Chairman’s
Statement

Dear valued stakeholders,

The past year was certainly not without its challenges, with persistent inflationary pressures, energy price fluctuations and market volatility continuing to haunt the external environment; but the Group weathered these storms resolutely and, in many ways, came out on top in remarkable testament to the soundness of our business model and the perseverance of our dynamic team. I am grateful to them for skilfully navigating the often-tempestuous macro landscape, not just in 2024, but over the past several years, deriving maximum value out of our diverse portfolio.

In 2024, the Group’s Net Asset Value (NAV) increased by 11% year-to-date, building on a 21% growth recorded in 2023, further validating our investment strategy. Shareholder equity rose by 10.7% during the reporting period, and net profit increased 22% year-on-year, driven by strong equity investments, including deferred tax income from Four Seasons and lower interest expenses due to our well-timed deleveraging efforts.

One key development that stood out in 2024 would be the highly anticipated resumption of Jeddah Tower’s construction. According to current projections, in just three years, the tower will reach an imposing kilometre in height, becoming the tallest building in the world. Soon to be our flagship holding, the building will be a skyscraper in the truest sense of the word, adorning the Saudi skyline as a symbol of KHC’s towering ambition and as a lasting monument to the Kingdom’s ongoing transformation as a major world power. Jeddah Tower is also expected to bring about a significant valuation uplift to the surrounding land parcels, adding considerably to our real estate portfolio’s long-term value.

KHC’s hospitality segment far outperformed expectations in 2024 continuing a very encouraging trend from the year before, as a direct result of Saudi Arabia’s booming tourism industry and growing global demand for luxury, experience-driven travel. Our prize properties such as the Four Seasons Hotel Riyadh, George V Paris, and Savoy London reported strong operational results, though George V stood out, to say the least, having achieved a significant net operating income (NOI). Remarkably, the hotel delivered this performance even as it continues to undergo major renovations. Meanwhile, the Red Sea Four Seasons project, in which we hold a 50% stake, remains on track for opening in the fourth quarter of 2025, aligning with Saudi Vision 2030’s ambitious tourism expansion plans for the new year.

The equity investments portfolio maintained a disciplined investment approach throughout 2024, capitalizing on opportunities in technology, financial services, healthcare, and aviation. Our continued investments in high-growth areas such as artificial intelligence – which, as we speak, is seeing phenomenal, era-defining advancements – digital financial services, and renewable energy align with future market trends and innovation. At the same time, we also strategically monetised USD 1.5 Bn. worth of mature assets, as part of a strategic portfolio optimisation endeavour that sees the reallocation of capital to more lucrative ventures.

With over 40% of our investments rooted in Saudi Arabia, KHC remains deeply committed to supporting the Kingdom’s economic transformation, an objective that is at the heart of our investment strategy. Further developments in the Jeddah Economic City (JEC) and the Future City landbank will add to our contributions to the Vision 2030 agenda.

Looking ahead, as we move ever closer to the Kingdom’s coming renaissance, we are filled with quiet optimism about the leading role we play in driving the Saudi economy’s diversification agenda. We are also confident of our mission to generate sustainable value for our shareholders through our own diversification plans for our already vibrant portfolio. I take this opportunity to extend my sincere appreciation to KHC’s Board, our valued shareholders, our hardworking employees, and trusted partners for their invaluable support in realising our vision.