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HISTORY AND OVERVIEWExhibit 29: Concentration of large cap companies fall significantly1009084.8%8063.3%Cumulative weight (%)706050403048.5%45.6%60.9%82.9%2010Top 5 Firms Top 10 Firms Top 25 FirmsOld WeightNew WeightSource: NCBC ResearchIn this new structure, the number of sectors expanded from 8 to 15 2007 with individual subindicesfor each. As of 31 December 2008, the banking sector had maximum weight (31.1%) inthe index, followed by petrochemical (25.6%) and telecom (14.5%). Following theimplementation of the new system, Saudi Basic Industries Corp, Kingdom Holding, and SaudiKayan Petrochemical Company were the top losers in terms of index weightage, while STC, AlRajhi Bank, Samba Financial Group and Saudi Electricity are the top gainers.Banking and financial servicessector companies have thegreatest weight in the SaudimarketExhibit 30: Changes in top 10 companiesCompany Old rank New rankOldweights (%)Newweights (%)Saudi Basic Industries Corp. 1 1 25.8 16.7Saudi Telecom Co. 2 2 7.4 10.6Al Rajhi Bank 3 3 7.3 9.1Kingdom Holding Co. 4 8 4.1 3.2Samba Financial Group 5 4 4.0 5.0Saudi Electricity Co. 6 5 3.4 4.2SABB 7 6 3.1 3.5Riyadh Bank 8 7 2.9 3.4SAFCO 9 10 2.7 2.4Banque Saudi Fransi 10 9 2.7 2.7Arab National Bank 12 12 2.2 2.2Saudi Kayan Petrochemical Co 13 17 2.2 1.6Source: NCBC ResearchKSA the most active IPO market across the GCCLiberalizing reforms haveresulted in more companiesgoing publicThe Saudi Government’s economic reforms and privatization efforts have been a key driver ofstock market development in recent years. A total of 13 companies — three from the insurancesector, three from the industrial investment sector, two from the petrochemical industries sector,and one each from retail, agriculture, telecom, building and construction, and bank and financialservices sectors – went public in 2008, raising a total of SR36.4bn. This compared to 26companies in 2007. Although, stock markets in KSA have recently undergone a deepcorrection, IPO activity remained high during much of 2008, compared with other GCC peers.The Saudi Stock Exchange remained one of the world's busiest IPO markets, generatingUSD9.7bn in net proceeds in the first nine months of 2008.JUNE 2009SAUDI ARABIA FACTBOOK30