Related Party Transactions

Related Party Transactions

The written policy for conflict of interest within Almarai’s Corporate Governance Code governs conflicts of interest and addresses possible conflict situations for Directors, Executives, and Shareholders. The General Assembly shall be notified of any conflict of interest where requests for approval shall be raised.

During the normal course of its operations, Almarai had the following significant transactions with related parties on an ‘arm’s length basis’ on an annual basis:

Select year to view the related party transactions

Dealings during the year 2016

Member Nature of Dealing Amount
SAR ‘000
Period Conditions
Chairman / HH Prince Sultan bin Mohammed Bin Saud Al Kabeer  
Al Kabeer Farms – Forage Management Contract 864 One Year Commercial condition prevailing in the market
Al Kabeer Farms – Forage Procurement Feed 53,530 One Year Commercial condition prevailing in the market
Rental Thodhia farm – Dairy Lease Contract 813 One Year Commercial condition prevailing in the market
Al Nafoura Catering Catering Services 309 One Year Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Insurance 113,704 2016 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Insurance 108,598 2017 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Invest in instruments 3,000 2012 : 2019 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Payment of Sukuk Finance Charges 73 2016 Commercial condition prevailing in the market
Chairman / HH Prince Sultan bin Mohammed Bin Saud Al Kabeer and HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer  
Yamama Cement Company Invest in instruments 50,000 2013 : 2018 Commercial condition prevailing in the market
Yamama Cement Company Payment of Sukuk Finance Charges 1,179 2016 Commercial condition prevailing in the market
HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer  
Mobile Telecommunication Company Saudi Telecommunication services 303 2016 Commercial condition prevailing in the market
Mr. Abdulrahman bin Abdulaziz Al Muhanna  
Rent of Land For Distribution Center in Sharjah Lease Contract 173 2001 : 2021 Commercial condition prevailing in the market
Al Jazirah Corporation for Press, Printing and Publishing Services of Publication 357 One Year Commercial condition prevailing in the market
Arab Company for Agricultural Services (ARASCO) Procurement Feed 6,349 One Year Commercial condition prevailing in the market
Savola Group  
Panda Retail Company Product Sales 612,686 One Year Commercial condition prevailing in the market
United Sugar Company Sugar Purchasing 106,991 One Year Commercial condition prevailing in the market
Afia International Company Soya Bean Oil Purchasing 76 One Year Commercial condition prevailing in the market
Engr. Rayan bin Mohammed Fayez
J.P. Morgan saudi arabia Saudi Arabia Limited Financial Services 1,046 Since  October 5, 2016 Commercial condition prevailing in the market
J.P. Morgan saudi arabia Saudi Arabia Limited Bank financing 375,250 2017 Commercial condition prevailing in the market
Mr. Suliman bin Abdulqader Al Muhaideb  
Saudi British Bank Bank services 31,136 One Year Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 100,000 2015 : 2022 Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 150,000 2013 : 2018 Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 150,000 2013 : 2020 Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 50,000 2012 : 2019 Commercial condition prevailing in the market
Saudi British Bank Bank financing 692,569 2016 : 2027 Commercial condition prevailing in the market
Saudi British Bank Payment of Sukuk Finance Charges 10,664 2016 Commercial condition prevailing in the market
Engr. Mosa bin Omran Al Omran and Mr. Bader bin  Abdullah Al Issa  
Banque Saudi Fransi Bank services 19,093 One Year Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 100,000 2015 : 2022 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 200,000 2013 : 2018 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 100,000 2013 : 2020 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 90,000 2012 : 2019 Commercial condition prevailing in the market
Banque Saudi Fransi Bank financing 415,000 2016 : 2019 Commercial condition prevailing in the market
Banque Saudi Fransi Payment of Sukuk Finance Charges 11,180 2016 Commercial condition prevailing in the market

Dealings during the year 2015

Member Nature of Dealing Amount SAR ‘000 Period Conditions
Chairman / HH Prince Sultan bin Mohammed bin Saud Al Kabeer  
Al Kabeer Farms – Forage Management Contract 864 One Year Commercial condition prevailing in the market
Al Kabeer Farms – Forage Procurement Feed 39,663 One Year Commercial condition prevailing in the market
Rental Thodhia farm – Dairy Lease Contract 813 One Year Commercial condition prevailing in the market
Al Nafoura Catering Catering Services 121 One Year Commercial condition prevailing in the market
Chairman / HH Prince Sultan bin Mohammed bin Saud Al Kabeer and HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer  
Yamama Cement Company Invest in instruments 50,000 2013 : 2018 Commercial condition prevailing in the market
Yamama Cement Company Payment of Sukuk Finance Charges 920 2015 Commercial condition prevailing in the market
Chairman / HH Prince Sultan bin Mohammed bin Saud Al Kabeer and Engr. Nasser Mohammed Al Muttawa  
Arabian Shield Cooperative Insurance Company Insurance 96,561 2015 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Insurance 104,723 2016 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Invest in instruments 3,000 2012 : 2019 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Company Payment of Sukuk Finance Charges 30 2015 Commercial condition prevailing in the market
HH Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer  
Mobile Telecommunication Company Saudi Telecommunication services 13 2015 Commercial condition prevailing in the market
Mr. Abdul Aziz Ibrahim Al Muhanna  
Rent of Land For Distribution Center in Sharjah Lease Contract 173 2001 : 2021 Commercial condition prevailing in the market
Mr. Abdulrahman bin Abdulaziz Al Muhanna and Engr. Nasser Mohammed Al Muttawa  
Al Jazirah Corporation for Press, Printing and Publishing Services of Publication 436 One Year Commercial condition prevailing in the market
Savola Group  
Azizia Panda United Product Sales 566,733 One Year Commercial condition prevailing in the market
Savola Packaging Systems Co. Ltd. Packaging Purchasing 28,197 1/1/2015 to 17/3/2015 Commercial condition prevailing in the market
United Sugar Company Sugar Purchasing 108,380 One Year Commercial condition prevailing in the market
Afia International Company Soya Bean Oil Purchasing 41 One Year Commercial condition prevailing in the market
Mr. Suliman Abdulkader Al Muhaideb  
Saudi British Bank Bank services 25,812 One Year Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 100,000 2015 : 2022 Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 150,000 2013 : 2018 Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 150,000 2013 : 2020 Commercial condition prevailing in the market
Saudi British Bank Invest in instruments 50,000 2012 : 2019 Commercial condition prevailing in the market
Saudi British Bank Bank financing 1,175,494 2015 : 2021 Commercial condition prevailing in the market
Saudi British Bank Payment of Sukuk Finance Charges 6,645 2015 Commercial condition prevailing in the market
Engr. Mosa Omran Mohammed Al Omran and Mr. Ibrahim Mohammed Al Issa  
Banque Saudi Fransi Bank services 19,714 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 100,000 2015 : 2022 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 200,000 2013 : 2018 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 100,000 2013 : 2020 Commercial condition prevailing in the market
Banque Saudi Fransi Invest in instruments 90,000 2012 : 2019 Commercial condition prevailing in the market
Banque Saudi Fransi Bank financing 781,667 2015 : 2019 Commercial condition prevailing in the market
Banque Saudi Fransi Payment of Sukuk Finance Charges 7,083 2015 Commercial condition prevailing in the market

Dealings during the year 2014

Member Nature of Dealing Amount SAR Million Period Conditions
Notes: Approved in the General Assembly meeting by the company’s shareholders on 5th April 2015
Chairman / HH Prince Sultan bin Mohammed Bin Saud Al Kabeer and Engr. Nasser Mohammed Al Muttawa
Al Kabeer Farms – Forage Management Contract 1 One Year Commercial condition prevailing in the market
Al Kabeer Farms – Forage Procurement Feed 35 One Year Commercial condition prevailing in the market
Rental Thodhia farm – Dairy Lease Contract 3 One Year Commercial condition prevailing in the market
Yamama Cement Company Invest in Instruments 50 2013 : 2018 Commercial condition prevailing in the market
Yamama Cement Company Payment of Sukuk Finance Charges 1 2013 : 2018 Commercial condition prevailing in the market
Chairman / HH Prince Sultan bin Mohammed Bin Saud Al Kabeer and Engr. Nasser Mohammed Al Muttawa
Arabian Shield Cooperative Insurance Co. Insurance 66 2014 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Co. Insurance 84 2015 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Co. Invest in Instruments 3 2012 : 2019 Commercial condition prevailing in the market
Arabian Shield Cooperative Insurance Co. Payment of Sukuk Finance Charges 0.1 2012 : 2019 Commercial condition prevailing in the market
Mr. Abdul Aziz Ibrahim Al Muhanna
Rent of Land For Distribution Centre in Sharjah Lease Contract 0.2 2001 : 2021 Commercial condition prevailing in the market
Savola Group
Azizia Panda United Product Sales 422 One Year Commercial condition prevailing in the market
Savola Packaging Systems Co. Ltd. Packaging Purchasing 167 One Year Commercial condition prevailing in the market
United Sugar Co. Sugar Purchasing 105 One Year Commercial condition prevailing in the market
Afia International Company Soya Bean Oil Purchasing 4 One Year Commercial condition prevailing in the market

Dealings during the year 2013

Member Nature of Dealing Amount SAR Million Period Conditions
Notes: Approved in the General Assembly meeting by the company’s shareholders on 2nd April 2014
Chairman Prince Sultan bin Mohhamed bin Saud Al Kabeer
Al Kabeer Farms – Forage Contract Management and Procurement Feed 45 One Year Commercial condition prevailing in the market
Rental Thodhia Farm – Dairy Lease Contract 1 One Year Commercial condition prevailing in the market
Arabian Shield Insurance Co. Insurance 54 One Year Commercial condition prevailing in the market
Mr. Abdul Aziz Ibrahim Al Muhanna
Rent of Land For Distribution Centre in Sharjah Lease Contract 0.2 2001 : 2021 Commercial condition prevailing in the market
Savola Group
Savola Group Product Sales 422 One Year Commercial condition prevailing in the market
Savola Packaging Systems Co. Ltd. Packaging Purchasing 167 One Year Commercial condition prevailing in the market
United Sugar Co. Sugar Purchasing 105 One Year Commercial condition prevailing in the market
Afia International Company Soya Bean Oil Purchasing 4 One Year Commercial condition prevailing in the market

Dealings during the year 2012

Member Nature of Dealing Amount SAR Million Period Conditions
Notes: Approved in the General Assembly meeting by the company’s shareholders on 5th April 2013
Chairman Prince Sultan bin Mohhamed bin Saud Al Kabeer
Al Kabeer Farms – Forage Contract Management and Procurement Feed 50 One Year Commercial condition prevailing in the market
Rental Thodhia Farm – Dairy Lease Contract 1 One Year Commercial condition prevailing in the market
Arabian Shield Insurance Co. Insurance 46 One Year Commercial condition prevailing in the market
Mr. Abdul Aziz Ibrahim Al Muhanna
Rent of Land For Distribution Centre in Sharjah Lease Contract 0.2 2001 : 2021 Commercial condition prevailing in the market
Savola Group
Savola Group Product Sales 376 One Year Commercial condition prevailing in the market
Savola Packaging Systems Co. Ltd. Packaging Purchasing 105 One Year Commercial condition prevailing in the market
United Sugar Co. Sugar Purchasing 120 One Year Commercial condition prevailing in the market
Afia International Company Soya Bean Oil Purchasing 10 One Year Commercial condition prevailing in the market

Dealings during the year 2011

Member Nature of Dealing Amount SAR Million Period Conditions
Notes: Approved in the General Assembly meeting by the company’s shareholders on 2nd April 2012
Chairman Prince Sultan bin Mohhamed bin Saud Al Kabeer
Al Kabeer Farms – Forage Contract Management and Procurement Feed 50 One Year Commercial condition prevailing in the market
Thodhia Farm for feed Procurement Feed 3 One Year Commercial condition prevailing in the market
Rental Thodhia Farm – Dairy Lease Contract 1 One Year Commercial condition prevailing in the market
Arabian Shield Insurance Co. Insurance 46 One Year Commercial condition prevailing in the market
Mr. Abdul Aziz Ibrahim Al Muhanna
Rent of Land For Distribution Centre in Sharjah Lease Contract 0.2 2001 : 2021 Commercial condition prevailing in the market
Savola Group
Savola Group Product Sales 350 One Year Commercial condition prevailing in the market
Savola Packaging Systems Co. Ltd. Packaging Purchasing 55 One Year Commercial condition prevailing in the market
United Sugar Co. Sugar Purchasing 117 One Year Commercial condition prevailing in the market

Dealings during the year 2010

Nature of Transaction Nature of Dealing Amount SAR Million Period Conditions
Notes: Approved in the General Assembly meeting by the company’s shareholders on 3rd April 2011
Major Shareholder Sales 375 One Year Commercial condition prevailing in the market
Major Shareholder Procurement 194 One Year Commercial condition prevailing in the market

Dealings during the year 2009

Nature of Transaction Nature of Dealing Amount SAR Million Period Conditions
Major Shareholder Sales 257 One Year Commercial condition prevailing in the market
Major Shareholder Procurement 191 One Year Commercial condition prevailing in the market

Dealings during the year 2008

Nature of Transaction Nature of Dealing Amount SAR Million Period Conditions
Major Shareholder Sales (155) One Year Commercial condition prevailing in the market
Major Shareholder Procurement 186 One Year Commercial condition prevailing in the market

Dealings during the year 2007

Nature of Transaction Nature of Dealing Amount SAR Million Period Conditions
Major Shareholder Sales 106 One Year Commercial condition prevailing in the market
Major Shareholder Procurement 174 One Year Commercial condition prevailing in the market

Dealings during the year 2006

During the year Sales to related parties amounted to SAR 80.4 million, while Purchases amounted to SAR 158.4 million.

Dealings during the year 2005

During the year Sales to related parties amounted to SAR 60.5 million, while Purchases amounted to SAR 146.7 million.