Khazanah buys 10% Saudi's Jadwa for RM271m

By Lee Cherng Wee
Government investment holding arm Khazanah Nasional Bhd has acquired a 10% stake in Jadwa Investment, a leading Saudi Arabian Shariah-compliant investment firm, for RM270.85 million.
Khazanah said the Jadwa investment is to provide cross linkages between Malaysia and Saudi Arabian businesses, laying the foundation for a stronger economic co-operation between the two Muslim countries as well as supporting the aspirations of the Malaysian International Islamic Financial Centre (MIFC).
"During such times of a global economic crisis, one must look to strengthen alliances and friendships where we have mutually sound and beneficial business models and partners. This investment is an important milestone for Khazanah as it represents the continued strengthening of economic and bilateral relations between Malaysia and Saudi Arabia. We anticipate that, Insya-Allah, this signing is just the first step in a long and mutually supportive relationship," said Khazanah managing director Tan Sri Azman Mokhtar in a statement.
Azman was in Riyadh last Saturday to sign the agreement with Jadwa's chairman Prince Faisal Bin Salman Bin Abdul Aziz Al Saud. The signing was witnessed by Raja Dr Nazrin Shah Ibni Sultan Azlan Muhibbuddin Shah, Crown Prince of Perak Darul Ridzuan and the Financial Ambassador for the promotion of MIFC. Jadwa's services include investment banking and corporate finance asset management and brokerage.
Founded in 2005, Jadwa is a premier fully Shariah compliant investment company counting from among its shareholders the leading Saudi business families. In the year ended Dec 31, 2007, Jadwa recorded return on equity of 21% and return on assets of 13%. Azman said that as both Khazanah and Jadwa have a long term investment strategy, they would be able to ride out the current economic downturn and to capitalize on opportunities created.
"Coupled with Jadwa's strength of a sound and professional management team with the right experience in the business, Khazanah is confident that this investment will serve as an important bridge between the two countries to provide a twoway flow in capital, ideas and people for our mutual benefit," he said. (The Malaysian Reserve, Oct 28, 2008, Page 1,2)