NIG Prospectus - London Stock Exchange

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Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:18 pm – mac5 – 3776 Section 01 : 3776 Section 01NIG’s insurance policies may not be adequate and do not cover damage and losses arising fromacts of terrorism and related eventsNIG maintains insurance policies covering both its assets and employees in line with generalbusiness practices in the relevant industries and jurisdictions in which it operates, with policyspecifications and insured limits which NIG believes are adequate. Risks insured against includefire, lightning, flood, theft, vandalism and public liability. There are, however, certain types of losses(such as from wars, acts of terrorism or acts of God, business interruption, property risks and thirdparty (public) liability) that generally are not insured because they are either uninsurable or noteconomically insurable. NIG has purchased an industrial insurance policy but, should an uninsuredloss or a loss in excess of insured limits occur, NIG could lose capital invested in the relevantproperty, as well as anticipated future revenue and, in the case of debt that is with recourse toNIG, NIG may remain liable for financial obligations related to the relevant property. There can beno assurance that any such loss will not adversely affect NIG’s existing operations and therebyhave a material adverse effect on its business, financial condition, operating results and futureprospects and/or its ability to comply with the obligations under the Transaction Documents.Further, since the attacks on the United States on 11 September 2001, many insurance companieshave substantially increased their premiums. Insurance companies are also seeking to excludeinsurance risks and claims relating to terrorism or related activity. As a result, NIG’s insurancepolicies do not cover damages and losses arising from acts of terrorism or related events.Certain risks in relation to competition faced by NIGAs a holding company, NIG only faces limited direct competition which principally occurs whenNIG is seeking to make new investments. At the level of the Core Operating Businesses, however,NIG faces different levels of competition in each of the different business areas in which it isengaged. For example, the National Industries Company for Building Materials (K.S.C.C.)experiences a range of levels of competition in relation to its different businesses and products.The level of competition that NIG faces in each of its Core Operating Businesses may increase ordecrease over time, which could have an effect on NIG’s business, results or operations andfinancial condition.Any failure of NIG’s communications and information systems could adversely affect itsbusiness, including, in particular, its investment businessNIG’s business is dependent upon its communications and information systems and those of itskey service providers for forecasting its liquidity requirements, monitoring the performance of itsinvestments, making investment decisions and maintaining reliable accounting and processingdata. Any failure in, or interruption of, such systems could have a material adverse effect on NIG’sbusiness, results of operations and financial condition.NIG relies on its financial, accounting and other data processing systems especially in connectionwith the confirmation or settlement of transactions and the recording or accounting oftransactions. Any external information security breach or internal problem with security protectioncould materially interrupt NIG’s investment business or cause disclosure or modification ofsensitive or confidential information. Any such failure could result in material financial loss,regulatory actions, breach of client contracts, reputational harm or legal liability, any of which couldhave a material adverse effect on NIG’s business, results of operations and financial condition.The risk management procedures of NIG may be ineffectiveNIG has established risk management procedures in relation to the standard business risks that itfaces, including liquidity risk, market risk and currency risk. There is a risk that these proceduresmay fail or prove ineffective in certain circumstances, including the occurrence of presentlyunforeseen events, and this could have a material adverse effect on the business, results ofoperations and financial condition of NIG.8
Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:18 pm – mac5 – 3776 Section 01 : 3776 Section 01Any employee fraud, misconduct or improper practice could adversely affect NIGFraud, misconduct or improper practice by the employees of NIG could expose the relevantcompany and NIG to the risk of direct or indirect financial loss and damage to its reputation.NIG’s facilities could be exposed to catastrophic events, including terrorist attacks or war, overwhich NIG has no controlNIG’s facilities may be exposed to effects of natural disasters and other potentially catastrophicevents, such as major accidents, armed conflicts, hostilities and terrorist attacks. Althoughconstructed, operated and maintained to withstand certain of these occurrences, NIG’s facilitiesmay not be adequately protected in all circumstances. There can be no assurance that any suchoccurrences will not adversely affect NIG’s existing operations and thereby have a materialadverse effect on its business, financial condition, operating results and future prospects and/orits ability to comply with its obligations under the Transaction Documents.Foreign exchange risk exposureTo the extent that NIG’s revenues and costs are earned or incurred in different currencies, NIG willbecome subject to being adversely affected by exchange rate fluctuations. NIG may seek toreduce this risk through foreign currency hedging arrangements. There can be no assurance thatNIG will either be able to enter into such hedging arrangements or, if it does, that the hedgingarrangements will adequately protect it against all exchange rate fluctuations.NIG is subject to joint venture risksNIG may expand its operations in the future through jointly controlled entities and associatedcompanies. Co-operation and agreement among NIG’s joint venture partners on its existing or anyfuture projects are important factors for the smooth operation and financial success of suchprojects. NIG’s joint venture partners may (i) have economic or business interests or goals that areinconsistent with those of NIG, (ii) be unable or unwilling to fulfil their obligations under therelevant joint venture or other agreements or (iii) experience financial or other difficulties. Further,NIG may not be able to control the decision-making process of the joint ventures withoutreference to the joint venture partners especially if it does not have majority control of the jointventure.Factors relating to emerging marketsNIG has the majority of its operations and interests in the Middle East, including Kuwait.Specific risks in the Middle East that may have a material impact on the business carried on byNIG, its operating results, its cash flows and its financial condition include:• political and social instability;• general downturn in economic conditions;• external acts of warfare, civil clashes and terrorist activity;• natural disasters;• governments’ actions or interventions, including tariffs, protectionism and subsidies; and• regulatory, taxation and legal structure changes.Any unexpected changes in the political, social, economic or other conditions in countries in whichNIG carries on business may have a material adverse effect on NIG’s business, financial conditionand results of operations and may adversely affect NIG’s plans for international expansion andinvestment.9
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NIG Prospectus - London Stock Exchange

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