Kingdom Holding mulls investments in entertainment sector, says CEO

Kingdom Holding Co. (KHC) is studying investment opportunities in the entertainment sector such as cinema and theme parks, and expects to unveil the projects next year, chief executive officer Talal Al Maiman told Argaam in an exclusive.

“We believe the entertainment sector is very promising. It is currently bolstered by special events like Riyadh Season and other newly-launched festivals,” Al Maiman said.

As for Flynas, Al Maiman noted the airline has a solid economic vision under sound management. It also achieved a high standard of Saudization. The aviation sector contributes nearly 4.6 percent to the Kingdom’s gross domestic product (GDP).

“Raising our stake in Flynas has an investment target. KHC does not exit its investments to make quick gains. KHC believes that the aviation sector comes as part of Saudi Vision 2030,” he added.

The new visa systems and strong visitor turnout along with other measures taken by the Kingdom will help expand the company’s business not only across the Kingdom, but the entire region.

In September, KHC upped its stake in low-cost Flynas to 37 percent from 34.08 percent.

Read: Kingdom Holding ups Flynas stake to 37%

Replying to a question about the share swap deal with Dallah Healthcare Co., Al Maiman said KHC, under a non-binding memorandum of understanding, will sell shares in Kingdom Hospital against a stake in Dallah.

“The deal is expected to be closed by the end of this year, after completing the required due diligence. It aims to strengthen the company’s presence in the sector,” Al Maiman added.

Kingdom Investment and Development Co., a subsidiary of KHC, signed last September a non-binding MoU to sell its shares in Care Shield Holding Co. To Dallah.

Care Shield owns Medical Service Projects Co. (Kingdom Hospital), Kingdom Hospital & Consulting Clinics (KHCC) and Modern Clinic Pharmacy.