1. Financial Sector Overview Saudi Arabia Us- Saudi Business Opportunities Forum Chicago April 29, 2010

2. Some of the Capital Market Regulations Issued……. Issuance of the Capital Market Law by Royal Decree 31 st July 2003 2003 2006 Issuance of Corporate Governance Regulations by the CMA 2008 Issuance of Anti-Money Laundering & Counter- Terrorist Financing Rules by the CMA 2004 Issuance of Securities Business Regulations by the CMA 2005 Establishment of CMA and Issuance of Regulations for Offer of Securities Issuance of Mergers & Acquisitions Regulations by CMA 2007 Issuance of Investment Fund Regulations by the CMA 2006 Issuance of Real Estate Investment Fund Regulations by the CMA 2006 Issuance of Listing Rules by the CMA 2005 Issuance of Authorized Person Regulations by the CMA

3. The decentralization of the Financial Sector begins……. SAMA Established 1952 Stock Market Share Trading, Execution & Settlement Investment Banking Services Pre-CMA Establishment of the CMADecentralization of the Financial Sector Stock Market Share Trading, Execution & Settlement Commercial Banks’ Lending Activities Investment Banking Services Insurance Licensing & Monitoring Other Traditional Role of a Central Bank (Money Supply) CMA Established 2004 Tadawul Established 1984 & Converted to JSC 2007

4. Hence, the change in the Role of the Commercial Banks….. Local Commercial Banks Pre-2001 SAMA Issues Licenses to Foreign Banks in 2001 CMA Established in 2004 Stock Market Share Trading, Execution & Settlement Lending Activities Investment Banking Services Insurance Services New Licensed Foreign Banks Regulator: SAMA Lending Activities Investment Banking Services Stock Market Share Trading, Execution & Settlement Regulator: SAMARegulator: CMA CMA Authorized Person New Licensed Insurance Companies Insurance Services Regulator: SAMA

5. Change in the Responsibilities of the MOCI MOCI Approve IPO including Feasibility & Valuation of Issue Approve Conversion to JSC Status Monitor JSC Financial Reporting Approve Allocation of Floated Shares Monitor JSC Financial Reporting Approve IPO including Feasibility & Valuation of Issue CMAMOCI Approve Allocation of Floated Shares Other MOCI traditional role, implement Companies Law, etc Approve Conversion to JSC Status

6. Financial Service Providers Commercial Banks Investment Companies Insurance Companies Regulators & The Exchange SAMA: Central Bank MOCI: Ministry of Commerce CMA: Capital Market Authority Tadawul: The Exchange The Financial Sector Landscape Today….. Financial Services Commercial Banking Services Investment Banking Services Insurance Services Regulations Companies Law Capital Market Authority’s Regulations Banking Control Law

7. Market Parameters End of Period No of Brokers New Licensed Brokers No of listed companies New Issues Market cap bn General Index 1996-----1,531 1997-----1,958 1998--620-1,413 1999--642 229 2,029 2000--662 254 2,258 2001--671 275 2,430 2002--681 281 2,518 2003--702 590 4,438 2004--733 1,149 8,206 20058-774 2,438 16,713 20064537869 1,226 7,933 2007803511125 1,946 11,039 20081103012413 925 4,803 2009110013511 1,196 6,122 Mar-1011001394 1,345 6,801

8. Thank You