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ENERGY AND UTILITIESExhibit 81: Comparison of P/B and RoE, 2007 Exhibit 82: Comparison of P/B and RoE, 20081512NGIC1512NGICRoE (%)96RoE (%)963SECO3SECO00 1 P/B 2 300 1 P/B 2 3Source: Bloomberg, TadawulSize of the bubble represents market cap. as on 31 Dec 2007Source: Bloomberg, TadawulSize of the bubble represents market cap as on 31 Dec 2008Exhibit 83 indicates that SECO’s trading volumes are higher than that of NGIC.Exhibit 83: Avg. daily trading volume of stocks (‘000s) , Jan 2007 – Dec 20088,0007,5826,4004,8003,2001,6001,7080SECONGICSource: ReutersSince 2000, electricity tariffs have remained constant in KSA. However, increasing participationof the private sector is likely to result in the gradual introduction of market-based tariffs.Electricity & Cogeneration Authority’s (ECRA) approval of the proposed tariff changes is a keygrowth catalyst. This move is expected to provide relief to energy providers by accommodatingthe cost of services to the extent possible and offering sufficient revenue growth opportunitieswhile reducing the burden on low-income families. However, given the deteriorating consumerconfidence amid the ongoing economic crisis, implementation of this new tariff structure is likelyto be muted.Electricity consumption isexpected to slowdown in 2009due to declining industrial andconstruction activity, but longterm is still intactGoing forward, Government’s initiatives to bring about economic growth (in the form ofadditional Government spending and rate cuts) with higher focus on energy-intensive industriesare likely to provide impetus to the energy sector. Though declining industrial and constructionactivity could dent demand growth in 2009, significantly low per capita energy consumption inthe Kingdom offers sufficient room for an upside in the long run. Furthermore, the SaudiGovernment continues to encourage private sector investment in the energy sector, asprivatization will bring in the much-needed investment. The Pan-Arab GCC grid will alsoJUNE 2009SAUDI ARABIA FACTBOOK59