Nov 2020 WHY MOVE TO ?

1 Share context of the Regional Headquarters Attraction program

Shed light on 's 4 developments and forecast objectives of the Present Riyadh's unprecedented document growth and ambition

Align on next steps including clarification questions and potential support options

2 Ongoing projects worth $22B transforming Riyadh

Saudi Arabia is taking Riyadh is emerging as Riyadh envisions to be This document provides bold steps to become a the business and cultural the hub of regional HQs key elements of why vibrant and thriving center in Saudi Arabia for MNCs within MENA Riyadh is right place for nation by 2030 region regional HQs of MNCs

3 AGENDA

Why Saudi Why Success Next Arabia? Riyadh? stories steps

4 AGENDA

Why Saudi Why Success Next Arabia? Riyadh? stories steps

5 The Kingdom at a glance

Saudi Arabia is the largest economy in MENA and the 18th 34.3M ~50% 1.7% largest economy in the world

Total Population Population growth population1 under 301 rate1

4.4M $ 793B $23,140

Saudi labor Nominal GDP force2 GDP1 per capita1

1. 2019 3. Q1 2020 6 Source: World Bank database; General Authority for Stats KSA is a young and dynamic G20 economy 1st 2nd Population growth rate Lowest debt/GDP ratio (1.6%) over the next 5 years (22.8%) among G20 among G20 countries

5th ~4% p.a.

Largest foreign assets GDP growth over past reserves1 globally 10 years

5th ~30% Largest GDP per capita FDI stock2 as percentage of (PPP) among the G20 GDP in 2019

1. The International Monetary Fund (IMF) defines foreign reserves as external assets that a country’s monetary authority can use to meet the balance of payments financing needs, affect currency exchange rates in currency exchange markets and other related purposes 2. Foreign Direct Investment (FDI) stocks measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year 7 Source: IMF, World Bank, OECD Vision 2030 sets the blueprint for a vibrant, thriving, ambitious Saudi Arabia

Saudi Arabia today ... Vision 2030 builds on Saudi Heart of the Arab and Islamic worlds Arabia's pillars of competitive Global investment powerhouse advantage to deliver on three Hub connecting three continents key themes

1 A vibrant society 2 A thriving economy 3 An ambitious nation

8 AGENDA

Why Saudi Why Success Next Arabia? Riyadh? stories steps

9 50% 2.3M

Riyadh is the of Saudi Arabia’s non-oil Workforce business and GDP comes from Riyadh cultural center of the Kingdom 18th 4.5M

global city in population PPP-adjusted GDP under the age of 35

10 Riyadh megaprojects Roshn Al-Wediyan

Sports Boulevard 20+ mega projects Wadi Safar launched that will Riyadh Hub transform Riyadh as a KAFD KAFD Diriyah Gate Medical Air City-wide Developments global destination Village base

MiSK City King Salman King Abdulaziz Public Park Transportation project Capital Diplomatic Quarter district Riyad Riyadh Arts h Central Riyadh centra l Green Riyadh

Low-income Qiddiyah residential area Wadi Namar

King Abdullah Leisure international garden

Business

Residential

11 11 Most of Riyadh's world-class lifestyle and residential offering will be available by 2025

Offerings available in 2020 Offerings available by 2025 Diriyah Gate King Abdullah Financial District Other lifestyle offerings: • Professional urban setting", "live • Historic, cultural & lifestyle • Riyadh Hub work play environment" destination • 220K sqm retail, 110K sqm enter't, • Expected cost $20B • MiSK City 5,300 residences • Foundation stone laid in 2019 • Sports Boulevard • …

Diplomatic Quarter Qiddiya Other residential offerings: • Walkable and green surroundings • Center for Entertainment, Sports • Diplomatic Quarter expansion • High-end residential units and Arts • North Pole • Secured environment • 300+ facilities incl. F1 racing track, Six Flag theme park • Roshn • Expected cost $8B • Al Widyan • Central Riyadh Compounds King Salman Park • … • 20+ private compounds in Riyadh • World's largest park with 9.3 M • Privacy and security sqm green area and open spaces • Family amenities (pool, sports,…) • 12 K res. units, 7 museums, national theatre • Expected cost SAR 72B Construction already initiated

12 Riyadh has a vibrant cultural & entertainment scene…

Cultural Music Culinary World-class events concerts events sporting events

• Riyadh seasons: 3-month • MDL Beast: 3-day • Taste of World: 6-day • Formula E hosted mega event featuring over electronic music festival festival bringing world’s Nov. 2019 100 different events featuring international top chefs and restaurants • Dakar Rally hosted 2020 artists such as Tiesto, • Janadriyah National • Coffee & Chocolate David Guetta • Formula 1 planned 2021 Festival: Folk festival Exhibition: Largest including art shows, • Multiple concerts including coffee and chocolate • WWE wrestling event poetry, camel races, etc. K-pop band BTS at exhibition in the ME hosted 2020 Riyadh's King Fahd planned for Dec. 2020 International Stadium

13 … with multiple arts, cultural and shopping venues

Arts Culture and entertainment Shopping & dining

Museums Historical villages Malls National Museum Saqe Al Jazira Historical Diriyah Centria Mall Al Faisaliah Mall Masmak Museum Aviation Museum Ushaiger Heritage Village Riyadh Park Granada Center Al Turaif UNESCO Village Kingdom Center Art galleries Monuments Mono Gallery Naila Art Gallery Top Int'l restaurants Momo Coya Noqtah Studio Hewar Art Gallery Al Nozomi Nobu Concert halls King Abdulaziz Historical Center Petit La Maison King Fahad Cultural Center The Red Palace Traditional Souqs Libraries Janadriyah cultural & heritage Souq Al Zal Taibah Souq King Abdulaziz National Library festival venue Batha Souq Al Dirah Souq

14 Riyadh has a wealth of activities to be explored

Adventure Well being Adults & kids activities

Hiking Tracks Desert Camping Golf Courses Horseback Safari and Zoo Dance Studios Thummah Riyadh Golf Courses Riding Clubs Nofa Wildlife Park Move Studio Saad National Park Arizona Golf Resort Riyadh Zoo Tiny Dancer Red Sand Dunesa InterContinental Palms Salsa groups Dirab Golf & Country Club

Sand Sports Flight Schools Yoga Studios Walking tracks Recreational activity Bowling Sand Boarding KORE Salam Park Paintball Universal Bowling Center Dune Bashing OZ Yoga Wadi Hanifa Escape Rooms Intercontinental Bowling ATVs Desert Riding Soul Warrior Studio Zero Latency Yalla Bowling Bounce ME

15 State of the art business offering Expected completion year

King Abdullah King Salman Riyadh Integrated Logistics Riyadh Financial District Industrial Park Creative District Bonded Zone Digital District

ME's most economically World-class industrial and Globally distinctive live- World-class logistics Located in Diriyah Gate connected and logistic hub comprising work-play multi-lingual zone that will include Development, Digital culturally dynamic SEZ characteristics media and creative hub warehousing, fulfillment District as a spearhead to cosmopolitan center 705K sqm potential area , 560K sqm of office space, center, testing center, establish Riyadh as a 1M sqm office space, 65 incl. 3 industrial cities, dry 100K sqm F&B retail, 100K assembly center for high- global digital hub in the buildings, 50 iconic towers port, 1 railway network, sqm education space tech products, service Region and beyond center and repair hub It will be the center of public transportation and RHQs of all major KSA metro stations, land bridge rail line companies and banks

2020 2021 2023 2023 2023

16 Riyadh has a young population and skilled workforce

Riyadh population is young, with 78% of the population 55% of the population has completed secondary school below age of 40 or higher

65+ 204K Riyadh 60-64 155K 30 55-59 273K 50-54 453K

45-49 644K 19 40-44 870K 15 15 35-39 965K 11 30-34 843K 25-29 840K 4 5 20-24 614K 1 .3 15-19 551K

10-14 639K

PHD

Master Primary

5-9 718K Illiterate

Diploma

University University

0-4 678K Secondary Intermediate

78% of Riyadh population write and Read 55% of Riyadh population Source: GASTAT 2018 data for population, 2017 data for education level 17 Note: Primary education lasts 6 years (i.e. 6-12 years), intermediate education lasts 3 years (i.e. 12-15 years) and secondary education lasts 3 years (i.e. 15-18 years) 80% End of 2020 complete expected start of operations Riyadh Metro is the largest metro project in Links major 6 the Middle East landmarks major lines incl. Airport, KAFD

176 3.6M km long passengers daily

18 Source: Riyadh Metro; Desktop research Riyadh's airport is growing quickly as a domestic and international hub 70M+ 200+ passengers expected city destinations expected in 2030 (40M int'l) in 2030

19 Source: Project team analysis Preferred tax rate 0% corporate tax for 50 years

Relaxed Saudization requirements Attractive Waiver of Saudization requirements incentive (for at least 10 years) package being Simpler commercial license Faster license for companies developed in Law application/disapplication Riyadh's Application/disapplication of KSA laws based on KAFD SEZ investor needs Preferential procurement Potential favoring in government entities' tenders/contracts

20 Easier work permit Several initiatives Revamped work permit procedure for being developed to expats incl. spouses ease doing business End-to-end relocation across KSA Access to a dedicated team offering end-to-end relocation services

21 Facilitate the relocation of companies to KSA End-to-end relocation services Offer range of end-to-end services through a provided by dedicated relationship manager Hala 360° program Support company relocation across three main areas: • Corporate services (e.g. office set-up and operations) • Personal services (e.g. relocation and lifestyle) • Concierge services (e.g. travel and reservations)

22 Program provides 3 main services to investors, through a dedicated relationship manager

Corporate services 1 • Office set-up: Handle all requirements associated with setting up an office (e.g. finding office space, renting, furnishing and office equipment) • Operational set-up: Assist and provide guidance on requirements and providers to effectively run their office (e.g. bank account opening, telecoms and logistic providers) • Identify and avail incentives: Support company to obtain entitled incentives from entities such as HRDF (50% of Saudi talent salaries for 3 years) or Monshaat (Reimburse government fees) Personal services 2 • Move/departure support: Offer a full set of services to move belongings to Saudi Arabia hassle-free Relationship (including pets, cars, furniture and other home equipment) • Home/school search: Assist in identifying, shortlisting and securing the right home and schools to manager ensure families smoothly settle in (including support to register property, connect utilities) • "Settling in" services: Provide guidance on other services to ensure smooth transition based on individual need (e.g. language/cultural courses, securing home personnel, bank accounts, support for job search of spouses etc.) Concierge services 3 • Facilitated travel: Provide VIP meet & greet services and access to "Executive Lounges" at KSA airports to ensure a smooth and stress-free journey • Vehicle leasing: Access to "turnkey" vehicle leasing solutions for a hassle-free experience • Lifestyle services: Arrange lifestyle and entertainment experiences based on individual request (e.g. tours, restaurant bookings, shopping recommendations, organizing special gifts, etc.)

23 MISA account manager to remain in place for specific needs

Investor support 4 • Government relations: Support investor to effectively navigate KSA government ecosystem (from advice, to supporting investor in obtaining required authorizations/licenses, and escalation if needed) • Quality assurance: Engage with investors to ensure satisfaction and ensure government/investor MISA services are being delivered as planned • Research & Development: Collect perspectives on existing services and pro-actively offer new services account to facilitate the investor journey manager

24 AGENDA

Why Saudi Why Success Next Arabia? Riyadh? stories steps

25 Some of the greatest global brands investing in Saudi Arabia

26 …and those who benefitted from KSA's thriving economic landscape

General Electric Dow Chemicals Over the last decade we have made a tremendous amount of progress in Saudi Arabia is central to our operations in the Middle East with some of the Kingdom helped by good guidance across the government, we believe our largest investments such as Sadara and the Middle East Innovation that we have gotten a good return on our investment for our shareholders Center (MEIC) situated in the kingdom too John G.Rice Jim Fitterling Vice Chairman GE Chairman and Chief Executive Officer Dow Chemical company

Honeywell PepsiCo Honeywell has a proud history in Saudi Arabia, and our ongoing The country is facilitating the simplicity of doing business and that always commitment to our partners in the Kingdom is key to our success in the helps with our investment decisions. Companies like ours like simplicity, region. From delivering the latest technologies to Saudi Arabia’s industries, and like the incentives to keep growing and create more jobs 27 to providing distinct training and professional development opportunities for Ramon the local workforce, Honeywell is firmly committed to Saudi Vision 2030 and Laguarta the national economic diversification goals Chief Executive Officer, PepsiCo Darius Adamczyk Chief Executive Officer of Honeywell

27 AGENDA

Why Saudi Why Success Next Arabia? Riyadh? stories steps

28 Recap: A thriving quality Exceptional of life talent pool Riyadh is set to become the business hub of MENA

Lucrative business World-class product offering mobility

29 We are working on exciting initiatives to make Riyadh your new home

Call us to discuss Discuss potential Close discussions further about these incentive options and begin the exciting initiatives through follow-up exciting journey meetings to Riyadh!

30 Thank you

31 Appendix 1: Frequently Asked Questions

32 Frequently Asked Questions

How is RHQ defined?1 Can companies set up their RHQs outside KAFD and get all the offered 5 criteria used to define RHQ incentives? • Credible MNC with substance: Parent company is credible, with a Only companies that are "first movers" in setting up their RHQ in KAFD SEZ clear set of operations and/or assets registered under its name would be eligible to get all offered incentives • Presence of a physical office: Individual physical address for the office of the company What is the scope of the 0% corporate tax? • Center of administrative power over the region: Office sets the strategic direction and has the P&L responsibility over the region Corporate income tax exemption for 50 years on company’s operating profit. • Base for key support functions in the region: Clear operations with All RHQs registered in SEZ are eligible (different from entity in base economy planned hires or transfers to cover specific support functions if relevant). Scope includes activities of the company registered in SEZ (This • Proof of commitment: Tangible and significant commitment to increase is a different entity from the company in the base economy). 5% withholding jobs in KSA tax on invoices payable by base economy entities to SEZ entities

What is KAFD? A mixed-use Central Business District, KAFD is envisioned to provide all the benefits of an SEZ. Expected to complete by end of 2020, KAFD will offer a plethora of office towers and workspaces combined with best-in-class residential, retail and entertainment offering

1. Preliminary, pending formal approval 33 Appendix 2: KAFD overview

34 KAFD SEZ is conveniently located in Riyadh City

Highway 407 The KAFD SEZ is conveniently located Highway 537 in the Northwest of Riyadh City King Khalid International Airport Highway 657 Directly connected to Riyadh Metro and 3 main highway lines

10 Drive to Ministry of Investment (MISA) min

12 Drive to Kingdom Center, Riyadh’s iconic min skyscraper

Riyadh Metro 15 Drive to Diriyah Historical City min Diriyah Historical City 20 Drive to Diplomatic Quarters min MISA Kingdom Center 25 Drive to King Khalid International Airport min Diplomatic Quarters 35 KAFD SEZ is housed in a premium urban development…

King Abdullah Financial District (~1.6 million sqm2), where the SEZ is located, is an architectural landmark inspired by Saudi Arabia’s natural wonders, reflecting the Kingdom’s desert valleys and riverbeds in an urban landscape

Monorail The Leaf Wadis Skywalk Data Center Core of the destination that features business, leisure, lifestyle and hospitality facilities King Fahad Road

Grand Park Area 6 Earmarked to host a retail and entertainment village,

Takhassusi / a world-class performing arts venue, and open Grand Mosque Zaha Hadid Metro Station Thumamah Road plazas with lush greenery and water features

Financial Plaza

KAFD X Conference Center Area 7 Designed to offer additional residences and will be home to infrastructure and utility support services Northern Ring Road 36 … with a diverse mix of real estate assets to engender a dynamic lifestyle destination in Riyadh A cityscape of 56 towers and 9 buildings with:

Primary use and % total office stock

Area 1 Financial District 59% 1 M SQM Area 2 Private Offices 7% Office Area 3 Tech and Telecoms 3% GLA Area 4 Corporate Offices 8% Area 5 Ministries & Suppliers 22%

220K SQM 5,300 Retail and Premium F&B GLA residences

110K SQM 9 Hotels Entertainment 3,000 GLA keys

37 Potential real estate offerings for incoming tenants

Parcel Completion Total Area Office Full floor Split floor number date (sqm) Type rent (/sqm) rent (/sqm)

2.07 Apr-21 12,000 Shell & Core Up to 1,900 Up to 2,200

2.10 Jan-21 4,500 Shell & Core Up to 1,900 Up to 2,200 Details in next slide

1.15 May-21 76,800 Shell & Core Up to 2,100 Up to 2,400

Available 3.05 Complete Shell & Core 2,050 2,050 = 6,000

TOTAL 99,300

38 Options for corporate tenants

Building 2.07 Building 2.10

Zone Area 2 – Private offices Area 2 – Private offices

Details Floors: Sub-buildings: Floors: Sub-buildings: • Office: 8 • Commercial – 2 • Office: 7 • Commercial – 2 • Retail: 2 • Residential – 1 • Retail: 3 • Residential – 1

Office FLA1 740-930 sqm (each floor can be divided into 2 units) 560 sqm, single tenant per floor

Total area 10,500 sqm of leasable area 3,800 sqm of land area

Est. Completion June 2021 May 2021

Average rent2 SAR 2,100 /sqm SAR 2,100 /sqm

Tenants in zone PWC, KAFD DMC (2.14), Qiddiyah, Centre for Governance PWC, KAFD DMC (2.14), Qiddiyah, Centre for Governance

Other features Adjacent to KAFD metro, dedicated car park via skywalks, Adjacent to KAFD metro, Adjacent to Wadi Entertainment Plaza, common courtyard/ shopping area connected to Wadi on B1, 3 side-walk connections 1 Floor Leasing Area 2 Inclusive of service charge, exclusive of VAT and are average and subject to change according to floor, unit and location within the building Note: All options are in shell and core condition 39