Global financial scum hits ‘Saudi Kingdom’ hard

Kingdom Holding, the Saudi group which has pumped billions of dollars into ailing Citibank, said Tuesday it had lost more than eight billion dollars in the final quarter of 2008.

Run by flamboyant billionaire Saudi Prince Alwaleed bin Talal, Kingdom said it posted a net loss of 8.26 billion dollars for the three months to December 31, compared to a profit of 68.2 million dollars a year earlier.

Even allowing for profits made earlier in 2008, the company lost 7.98 billion dollars for the 12 months to December, a plunge from 323 million in profit for 2007.

In a statement made to the Saudi stock market after trading closed Tuesday, Kingdom attributed the quarterly result to losses on financial investments, which include a five percent stake in struggling Citigroup.

Kingdom is also heavily invested in other financial groups, real estate, industry, entertainment, retailing and trading.

News of Kingdom's losses came on the heels of the shock fourth quarter report by market bellwether Saudi Basic Industries (Sabic) which turned in a 95.5 percent fall in profit for the fourth quarter, far greater than analysts had forecast.

The petrochemicals giant said it was hit hard by a fall in demand because of slumping economies around the world and especially by weakness in the construction and automobile industries. Source