Chairman, The Investor for Securities Co. International Capital Flows Saudi Arabia as destination and source of capital for asset management Abdullah M. Alfouzan Chairman, The Investor for Securities Co. Riyadh, Saudi Arabia 3 April 2014

Saudi Arabia, a destination for global capital Approaching $1 trillion GDP Consistent positive GDP growth Gross national savings among highest in the world Highly urbanized, young population $717 billion foreign currency reserves > $120 billion inward Foreign Direct Investment, 2008-2011 An ancient culture, but also thoroughly modern 2011 2012 2013 GDP 8.6% 5.1% 3.6% BASIC DATA Population 27 million % population 0-24 years 47% Urbanization 82% GDP per capita $31,300 Daily value of crude exports > $650 million The Investor for Securities Co.

Saudi capital markets, young and growing Capital Market Law, 2003 Capital Market Authority (CMA), 2005 CMA enforces a clear line between banking & investments Tadawul, national stock market, > $510 billion total market capitalization More than 11 million investors, 159 traded companies, growing sukuk market Tadawul up: 11% YTD, 33% YoY (31 March 2014) The Investor for Securities Co.

Saudi financial intermediaries 83 active CMA-licensed investment companies 10 linked to domestic Saudi banks 19 to foreign banks 13 to foreign investment companies > 30 Saudi investment companies are fully independent & local Top foreign names in Saudi Arabia: JP Morgan, Merrill Lynch, BNP Paribas, Credit Suisse, HSBC, Deutsche Bank, KKR, Lazard Top domestic names: The Investor, Falcom, Jadwa, Alkhabeer Core businesses: Investment banking, brokerage, asset management 256 mutual funds, > $27 billion AUM The Investor for Securities Co.

Inward investments into Saudi Arabia Market preparing for King Abdullah’s signature, replace existing swap arrangement Draft legislation prepared, awaiting only final royal approval CMA chairman wants short delay, time for upgrading market systems At one point SAMBA’s Saif Saudi fund was largest country fund in the world Portfolio rebalancing, eventual inclusion in MSCI, creates demand Some analysts predict up to $10 billion foreign investor demand for Tadawul listings (up to 20% of market cap) Key drivers: Industry & Real Estate The Investor for Securities Co.

Next step, global investment in Saudi real estate Currently restricted, no foreign investment in Saudi real estate sector Exceptions: GCC nationals, some expatriate and international investors Large middle class, purchasing power in SAR 500,000 to SAR 1 million range Housing demand today: Over 300,000 new units required Total Saudi construction spending 2012-2013 was > $225 billion Expected yields of 25% IRR or more in almost any sector, any region of Saudi real estate “With its young and expanding population, Saudi Arabia should remain the most buoyant [real estate] market, in line with its overall economic development plan….the recent approval of the mortgage law should help to drive growth in residential construction in response to the current housing shortage” President MENA, BofA Merrill Lynch The Investor for Securities Co.

Saudi Arabia, a source for global capital Global demand for Islamic investments, > $3 trillion Existing $3.5 trillion AUM owned by Muslims, almost none sharia compliant Estimated $200 billion under management in Switzerland owned by Saudis Most Muslims live a sharia life, want sharia-compliant investing King Abdullah Financial City Safa Investment Services: the world’s first global Islamic asset manager Collaboration between Swiss and Saudi units of The Investor for Securities Co. Professional team of asset managers, growing client base The Investor for Securities Co.

Safa balanced portfolio allocation Global asset allocation Fully diversified across all asset categories Fully diversified within each category 100% liquid, can be redeemed at any time Robust portfolio construction, fully optimized All assets meet global professional standards for size, track record, liquidity Fully sharia compliant Source data: Bloomberg The Investor for Securities Co.

The Investor for Securities Co. Safa portfolios Islamic asset allocations: above-market performance lower risk metrics Portfolio Statistics Safa conservative Safa balanced growth (6 Years) Return    Total return 30.90% 36.38% 37.44% Annualized total return 4.53% 5.23% 5.37% Risk Standard deviation (annualized) 5.20% 10.71% 13.88% Source data: Bloomberg Past performance is not a reliable indicator of future results. Performance data is calculated NAV to NAV, and does not take account of commissions and costs incurred on the issue and redemption of units. The Investor for Securities Co.

The Investor for Securities Co. Key player in Saudi capital markets Founded 2007, SAR 200 million paid-in capital Profits 2013, > SAR 82 million > 50 professional staff > SAR 10 billion AUM (CHF 2.5 billion) Strong presence in Saudi equity markets, private placements and real estate The Investor for Securities Co.

The Investor for Securities Co. Conclusion Capital flows from and to Saudi Arabia will continue to be important Increasingly sophisticated investors & businesses Saudi Arabia is a major destination for investors in emerging markets Foreign direct investment, particularly in future Saudi real estate funds Portfolio investment in the Saudi stock and sukuk markets, Tadawul Foreign bankers are welcome, but only with CMA regulatory approvals Our new Safa Investment Services will capture an important part of global Saudi portfolio investments The Investor for Securities Co. is ideally placed for both inward and outward Saudi investments The Investor for Securities Co.

The Investor for Securities Co. Thank you. Abdullah M. Alfouzan Chairman The Investor for Securities Co. Aljumaiah Center, King Fahd Road P.O. Box 67838 Riyadh 11517 Saudi Arabia Telephone: +966-11-200-7002 x 333 E-mail: a.alfouzan@theinvestor.com.sa Website: www.theinvestor.com.sa Abdullah M. Alfouzan Chairman Islamic Wealth & Asset Management S.A. 11, rue Verdaine 1204 Geneva Switzerland Telephone: +41-22-310-6212 E-mail: a.alfouzan@theinvestor.com.sa Website: www.safainvest.com The Investor for Securities Co.