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Issue No.13, Spring 2001

IN Side

`UNAYZAH TO WALL ST. 2 ATLAS COPCO 4

Olayan in Athens

OLAYAN IN ATHENS 8 INSIDE OLAYAN 14

EDITOR'S NOTE: Global Facelift

The Olayan Group has seven main offices worldwide. From east to west, they are located in Al-Khobar, Riyadh, Jeddah, Athens, Vienna, London, and New York. Each of these global portals is distinct. The London office, for example, has been located since 1990 in a historic town mansion at 140 Piccadilly across from Green Park. Lord Byron once lived next door. In Vienna, the Group has an office in a large modern building on Opernring Street across from the State Opera House or Staatsoper, a national historic landmark. At the Group's other five locations major upgrades have recently been completed or are nearing completion. The Al-Khobar office, located in a purpose built building on Abdulaziz Road since 1979, was partially renovated in the late 1990's, when a new headquarters for General Contracting Company also opened next door. The Group's Athens personnel moved last summer into a brand new facility. A major renovation of the New York office got under way in March and will be completed by year's end. Personnel in Riyadh moved in April into a beautiful new complex just up the road from the old facility on Al Ahsa Street. And in Jeddah new offices in the Briman District are under construction and should be ready towards the end of 2001. All of this activity adds up to a global facelift for The Olayan Group. This issue of Communiqué profiles the stunning new Athens office. We look forward to showcasing the new Riyadh facility in our next issue.

From `Unayzah to Wall Street:

The Story of Suliman Saleh Olayan

Communiqué is published for the employees and friends of The Olayan Group. Editor: Richard Hobson, New York Associate Editor: Dr.Sunhat Al-Otaibi, Riyadh Editorial Assistant: Victoria Schmidt, New York Correspondents: Christine Childs, Athens Peter Crichton, Al-Khobar Talal Munshi, Jeddah Gaye Rackham, London Design and Production: VAMCOM & Partners, Parsippany, New Jersey

From `Unayzah to Wall Street, the recently published biography of Suliman S. Olayan, was several years in the making. The project was launched in 1997 and completed in 2000. It involved extensive research by British author Michael Field, who interviewed dozens of Mr. Olayan's associates around the world. In a foreword to the book, the founder and chairman of The Olayan Group explains what prompted the project: "I have undertaken to have my story told after years of patient urging by friends and colleagues. Now here it is, thanks to many contributors and, especially, to Michael Field. My life's work has been business. Any success I have achieved would not have the same meaning if it did not contain some lasting benefit for future generations of Saudi businessmen and women. They will have far more opportunities than I but also great new challenges. God willing, they will know the deep satisfaction that comes from trying one's hardest no matter what ­ and learning every step of the way." The book details Mr. Olayan's journey from his birthplace in the heart of the Arabian Peninsula to the world's biggest capital markets during an era in which caravans gave way to global commerce. The book summarizes that journey as follows: "Suliman Olayan was born in the little town of `Unayzah, in central Arabia, around 1918. From the hard, poor background of pre-oil Saudi Arabia, he has developed a business which has made him one of the most successful businessmen in the world. "From `Unayzah to Wall Street tells the story of Suliman's childhood, his education in Bahrain and his early career with the California Arabian Standard Oil Company. It was here that he had his first contact with America and Western business, became fascinated by the workings of a free market industrial

economy and determined to make his own fortune. He went into business in 1947 as a contractor working on Tapline, the pipeline being built to carry Saudi oil to the Mediterranean. Gradually he diversified and began investing in the New York stock market. "With the oil boom of the 1970's he became increasingly involved in America and Europe, not just as an investor, but as a member of company boards and academic and business councils. More than any other Arab entrepreneur he has become part of the Western business establishment. "In the last twenty years his investment portfolio has increased enormously. He is an important shareholder in some of the world's biggest banks, including Chase Manhattan and Credit Suisse, and in some of the leading industrial and service companies, including the (British) National Grid and Coca-Cola. Now over eighty, he is still in daily ­ sometimes hourly ­ contact with his principal managers. Along with his family, business is the great love of his life." The 150-page book was published by John Murray of London, but it is not available commercially. The Olayan Group is distributing a limited number of copies privately. However, plans are underway to translate the book into Arabic and summarize or serialize it in a leading Saudi newspaper. Michael Field, journalist, author, and business consultant, has been involved in the Middle East for 30 years and first met Mr. Olayan in the late 1970's. His previous works include A Hundred Million Dollars a Day; The Merchants -- the Big Business Families of Arabia; and Inside the Arab World.

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Olayan Moves Up in Saudi Rankings

Arabian Health Care Exhibits Renal Products by Baxter

Hats off to the enthusiastic management team at Olayan-Descon Industrial Company Ltd. in Jubail. The joint venture is one of many affiliated companies that have helped propel Olayan Financing Company to the top 10 of the Saudi 100.

Riyadh Deputy Governor HRH Prince Sattam Bin Abulaziz, right, speaks with AHCSC General Manager Othman Abahussein at the International Symposium on Nephrology.

Olayan Financing Company jumped to the eighth spot from No. 10 in the annual survey of top Saudi companies, known as the Saudi 100. The latest results, published by Saudi Research & Marketing Company, a media conglomerate, were released in December 2000. According to the survey, OFC had annual revenues of SR 3.988 billion ($1.063 billion), up about 1% from the previous year. Assets were listed at SR 6.650 billion ($1.77 billion), up 26% from the 1999 survey. With about 8,600 employees among some 40 operating and affiliated companies, OFC ranked as Saudi Arabia's seventh largest employer among the Saudi 100.

Arabian Health Care Supply Company (AHCSC) recently exhibited its line of Baxter Healthcare Corporation renal products at two major conferences in Saudi Arabia on the treatment of kidney disease. The Second Pan Arab Pediatric Nephrology Congress was held in November 2000 at the Saudi Center for Organ Transplantation in Riyadh. That was followed in late January by the International Symposium on Nephrology at the Cultural Palace in the Riyadh Diplomatic Quarter. AHCSC, a wholly owned Olayan company, has been distributing Baxter's peritoneal dialysis products since 1995 in consultation with leading nephrologists in the Kingdom.

Export Expertise Earns Olayan Kimberly-Clark Chamber of Commerce Award

Olayan KimberlyClark, which manufactures famous brands like Kleenex, Kotex, and Huggies, recently received an award for export prowess from the Saudi Chamber of Commerce & Industry in the Eastern Province. The award, for 2000, recognizes the company's excellence in several areas. These include a very high standard of quality control in manufacturing and the procurement of raw materials, attention to customer needs, and responsiveness to new developments in the market and in technology. Olayan Kimberly-Clark exports to all GCC countries as well as to the greater Middle East, Africa, and Asia. "We plan to actively seek out new opportunities in the Middle East and North Africa where demand for disposable products is on the increase," says Lloyd Hughes, managing director. The enterprise also is looking farther afield, to areas like the Balkans and Russia.

HRH Prince Mohammad Bin Fahd, governor of the Eastern Province, left, presents the export award to Olayan Group representative Abdul Mohsin Al-Ajaji.

Lloyd Hughes

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ATLASCO: Saudi Leader in Industrial,

First portable compressor built in 1907. w

From its very beginnings Atlas Copco has endlessly sought better ways to do things, resulting in lead positioning in a broad range of products.

When people speak of leadership in technology these days, one assumes they're talking about shepherding advances in the digital and biotech worlds, where the challenge is to compress bits and bytes or map human genes. But there are other worlds too, mechanical worlds, where challenges are just as real but depend on fine-tuning the sophisticated interplay of brawn, steel, and sinew: It's a world where you count bites by how fast you can chew through hard rock and where you bring ergonomic science to bear on bone-rattling power tools to keep them from disassembling a worker's weary v Hand drills circa 1915 arm. This is the (left) and present day. world where Atlas Copco has a leading position in its field. Atlas Copco was founded in Sweden in 1873. Since that date the company has witnessed steady growth, continuously developing its products and enhancing its technical capacity to keep pace with the market's changing needs. Still headquartered in Stockholm, the group employs more than 26,000 people and manufactures products in 14 countries on four continents. Their products are sold and rented under different brands through a worldwide sales and service network reaching 150 countries. Fitting perfectly into this picture is ATLASCO -- Atlas Industrial Equipment Company -- a wholly owned Olayan affiliate that promotes all the equipment, parts, and services for the Atlas Copco Group to business, industry, and institutional customers in Saudi Arabia and Kuwait. ATLASCO was founded in 1985.

v XAS 56 Portable Compressor at worksite. v Rock drilling in action.

Prior to that Atlas Copco products were marketed in the Kingdom through Olayan's General Contracting Company, under a franchise agreement going back many years, to the 1950's. According to General Manager "Mike" Mustapha, ATLASCO is organized in line with the Atlas Copco global business model and current strategic plan, which helps it maintain a healthy leading position in its markets. "We stay ahead by continuing to focus on customer satisfaction supported by high quality products, a high standard of after sales service and with the technological innovation that is a tradition at Atlas Copco," says Mustapha. "Our vision is to always be first in mind, first in choice among our customers." The company operates under the following organizational categories: Industry, under the supervision of Business Manager

v XAMS 850 Portable Compressor.

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Mining, and Construction Equipment

Osama S. Amin, is responsible for the marketing and sales of various types of electrically operated stationary air and gas compressors, including air treatment equipment like air dryers, after coolers, and filters. Known for their high reliability and low operating costs, Atlas Copco compressors have a low sensitivity to dusty environments, are oil-free, meaning there is no risk of oil contamination in the compressed air, and have low energy consumption. These products are sold to industrial customers with special emphasis on the oil and gas production sector so important in Saudi Arabia. Construction & Mining, lead by Business Manager Jitendra K. Pradhan, is responsible for sales and marketing of rock drilling equipment, construction tools, drilling accessories, and underground trucks and loaders for the mining and construction sector. This department is also responsible for portable compressors and generators, an Atlas Copco mainstay, and a new business segment -- rentals. Their portable compressors have been used by all major contractors throughout the Kingdom and also with major rental companies in Kuwait. Atlas Copco's drilling and underground equipment sees broad usage. Its rock drilling equipment has been used for tunnelling at the Mahd Al-Dhahab Gold Mine and the vital Makkah Water Storage Tunnel. Its hydraulic crawler drills have been used for trench drilling in the Eastern Province for the SAIPEM gas and oil pipeline. Underground trucks and loaders have been used for gold mining at Mahad Al-Dhahab and Al-Amar gold mines. After Sales Service, setting a service standard that lives up to the ambitious motto, "Fast Reliable Service 24 Hours a Day, 7 Days a GA 75 FF stationary industrial air compressor. Week, 365 Days a Year," is the responsibility of experienced Service Manager Andy Iori. The department has a network of service employees in four locations, assuring none are too far from their customers. The department provides support in maintenance, repairs, and customer training and stocks a full range of genuine replacement parts for all Atlas Copco products. Rental Service is a new business area, dedicated to renting rather than selling a comprehensive range of highquality compressors and generators mainly to the chemical, petro-chemical, construction, and manufacturing industries. There are many instances where powerful air compressors -- some as large as a mobile home -- can be used, singly or linked together, to keep a plant going while its permanent compressors are being overhauled or on construction sites where they will only be needed for the life of a job. Rentals can be the prudent choice at these times, and the rental category is an important component for future business growth. As an example, Atlas Copco has more than 330,000 active rental customers in North America alone. Building stronger relationships with customers is an important component of the group's business strategy, and After Sales Service as well as Rental Service provide perfect platforms for cementing and expanding customer relationships, Mustapha points out. Another way to maintain relationships is to be geographically close to your customers. In addition to its Jeddah headquarters, ATLASCO has branch offices in Riyadh, Al-Khobar, and Kuwait with complete sales, service, and spare parts offerings at each location. Jeddah also serves as the region's central stores and distribution center. As long as there is a demand for more efficient ways to pump, excavate, drill, generate, pound, pry and generally help engineers and workers attend to the thousands of arduous tasks that have to be accomplished to make an economy hum, ATLASCO, based on Atlas Copco's heritage of innovation, is sure to thrive in Saudi Arabia and Kuwait.

w Earliest design for an Atlas air tool.

v

v

TEX 28 PE in action. Photos : Atlas Copco

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158 Employees Reach Services Milestones in 2000

Ahmed

Bazuhair

Al-Jahdali

Al-Khamis

Basunait

Al-Milaifi

40 Years of Service Ahmed Bashir Ahmed GCC 35 Years of Service Ahmed Awad Bazuhair OSHCO 30 Years of Service

Hamdi Hamid Al-Jahdali ATLASCO q Mohamed Abdul Rahman Al-Khamis OSHCO Omar Mohammad Basunait OSHCO q Ali A. Al-Milaifi OKA

25 Years of Service

Saifur Rehman Ahmed GCC q Khaled Akhrass ODCL q Abdul Mohsin F. Al-Ajaji OFC Mohammad Ghassan Al-Balaa GCC q Abdullah A. Al-Hamdan GTC q Mustafa Yusuf Al-Shaikh OSHCO Sanaullah R. Ansari GTC q Iftikhar-Ul Hassan GCC

20 Years of Service

Samir Abdul-Samad ABM q Yahya Yahya Khamis Al Amri CONREP q Saad Ayed Al-Qahtani GCC q Naji S. Al-Sarabi GTC Ageel S. Al-Shammary OFC q Abdul Aziz Al-Shaya GTC q Dawood Al-Towijiry GTC q Ranie L. Atangan AL BUSTAN Bhim Sain Bhardwaj OFC q Mohamed Rafique Ahmed Din CSA q Vicki Drakopoulou OICE q Alex J. Duran GCC Mohammad Taher Ebrahim OSHCO q Nasser J. El-Shafei GTC q Ahmad A. Fahmawi GTC Mohammad Yassin Abdul Ghani GTC q Samuel A. George ABM q Chenganakatti Hamza TTC Zaker Hussain SXL q George Koumoutopoulos OICE q Edgardo Lingat CONREP q Nagoor Hassan Maharoof SXL Menelio B. Martinez GCC q Ahmad A. Mohammad GTC q Ziad Abdul-Kader Mohammad GTC q Liza Ouzounian OICE Marconi B. Palabay GCC q Jesus S. Pring ATLASCO q Abdullah A. Ruhayem GTC q Naji Ahmad Saad GTC Anil J. Sangani OKA q Mohsen Ismaeel Sharief OFC q Khurshid Shah Sayed ATLASCO q Joseph P. Stephen OSHCO Sayed Taqui OSHCO q Samir Toubassy ODCL q Nadia Valerianou OICE q Kesavan Vamadevan GCC

10 Years of Service

Mohammad Saad Abdel-Kader GCC Ali Ebrahim Abdul-Fatah GCC Joseph Abraham AMCO Tarek Fareed Ahmed AHCSC Saleh Mohammad Akhtar SXL Abdullah Ishaq Al-Alyli AHCSC Hassan Ali Al-Ashour OSHCO Ali Hussain Al-Ibrahim NCCPC Barjas Hamidi Al-Jabra AHCSC Ali A. Al-Mutawa AL BUSTAN Saadeldeen H. Al-Saadi GTC Faiz Jazza Al-Shehri SBC Abdul Sattar Rajab Ali APPCO Mohammad Zulfiqar Ali ODICO Razzab Ali Nawab Ali ODICO S.M. Mohammed Ali AMCO Osama Shafiq Amin ATLASCO Michael Aphantites OICE Mohammad Saleem Arbolado GTC Shaikh Arifuddin GCC Ireneo B. Austria CPAL C. Balagopalan OFC Ronaldo P. Bernardo GCC Domingo M. Buot OSHCO Miguel A. Cerbito APPCO Poonam Chand GTC Mohammed S. Chowdhury OKA Peter Crichton OFC Elpidio Dela Cruz OSHCO Banarsi Dass GCC Cezar F. Dela Rosa OSHCO Rosendo D. Diamante AL BUSTAN Edwin R. Dimalaluan AL BUSTAN Joe Eid OICE Mohammad M. El-Doumiaty GTC Sabry Mustafa El-Tahan GTC Anthony C. Escarilla GTC Eliseo E. Esmediana NCCPC Felix V. Fernandes CPAL Teodoro T. Flores OKA Joselyn M. Franco APPCO Elias Anwar Geha SXL Khaled Mehdi Haidar SXL Kummidiyil M. Hamsa OSHCO Omer Salah Hardan CPAL Mohamed Riaz Hashmi GTC Amir Hossain OKA Bellal Hossain OKA Moner Hossain OKA Ghulam Hussain AHCSC Mohd. Hasan Imam OKA Orlando C. Isayas NCCPC Moh'd. Nazrul Islam OKB Faisal Musa Moh'd. Ismail AHCSC Padiyal Samuel John ABM Philip Joseph AMCO Alfonso Noble Jungco CPAL Vellayanthony K. Kaseem APPCO Khaled Hassan Khamies GTC Abdul Majeed Khan GTC Badaruzzaman Khan SXL Mohammad Saood Khan GTC Danilo B. Loy APPCO Shahid Mahmood OSHCO Anwar Abdullah Majdalwi GTC Danilo R. Mallari CPAL Francisco O. Marquez CPAL Thoppilkalathil Mathew Mathai AT&E Karam Din Mujahid ODICO Ghulam Mustafa CONREP Mohammad Nawaz OSHCO Plaviyan Nazareth AMCO Winifredo A. Oracion NCCPC George Papazoglou OICE Mohammad Shamsur Pathan OSHCO Mohd. Jakir Patwary OKA Anthony Paul AMCO Pearline Annamoni Pavulas CPAL Mohammad El-Sayed Abd Rabo SXL Rodel G. Rafon CPAL Ruben A. Regala CPAL Shakil Ahmed Samiur Rehman GTC Norberto U. Rondario OFC Arthur O. Ruiz GCC Mohammad Saleem OSHCO Naeem A. Saleem GCC Mullaveli John Samuel GCC Mohammad Toufiq Shahbaz ODICO Tahir Shah Hussain Shah ODICO Zulfiquer Shahed APPCO Mohammed Akhtar Shaikh AHCSC Omer Lebbai Sirajudeen CPAL Mohammad Soleman OKA Hussein Alaa Soliman ABM Domingo M. Teria CPAL Shaikh Atta Ulla ODICO Wahid Uzzaman OKA Adriano V. Valdez NCCPC Ana M. Valenza OAC Anthony A. Valeza GTC Paulson Paul Vithayathil CPAL Panvelkar Waqar Yusuf APPCO Zaldy P. Zamudio AL BUSTAN Ahmed Sirajudeen Mohamed Zaneefer CSA Josefino L. Zenarosa CPAL Adolfo Lim Zenaroza CPAL

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Olayan Co-Sponors Davos Forum

The Olayan Group joined 60 other international corporations as a partner or co-sponsor of this year's there, so you meeting of the World Economic can be really efficient, Forum in Davos, Switzerland, held meeting with a wide array late last January. of counterparts in a relaxed setting on neutral ground. Ordinarily, such Representing the Group in Davos meetings can take months to were Lubna Olayan, CEO of Olayan arrange." Financing Company, and Samir Toubassy, who heads the Group's Toubassy echoed that thought: global business development arm. "Perhaps in no other venue can you They fanned out in see so many difthe alpine resort to ferent high-level attend numerous people in one sessions on everyplace at one time thing from regional away from the economics and crush of day-tothe digital revoluday responsibilition to biotechnolties." ogy and personal Ms. Olayan and health. The topics Toubassy had were organized important meetaround the genings with top execeral theme, utives of several of "Bridge-Building the Group's key with Technology." commercial and In addition to the banking partners. formal sessions, Davos can also months of crossproduce pleasant continental netsurprises. "I saw working were The Group flew its corporate colors while classmates and supporting the World Economic Forum with compressed into colleagues from six very long days. this program ad. high school and "Our participation was really worthfrom my days at Morgan Guaranty in while, measured by the very high New York in the early 1980's," said quality of both the content and the Ms. Olayan. contacts," commented Ms. Olayan. Despite much publicity about the "Nearly everyone you need to see is heightened security at this year's

meeting of government leaders and global executives, this proved more of a slight annoyance than a major impediment, according to participants. Nor did disruptive protests materialize. The topic of the globalization backlash itself was very much a part of the Davos agenda. It focused on bridging all manner of global divides, including the widening gap between wealthy and poor nations, technological haves and have-nots, and open and closed societies. Saudi Arabia fielded a strong delegation, including the ministers of finance and petroleum, the governor of the Saudi Arabian General Investment Agency, and secretarygeneral of the Higher Economic Council. In a move signaling the importance of the Arabian Gulf region, the World Trade Organization announced on the last day of the Davos meeting that its next top-level gathering would be held in Doha, Qatar, in fall 2001.

Photo : Davos Tourism

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Olayan

T

his year marks the 25th anniversary of The Olayan Group's arrival in Athens, Greece, where the Group's parent, Olayan Investments Company Establishment (OICE), has been based since 1976. Fittingly, OICE took occupancy late last summer of a brand new headquarters. On these pages we glimpse the facility, introduce the members of the Athens team, and explain the role of OICE. Gem of Glyfada, Pearl of Poseidonos OICE's new offices are located at 111 Poseidonos Avenue, the coastal road that runs through the seaside suburb of Glyfada. The distinctive domed building is three stories high with a view from the uppermost floor of the Aegean just across the road. It fans out in two wings along a large lot that occupies a full city block. OICE commissioned and owns the building. Completed less than a year ago, it quickly became a point of pride for the district's residents and an eyecatching object of curiosity for passersby. The award-winning designer, Elias Barbalias, blended a neoclassical exterior with an ultramodern interior. He embellished the exterior with classical features pieces of ancient marble from older buildings as well as replicas of those pieces. The neoclassical theme extends to the grounds, which include a large enclosed garden with a reflecting pond and raised colonnade known as a peristylio. Inside is another world. The interior is a swirl of graceful staircases, wide corridors, polished stainless steel and stone, skylights, high-tech conference rooms, and glass-enclosed offices. It is at once sunny and sedate. It also reflects the egalitarian streak that runs through the Group. All offices have the same furnishings and are approximately the same size. The new facility has many ameni-

Skylight illuminates the second floor corridor.

-- marble staircases, cornices, balustrades, and columns. For most of these, Barbalias used actual

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inAthens

The Peristylio.

the wake of the move from the old cramped offices on Syngrou Avenue, a main commercial thoroughfare in a busy and comparatively dingy section of Athens. Since many employees live much closer to the new office, commuting time has been slashed for most. And there is spacious underground parking, a precious commodity in Athens. An Olayan Odyssey pleasant working envities. The interior is ronment for our bathed in both natural employees," says Aziz and soft artificial light. Syriani, president of The flooring throughOICE. "After all, we out is cork, which is spend more waking soft under foot. There time at work than we is a large welldo at home. So I equipped gym with wanted our new offices showers and lockers, "I believe to be as close to a an outdoor running home away from home track, and kitchens in people work each wing of every floor. as possible, made for smarter the 21st century and The building is wired and better in reflective of our Greek throughout with the lata good domicile. This is not est technology, including environment." just to be nice. I believe video conferencing Aziz Syriani people work smarter facilities. and better in a good environment." "My overriding philosophy going Indeed, employees reported into this project was to provide a soaring morale and productivity in comfortable, efficient, relaxed, and The period 1975-1976 was a turning point for The Olayan Group as unrelated events converged. The Group was undergoing a major restructuring just as civil war broke out in Lebanon. The Group had maintained administrative offices in Beirut since 1959, largely in support of its commercial operations in Saudi Arabia and Kuwait. Arab Commercial Enterprises (ACE), then the Group's insurance affiliate, was also based in Beirut, as was Suliman Olayan and the staff attached to him, known as the Chairman's Office.

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A view of the inner courtyard.

By 1975 the personnel in Beirut who were directly involved with commercial operations in Saudi Arabia were being transferred to Al-Khobar. This process had been underway for some time. Suliman Olayan had also decided to relocate to Riyadh, where he has maintained his principal office and residence ever since. Meantime, in late 1975, Syriani, a Harvardtrained lawyer who was then outside counsel to the Group, incorporated OICE in Liechtenstein as the Group's newly created holding company. While this reorganization was taking place, hostilities broke out in Beirut. As conditions deteriorated, it was decided that ACE and the Chairman's Office would also relocate. Damascus, Amman, Cairo, and Athens were all considered. Athens prevailed for its favorable tax climate and as a halfway point between Saudi Arabia and London, where the Group was also establishing a new office. By early spring 1976, the situation in Beirut was untenable.

Gabriel Saba

10

At 6 a.m. on April 1, in a convoy of unmarked taxis, personnel and their families from ACE and the Chairman's Office made their way to Beirut International Airport, where they boarded a Middle East Airlines plane to Athens. On arrival, they set up shop in a rented building at 206 Syngrou Avenue in the Kallithea district and used the nearby Damon Hotel as a central meeting and planning point. At first, everything was bare bones, since the plan was to stay just a few months. Having incorporated OICE, Syriani needed a physical location for it and thought of Athens, given that personnel from the Group were already in place there. As a result, two long-time executives of the Group who had moved to

Aziz Syriani with, from left, assistants Christine Childs and Zetá Souris; Joe Eid, VP for private equity; and his assistant Deon Varonos.

Athens from Beirut as part of the Chairman's Office, Gabriel Saba and Emil Bishuty, were designated comptroller and corporate secretary, respectively, of OICE. In November 1976 Syriani joined the Group as executive vice president and general counsel and moved to Athens. In 1978 Mr. Olayan handed off the president's role to Syriani. Saba today is vice

Accounting team, from left: George Cavalcanti, Cratiella Hara, Ioanna Knoop, Angela Papadopoulos, Garbis Tersian, Vice President and Comptroller Emile Habayeb, George Stephanou, Michael Aphantites, Areti Valsamides, Lilian Badra, Christine Papavasileou, and Andonis Dorlis.

Services Department, below, from left: George Koumoutopoulos, Nicki Drakopoulou, Spiros Voutsinas, George Tsigakos, Nadia Valerianou, Dimitri Patrinos, Iraklis Karageorgos, Marina Stephanidis, Yannis Stolides, Minas Hatzigeorgiou, Anna Diakidis, Maroun Nassif, George Kallimides, and George Filaktopoulos.

function, legal affairs, and information technology (IT). OICE also is a profit center in its own right. Its long-term objectives are to: v Manage a high yield investment grade portfolio of fixed income securities and cash... v minimize the Group's cost of debt... v manage with a long term horizon the ensuing foreign exchange exposure. IT team, from left: Wassim Sayegh, Alexander Theodoridis, Athena Nadim Tabbara and Sari Sahyoun, Pseftoudis, Spiros Savas, Group IT both vice presidents, together Manager Ali Al-Ashqar, Nick Panagiotopoulos, head up the company's fixed and Leonidas Koukoumialos. income investments, including foreign exchange and derivatives. The team's approach is a president of OICE in Athens, healthy mix of fundamental and Bishuty is a Group legal and technical analysis withconsultant while in retirement out discounting market in Miami, Florida. sentiment. Several persons hired Tabbara and Sahyoun locally that first season in convene a daily meeting of Athens also remain with their team at noon Athens the Group today. They are Emil Bishuty time, well after Asian marGeorge Cavalcanti, Anna kets have closed, soon after Diakidis, George Filaktopoulos, London's have opened, and ahead and Christina Voutsinas. of the New York opening. Other executives also attend, including Role of OICE Syriani, Frank Parrotta, Emile Habayeb, Makram Musallam, As the parent and holding comGeorge Papazoglou, Khalil pany of The Olayan Group, OICE Kachicho, and Tawfiq Awwad. serves as the Group's central Members of the team are encourtreasury and is responsible for its aged to put forward their own management information systems independent analysis, not just (MIS), the audit and controls parrot outside experts.

The Olayan Group's global offices in Riyadh, Vienna, London, and New York are in close daily contact with OICE. Global reporting systems within the Group are such that OICE is able to issue a consolidated statement of The Olayan Group's net worth across asset classes and continents at the beginning of every business day. In fact, it could do so up to the minute if need be. "One of our key strengths is being able to consolidate our global positions very quickly each business day so we know exactly where we stand," says Sahyoun. "Our reporting is very clear and accurate. And we are very close to the banking industry and are in constant contact with them." Investment Strategy Through its wholly owned subsidiaries, OICE holds investments in public equities, fixed income securities, private placements, real estate, as well as the commercial operations in Saudi Arabia and the Middle East.

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In the daily meeting, clockwise from left: Nadim Tabbara, Khalil Kachicho, Frank Parrotta, Sari Sahyoun, Ntina Karagiannis, Patrick Bassoul, Emile Habayeb, Makram Musallam, Henrietta Cunningham, and André Chelhot. Dining Room.

Internationally, the Group is probably best known for its investments in blue chip public companies. The Group manages its substantial public equity portfolio in-house and takes a long-term approach; approximately 50% of its core portfolio has been held for more than a decade. "If we own just 1% of a company, we treat that investment as if we owned the whole company," explains Syriani. That approach carries over to the Group's banking relationships. The Group has close, time-tested ties to some 15 international banks. They provide the Group with a high level of committments. "We consider the banks with whom we do business as fullfledged partners," says Tabbara. "We protect them as much as we protect ourselves." The Group's financial strategy has been designed for growth, the resilience to withstand financial shocks, and the flexibility to take advantage of new investment opportunities as they arise. The finance and accounting functions at OICE are key to the implementation of this global strategy, and they are headed by Frank Parrotta, who joined The Olayan Group in November 1999. As the Group's chief financial officer, he has been working closely of late with the Group's financial

...a daily meeting is convened at noon Athens time, after Asian markets have closed, London's have opened, and ahead of New York.

executives and IT personnel on a major project to further consolidate and hone the Group's business information systems. The most recent meeting of this task force was held in April in Athens. People Power Integrating these elements into a coherent and consistent whole is easier said than done. It requires knowledge and experience, up-tothe-minute information, constant vigilance, discipline, close collaboration, and a mastery of detail and complexity. In short, it requires good people and a lot of hard work. From its beginnings with a handful of key people and a net asset

base measured in the millions of dollars, OICE has mushroomed into an organization of about 60 people, both seasoned executives and young professionals, who today oversee assets that total several billions of dollars. At the same time, risk management in a global economy has become exceedingly fast-paced and complex. To handle this challenge the company has organized itself into a number of groupings. They operate more as fluid and overlapping teams than as rigid departments. These teams include the office of the president, finance, treasury, legal affairs, accounts,

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Task Force on Top

After many extra hours on the job, members of the task force created to assure a smooth transition to the new building are, well, on top of the world. From left: George Filaktopolous, Athena Pseftoudis, Christine Childs, Emile Habayeb, Ali Al-Ashqar, George Koumoutopoulos, and Spiros Savas.

Group Legal Advisor Samer Yaghnam flanked by assistants Serena Zygovistinou, left, and Christina Voutsinas.

the non-Greek speakers to learn Greek. As a result, nearly every one is bilingual, and many speak three or more languages ­ Arabic, French, and Portuguese among them. A Bond With Greece The Olayan Group tends to directly invest in every market where it has a presence.Greece is no exception. The Group has an obvious stake in the Greek economy just by virtue of having based its parent company in Athens. But it also has invested in Greek companies, notably in the consumer products and industrial packaging sectors. Beyond that, many at OICE feel a sentimental attachment to Greece, with her rich culture and pleasant amenities, and to The Olayan Group, which over the years has proven to be a challenging and loyal employer. While Greece has been good for the Group, the Group has also been good for Greece. That mutual bond has now found full expression in the building at 111 Poseidonos Avenue and through the multinational team that works there.

Employees perform a traditional Greek dance at the peristylio. From left: Zeta Souris, Christine Childs, Joanna Alexiou, Lilian Badra, Angela Papadopoulos, and Athena Pseftoudis.

Barking up the right tree.

One day during the construction of the new headquarters a stray dog showed up at the building site. She never left. Today the playful canine named Frieda lives on the grounds, has her own tiny house, and is cared for by the security staff.

risk management, foreign exchange, IT, and services. OICE's staff is a multinational mix. There is an evident conviviality among the employees despite their differences, perhaps in part the result of the Mediterranean lifestyle they all share. Everyone speaks English, the Group's business language, but the company also encourages

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Al-Mouallimi Named Mayor of Jeddah Abdallah Al-Mouallimi, a long-time member of The Olayan Group, was named mayor of Jeddah, Saudi Arabia's largest port city, on April 16 by royal decree. He moved to his new post from Riyadh, where he was a member of the National Majlis Al-Shura and consultant to Olayan Financing Company. Al-Mouallimi has been affiliated with Olayan since 1987. He has served as president of Olayan Saudi Holding Company, vice chairman of OFC, and managing director of The Coca-Cola Bottling Company of Saudi Arabia. Al-Tuwaijiri Retires Legal affairs consultant Maziad A. Al-Tuwaijiri retired in late 2000 after serving The Olayan Group in Saudi Arabia for 24 years. He first joined Olayan Financing Company in 1976. Since 1983 he was a consultant with power of attorney for the company and its officers. "We will miss him greatly and his very valuable achievements,"said Khaled Olayan, OFC chairman. Group VP Oversees Basic Industries Mohammad A. Al-Joaid joined Olayan Financing Company in March as group vice president, responsible for the basic industrial component of the OFC portfolio. Al-Joaid brings to this new role 18 years of general and technical management experience in Saudi Arabia. He has held positions with Al-Jubail Petrochemical Company, Al-Jeraisy Furniture, FIPCO, and Abunayyan Trading Corporation. He holds an M.S. in industrial management from Central Michigan University and B.S. from the University of Wisconsin. Senior Business Strategist Named Dr. Iraj Khajavi joined Olayan Financing Company last December as group vice president for business strategy and development, based in Riyadh. Khajavi has worked in both the private and public sectors in business planning, industrial development, and techno-economic and energy studies. He joined The Economic Bureau in

Riyadh at its start-up in 1989 and served as acting president of the consulting firm since 1994 until his appointment at OFC. Prior to that experience, he was with Bechtel for nine years in both Houston and Saudi Arabia. Khajavi has a Ph.D. in chemical engineering from the University of Oklahoma, M.S. in chemical engineering from the University of Michigan, and B.S. in petroleum refining engineering from the Abadan Institute of Technology in Iran. Compensation & Benefits Post Filled Meer R. Ali arrived in Riyadh in February to assume his duties as vice president for compensation and benefits at Olayan Financing Company, a new position within the expanding Human Resources Department. Ali brings to this role more than 25 years of experience in the human resource sector. He has worked in India, Dhahran, and Riyadh with major governmental, commercial, and financial institutions, including Saudi Aramco, United Saudi Bank, and Arab National Bank. Two Harvard M.B.A.'s Join Group Harvard M.B.A.'s have joined The Olayan Group in Riyadh and New York. The CEO's and president's staff at Olayan Financing Company in Riyadh received a boost in April with the addition of Tarek J. Sakka as vice president. Sakka will assist executive management, contribute to OFC's business and strategic planning, and help manage its equity investment portfolio. Sakka earned his M.B.A. in 1994. He also holds a B.S. in electrical engineering from King Fahd University of Petroleum & Minerals. He was manager of business development at Enron Corp. in Houston and Saigon and spearheaded direct equity investments for National Commercial Bank and Catterton Partners. Another Harvard M.B.A. and engineer, Dennis Jean-Jacques, has joined Olayan America Corporation in New York as assistant vice president and equity analyst. Previously Jean-Jacques was an analyst with Mutual Series Fund, specializing in event-driven equity opportunities in a variety of industries, and with Fidelity Management & Research Company. In addition to his M.B.A., he holds a B.S. in systems engineering from Boston University.

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New GM to Spearhead Personnel Development Hana'a Yousef Al Syead joined Olayan Financing Company in Riyadh in February to spearhead a pioneering effort to provide career opportunities for Saudi women. She was named to the new position of general manager for organizational and operational development. Al Syead has over 12 years of broad experience in the banking sector, where she was an executive with Saudi American Bank and United Saudi Bank. She received her graduate and undergraduate academic training in information technology and international management at Simmons College and Boston University. New GM of Saudi Xerox Sinval A. de Medeiros has joined Saudi Xerox Agencies Company Ltd. (SXL) as general manager. Since 1985 de Medeiros held several positions within Xerox de Brazil Ltda in sales and branch management. He holds an M.B.A. from Kellogg University in the U.S. and an M.S. in civil engineering from Federal University of RGN, Brazil. New General Manager at ABM, AT&E Abdulaziz I. Al-Noghaither joined The Olayan Group last January as general manager of both Arabian Business Machines Company and Arabian Telecommunications & Electronics Company. Al-Noghaither brings to the Group 16 years of experience in the IT sector. He held a number of positions with the Institute of Public Administration in Saudi Arabia before moving to the commercial sector in 1993. He holds an M.S. in computer science from Central Michigan University and a B.S. from Northern Arizona University. New Manager for IT / Telecom Sectors Massoud M. Al-Shareef has joined Olayan Financing Company as manager of business development for the IT and telecommunications sectors. He brings to his position 18 years of experience in IT. He is a founder of Knowledge WARE Technologies and co-founder of Infoware Technologies Co. Ltd. He has held IT positions at Systems & Communications House, the Royal Saudi Air Force, Saudisoft, and the Ministry of Planning. He has an M.S. in software systems engineering from the University of Arizona and a B.S. from the University of Kansas.

In Memoriam: Raymond K. Devenney, 1916-2001

Raymond K. Devenney, a long-time executive of The Olayan Group, died quietly in his sleep at his New York City home on May 17. He was 84. Never retired, Mr. Devenney put in a full day at the Group's New York office the day before his passing, as he had done for the past 24 years. He would not have had it otherwise. Originally from Kansas in the American Midwest, Mr. Devenney earned a B.S. in finance from the University of Kansas. He traveled as a young man to Dhahran, Saudi Arabia, where he embarked on what turned out to be a long career as a finance executive with the Arabian American Oil Company (Aramco). He spent some three decades with the company, including several years in Houston with its U.S. affiliate, Aramco Services Company, as a corporate controller. Following his Aramco career, Mr. Devenney joined The Olayan Group's New York office on July 1, 1977, soon after the Group had established Crescent Diversified Ltd., the predecessor of Olayan American Corporation. He served in various administrative and financial capacities, advised the Office of the Group Chairman, and carried the title of executive vice president. Known fondly to his closest colleagues as "Mr. D," he was the longest-serving member of the New York team. He is survived by his wife of 54 years, Kay, and by their daughter, Bunny Devenney; nephew Scott Devenney; and niece Pamela Devenney-Peppers and her family. "Ray played an instrumental role in the evolution of the Group's activities in the Americas, and he will be greatly missed by the Olayan family and all those who worked with him," said Hutham Olayan, president of Olayan America Corporation. "Our hearts go out to his family."

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www.olayangroup.com

RIYADH P Box 8772 .O. Riyadh 11492 Saudi Arabia AL-KHOBAR P Box 1520 .O. Al-Khobar 31952 Saudi Arabia JEDDAH P Box 1227 .O. Jeddah 21431 Saudi Arabia ATHENS P Box 70228 .O. Glyfada Athens 166 10 Greece VIENNA Operning 1/R/709 A-1010 Vienna Austria LONDON 140 Piccadilly London W1J 7NS United Kingdom NEW YORK 505 Park Avenue New York, NY 10022 USA

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