An intensive performance analysis of funds managed by Saudi banks in various markets, based on available data as of December 2007

1. Comparative Analysis Report on the performance of Shariah-Compliant & Conventional Equity Funds managed by Saudi banks in various markets Prepared by Majid Dajani December 2007

2. Criteria Only funds listed on Tadawul website were included Funds launched beyond January 1st 2007 were excluded Real Estate Funds & Balanced Funds (which mix Equity & Commodities) were excluded Some funds have been reclassified i.e. Japanese equity specific funds have been moved from Global Equity Funds Category (as listed on Tadawul website) to Asian Equity Funds Category

3. Drawbacks Although must of the funds are priced in either US$ or SAR (which is pegged to the US$, therefore there is no FOREX risk), some of the funds are priced in other currencies depending on the market they cover, such as £, € & ¥. The returns of funds priced with currencies other than US$ & SAR do not reflect the appreciation in the values of those currencies against the Dollar & Riyal. Some of the funds (both local & international) are sector-specific. Shariah-Compliant funds do not deal normally in the equity of financial institutions, which imply that comparison is not under equal standards. The choice of bench mark indices was totally up to our own selection.

4. Bench Marks

5. Definitions

6. Saudi Equity Market - 1

7. Saudi Equity Market - 2

8. Global Equity Markets - 1 Priced in €

9. Global Equity Markets - 2 Priced in €

10. American Equity Markets

11. European Equity Markets Priced in € Priced in £

12. Asian Equity Markets - 1 Priced in ¥

13. Asian Equity Markets - 2

14. Arab Equity Markets - 1 Priced in KD

15. Arab Equity Markets - 2

16. Top & Bottom 5 Top 5 best performing funds Bottom 5 worst performing funds

17. Best Fund Managers Note: The more funds the manager has the better chance to have a high ranking.

18. Risk & Return

19. Average Returns

20. Thank you. Majid Dajani majiddajani@yahoo.com