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REAL ESTATE AND DEVELOPMENTExhibit 145: Comparison of P/B and RoE, 2007 Exhibit 146: Comparison of P/B and RoE, 200830253525Dar alarkanROE(%)20151050MakkahArriyadhTaibaSaudi RealEstateDar alarkan0 1 2 3 4 5 6P/BROE(%)155TaibaMakkahSaudi RealEstateArriyadh-5JabalEmaar-150 0.5 1 1.5 2 2.5 3P/BSource: Gulfbase, Bloomberg, Reuters, NCBC ResearchSize of the bubble represents market cap. as on 31 Dec 2007Source: Gulfbase, Bloomberg, Reuters, NCBC ResearchSize of the bubble represents market cap. as on 31 Dec 2008Jabal Omar had the highest average daily trading volume in 2007-08.Exhibit 147: Avg. daily trading volume of stocks (‘000s) , Jan 2007 – Dec 200812,00010,90510,0008,0008,3766,0004,0002,0001,3991,7652,4943,7514,0470Saudi RealEstateTaiba Makkah Arriyadh Al Arkan Emaar Jabal OmarSource: Reuters, TadawulFavorable demographics, risingpopulation, development ofeconomic cities, and growingtourism to boost demandThe impact of the global crisis is evident in the latest financial results of companies and hasslowed the pace of development of some economic cities, with private sector players being hithard in recent quarters. We however expect favorable demographics, rising population,increasing demand for development of the economic cities, growing tourism and hotel industryand public infrastructure projects to continue to boost demand for real estate development inKSA. Moreover, with prices being driven by demand and not speculation, the market is likely toremain shielded from a sudden flight of capital. The Government’s utilization of petrodollarsearned in the past few years to fund infrastructure development projects, coupled withexpansion initiatives by Saudi companies, are likely to boost supply. Additionally, the expectedapproval of the mortgage law would further boost housing demand by easing access tomortgage financing. Therefore, we expect a steady recovery in Saudi real estate prices, led bythe growing demand for real estate development. This might also result in more new playersentering the Kingdom’s real estate market, thereby increasing supply.JUNE 2009SAUDI ARABIA FACTBOOK92