarket chain)
● Jarir Marketing Company (office supply and book retailing chain)
● National Company for Tourism (resort developer)
● National Environmental Preservation Company (industrial waste management)
● Saudi Research & Marketing Group (publishing conglomerate)
OFC is an active investor in Middle Eastern companies based outside Saudi Arabia, both public and
private, though less so than in the Kingdom. Two of these investments are noteworthy because Olayan
was instrumental in their formation and they involve companies that themselves are investment
enterprises.
One is Egyptian Finance Company, whose holdings range from Xerox Egypt to a major Red Sea resort
development called Soma Bay.
The other is Capital Union, a regional investment bank with offices in Bahrain and Dubai. In partnership
with others, Capital Union offers Gulf investors the asset management and investment banking services of
the Credit Suisse Group, which is one of the partners in the venture.
Looking ahead, OFC’s investment strategists are focusing on leading edge technologies in such areas
as power generation and distribution, gas development, telecommunications, and petrochemicals.
11

Olayan Financing Company
Cairo
Consumer Products Distribution
Consumer Products Manufacturing
Financial & Investment Services
Food Services
Health Care Supplies & Services
Industrial Equipment Distribution
Industrial Services & Fabrication
Manufacturing
Office Automation
Project & Construction Management
Real Estate & Property Management
Supply Chain Management
Jeddah
Yanbu
Mecca
Medina
Taif
Abha
‘Unayzah
Olayan
Olayan
Kraft
Kraft
Foods
Foods
Dammam
Riyadh
General
Trading Co. Co.
United
Arab Can
Mfg. Co.
Olayan
Nestlé
Colgate-
Palmolive
Global Co.
for Modern
Printing &
Copying
Jubail
Bahrain
Al-Khobar
Aluminum
Mfg. Co.
Ltd.
Olayan
Tibbett &
Britten
Saudi
Arabia

Olayan
Kimberly-
Clark
National Child
Care NCCPC Products
Co.
Capital
Union
Dubai
Aluminum
Products
Co. Ltd.
Atlas
Industrial
Equipment
Co.
CONREP
Nabisco
Arabia Co.
Ltd.
Egyptian
Finance
Company
Saudi
Plastic
Products
Co. Ltd.
Arabian
Paper
Products
Co.
Burger
King
Middle
East
General
Contracting
Co.
Olayan
Descon
Industrial
Co. Ltd.
Saudi Box
Co. Ltd.
Steel
Products
Co. Ltd.
Olayan
Food
Services
Co.
Technical
Trading Co.
Ltd.
Olayan
Descon
Engineering
Co. Ltd.
Saudi
Arabian
Bechtel Co.
Arabian
Medical
Products
Mfg. Co.
Andy
Armenian
Group Group VP
Vice President
Frank
Vermeulen
Group VP
Chief Financial Officer
Treasury
Peter
Crichton
Group VP
(Retiring April 02)
HANA
Intl. Co.
Ltd.
Arabian
Metals Co.
Hassan
Al-Juaid
Group Group VP
Vice President
Health
Water
Bottling Co.
Ltd.
First Food
Services
Arabian
Health Care
Supply Co.
Salman
Khan
Group Group VP
Finance Vice & President Accounting
Finance Risk Management & Accounting
Risk Management BIS
BIS
BP Solar
Arabia Ltd.
Saudi
Xerox
Agencies
Co.
Khaled S. Olayan
Chairman
Lubna S. Olayan
CEO
Ian D. Johnston
President, COO
Asaad
Khoury
Asaad
Khoury
Group Group VP
Legal Vice Services President
Al-Bustan
Co. Ltd.
Christensen
Saudi
Arabia Ltd.
Wael
Akki
Group Group VP
Human Vice Resources President
Human Resources
Arabian
Business
Machines
Co.
Vetco
Saudi
Arabia Ltd.
Emil
Jabbour
Group Group VP
Vice President
Arabian
Telcomm &
Electronics
Co.
Drilling
Equip. &
Chemicals
Co.
Iraj
Khajavi
Group VP
Business Strategy &
Development
Olayan
Arabian
Packaging
Co. Ltd.
Coca-Cola Coca-Cola
Bottling Bottling
Company Company
Saudi Saudi
Arabia Arabia
Olayan
Saudi
Investment
Company
Mohammad
Al-Joaid
Group VP
Olayan
Real Estate
Company

14
OFC management team gets down to business. Back row, left to
right: Andy Aremenian, Iraj Khajavi, Wael Akki, Peter Crichton,
Mohammed Al-Joaid, Frank Vermeulen, Hassan Al-Juaid, and
Emil Jabbour. Front row, left to right: Frank Lund, Salman Khan,
Ian Johnston, and Asaad Khoury.
Industrial & Commercial Operations
OFC’s holdings include numerous companies engaged
in distribution, manufacturing, and services. These
include wholly owned operations, joint ventures, and
independent affiliates in which Olayan’s interest is substantial
and actively managed but non-controlling.
These operating companies handle products from numerous
suppliers and principals. Many are marketers of famous brand
names. They work closely with their trading partners to
maintain the quality, integrity, and visibility of each line.
OFC’s key commercial partners and suppliers are
listed on page 15.
Wholly owned operations range over a wide variety
of activities. Examples are General Trading Co., a
leading national distributor of fast-moving consumer
goods; General Contracting Co., a distributor of famous
industrial equipment brands; Arabian Health Care
Supply Co.; Arabian Business Machines Co.; Saudi
Xerox Agencies Co.; Arabian Metals Co., an oil industry
maintenance, repair, and fabrication concern; and
Al-Bustan Co., which operates high-quality residential and office
compounds in Al-Khobar.
Joint ventures include Colgate-Palmolive Arabia; Kimberly-Clark
manufacturing activities in Saudi Arabia and Bahrain; Nabisco
Arabia Co.; Arabian Paper Products Co., a partnership with the
Huhtamaki Group of Finland; Olayan Descon Industrial Co.; Vetco
Saudi Arabia; and Saudi Arabian Bechtel Co.
In addition, Olayan has a substantial but minority stake in a number
of affiliated companies in which it has played a very active role
in supporting management to grow the business. Examples are:
● Aluminum Manufacturing Co. (ALUMACO)
● Aluminum Products Co. (ALUPCO)
● Arabian Medical Products Manufacturing Co. (ENAYAH)
● BP Solar Arabia (BPSA)
● The Coca-Cola Bottling Co. of Saudi Arabia (CCBCSA)
● Health Water Bottling Co. (HWBC)
● Saudi Plastic Products Co. (SAPPCO)
● Steel Products Co. (STEPCO)
● United Arab Can Manufacturing Co. (UACAN)
Management
The Olayan management team in Saudi Arabia is progressive
in outlook. They provide strategic direction to the operating
companies, guide them in synergistic integrated growth, and
maintain sound financial foundations for the enterprise as a whole.
Olayan provides its operating companies with a range of central
business services. These include legal services, government
relations, human resources, business information systems, and
property development.
OFC’s top management and their portfolios are displayed in the
chart on pages 12-13.

Key Commercial Partners & Suppliers
Consumer Products
Distribution
Consumer Products
Bottling, Manufacturing
& Distribution
Food Services
Healthcare Supplies &
Services
IndustrialEquipment
Distribution
Building Materials
Project & Construction
Management
Industrial Services &
Fabrication
Office Automation
& Communications
Security Systems
& Equipment
Supply Chain
Management
Dabur cosmetics
Energizer batteries, flashlights
Kraft Foods Tang, cream cheese, desserts, coffee, confectionery
Nestlé confectionery
Polaroid cameras, film
Ricegrowers’ Co-Operative rice
Coca-Cola Coke, Fanta, Sprite
Colgate Palmolive soap, toothpaste, shampoo, etc.
Huhtamaki Group / Polarcup paper cups, food containers
Kimberly-Clark Kleenex, Huggies, Kotex, hard roll feedstock
Kraft Foods Jell-O
Nabisco/United Biscuits Oreo, Ritz, local biscuit brands
Burger King franchisee for Saudi Arabia, master franchisee for Arab Middle East
Häagen-Dazs franchisee for Saudi Arabia
Baxter renal equipment, surgical supplies, etc.
Edwards Lifesciences heart valves, vascular & perfusion products
Kimberly-Clark locally made surgical drapes, gowns
Orthofix fixation systems, stimulators, ultrasonics
Atlas-Copco construction & mining equipment, industrial tools
CNH / Case construction & agricultural equipment
Cummins engines, power generation systems
Fleetguard filters
Paccar International Kenworth trucks
Scania light trucks
Terex earth-moving equipment
AKZO-Nobel wood coatings
Armstrong ceilings, flooring
Master Builders Technologies coatings, adhesives
Usinor / Arcelor stainless steel
Bechtel Group relationship dates to 1947;
responsible for many Saudi megaprojects
Baker Hughes Christensen Saudi Arabia (drilling rig services)
British Petroleum BP Solar Arabia (solar systems, photovoltaics)
Descon Olayan Descon Industrial & Engineering Co.’s (engineering, maintenance, manufacturing)
Ciments Belges Drilling Equipment & Chemicals Co. (drilling materials)
Goodall Rubber
Halliburton
Kawasaki Steel
Triumph-LOR
Vetco / Tuboscope / Varco Vetco Saudi Arabia (pipeline testing & inspection)
DST Arabian Metals Co. (OEM-licensed tubular repair facility)
Fox
Hydril
Nippon Steel
NKK Corp.
Shaffer
Vallourec
AlphaGraphics fast printing & copying, franchisee for Saudi Arabia
Boxlight electronic presentation equipment
Bull information technology solutions
Digimarc (Polaroid) photo ID systems, presentation equipment
GAI-Tronics industrial telephones
NEC telephone exchanges, smart phones
Philips dictating & transcribing machines
Spears voice mail systems
Toshiba photocopiers, fax machines, notebook computers
Xerox high speed printers, document management services & solutions
Engineering Services explosive removal & disposal
Fichet-Bauche safes, vaults, emergency doors
Law Enforcement Associates under-vehicle inspection systems
Metorex metal detectors
PerkinElmer x-ray detection systems
Thermedics detection systems
Tibbett & Britten distribution & logistics solutions
15

16
New President Takes Over at OFC:
The Future Through Ian’s Eyes
Ian D. Johnston succeeded Clive Minto
last October as Olayan Finance Company’s
president and chief operating officer.
A native of Australia, Johnston comes to
Olayan after a successful international
career in the fast-moving consumer goods
sector. He was first with Unilever and since
1982 with Cadbury Schweppes, where he
served as global managing
director for confectionery,
overseeing
32 business units in 29
countries with combined
sales of £2.3 billion.
He holds a bachelor’s
degree in commerce
from the
University of Melbourne
and is a member of the
Australian Society of
Accountants.
“Johnston brings to
his new role a proven
track record of improving
financial performance
and growing market
share, as well as a reputation
for being innovative
and operationally strong,”
stated Khaled Olayan. “Ian
is well-placed to lead
OFC’s various businesses
as they take on the challenges
that the Saudi,
GCC, and Middle East
markets present.”
Communiqué interviewed Johnston
recently to learn more about his approach
to business, his plans, and his background:
Ian D. Johnston
Welcome to The Olayan Group and to
Saudi Arabia. How are you settling in?
It has been a quick but comprehensive
introduction to OFC and the Group. My
start coincided with the review by Clive
Minto (see Inside Olayan, page 22) of the
operating companies 2002 Budget proposals,
so I was fortunate to meet most of the
senior management very quickly and listen
to their ambitions for the new year. I also
made a point of visiting as many company
locations as possible to see what lies
below the numbers, and these visits have
been very useful and enjoyable. It takes
time to get around the whole of OFC to
see everybody, and I have more visits to
make.
What drew you to The Olayan Group?
After Cadbury Schweppes, I wasn’t
looking to return to a full-time executive
role. I had accepted a board position with
Australia’s largest retailer and was deciding
on other similar offers. After initially
expressing no interest in the Olayan position,
the more I understood the scope of
the company’s operation,
the more I felt it would be
a compelling challenge –
the range of business
sectors and the quality
of the partners in the
portfolio were major
factors in my decision to join. As well I felt
I could add something to the Group.
At Cadbury Schweppes, you oversaw
confectionery operations in 29 countries.
Now you’re responsible for diverse
businesses primarily in one country
market. Is this a major shift?
There are similarities between what I’ve
done in the past and this role. The most
important is that in each position one
holds, you depend entirely on your colleagues
to achieve results; the better your
leadership, the better your motivation, and
the better you can help them develop their
own skills, the better will be the results.
What is certainly different here is the range
of business sectors in the portfolio, and in
many I have no personal experience. This
could be seen as both an advantage and
disadvantage.
What is your overall business
philosophy?
OFC Executive Committee meets in Riyadh: (from left)
Clive Minto, Aziz Syriani, Khaled Olayan, Samir Toubassy,
Frank Parrotta, Frank Vermeulen, Ian Johnston, and
Salman Khan. Not shown: Lubna Olayan, Hayat Olayan.
I have no set approach to a new job, but
there are some basic business principles I
always follow.
The first is that management has an obligation
to maximize over the long term the
value of that business. This is much more
complex than it
sounds and requires
special competencies
that only a small
number of companies
around the world have
developed and institutionalized.
Those that
achieve
it are the premier
companies in their
markets.
Second, and as I
stated before, success
depends on
having in place a
great management
team, who are
aggressive in their
pursuit of valueenhancingopportunities
and who feel totally accountable for
delivering on their commitments.
Third, to develop and sustain this great
management team requires an integrated
human resource strategy. This extends
from everyone knowing their own role on to
an open-feedback appraisal system, which
in turn feeds into training and development,
into appropriate reward programs, and
finally into succession planning.
What do you see as the main
challenges and opportunities ahead –
personal and business?
The first objective I have set myself is to
understand as much as I can about OFC
and the individual businesses. Then I see
two parallel tasks: to help put in place the
integrated HR strategy and to help develop
“value enhancing” strategies for the OFC
group, and for each company.
On the personal front, I will derive great
satisfaction in seeing this work led by the
OFC senior management team.

What are your immediate and longerterm
priorities for the organization?
The immediate priority is to see this agenda
put into action – the president’s agenda
– and then to see the business results
improve as we concentrate our resources
behind those products/sectors/customers,
which maximize value.
How would you describe the outlook
for OFC?
OFC is a well-managed company, which
has a second-to-none opportunity in Saudi
Arabia and the broader region. Certainly
there are some issues to be resolved, but
this also means there are opportunities, and
management are addressing those with
appropriate urgency. This region is subject
to sharp changes in business outlook, but
the aim must be to develop the portfolio in
such a way to minimize exposure to shortterm
economic cycles.
On the personal side, where have you
worked and lived? Is your family joining
you in Saudi Arabia?
Except for one overseas trip when I was
13 years old, the rest of my life up until age
31 was spent in school and work in
Melbourne, Australia. At that time my
employer – Unilever – sent me, along with
my wife Georgie, for six months of overseas
experience. This extended to 3 1/2 years
overseas with Unilever in Toronto, then
London (where our son was born), then
Rotterdam. We returned to Melbourne, and I
joined Cadbury Schweppes working in both
confectionery and soft drink markets.
After 11 years I moved back to England
to be managing director of the UK company
and then as global managing director for
confectionery. This last position was exciting;
for apart from the category being a fun
one, the job took me to many parts of the
world and allowed me to understand some
of the history and culture of countries as
different as Argentina and Nigeria, Poland
and Zimbabwe, Indonesia and Canada,
Spain and China. There are many more
countries where I have enjoyed working
with business colleagues.
Our son is now 21, has finished his
degree in biochemistry and has started work
in London as a merchant banker (figure that
out!).
With houses in London and Australia and
friends in many places, Georgie and I are
not certain where is home these days. For
the moment Riyadh is our choice.
A Building for the
21st Century
The distinctive new Olayan Plaza in
Riyadh consists of twin buildings,
each four stories above ground level
and each with an additional separate
suite of offices fronting Al-Ahsa Street,
a main commercial thoroughfare.
Construction began in September
1998. OFC’s existing Riyadh personnel
moved into the complex in spring
2001. Over the next several months,
additional people relocated to Olayan
Plaza from other locations.
The driving force behind the project
was Lubna Olayan, CEO of Olayan
Financing Company. She assigned its
development to OFC subsidiary
Olayan Real Estate Company(ORECO)
and remained closely involved from
start to finish.
In the interview below, Ms. Olayan
shares some thoughts on the landmark
project.
Why did OFC undertake this
project?
We simply outgrew the old
facility and needed more
space. We had idle land up
the road from our old offices
on Al-Ahsa Street. It was perfect,
as we wanted to stay in
the same area.
Was the project at all tied
to the management consolidation
of Olayan Financing
Company and Olayan Saudi
Holding Company, which occurred
in March 2000?
No, the timing turned out to be
convenient, since it coincided with the
management consolidation of OFC
and OSHCO under OFC’s single
umbrella. However, I wish to stress
that our new office complex in Riyadh
does not represent a new headquarters
for The Olayan Group in Saudi
Arabia. In effect, we continue to have
two head offices – one in Al-Khobar
and one in Riyadh – along with our
important regional office in Jeddah.
What was the guiding vision for the
project?
We wanted a very functional and
practical building that would carry us
well into the 21st Century. We turned
to the architect Nabil Fanous, whose
work is well known in Lebanon and
Saudi Arabia.
The twin-building concept was
meant to satisfy our immediate needs
while providing for future expansion.
Meantime, the space will be completely
utilized. OFC occupies one tower,
while outside tenants occupy most of
the second tower. The Shell oil company
is our largest outside tenant. Our
tenants also include two of our own
operating companies – Arabian Health
Care Supply Company and Saudi
Xerox Agencies, which have established
their new national headquarters
in our complex.
What about the interior?
Again, we wanted our interior space
to reflect who we are and how we like
to function. We kept it simple and
practical – elegant simplicity.
The building is full of light. It is airy
and spacious. It features maple wood,
glass, stainless steel, black and white
granite from Saudi Arabia, and
translucent Japanese screens as
office panels.
We have many things we did not
have before in the old facility, including
our own mosque; ample underground
parking; very spacious offices,
conference rooms, and work stations;
separate eating areas; and a gym.
The end result?
It has turned out to really be the
building we wanted. I am very gratified
that everyone seems very happy with it.
Special words of thanks should go to
the ORECO team for undertaking this
project, namely Abdulrahman Al-Binali
(general manager), Hashim Al-
Mashharawi (architect), and Hasan
Hage-Ali (construction manager).
17

18
New Era, New Challenges
As group vice president for
business strategy & development at
Olayan Financing Company, Dr. Iraj
Khajavi keeps a keen eye on both the
macro- and micro-economic landscape.
Below he describes the business
outlook in Saudi Arabia and
what this may spell for The Olayan
Group.
A new era has begun in
Saudi Arabia. The hopes for
fundamental reforms in the
country are boosted by an
almost daily announcement of
new initiatives, laws, and policies
that promise deep and
lasting changes in the way
the Kingdom will manage its
economy and conduct its
business in the future. It is
exciting to open the newspapers each
day and read about new plans, programs,
and projects intended to boost
the economy.
The creation of the Supreme
Economic Council and the General
Investment Authority, development
of new investment and tax laws,
lowering of tariff barriers, acceleration
of privatization, increased focus on
concluding the WTO negotiations,
and the progress towards the GCC’s
economic integration, all point to the
fact that the traditional way of doing
business in Saudi Arabia is coming
to an end and a very interesting new
chapter is opening.
In spite of the global economic
downturn, exacerbated by the tragic
events of Sept. 11, the level of
interest still shown by both national
Dr. Iraj Khajavi
and international companies in the
Kingdom is noteworthy. If anything,
the recent events have actually highlighted
the need for accelerating the
pace of reform and introduction of
greater transparency and accountability
in the private and public arena,
which are vital prerequisites for
increasing the flow of investment
into the country.
One remarkable example is
continuation of the negotiations
with the international oil
companies in connection with
the Gas Initiative. The projects
that are being discussed
could result in billions of dollars
of new investments in the
country, revitalizing the
national economy. But, even
more importantly, they would
expand and strengthen the Kingdom’s
infrastructure, utilities and services –
the elements so critical to the future
growth and long-term prosperity of
Saudi Arabia.
In addition to changing the
economic landscape, these developments
will naturally have a profound
impact on individual Saudi companies
too. On the one hand, they will
provide tremendous opportunities for
diversified groups such as ours to
expand and strengthen our traditional
businesses, participate in new
projects and industries, provide new
products and services, and as a result
significantly improve our performance.
On the other hand, capitalizing on
these opportunities would require
quick adaptation to the paradigms of
our new environment – the hallmark
of which is highly intensified levels of
competition.
Coping with challenges brought
about by these changes demands
the elevation of efficiency, productivity,
and entrepreneurship at all levels.
Judging by the experiences of other
companies around the world in similar
situations, this seems to be the best
approach for guaranteeing a
continued climb towards the peaks
of success and achievement.
The new era will be characterized
as the “Era of Choice.” In the Era of
Choice, only those companies will
prosper that are “chosen.” To be
chosen, a company must demonstrate
its value to its customers by
providing high quality products and/or
services at a competitive price; to its
partners, suppliers and associates,
through adding value to their
businesses and operations; and to
its employees, by being a source of
pride. Accordingly, the new era
requires balancing and fine-tuning
our qualifications and expertise both
on a company-wide as well as on a
personal basis.
Considering our Group’s
capabilities and resources, fortunately
the challenges that we are facing in
the new era are all manageable and
within our reach. With the mutual
dedication and loyalty that Olayan
employees and stockholders have
demonstrated towards each other for
over 50 years, these new changes
and challenges are expected to only
result in further success and pride for
everyone directly or indirectly associated
with our company.

Industrial
Service
Companies
Join
Handsin
Marketing
Four Olayan joint
ventures, a wholly
owned subsidiary, and
a close affiliate have banded
together to form the Industrial
Services Group. Their objective? To
jointly market their considerable
expertise to the biggest names in
Saudi and Gulf industries across a
variety of sectors, including oil and
gas, petrochemicals, power,
desalination, cement and fertilizer.
Together, these six allied companies
offer everything from large
project engineering to highly
specialized oil industry services,
mechanical repair and fabrication,
and solar power systems.
As varied as these services are,
there can be potential for crossselling
– an opportunity that
Group Vice President
Mohammad Al-Joaid does not
want to pass up.
A new brochure, entitled
“A Single Resource For A Full
Range Of Industrial Services,”
encapsulates Al-Joaid’s
philosophy:
Individually, each member of
Olayan’s Industrial Services
Group is a leader in its specialty.
Each offers professional
support
based on years of
experience. Together we
provide a unique combination of
capabilities that no others can
match... We can manage jobs as big
as a total complex turnaround, as
minute as a custom machined bolt, or
Mohammad Al-Joaid, center, explains the suite of allied
services offered by Olayan’s Industrial Services Group to
Saudi Minister of Petroleum & Mineral Resources Ali
Al-Naimi, right, at PetroTex 2001 in Riyadh. At far left is
AMCO General Manager Hussam Al-Rahhyem.
as delicate as a
control valve
calibration.
Members of the
group are Olayan
Descon Industrial
Company Ltd., Olayan
Descon Engineering
Company Ltd., Vetco
Saudi Arabia Ltd.,
Arabian Metals Company
(AMCO), Christensen
Saudi Arabia Ltd., and BP Solar
Arabia Ltd. They draw on the international
know-how of Descon,
Tuboscope / Varco, Baker
Hughes, British Petroleum
and other leading technology
providers.
Late last October, Olayan
Descon and AMCO exhibited at
the Middle East PetroTech
conference in Manama, Bahrain.
Then, in early November, these
companies were joined by
Christensen and Vetco under the
Olayan banner at PetroTex 2001
in Riyadh, the first international
exhibition for oil and gas industry
services to be held in Saudi
Arabia.
19

20
IT Wound Up and Wired
For the 21st Century
Olayan’s information technology
team in Saudi Arabia has the daunting
task of keeping the Group’s diverse,
Kingdomwide operations not only
wired, but also at the leading edge of
the Internet Age in the search for
business solutions that bring direct
improvements to the bottom line.
The computing infrastructure has
come a long way since 1976, when
the Group established its first network
in Al-Khobar with a then advanced
IBM mainframe. With tweaking and
upgrades, the system held up for
quite a while. But in recent years the
demands upon the system increased
enormously. From mid-2000 to mid-
2001 alone, Olayan computer users in
Saudi Arabia increased 250%, from
250 to 875, and the number of companies
served jumped 81%, from 16
to 29. The situation had become
critical.
Under the supervision
of Jamal Mitwasi, General
Manager of Business
Information Systems (BIS)
at Olayan Financing
Company, electronic data
processing was totally
restructured during 2001
across the Kingdom.
Three new data centers
were created in Al-
Khobar, the main server
Jamal Mitwasi
farm, Riyadh and Jeddah.
New mainstream frame relay connections
that can move data between the
centers at the rate of 2 million bits per
second became available at the end
of February 2002. Through local
leased line circuits and dial-up
modems, Riyadh and Jeddah act as
service centers for Olayan companies
in their local cities and remote
locations.
“Today Saudi Arabia has a state-ofart
network and communication
infrastructure,” says Tariq Mahmood,
the network administrator. “Twentynine
Olayan companies across the
Kingdom are utilizing the services of
the wide area network (WAN). With
the latest high-end equipment, we are
able to provide round-the-clock services
to our internal customers.”
Anticipating
innovations by
the recently
created Saudi
Telecommunication
Company (STC),
BIS has already
proposed further
infrastructure
enhancements. For
example, it is finalizing
a voice-over
Internet protocol
(VOIP) and video
conferencing services
across Saudi
Arabia and with
Olayan offices in
Europe and New
York. This will add
to Groupwide e-mail connectivity,
which has been in place for some
time.
The 25-man BIS team
in Saudi Arabia has been
busy on other fronts as
well. With Herculean
effort, a BIS task force
engineered a smooth IT
transition to the new
Olayan Plaza in Riyadh.
Users simply showed up
to work on the first day in
the new building, switched
on their brand new
computers, then dialed
their brand new phones. Most everything
was up and running.
Several projects are underway on
the e-business and data management
fronts.
In one, BIS satisfied a requirement
by Saudi Aramco that companies
selling products or services to the
giant oil company create compatible
website catalogs with an eventual
capability of conducting online
transactions. BIS created such
websites for Saudi Xerox Agencies
Co., General Contracting Co., and
Arabian Health Care Supply Co.
BIS also is spearheading the creation
of an on-line Olayan Exchange.
Initially, this will allow all companies
affiliated with Olayan in Saudi Arabia
to scope each other’s products and
services. Eventually, it will include full
Members of the BIS team in Riyadh: Sajid Pathan, Khizar Muzammil,
Yousef Otaibi, and Syed Hashmi.
B2B e-commerce capabilities and
may be expanded to companies
outside the Olayan nexus.
In these and many other projects,
extensive BIS experience in enterprise
resource planning (ERP) will
continue to pay off. Recently, for
example, BIS responded to sales
division rearrangements within
General Trading Company, a major
distributor of fast-moving consumer
goods, by creating separate data
bases for GTC and the Kimberly-Clark
and Nestlé product lines.
To extend the effectiveness of the
ERP on-board, BIS has developed
a state-of-art Business Intelligence
Framework (OLAP) and Hand-Held
Sales systems. These will support
decision-makers with fast and
accurate information while increasing
the productivity of salesmen in the
field.
Olayan Kraft Foods, Olayan
Nestlé Division, Arabian Health Care,
and Olayan Kimberly-Clark are using
the Business Intelligence solution.
Kraft and Nestlé have begun using
the Hand-Held Sales and tracking
solution.

New HR Team Forges Ahead on
Saudization,Training & Development
Aims to ‘Make Good Men and Women Better’
For Frank Lund,
Mission Accomplished
Capping a 30-year career working
worldwide with Saudi nationals, Frank
Lund recently completed a two-year
special assignment to develop a
comprehensive human resources
strategy for Olayan Financing
Company. With about 8,800
Left to right: Frank Lund, Sefouk Al-Enezi, Meer Ali,
Morshed Al-Zughaibi, and Wael Akki.
employees among some 40 operating
and affiliated companies, OFC is one
of Saudi Arabia’s largest private sector
employers.
From his native Utah,
where he recently returned to
begin an active retirement,
Lund can look back on his
career with much satisfaction.
Scores of his former charges
today hold influential positions
in the Kingdom. Moreover, he
has put in place at OFC a
dynamic team of highly experienced
professionals who
are determined to make Olayan
among not only the Kingdom’s largest
employers, but also the most
progressive.
“The team and their staff are
working on a comprehensive program
of 12 significant HR projects, which
they plan to have completed as
approved in the next two years,” said
Lund. “These projects cover everything
from A to Z with respect to
personnel administration and human
resource management.”
Ageel Al-Shammary
Trio of Seasoned Pros
The new team is headed by
Wael Akki, who joined OFC last June
as head of the Management
Development & Training Division and
in November was named group vice
president for Human Resources. He
brings to his new role 18 years of
experience in human resource management
with Gulf
International Bank,
Saudi Holland Bank,
Arab National Bank,
ABV Rock Group,
Assayed Group, and
Saudi French Bank.
He received his
academic training in
business administration
at Oglethorpe
University in Atlanta,
Georgia.
Rounding out the
senior management
team are vice presidents
Ageel Al-
Shammary and Meer
Ali. As head of the Personnel &
Employee Relations Division, Al-
Shammary oversees all matters pertaining
to recruitment, administration,
employee relations,
community relations, and
company sports and recreation
programs.
Meer Ali heads the new
Compensation & Benefits
Division. He supervises programs
pertaining to salaries
and bonuses, benefits, merit
reviews, compensation surveys,
and the preparation
and review of job descriptions. He also
helps formulate overall HR strategy.
Saudization a Top Priority
Hiring, retaining, and developing
Saudis is a strategic priority in the
Kingdom and a top goal of OFC. The
company has met or exceeded minimum
government expectations in this
area, but OFC aims to do even better.
“The company is expecting to grow
its Saudi staff numbers to 75% by
Talal Al-Koud mans Olayan booth at career day
event in Dammam.
2010. So the task is formidable but
doable,” says Lund. “The entire OFC
work force is concentrating on this
project.”
Activity in this area has picked up
considerably over the past year and a
half with the addition of Talal Al-Koud
as recruitment manager. Based in
Al-Khobar, he has organized the
company’s participation in numerous
Saudi recruitment fairs and career
days held seasonally throughout the
Kingdom. Before joining Olayan, he
was with Saudi Holland Bank.
ONWARD and Upward
For Female Recruits
Another addition for OFC from the
banking industry is Hana’a Al Syead.
As general manager for organizational
& operational development, a position
newly created in 2001, she has spearheaded
a pioneering effort to provide
career opportunities for Saudi women.
Appropriately, the program is
called ONWARD — Olayan National
Women’s Action for Recruitment &
Development. While this high-priority
initiative is separate from the HR
department, it will play a key role in
the company’s overall Saudization
effort.
“ONWARD’s aim is to build a sound
professional foundation for Saudi
female recruitment in the Group, thus
becoming the pioneer for female
recruitment in the industries in which
OFC participates,” said Al Syead.
Al Syead has already identified
suitable slots within OFC and its
affiliated companies and filled several
of them with qualified recruits.
21

22
Minto Alameddine Al-Marhoun Mneimneh
Al-Nazer
Clive Minto Named Senior Advisor
Clive Minto, who for family reasons stepped down last
summer as president and chief operating officer of Olayan
Financing Company, nonetheless continues to be actively
involved in the development of the business in Saudi
Arabia and the Middle East.
Named a senior advisor to the Group, Minto has
retained his membership on the OFC Executive
Committee. This will bring him to Saudi Arabia several
times a year from Toronto, where he and his wife Fran
have decided to base their active retirement.
Minto has been with The Olayan Group since 1996,
when he joined Olayan Saudi Holding Company as its new
president. He played an instrumental role in strengthening
the operating companies in Saudi Arabia, setting overall
strategic direction for the organization, and building a
leadership team to carry it out.
Those efforts culminated with the consolidation of
management at OFC and OSHCO in March 2000, an
action that laid a strong foundation for future growth.
Alameddine Heads Risk Management
Kamil Alameddine joined Olayan Financing Company
last July as group manager of Olayan Risk Management,
based in Riyadh.
Alameddine has almost 20 years of insurance
experience both in Lebanon and Saudi Arabia. He was
most recently with the Gulf Union Insurance & Risk
Management Company, where he served as area
manager for Saudi Arabia’s central region. He holds an
M.B.A. from Lebanese-American University.
Al-Marhoun Succeeds Mneimneh
In Group Property & Maintenance
Ahmed Essa Al-Marhoun joined Olayan Financing
Company last May as the new manager of Group Property
& Maintenance. Based at the new Olayan Plaza in Riyadh,
he has been instrumental in making sure the multi-phase
transition to the new office complex has been as smooth
as possible.
Al-Marhoun brings to his position 11 years of supervisory
experience, mainly in the areas of civil, mechanical, and
electrical work. He holds a B.S. in industrial technology
from Louisiana State University.
Al-Marhoun succeeds Ziad Mneimneh, who is on
special assignment overseeing two major real estate
development projects. One is the new Olayan Complex
in Jeddah, which is nearing completion. The other is
Ibn Khaldoun Plaza, a commercial center in Dammam.
Abdulrahman Al-Binali, OFC vice president for
Property Management, praised Mneimneh for his leadership
in developing and reorganizing the Group Property &
Maintenance Department over the course of six years.
Al-Nazer Named GM of APPCO
Zeid Al-Nazer last June took the helm of Arabian Paper
Products Company, a joint venture between Olayan and
the Huhtamaki Group of Finland that manufactures paper
cups for the Saudi and Gulf beverage industry.
Al-Nazer has strongly supported APPCO’s successful
development over the last 10 years, most recently as
deputy general manager. In his new position as general
manager of the Al-Khobar-based concern, he is
responsible for all aspects of APPCO’s business planning
and development.

Obeid Dajani Al-Shaikh Mugharbel
Al-Zughaibi
New Faces at Olayan Food Services
Fayad Mohammed Obeid joined Olayan Food Services
Company (OFS) last June as deputy general manager,
bringing with him more than 21 years of experience in the
fast-food business.
Obeid began his career in 1979 with McDonald’s USA as
a crew member and progressed to director of operations.
In 1995 he joined Lebanese International Touristic Projects
(AMERICANA) as manager of that company’s Kentucky
Fried Chicken chain and was later promoted to deputy
general manager.
Obeid holds a B.S. in business administration and
management from Southeastern Oklahoma State
University.
Also joining OFS last year was Fouad Dajani as finance
manager. Dajani returned to Riyadh after a one-year leave
of absence from The Olayan Group to earn an M.B.A. from
INSEAD in Fontainebleau, France. Previously he had
worked for Olayan Financing Company as executive
assistant to the CEO.
Dajani, who also holds a B.A. in international relations
and economics from Brown University, first joined Olayan
in 1997.
Al-Shaikh Promoted at ABM/AT&E
Mohammed S. Al-Shaikh has been promoted to
deputy general manager of the wholly-owned Olayan
sister companies, Arabian Business Machines Company
and Arabian Telecommunications & Electronics Company.
Al-Shaikh joined ABM/AT&E in late 1998 as regional
manager for central Saudi Arabia, where he played a major
role in improving and widening the companies’ customer
base.
He holds an undergraduate degree from King Saud
University and a master’s degree in information
management from George Washington University.
Mugharbel Joins GTC as Deputy GM
Emad Mugharbel joned GTC last June as deputy
general manager.
He brings to his new position extensive experience in
consumer product sales, marketing, distribution, and
general management. Most recently he was the general
manager of marketing for the Arab Radio & Television
(ART) satellite network, based in Cairo. Previously he
was with Charisma Marketing Management Consultants
of Jeddah; Savola, the cooking oil concern; and Procter &
Gamble in Saudi Arabia.
Mugharbel holds a B.S. in marketing and management
from Arizona State University.
Al-Zughaibi Enters Active Retirement
Morshed M. Al-Zughaibi retired last fall from
Olayan Financing Company, where he had served as
administration and personnel manager since 1994.
However, Al-Zughaibi continues to serve OFC part-time,
particularly in the administration of The Olayan Foundation,
the Group’s charitable arm.
Al-Zughaibi has had a long career in administration. In
addition to his service to Olayan, he worked for the Saudi
Arabian Investment Bank, the National Lead Smelting
Company, and other concerns.
23

RIYADH
P.O. Box 8772
Riyadh 11492
Saudi Arabia
AL-KHOBAR
P.O. Box 1520
Al-Khobar 31952
Saudi Arabia
JEDDAH
P.O. Box 1227
Jeddah 21431
Saudi Arabia
www.olayangroup.com
ATHENS
P.O. Box 70228
Glyfada
Athens 166 10
Greece
VIENNA
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LONDON
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