Bin Talal

Entrepreneur, investor

Nationality: Saudi Arabian.

Born: on March 7, 1955

Education: Menlo College, BA, 1979; Syracuse University, MA.

Career: Kingdom Establishment for Trading and Contracting, 1979, owner Kingdom Holding Company and Kingdom Hotel Investment Group.



Profile:

Prince Alwaleed bin Talal bin Abdulaziz al-Saud was an internationally renowned businessman and investor who became a self-made billionaire at the age of 31. He was ranked the fourth-wealthiest person in the world by Forbes magazine in 2004. Although he started investing in businesses in Saudi Arabia, Bin Talal amassed his large fortune by investing in companies around the world in a variety of industries, including construction, banking, media, hotels, and technology.


Prince Alwaleed bin Talal start his business career, Bin Talal's father gave him $15,000 cash and a house. Bin Talal invested this money in construction. The initial cash investment was quickly spent, but his father refused to lend him any more money. Bin Talal mortgaged his house to support his fledgling business. Just one year later he got his first big break when he joined two other small companies to win a contract for a $16 million military academy. By 1981 Kingdom Establishment had over $1.5 billion in revenues. Bin Talal expanded his construction business to maintaining and operating existing buildings in Saudi Arabia.


INTERNATIONAL SUCCESSES :



Bin Talal made his mark on the international scene in 1990 when he bought almost 5 percent of Citicorp's shares. At that time the company was on the verge of bankruptcy, but in only a couple of years it turned around, and Bin Talal profited billions. In subsequent years Bin Talal bought minority stakes in numerous foreign companies, including some of America's largest firms. In 2003 he owned small percentages of stock in Amazon.com, eBay, AOL Time Warner, Ford Motor Company, Hewlett-Packard, Motorola, Pepsi, and the Walt Disney Company, among others.

Although this investment strategy was successful for Bin Talal, he had very diverse business interests. He partnered with other investors to purchase large shares of hotel stocks, such as the Four Seasons and the Fairmont Hotels. He also invested heavily in Saudi Arabia and other Arab countries, particularly in media and technology. For example, Bin Talal owned part of Arab Radio and Television, Lebanese Broadcasting Centre, and the Palestine Development and Investment Company. Aside from Kingdom Holding Company, which was largely responsible for his international business activities, Bin Talal also owned several other companies in Saudi Arabia, including Kingdom Hotel Investment Group, Kingdom Centre, Kingdom City, Kingdom Hospital, and Kingdom Schools.



LEADERSHIP AND BUSINESS STRATEGIES:

Bin Talal owed his success as an investor to his practices of diversifying successfully and refusing to be limited by national borders. He invested primarily for long-term gains and had a good track record for selecting undervalued companies. He was also cautious and searched continually for bargains. Bin Talal had a sharp mind and was an excellent deal maker, conducting negotiations in Arabic, English, and French.

Reputed to be an extremely hard worker, Bin Talal surrounded himself with a staff that shared this value. Bin Talal was a direct communicator and a demanding leader. Addicted to news, he traveled with a technology crew who kept him in touch with global developments no matter where he happened to be. Bin Talal also moved easily between the traditional Arab world and Western cultures. He lived primarily in Saudi Arabia, wore traditional Arab garb while he was there, and observed cultural and religious practices according to the laws and customs of the kingdom. At the same time, he traveled extensively across the globe, spoke American slang, and dressed in stylish business suits while working in the West.