2 Nesma — 40 Years of Impact

© 2020 Copyright Nesma. All rights reserved. TABLE OF CONTENTS

Leadership Messages 2

Reflections on Our Founder 4

Nesma at a Glance 6

Business 14

People 26

Community 38

Looking Forward 52 Leadership Messages

Faisal Alturki President

2019 marks forty years since Tata Group (Nesma Tata), Our Vision my father, Saleh Ali Al-Turki, among others. Through these set out to establish a business partnerships, we have contributed in what he believed to be the to the introduction of high- To be the most most promising and competitive profile solutions and services respected industries for Saudi Arabia’s in the Kingdom. For instance, future: Engineering, Services, our partnership with Telecom diversified and Marketing. Highlighting the Australia kept Saudi Arabia’s company in our local focus of this business, he telecommunications networks prefaced the selected industry working through the Gulf War; countries names with the term “National,” NESMA Internet introduced DSL and NESMA was born. internet to the Kingdom; and the of operation GCC’s first branded shamagh (the Over the decades, the company traditional Arab male headdress) expanded into a variety of other to reflect on our history, values, was introduced by Nesma sectors, growing in parallel with and principles which have Shaheen in 1996. When our the new opportunities offered continuously guided our founders esteemed clients most needed by the Kingdom’s diversifying and leadership team these past us, Nesma & Partners fortified economy. Nesma’s footprint now forty years. Today, our vision – to Jeddah with dams and storm spans the construction; power be the most respected diversified water drainage to prevent deadly and energy; oil and gas; real company in our countries of floods, and Nesma International estate and property management; operation – and our core values Water & Energy delivered the hospitality and tourism; – quality, reliability, innovation, technology and know-how to operations and maintenance; value-for-money, and a sense of critically enhance the water port, marine and shipping competitive challenge – remain as supply in the Riyadh area. services; aviation and logistics; important as ever. and telecommunications and IT Above all, throughout these With Vision 2030 guiding the industries. We have also entered past four decades, we have path for the Kingdom in the several new geographic markets maintained our resolve to deliver coming decade, we want to since 1997, including Egypt, reliable, high-quality products and thank all our partners, suppliers, Turkey, the UAE, and Croatia. services with business integrity. company leaders, employees, Our relationships with our clients, Throughout our history, we have and community stakeholders for customers, and banking partners been privileged to join forces with being part of our journey, and we remain of utmost importance, leading international companies look forward to continuing to build along with our commitments such as Pan Am World Services on our shared 40-year legacy well to our employees and the (PANNESMA), the Port of into the future. communities in which we operate. London Authority (National Port Services), DHL Global Forwarding This publication, 40 Years of (Namma Cargo), and, recently, Impact, is an opportunity for us

2 Nesma — 40 Years of Impact Noura Alturki Vice President

In August 2018, six months their lives, their children, their This unique ahead of our 40th anniversary, plans, and, at the same time, His Excellency Saleh Al-Turki to share his vision and goals culture, along was appointed Mayor of Jeddah, for the company. As a result, with Nesma’s and Nesma Holding achieved a managers and staff across all new milestone: succession from levels have had the opportunity values, remains the first to a second generation to internalize and embody the of leadership. It proved a values that shaped both our the cornerstone smooth transition, thanks to Founder’s personality and of the company’s Nesma’s existing foundation of Nesma’s culture. good governance – particularly reputation This unique culture, along with at the Board level – and the Nesma’s values, remains the and success. presence of strong, professional cornerstone of the company’s management at our subsidiary reputation and success. As the companies. values in our interactions with new Board of Directors picks colleagues, clients, and the This positive experience has up the torch of leadership, we community. renewed our commitment to have the same responsibility implementing an even stronger to preserve and instill our core During a time when change is system of governance across values and founding culture continuous, and in a business the Nesma Group through among new generations and that endlessly evolves, there supporting high functioning joiners across the evolving and is nothing more important boards that demonstrate expanding Nesma family. than ensuring these guiding forward thinking, innovation, principles are as alive and well To do so in an organization as and transparency; to overseeing in the Nesma community for the large and diversified as ours, a workforce characterized by next 40 years as they have been featuring multiple industries accountability, inclusiveness, since the company was founded and geographies, requires that and diversity; and, finally, to 40 years ago. systems and processes are modeling good corporate put in place that ensure the citizenship in the communities adoption and perpetuation of around us. our values, even as we continue Throughout the first forty years to grow and prosper. From our of the company, many Nesma National Day celebrations to employees enjoyed personal the Nesma Insider, from our interactions and meaningful various employee forums to relationships with our Founder our business ethics training and President, who seized every programs, we will focus on opportunity to talk directly with empowering each one of us staff of all levels, to ask about here at Nesma to embody our

Leadership Messages 3 Reflections on Our Founder

His Excellency Saleh Al-Turki

In 1979, at a time when modern In addition to growing the Finish the project on Saudi-based business and company from its first operation “ time, do the best you industry was in its formative and maintenance project, stages, His Excellency Saleh to the large and diversified can, and the clients Al-Turki had a vision to build an holding company it is today, His and profit will innovative Saudi company that Excellency Saleh Al-Turki has follow. was capable of meeting the also served the broader Saudi — His Excellency diverse needs of the rapidly- business community and held ” Saleh Al-Turki growing Kingdom. With a trusted positions in social welfare profound knowledge of the and education. Notably, he has a moment to recognize and honor country, and insight into the been Chairman of the Jeddah His Excellency Saleh Al-Turki, opportunities presented by the Chamber of Commerce, the whose vision, determination, and Kingdom’s development goals, Council of Saudi Chambers of support of the Nesma Group he set out to build a company Commerce, the Al-Birr Society CEOs and executives played that would be widely respected for Orphans, and the Tarahom such a crucial role in making our for its quality, reliability, and Society for prisoners’ welfare. success a reality, and whose know-how, while also prioritizing He has served on the boards of vibrant and charitable personality positive relationships with – the University of Prince Muqrin in acts as a legacy that will and meaningful advancement Medina, Dar Al-Hekma University, permanently inform our unique, prospects for – each and every Effat University, and the University familial culture. employee. of Business and Technology in Jeddah, as well as the Saudi Research Science Institute at King Honors and Awards Abdullah University for Science At Nesma, our sense and Technology. In 2010, he was • Al-Birr Society/ “ of ‘family’ is truly appointed Honorary Consul of Arab Orphan Day the most important the Republic of Austria, and in • Honorary Doctorate, thing. 2011 the Saudi Ministry of Social University of Mindanao, Affairs honored him as one of Philippines — His Excellency ” the Kingdom’s most important • Honorary Consul Saleh Al-Turki supporters of social work. He of the Republic is also a recipient of the King of Austria Salman Award for the Support His Excellency Saleh Al-Turki • King Salman Award of Young Entrepreneurs and the served as President and Prince Mohammad Bin Fahd • Prince Mohammed Bin Fahd Chairman of Nesma Holding Award for Service of Charitable Award until his appointment, under the Activities. leadership of King Salman bin Abdulaziz Al Saud, as Mayor of We cannot look back on Nesma’s Jeddah in August 2018. 40 Years of Impact without taking

4 Nesma — 40 Years of Impact Sheikh Saleh empowered me from the Having worked with Sheikh Saleh for such a “beginning, and his trust and the authority “long period of time, I have learned many things he gave me made me want to strive to from him and admire his business ethics and his succeed every day.” trust in his people.” — Rana Abdullah Zumai, Executive Manager, — Abdullah Al-Shahrani, Vice President, Corporate Corporate Communications

You always need someone who is a visionary to be the glue that holds the company “ together. Sheikh Saleh was the glue of the company. His thinking, his philosophy, and his vision are what made Nesma grow.” — Dr. Marwan Gholmieh, CEO, Nesma Trading

Sheikh Saleh is an intellectual person, Working with Sheikh Saleh studying“ society’s social and economic issues was “like graduating from the school of life. and trying to propose a solution to these He was like a parent, teacher, director, and dear normative problems.” friend, all rolled into one.” — Refaat Kamel, Assistant to the President — Mubarak Al-Shahrani, Chief Services Officer

Usually the focus of businessmen is short-term profit and loss, but not Sheikh Saleh. “ He was looking to, and investing in, the future…. His drive and his way of running the business made us all feel that nothing was impossible.” — Wadee Derar, CEO, Namma Cargo

Sheikh Saleh taught us, treat your employees “ well, treat your customers well, develop a sense of civic responsibility, and profits will follow.” — Mohammed Hammad, Executive Vice President

He is a leader and a teacher at the same time. I can’t forget that he has involved me “ in his management meetings since I was a student. He has a leadership style that encourages people to learn and to do the most perfect work.” — Sh. Abdulrazak Alturki, Director, Namma Cargo

Sheikh Saleh emphasizes transparency as Sheikh Saleh Al-Turki empowers you and “ the foundation and sustenance “ gives you his trust. of every company. ” ” — Eng. Imad Gholmieh, CEO, Nesma & Partners — Naif Alabeedi, General Manager

He knew everyone by name, and he greeted everyone with the same enthusiasm. “ Whether it was an office helper or an executive, it didn’t matter. If you ask anyone at Nesma, everyone will say the same thing: Everyone knows how much of a genius Sheikh Saleh is, but it is his personal side that was really most important.” — Mohammed Iqbal Khan, Group Finance Manager

Reflections on Our Founder 5 6 Nesma — 40 Years of Impact NESMA AT A GLANCE

1 — Chapter Title 7 Company Profile

Vision To be the most respected diversified company in all of our countries of operation.

Mission To bring innovative ideas to life, in business as well as society.

Values At Nesma, we share distinctive principles that define our company culture and determine how we manage and conduct our business. These principles are the cornerstone of how we think about our business practices and brands, and how we act towards our partners and our associates.

Quality Every service or product that we sell will be of the highest standard and meet or exceed customer expectations.

Reliability If we have made a commitment, we will get the job done.

Innovation We embrace change and encourage agile market strategies.

Value-for-money Customers will always get their money’s worth.

Sense of competitive challenge We thrive on competition and will make our presence felt in every industry we enter.

8 Nesma — 40 Years of Impact About Nesma

Nesma’s story begins in 1979, with Nesma’s Founder and long- Nesma at a Glance term President, His Excellency Saleh Al-Turki, discussing the future of business with three of his esteemed relations. Now, Founded: 40 years later, Nesma is one 14 February, 1979 of the largest employers in the Kingdom, conducting 12 billion Saudi Riyals (SAR) in annual business and generating 1979 2019 meaningful impact across the many communities we serve. 1 51 His Excellency Saleh Al-Turki set out to enter the world of operating entities and divisions business focused first and company in Saudi Arabia, foremost on quality and the in Saudi Arabia the United Arab Emirates, development and empowerment Egypt, Turkey, and Croatia of people – a business that would exemplify what it means to be a modern Saudi company and a good corporate citizen. 4 37,000 Looking at Nesma today, one employees employees identifies a company that outpaced its early ambitions. Nesma is a company delivering value, where employees feel at home, where Saudi youth have Sectors in which Nesma operates: an opportunity to gain invaluable technical knowledge and business skills, where people with disabilities find meaningful work and purpose, and where the interests of the broader community are honored and Engineering and Water and Business and Transportation supported. Construction Energy Consumer and Marine This is the legacy of Nesma’s Services Services 40 Years of Impact.

Materials and Technology Retail and Investment and Manufacturing Consumer Finance Products

Nesma At A Glance 9 Nesma’s Sustainability Commitments

Sustainability and responsible development are at the core of how Nesma does business and, as a result, Nesma works hand-in-hand with many social and governance partners and programs, locally and regionally.

Pearl Vision Initiative 2030

Nesma is a Pearl Initiative partner, and fully From the beginning, Nesma’s vision and mission embraces the Initiative’s mission of good have been closely aligned to what would become governance, transparency, and accountability the Saudi Vision 2030 program. Nesma shares for all companies in the Gulf region. Endorsing and has continually supported Vision 2030’s call the idea that transparency and accountability are for creating a vibrant society, a thriving economy, absolutely necessary to continued investment, job and an ambitious nation. From diversification of creation, and sustainable economic growth across economic activity, to Saudization of the workforce, the region, Nesma regularly sends representatives Nesma sets out every day to be a partner in making to Pearl Initiative events, host events, and the Kingdom’s plan for national transformation a has instituted its own governance review and reality. improvement effort across all of its subsidiary and partner companies, in alignment to the Initiative.

Women’s Careers in the GCC

Nesma participated in the 2015 Pearl Initiative symposium, “Women’s Careers in the GCC.” Emphasizing his view that the only way to dramatically improve the quality of life for working people across the Kingdom was for more companies to hire and promote women, His Excellency Saleh Al-Turki noted that, “In Saudi Arabia, over the last ten years there have been tremendous achievements. The number of women being hired in good positions is improving and society is increasingly accepting the role of women.”

10 Nesma — 40 Years of Impact UN Sustainable Development Goals (SDGs)

In 2015, all United Nations Member States adopted the 2030 Agenda for Sustainable Development, a shared blueprint for peace and prosperity for people and the planet, now and into the future, and the 17 related UN Sustainable Development Goals (SDGs). Nesma’s main business operations align most strongly with the 11 SDGs listed here, while the company as a whole directly or indirectly endorses all 17 SDGs.

Gulf Region Qaderoon Business Disability Organization for Network

Women (GROW) The Qaderoon Network provides director in the Nesma Group, guidance, advice, and training, was appointed as Group Senior As a member, Nesma is and promotes best practices Sponsor. In this role, Nesma committed to the work of the for employers who want to fully endorses and works to Gulf Region Organization recruit and retain employees implement Qaderoon’s main goal for Women (GROW), started with disabilities. Nesma joined of providing educational and by Saudi Aramco in 2018 to the network as a Founder and employment opportunities for promote female development Gold Member in 2014, and the disabled. and employment opportunities Sheikh Abdulrazak Alturki, a through meaningful strategic interventions.

Nesma’s Good The key goals of the governance initiative are to: Governance • establish the main corporate principles Initiative and values; Inspired by the work of the Pearl Initiative, Nesma has • uphold business ethics; undertaken a company- wide review of governance • maintain a healthy and secure work policies, with the goal of achieving consistency environment; and, of transparency and accountability across all • comply with all established rules and its operations. regulations.

Nesma At A Glance 11 Nesma Through the Decades

Since its founding in 1979, Nesma has made significant and lasting contributions to the Kingdom of Saudi Arabia, its employees, and the communities in which it operates. The company’s milestones and rich history attest to its resiliency and enduring impact.

1980

Construction business begins

February 1979 1979 Operation and maintenance services delivered NESMA is registered as a company

Port management and marine services provided

Telecom Australia partnership established

1990

Largest internet service provider by market share

First company acquired for Hajj and Umrah services

Biggest industrial project service provider by market share

12 Nesma — 40 Years of Impact Nesma issues first impact report

2020

2019 Nesma celebrates 40 years

2018 Company succession to second generation

Largest contract in company history received to construct King Abdulaziz Road in Makkah

Community project to support artists and fishermen established

Operations of container terminal at King Abdullah Port begin

Specialized construction-related training institute created

Electrical equipment factory purchased in Croatia

Airlines business established

2010

Ferry business in Turkey established

Community outreach projects in training and tailoring established

Support services business established for oil & gas industry

Franchise agreement for Jollibee Foods acquired

2000

Nesma At A Glance 13 14 Nesma — 40 Years of Impact BUSINESS

1 — Chapter Title 15 BUSINESS

A privately owned Saudi company, Nesma Holding maintains a diverse business portfolio of 51 companies, joint ventures and divisions operating in Saudi Arabia, the United Arab Emirates, Egypt, and Turkey.

Over the course of our 40-year history, These milestones could not be achieved Nesma, through its various subsidiaries, without visionary leadership and an has achieved a number of landmark unwavering, group-wide commitment to accomplishments. In partnership with quality. It has always been a core Nesma leading providers, Nesma offered principle – observed rigorously at every critical support services to the Saudi Nesma operating company – that if you Air Force, and helped develop world- put the client first and deliver quality class logistics, freight forwarding, every time, business and profits will and port services in the Kingdom. Our follow. The history of Nesma is a history telecommunications services kept the of fulfilling that promise: delivering the Kingdom’s networks operating through highest quality projects on time, on the dark days of the Gulf War, and later budget, every time. were the first in the country to offer DSL Internet. More recently, Nesma subsidiaries completed a critical flood Nesma will deliver on time, prevention program in Jeddah, assumed “ do a good job, and, when operating control of the container obstacles inevitably come terminal at King Abdullah Port, built the King Abdulaziz Road in Makkah, and up, we will work together outfitted four National Guard Health to solve them. Affairs Specialized Hospitals. With its — Faisal Alturki, President hard-earned expertise in developing ” water, city, port, road, and transportation Other core principles include responsible infrastructure, Nesma continues to governance and the development of contribute to the emergence of Saudi diverse business competencies, all Arabia as a regional and global leader. of which shape Nesma’s approach to business and its involvement in high visibility projects, and continue to drive sustainable growth.

16 Nesma — 40 Years of Impact Responsible Governance

Nesma’s responsible Nesma Governance Structure business practices are the pillars of our Nesma Holding various enterprises. Board of Directors We maintain a culture of accountability and good governance which has resulted in a trusted reputation with Audit & Finance Executive President customers, partners, Committee Committee and employees.

HR Management Our cohesive, organized Committee Committee structure promotes transparency and fosters a sense of unity Executive Vice President across all of our companies, HSE partnerships, and joint ventures. Committee Vice President Continually improving our governance practices enables us CSR Committee Vice President - to manage our risks and protect Corporate the wellbeing of our people and our business. Group CFO

Public Private Partnership General Manager Committee

Our commitment to good governance is reflected in our policies, including:

– A well-established Board and Board – Comprehensive anti-corruption practices, Committee structure that ensures critical which condemn unethical behavior and internal and external business issues encourage employees to report in good faith are visible to, and addressed by, senior all observed or suspected misconduct. management. – Nesma’s leading practice Diversity and – The Nesma Code of Conduct, which sets Inclusion policy, which promotes fair hiring the standard for ethical and principled and treatment for all while also addressing behavior and guides all employees in their Saudization requirements for recruitment and daily business dealings with customers, professional development of Saudi nationals. vendors, business partners, colleagues, and community stakeholders, including strong anti-money laundering provisions and broad whistleblower protections.

Business 17 Business Diversification

Since its founding in February 1979, Nesma has maintained its unwavering commitment to the diversification and growth of the Saudi economy by strategically aligning our business pursuits to the Kingdom’s greatest market opportunities and development plans. It is with pride that we look back, on our 40th anniversary, and see not just a growing company, but a growing nation. As we move forward, we fully expect to continue supporting the ambitious goals set out by the Kingdom’s Vision 2030 initiative and National Transformation Plan.

Nesma Holding Group

Nesma has grown from a single entity to a multinational portfolio of companies, with each entity optimized to be responsive to unique client and market needs.

1 Nesma Holding, est. 1979 14 Nesma Security Services, est. 2009 2 Nesma & Partners Contracting, est. 1981 15 Nesma Water & Energy, est. 2011 3 Nesma Trading, est. 2004 16 Nesma UniTrade, est. 2008 4 Nesma Telecom & Technology, est. 1988 17 Namma International Digitec, est. 2005 5 National Container Terminals, est. 2012 18 Nesma Tata, est. 2016 6 Nesma Airlines- Egypt, est. 2009 19 Nesma Technical Systems, est. 2005 7 Nesma Airlines- Saudi Arabia, est. 2015 20 Nesma Shaheen for Trading, est. 1996 8 Namma Shipping Lines, est. 1981 21 Istanbul Lines, est. 2018 9 Mawaddah International Group, est. 1996 22 Defaf United for Logistics, est. 2016 10 Namma Cargo, est. 1982 23 Nesma Real Estate, est. 2008 11 National Port Services, est. 1984 24 Chowking, est. 2014 12 Nesma SpaceMaker, est. 2009 25 Koncar, est. 2018 13 Nesma Orbit, est. 1994 26 Basistek, est. 2009

18 Nesma — 40 Years of Impact I always knew that we should focus on needs in “ the Saudi market. I lived in Saudi Arabia and understood the country. So I went into businesses where I saw immediate needs as well as opportunities for growth—infrastructure, ports, marine, defense, and more. These became good businesses for us and at the same time gave the company stability from being in diverse sectors.

— His Excellency Saleh” Al-Turki, Founder

27 Namma Tours, est. 1997 40 Nesma Catering, est. 2002 28 Anadolu Anka, est. 2012 41 Nesma Landscape, est. 2014 29 Nesma Concrete Solutions, est. 2011 42 Nesma Travel, est. 2009 30 Modern Bus Company, est. 2018 43 Lavajet Saudi, est. 2016 31 Mawqifak, est. 2017 44 She’ar International, est. 2011 32 Nesma Onur Contracting, est. 2015 45 Carlo Geely, est. 2007 33 Al-Faris Trading/ 46 Mabadi Italian Metal, est. 2015 Al-Faris Al-Arabi, est. 1993 47 TRAP, est. 2004 34 ReAya Holding, est. 2012 48 Nesma Ommat, est. 2009 35 KAEFER, est. 2007 49 Albor Poultry, est. 2007 36 Daw Gulf Trading, est. 2019 50 National Container Lines, est. 2008 37 Nesma Industrial Services, est. 2009 51 Water Taxi Egypt, est. 2016 38 Modern Pioneer, est. 2003 39 Alban Almalky, est. 2017

Business 19 Diversified Investments

As Nesma grew, we sought to invest both inside and outside of the Kingdom in order to diversify our portfolio and to create greater impact. As a result, we are in a variety of sectors and geographies. Our international investment and business development efforts have fortified the organic growth of Nesma Holding and continue to be an important focus for us, while our domestic investments have contributed meaningfully to the growth and diversification of the Saudi economy.

Makkah and Madinah Across the Kingdom Mawaddah Namma International Group Cargo (est. 1997) (est. 1982)

In 1997, we entered the Islamic tourism industry by Founded in 1985 as a small business contracted acquiring Mawaddah International Group for Hajj to move personal and household goods for and Umrah Services, the first company acquired members of the Saudi military, Namma Cargo rather than established by Nesma. Today, the Services has grown into Saudi Arabia’s leading company has 15 hotels under its management in total logistics services provider, with Kingdom- both Makkah and Madinah, and works through wide infrastructure and multi-modal transportation an extensive network of travel agents and tour capabilities supported by superior in-house operators across the world who provide expert information technology systems. Namma Cargo’s assistance with Umrah travel visas, air and infrastructure has continued to develop in direct sea travel logistics, and in-Kingdom ground response to the transportation needs of the transportation, providing pilgrims critical support Kingdom’s industrial, commercial, and public as effectively and cost-efficiently as possible. Over sectors, and as a mature freight forwarding and 6 million guests have stayed at Mawaddah over logistics operation it has become an important the past 17 years of operation. The Group has won pillar of Saudi Arabian economic development. several awards and recognition for its Hajj and Umrah services, and was ranked by the Ministry of Hajj as one of the top ten companies operating pilgrims’ services, due to its excellent performance during the year 1437 A.H. (2015).

20 Nesma — 40 Years of Impact Egypt Turkey Nesmal Nesmal Investment Yatirim (est. 1997) (est. 2012)

Nesma’s Egyptian operations grew organically Nesma’s investment in Turkey also initially grew as an extension of our 1997 purchase of the out of the religious tourism business. Today, Mawaddah hotel business. Nesma management through Nesmal Yatırım Holding, formed in 2012, saw the opportunity to provide transportation we focus on the logistics and transportation and hospitality services to Egyptians who were sectors, with operating subsidiaries in the travelling to Makkah and Madinah for Umrah. Sea tourism, freight forwarding, air, ocean, and road transportation of both people and freight between transport, and inland waterway industries. Our Egypt and the Kingdom, as well as marine services current investments in Turkey are in the following that maintain the required vessels, was the next companies: Istanbul Lines, Anadolu Anka, and logical step for the business. Nesma’s Egyptian Basistek. operations, organized through Nesmal Investment, includes Namma Tours, Namma Shipping, Nesma Airlines, and Water Taxi.

Business 21 Meaningful Partnerships

In order to achieve our goal of building businesses that best address the diverse needs of the Saudi market, we engage in strategic partnerships that offer access to world-class knowledge, technology, and resources. Some of Nesma’s historic partnerships include:

Pan Am World Telecom Services Australia PANNESMA NATEL (est.1986) (est. 1989)

PANNESMA, Nesma’s partnership with Pan Am In one of its most important early international World Services, was formed to provide manpower, partnerships, Nesma teamed up with Telecom operational support, and maintenance to the Saudi Australia to form NATEL (now Nesma Telecom & military. This partnership was Nesma’s entrée into Technology) and embark on a six-year project to the important defense industries, most notably maintain and modernize some of Saudi Telecom’s through the Peace Shield Program, which provides critical telecommunications infrastructure. The missile and air defense for the entire country. partnership with Telecom Australia provided Nesma and the Kingdom with fiberoptic technology and know-how.

Norconsult NATEL (est. 1989)

In 1994, the Ministry of Post, Telegraph, and Telephone awarded Norconsult International, Norway’s largest multidisciplinary consultancy firm, a contract to provide consultancy services for the Kingdom’s TEP-6 Telecommunications Network Expansion Project, a 15.4 billion SAR project designed to modernize and expand Saudi Arabia’s telecom network. Norconsult engaged NATEL through the Technical Assistance and Local Support Service Agreement to provide technical, administrative, and logistical expertise and a variety of support services throughout the lifespan of the project.

22 Nesma — 40 Years of Impact Mediterranean Tata Projects Shipping Company Limited National Container Nesma Tata Terminals (est. 2015) (est. 2013)

As part of the larger King Abdullah Economic City Nesma Tata is a joint venture of Nesma Telecom & project, King Abdullah Port was conceived and Technology and Tata Projects Limited of Mumbai, designed to be a top 10 global port and aims to India, designed to fuse Tata’s large-scale industrial be an advantageous and sustainable harbor that engineering expertise with Nesma’s electrical delivers long-term value to its stakeholders. Nesma infrastructure, construction, and local Saudi market Holding subsidiary, National Container Terminals knowledge. Together, the company provides high- (NCT), was awarded the contract in September quality, state-of-the-art industrial infrastructure 2013 to operate this mega-facility, the first wholly solutions, including major central power station private port in the Kingdom. We are proud of our and substation installation and upgrade projects, partnership with Mediterranean Shipping Company, and several major projects for Saudi Aramco. M.S.C, through its terminal-operating company, TIL, a fellow shareholder and board member in NCT.

NCT has recruited and trained approximately 200 staff from the local area (of which over 30% are women) to be involved in managing the operations at the port and the movement of goods into and out of the Kingdom. So far, the company has invested 1.25 billion SAR in state-of-the-art equipment and systems. As a result, new trade routes have been introduced to enhance the competitiveness of Saudi Arabia, facilitating the flow of billions worth of foreign goods since its inception.

Business 23 Signature Projects

Over the course of 40 years, Nesma has participated in many significant projects that contributed meaningfully to the development of today’s modern Saudi Arabia.

Jeddah Stormwater Drainage Project

After record flooding devastated Jeddah during the rainy season of 2010, the Governor of Makkah Province, HRH Prince Khalid Al Faisal, sought out regional contractors to bid on the King Abdulaziz Road, time-sensitive installation of Makkah an emergency water treatment To help alleviate congestion and flood drainage system in the Holy City, Nesma & capable of withstanding erratic Partners began infrastructure weather. As the only bidder to work in 2015 on the King promise on-time delivery, Nesma Abdulaziz Road, a project & Partners was awarded the that acts as a gateway to the project. We brought together our city and incorporates future most knowledgeable people and transportation technology. It worked around the clock to bring consists of 2 metro stations, the project to completion ahead a 5,700-meter metro tunnel, of schedule and on budget. As 4 carparks, 2 flyovers, 11 a result of our efforts building underpasses for pedestrians, the essential infrastructure of 12 underpasses for vehicles, Jeddah’s stormwater drainage 2 bus stations, and South structures in 2011, and our ability and North tunnels. This vast to quickly mobilize our resources project to modernize the city to complete this project before will accommodate significant the next rainy season, we built increases in religious tourism, a system that prevents the providing access for more destruction of thousands of pilgrims and decreasing homes and other structures and congestion. saves lives.

24 Nesma — 40 Years of Impact Makkah Bus Project

In 2017, a consortium made up of Nesma Holding and Transports Ciutat Comtal (TCC), a Spanish transport company, was awarded a contract for the Nesma Airlines Ha’il supply and 10-year operation Nesma Airlines, which began and maintenance of 400 Makkah service in 2016, operated 12 Public Transportation Program domestic routes out of its (MPTP) buses. The project, Ha’il base, as well as regular implemented as part of the service between Jeddah and Kingdom’s Vision 2030, will Riyadh. During the course of provide public transportation its operations, Nesma Airlines service for all segments of facilitated travel for business society, and will help transform and recreational purposes, and improve travel throughout National Guard Health improved access to educational the city while addressing establishments for teachers the social, economic, and Affairs Specialized environmental impacts of Hospitals and students, enabled access to hospitals and healthcare transport access. Phase 1 of the In 2014, Nesma & Partners institutions, and supported project, which is expected to was awarded a Saudi Arabian religious tourism throughout the begin operation in 2020, includes National Guard Health Affairs country. Nesma Airlines’ unique 400 smart buses featuring driver (SANG) Specialized Hospitals location and extensive services navigation systems, payment contract to build five new in the northern part of Saudi collection units, services for hospitals in Riyadh, Jeddah, Al Arabia were fundamental to the disabled travellers, Wi-Fi, Taif, and Al Qassim. Our work strategic social and economic automated AV systems, and with SANG allows the Kingdom development of this crucial and internal and external cameras to serve an additional 1,400 rapidly growing region. To date, and video screens. citizens per day in specialized Nesma Airlines has directly and women and maternity, children, indirectly contributed hundreds and neuroscience and trauma of millions SAR to the Kingdom’s facilities. GDP, created over 900 new jobs, and indirectly supported the creation of another 200 new jobs throughout the Airlines’ Tier 1 supply chain.

Business 25 26 Nesma — 40 Years of Impact PEOPLE

1 — Chapter Title 27 28 Nesma — 40 Years of Impact PEOPLE

At Nesma, we recognize that our employees have various skills and interests, inside and outside the workplace, and we strive to create a company culture in which everyone in the Nesma family can grow and thrive.

We work hard to make our people- In the end, our relationship with our centric culture a reality across our people is a reflection of our belief that diverse enterprises, and we take many Nesma’s success is inseparable from steps to ensure that our employees their success. The result of our efforts feel part of a single team – our rich is a diverse workforce full of productive onboarding programs immerse new employees who are proud to be a part joiners in our history, vision, and of the Nesma family and to contribute to values; our I Am Nesma employee the success of our company. By taking platform, launched in late 2019, hosts care of and providing for our employees, our Code of Conduct and other shared we empower them to reach their full resources in one place; and we offer potential, in the workplace and in their scholarships, training, advancement, communities. and other development and personal opportunities, in order to celebrate the other passions and roles they play outside work – as artists, musicians, cricket players, footballers, community volunteers, and so much more.

People 29 Investing in Diversity and Inclusion

Nesma understands that diversity and inclusion are imperative for the success of our business and for the economic growth and stability of nations.

In addition to championing Saudization and women’s empowerment, we embrace a holistic view that emphasizes how men and women can bring new ideas, learn from each other, and contribute to the long- term success of our business. That was the overarching theme at Nesma’s 2019 Diversity and Inclusion Forum, and it is a concept that is put into practice every day at Nesma.

Saudization In fact, our Saudization efforts began decades before Saudi The development of the Saudi Arabia’s Saudization (Nitaqat) workforce is, and always has program was codified; at the time been, critical to the success of that Nitaqat was implemented in both Nesma and Saudi Arabia. November 2014, 90% of Nesma We value and encourage the entities already fell into the top ongoing cultivation of business two compliance categories. Over and technical skills in Saudi men the years, our efforts to recruit and women to encourage their Saudi talent have grown. Today productive participation in, and we employ over 7,000 Saudi development of, our workforce nationals, which represents a Naif Al-Abeedi and the wider, national economy. 55% increase since 2014. 16 Years with Nesma, from Saudi Arabia

Mr. Al-Abeedi began his time with Nesma as Nesma’s Saudization Figures a Junior Accountant, and received his postsecondary education 7,052 in the U.K., where 6,244 Number he studied business of Saudi management. After 16 5,685 employees 4,997 years with the company, 4,433 he is now General Manager 3,883 of Nesma Holding.

2014 2015 2016 2017 2018 2019

30 Nesma — 40 Years of Impact Specialized Training Centers

Nesma has never considered it enough to simply increase the number of Saudis in the local workforce. We believe that our workforce should have the opportunity to acquire new professional skills and refresh existing ones. To meet this need, and disseminate critical skills and knowledge to fellow Saudis, we operate under Nesma & Partners a leading vocational training facility in the Kingdom, the Nesma High Training Institute. Nesma High Training Institute is an outgrowth of intensive employee training and development Nesma’s Diversity programs begun in 2008. Today, there is a full-time training and Inclusion facility in Al-Dammam, which specializes in construction- Forum related technical skills. A recent expansion of A second facility in Al-Khobar operated by Nesma Trading, our Women’s Forum, the offered instruction in hospitality and catering to meet the Diversity and Inclusion demand for waiters and cooks in its Catering division. The Forum addresses all forms Al-Khobar facility has since been replaced with an investment of diversity. At the Forum, in the newly-formed Zadk Culinary Academy, a best-in-class employees and panelists non-profit organization which will serve as a vehicle for engage in discussions on transformation within the Saudi Arabian food sector. the advantages of diversity at work – whether through nationality, gender, age, personal experience, physical abilities, or other factors that make members of the Nesma workforce unique. The Forum also showcases the ways in which companies like Nesma benefit from strong policies of inclusion and support for women and minorities.

People 31 Breaking Barriers for Women Women’s Employment at Nesma in Unconventional Fields 2006 5

Nesma has been on the cutting edge of women’s 2007 8 empowerment, ensuring that women who work in the company feel valued and appreciated, and striving to open new and pioneering employment 2008 10 opportunities for women in every one of our businesses. We believe that women are an essential part of the workforce, without whom our company and society cannot reach their full potential. 2009 29

The women of Nesma are In an effort to further embed employed in diverse roles – women’s empowerment in 2010 36 as managers, administrators, the “DNA” of Nesma, we chefs, pilots, and port operators have recently completed the – and are offered training and application process to become a support to grow within our member of Saudi Aramco’s Gulf 2011 76 company. Since 2006, the Region Organization for Women number of women employed (GROW). GROW is a strategic throughout Nesma Group has platform that promotes policies grown by an average of nearly to improve the professional 2012 98 200% annually. This would development opportunities for not be possible without the women in the workforce. safe environment and range of woman-friendly services, 2013 218 such as childcare and the annual Nesma Women’s Forum, available to Nesma women. 2014 267

2015 269

2016 307

2017 639

2018 1,095

2019 1,365

Number of women employees

32 Nesma — 40 Years of Impact First Saudi Woman Commercial Pilot Takes the Controls

When Captain Yasmeen Al Maimani joined Nesma Airlines in February 2019, she became the first woman to fly a commercial plane in the Kingdom. Maimani obtained her Saudi commercial pilot’s license in 2013 but found work hard to come by. With Nesma Airlines, she flies A.T.R. 72-600s aircraft and Taking a Leading Position in IT is a role model as well as a source of Upon graduating from university in 2007, national pride. Shaikha Albraikan joined Nesma Holding as an IT Specialist. Throughout the past 12 years, Shaikha has demonstrated her technical and leadership capabilities, taking I did not expect to be the every opportunity to learn and grow through “ first and it feels so good to Nesma’s professional development initiatives. Recently, Shaikha was promoted to IT represent my country with Corporate Manager, with a mandate to design this title… My goal [is] to and implement new IT service management open this door for everyone, processes across the entire company. so that every girl or woman who dreams of becoming a pilot can see me, and be With Nesma’s care and inspired to go ahead with “ support I got the opportunity her plan. to learn from and network —Captain Maimani” with the leaders in my field… across the world. For me, that’s what makes working with Nesma an exceptional experience. —Shaikha Albraikan ”

People 33 Celebrating the Diverse Backgrounds of Our Employees

Our employees represent over 50 nations. At Nesma, we celebrate the national days of every country represented in our workforce because we believe in highlighting the strength that many histories, perspectives, and cultures bring to our companies.

Since our international The national day celebrations employees have left their are highly anticipated each first home to work in Saudi year and are just one of the Arabia, it is a Nesma tradition ways that we strive to make our to come together as a family employees feel that Nesma is and celebrate each of our team truly a welcoming second home members’ homelands on their for them. most important national holiday.

Countries represented during national day celebrations

34 Nesma — 40 Years of Impact Building a Culture of Empowerment

At Nesma, we know that investing in the development of our team leads to long-term returns for our business and our stakeholders, including professional advancement of our employees, continuous quality and value delivered for our clients, progress in our nation, and financial and operational success for the company.

The desire to empower our best practices, systems, and people is a direct legacy of the procedures; and we will deliver Employee Forums management philosophy of our the highest quality product every Nesma hosts a series Founder, His Excellency Saleh time. of forums annually, to Al-Turki, who emphasized the In addition to building a provide employees with importance of building trust and culture of team leadership, fresh insights on some of confidence amongst employees our Performance Management the topics most material and management through Program provided employees to our current and future genuine interactions and by with clear performance business, and to give providing opportunities for objectives, ongoing coaching teams from our different people to learn from both their and feedback, structured companies an opportunity successes and mistakes. trainings, and recognition to share their successes This leadership culture for outstanding work. The and learnings. These permeates down from Program motivates and rewards annual forums currently management to all levels employees, while providing include the Women’s/ throughout the company and Nesma with a continuous Diversity Forum, fosters innovation, creativity, internal pool of qualified HR Forum, IT Forum, and productivity. successors to fill critical Finance Forum, and positions. Management Forum. The Nesma management commitment goes beyond Our annual management simply building solid forums also provide a venue relationships. It demands that to recognize professional each manager and employee act achievements. During these with integrity, ethics, and from events, leadership distributes a shared set of values: that the awards to employees, client always comes first; that projects, and companies, in the company will look out for acknowledgment of outstanding its people; that we will cut no performance. corners and always implement

People 35 Engaging Our Employees

We believe that when employees are treated well and given the freedom to think big, take risks, and imagine the possibilities, they will succeed. Nesma has always encouraged employees to pursue their personal interests and provides opportunities for people to share their gifts with their colleagues and communities. By engaging employees and investing in their personal development, we create a culture where every employee is proud, empowered, and productive.

Nesma Art Gallery Employee Show

The annual Employee Exhibit at the Nesma Art Gallery is an initiative born out of our appreciation for both our employees and expression through art, including painting, photography, graphic design, sculpture, and music. The exhibit provides a setting for our accomplished employees to showcase their passion for the arts, network with other artists, and celebrate the diversity of Nesma’s talent. 52 employees have participated in the annual program since its founding in 2017.

36 Nesma — 40 Years of Impact Nesma Sports Teams

From cricket and basketball, to tennis and volleyball, Nesma’s sports teams offer employees across all companies a fun and healthy social activity outside of working hours. Teammates form close bonds, and the camaraderie found on the field often translates into stronger working relationships in the office. Typically, employees who participate in the Nesma sports teams demonstrate increased engagement and productivity at work.

Saleh Al-Turki Employee Empowerment Fund

The Saleh Al-Turki Employee Empowerment Fund is an extension of our Founder’s generous spirit and his core belief that people should enjoy hobbies outside of work and engage in volunteer activities where they can give back to their community. This fund aims to encourage and empower Nesma employees to pursue their social and volunteer efforts by funding initiatives that they are involved with and support.

People 37 38 Nesma — 40 Years of Impact COMMUNITY

1 — Chapter Title 39 COMMUNITY

Throughout our 40-year history, Nesma’s commitment to social and economic wellbeing has created meaningful impact across the Kingdom. From the beginning, our Founder and leadership team were eager to use our businesses as a platform for investments in the social development of the communities in which we operate, thereby creating long-term value for both the country and the business.

Since our founding, we have leveraged To date, Nesma’s community initiatives our business strengths and company have served thousands of Saudi citizens, culture to provide opportunities for resulting in many new employment members of our communities to obtain opportunities, significant investments in productive job skills, further their local economies, and improved quality educations, pursue personal artistic of life in the communities in which we and creative ambitions, and become operate. healthier and happier people. Whether it is staging international sporting events or beautifying local parks, providing university scholarships or discount fishing supplies, creating job opportunities for the disabled or a place to showcase Saudi art, these are just a few of the many ways Nesma supports our neighbors and leverages community initiatives to drive economic growth.

40 Nesma — 40 Years of Impact Empowering Communities

Nesma is committed to empowering all people in the communities in which it operates by providing the tools and knowledge needed to access opportunities, strengthen and develop talents, and contribute to economic growth. In doing so, we are able to help our country overcome our historic “poverty of capabilities,” a term coined by our Founder, His Excellency Saleh Al-Turki, to describe the inability of young women and men to take advantage of the wealth of opportunities that are available due to a lack of relevant skills and know-how.

Our signature community programs – which are designed to build capacity, provide access, and empower individuals within our communities – are central to our social impact approach. Supplemented by the many philanthropic and service initiatives Nesma and its employees engage in on a regular basis, our signature Nesma Training Center, Nesma Tailoring and Embroidery, Nesma Art Gallery, Cooperative Society for Fishermen, Nesma Scholarship Program, and support for Zadk Culinary Academy leverage our company’s core business competencies and values to effectively give back to our communities and drive meaningful social and economic change.

Community 41 Nesma Training Center

Established in 2008, the not-for-profit Nesma Training Center sponsors free training around the most relevant and useful workplace skills and makes space available for small and medium-sized businesses from across the Kingdom to host skill development courses and related workshops.

Our flagship Training Center Since its opening, Nesma location in Jeddah can Training Center has partnered accommodate up to 400 with nearly 70 local community- students in its 12 classrooms, based organizations to offer 3 computer labs, and multiple over 1,000 training events conference rooms and lounges. and serve more than 28,140 Classes in management skills, community members. Nesma human resources, interpersonal Training Center’s English for skills, marketing, IT, financial Employability Program has management, English language, trained 1,581 students, 82% and sales are offered to of whom have achieved an community individuals. intermediate level of English proficiency. In our fortieth The Center aims to support year, almost 3,000 community employability and lifelong members participated in learning by helping young our Community Shapers professionals and job-seekers Program, which is intended acquire needed skills and gain to build a community of access to the networks and inspired, empowered people resources they most require in and organizations through order to: classes led by local Saudi • Seek and secure productive businesses that encourage employment entrepreneurialism and small- and medium-sized business • Excel in their professions and development. sectors

• Build leadership potential

• Achieve personal and professional objectives

• Make a positive impact on the lives of others

42 Nesma — 40 Years of Impact Nesma Training Center taught “ me not just how to better manage my time, but how to improve how I get to know people and customers. — Student of the Nesma Training” Center

Nesma Trainig Center at a Glance

Established Served Disciplines 2008 Taught 70 Management, local community Human Resources, Capacity organizations Interpersonal Skills, partners 400 Marketing, IT, students Financial 1,000+ Management, training events English Language, 12 and Sales classrooms 28,140+ 3 community members computer labs

Community 43 Nesma Tailoring and Embroidery Center

Nesma Embroidery, founded in 2009, is a non- profit organization that creates employment opportunities for the local female workforce by providing industrial sewing and embroidery jobs in communities in which women would normally have very low access to training or formal employment.

Beginning with one location, To support this growth, Nesma in partnership with the Jeddah Embroidery actively recruits, Deaf Club, Nesma Embroidery hires, and trains local women, then expanded to Khulais, bringing new skills and jobs to where we partnered with the the Kingdom’s communities in Albir Society to establish a need. Through its investments local presence. A partnership in worker training, and by with Aljazeera bank provided implementing lean management sewing machines to expand processes, Nesma Embroidery our operations. Our third center has expanded to become a was opened in Thuwal in 2015, recognized manufacturer of in partnership with the King textile goods for individuals, Abdullah University of Science designers, and corporate clients. and Technology, in support of Recently, a Memorandum of Thuwal’s economic and social Understanding, sponsored development. The following year, under the patronage of Prince we partnered with Saudi Aramco Abdulaziz bin Saad, Governor to open a center in the Eastern of Hai’l Region, was established Region and provide employment between Nesma Holding, Saudi opportunities to women from Aramco, the Alalia Foundation Dammam and surrounding for Local Infrastructure areas. In 2019, 200 women enjoy Development and the Charitable full-time employment at the four Society in Hail, to study building Nesma Embroidery Centers. a new sewing and embroidery factory there. With the opening of each new Nesma Embroidery factory, we get closer to our goal of establishing a Nesma Embroidery factory in every village in the Kingdom.

44 Nesma — 40 Years of Impact Community Before, there weren’t any jobs in “ Khulais, so after finishing high school I couldn’t find a job. When the center opened in Khulais, I joined it. Now I have a monthly income, health care, and social security. — Nesma Embroidery Employee ”

Nesma Tailoring and Nesma Tailoring Embroidery Center and Embroidery Locations at a Glance

Established 2009 Centers Dammam 4 Est. in 2016 Thuwal Est. in 2015 Beneficiaries Khulais Est. in 2013 200 Jeddah women enjoy Est. in 2009 full-time employment today

Community 45 Nesma Art Gallery

The quality and variety of visual art being produced in the Kingdom has been gaining global recognition, and the number of galleries and other venues showcasing local artists is constantly increasing. Opened in 2014, the Nesma Art Gallery is dedicated to supporting this renaissance in Saudi art by hosting exhibitions in its gallery space, providing free studio time and workshops, and offering a library of art books, supplies, and resources for public use.

Beginning with its first exhibition In addition to mounting in 2014, for the renowned Saudi exhibitions, the Gallery offers artist Abdullah Hamas, Nesma courses and workshops in fine Art Gallery shows have drawn arts, photography, sculpting, large and appreciative crowds. and fashion design, for all To date, the Gallery has mounted ages and skill levels, which are 26 exhibitions, including 14 solo available free to the community. shows. As a result, creative people of all ages – but especially the young – have a safe and inspiring place to spend their time, and an opportunity to learn the fine arts with top-of-the-line resources.

Nesma Art Gallery at a Glance 26 exhibitions Established 14 2014 solo shows

46 Nesma — 40 Years of Impact Saudi Arabia as Seen by the Artist

In Spring 2017, Nesma Art Gallery hosted “Saudi Arabia as Seen by the Artist - Vision 2030,” an art competition and three-day event attended by over 600 visitors and held under the patronage of His Royal Highness Prince Mishaal bin Majed bin Abdulaziz Al Saud. Prizes went to the top three winners: Fatima Hakami, Hanan Al-Qahtani and Fawzia Al-Saadi.

Mohammed Al-Ablan

Mohammed Al-Ablan is Nesma Art Gallery’s General Manager, a Saudi artist, and a founding Board Member of the Saudi Art Association. He has been in the art field for 20 years and has participated in more than 100 group exhibitions inside the Kingdom of Saudi Arabia, in addition to other exhibitions outside the country.

Nesma Art is a beautiful center “ that hosts international art exhibitions and welcomes artists from inside and outside the Kingdom, giving them the chance to meet and view each other’s work and progress. — Nesma Art Gallery Beneficiary ”

Community 47 Cooperative Society for Fishermen

The Red Sea and its bounty were once a focal point of western Saudi Arabian heritage. But as the country grew during the 20th Century, opportunities for traditional Red Sea fishermen began to dwindle.

Having grown up living and directly at the Cooperative’s working around the sea, stand at the Jeddah Fish Market. Nesma Founder, His Excellency Members can also get help Saleh Al-Turki, found this obtaining financing to upgrade especially unfortunate. So, their boats and equipment. when the opportunity came The Cooperative’s efforts to breathe new life into the have demonstrated the long- traditional fishing and seagoing term viability of the traditional communities of Jeddah and Jeddah fishing industry and the Makkah region, Nesma was serves as a model of diverse ready to answer the call. and sustainable business. To Nesma began partnering with date, 320 of approximately the Cooperative Society for 3,000 Jeddah fishermen Fishermen in 2001, and helped belong to the Cooperative, the Cooperative obtain official which aims to provide all 3,000 licensing in 2011, as well as a fishermen with membership in contract to operate out of a the coming years, supporting brand-new harbor, Qunfudah, the revitalization of this critical The sea has specifically designed to support industry and the local economy. “ the fishing industry. Members always been today enjoy savings at two a source of Cooperative-owned fishing sustenance; supply stores and sell their catch we must strive for this to continue to be the case. — His Excellency Saleh” Al-Turki, Founder Cooperative Society for Fishermen Program at a Glance Established 320 2001 fishermen members

48 Nesma — 40 Years of Impact Nesma Scholarship Program

For more than 10 years, Nesma has provided scholarships to both employees and non-employees, with the goal of benefitting not just the individual recipients, but the company, and society as a whole.

Nesma Scholarship recipients have gone on to build careers The most noble in finance, management, “ form of social engineering, and many other fields, and, to date, more than service is to provide 20 individuals have begun or scholarships to continued their education thanks the youth, to help to support from Nesma. When the King Abdullah scholarship them build their program was introduced in 2005, future, and to build our focus shifted to supporting universities rather than a society based individual scholars. on education and Nesma is proud to have enabled knowledge. these students to complete — Nesma Scholarship Recipient their post-secondary education ” so they might reach their full potential and build careers in specialized fields.

Nesma Scholarship Program at a Glance Established 20+ 2005 student beneficiaries

Community 49 Zadk Culinary Academy

In November 2018, Nesma, through Nesma Catering, became a founding partner of Zadk Culinary Academy, the first and only nonprofit of its kind, whose mission is to turn talented young Saudi women and men into world recognized chefs de cuisine, while promoting locally produced food, zero-waste cooking, and healthy eating habits.

In addition to a financial sits on Zadk’s advisory board, contribution for the while Mark Alderson, Nesma establishment of the academy, Catering’s general manager, is Nesma Trading provides the a member of Zadk’s executive academy with internal audit committee. This association with support and is a sponsor of five Zadk showcases how Nesma students who will take part in aligns itself with community the academy’s two-year culinary initiatives, not only through arts diploma. Nesma Holding’s financial support, but through Vice President, Noura Alturki, lending expertise as well.

Zadk Culinary Institute at a Glance Established 22 1st and only 2018 chefs in training non-profit specialist academy in chef’s training

50 Nesma — 40 Years of Impact Community Investments (2010 – 2019) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Nesma Training Center hosts Club for Retirees

Sponsor pilgrimages for the Campaign for Older Women

Sponsor the Legal Integration Initiative training costs

Sponsor the Jeddah Marathon with the Al Birr Society

Create and equip computer classes throughout public schools

Support marriage ceremonies for people with physical disabilities

Sponsor and host the Toast Masters program

Sponsor the marriage ceremonies of 1,400 young men and women

Sponsor the Okaz Market Festival

Sponsor the Makkah Award for Excellence

Sponsor Gulf Traffic Week

Sponsor the Anti-Drug Awareness Campaign

Sponsor the national sign language education campaign

Furnish and equip Yilmum Mosque

Support and develop the Prisoners Care Committee in Jeddah Governorate

Sponsor the Talented Students Education Program with Effat University

Sponsor the Ibsar Charitable Society for the Blind

Sponsor the King Abdullah University research centers

Sponsor students attending Al-Bayan Educational College

Sponsor small community projects with the Jeddah Chamber of Commerce and Industry

Sponsor Islamic Relief

Sponsor the Jeddah Rally Car Championship

Sponsor the Charitable Society for Orphans Care (Ensan)

Gold Member Sponsor of the Qaderoon Business and Disability Network

Sponsor the Charitable Society for Orphans Care in Madinah

Sponsor the Arab Thought Foundation

Sponsor the Kelana Society

Sponsor the Aspar Center annual forum for scientific research

Provide boats to the fishermen of Beesh Governorate, in cooperation with Saudi Aramco

Support the Prince Khalid Al-Faisal Center for Moderation

Sponsor the Makkah Cultural Forum

Sponsor the Youth Business Forum

Sponsor the King Faisal Specialist Hospital cancer treatment program

Hold membership and sponsor the Saudi Food Bank (Etaam)

Sponsor the Arabian Horse Organization events

Community 51 52 Nesma — 40 Years of Impact LOOKING FORWARD

1 — Chapter Title 53 54 Nesma — 40 Years of Impact LOOKING FORWARD

In our first 40 years, Nesma has built a legacy of innovation, quality, responsiveness, and reliability that we are committed to upholding as we look to the future. We have learned from our rich history of many successes and necessary failures, and we have grown to a level of maturity, stability, and confidence that we take with us as we move forward in our journey.

There is yet an abundance of Our dedication to corporate social opportunity for Nesma ahead, and as responsibility and to the people and the world around us continues to evolve, communities of the Kingdom will remain we will remain committed to fortifying paramount to who we are and how we our organization responsibly, growing do business. We will continue our efforts our business strategically, and investing to make the lives of everyone who works in our people wisely. for Nesma better. We are committed to sustaining our expansion of employment We will therefore focus our efforts opportunities for women. We will to hone our core competencies – maintain our focus on finding meaningful construction, construction-related work for those with disabilities. Finally, services, religious tourism, and logistics we will continue to use our signature and transport – while embracing new community programs, public-private opportunities such as renewable energy, partnerships, and strategic philanthropy and plan to elevate our governance as instruments to improve the lives and management processes. We will of people. invest in reinforcing the processes and procedures that hold Nesma’s growing At Nesma, we are fundamentally in family and diverse businesses together, business to serve our people and the through consolidated and consistent people of the communities where we platforms for information sharing, operate. It is our pledge, as we look to employee engagement, and professional the future, that this is one thing that will mobility. never change.

Looking Forward 55 Continuity Planning for Responsible Growth

Governance Mechanisms IT Strategy

The biggest focus for Nesma in the near term will Nesma has always considered information be making governance processes more robust and technology as one of the best tools for increasing consistent across all our entities. Our company efficiency and growth of our business. As a result, has reached a size, and a level of maturity, we have embarked on an ambitious digital journey sophistication, and complexity, that requires with the expectation of significantly improving equally sophisticated organizational and reporting existing business models through improved systems. This effort mirrors our long-standing productivity, greater revenue generation on existing commitment to providing better reporting and streams, and improved customer experiences transparency across all our operations, consistent across all our businesses. with best corporate governance practices. We are determined in the near future to continue optimizing common business processes within the group as part of an IT standardization effort led by the corporate office. This effort is designed to deliver a centralized data warehouse to provide Nesma with the insights required for monitoring and decision making across the company through a unified business intelligence platform. At the same time, each of our individual companies will continue to have input on finding and deploying the optimal digital tools their specific business requires.

We recognize that this is only the beginning of our digital journey. As we proceed, we intend to have a full-featured digital workplace where employees can easily and securely work from anywhere and through any device.

The Nesma Renewables Group

Nesma Renewables Group works alongside the Saudi Electricity Company to design, construct, and operate large-scale renewable energy projects, in support of the Vision 2030 mandate to grow the share of renewables throughout Saudi Arabia.

56 Nesma — 40 Years of Impact Strategic In-Kingdom Focus Succession Partnerships and Our emphasis on growing As each of our operating Joint Ventures business in our core companies grows and matures, competencies will be matched we have recognized the need to Alongside our reporting and by a strategic determination establish succession planning compliance efforts, we will to do more business at home committees across the Nesma continue to build upon our core in the Kingdom, where the Group, so leaders can identify competencies. We will leverage market is increasingly ripe with key positions and successors, our hard-earned expertise, opportunity and remains our and focus on training high- which we have developed geography of proven success. potential talents for important from the ground up over our We will be prudent in our management roles. We have 40-year history, and limit our consideration of international a full leadership development pursuit of new types of business business prospects, as we program planned for 2020 to to strategic investments in believe our knowledge of our target high-potential employees carefully chosen acquisitions home markets, our locally and develop a pipeline of and joint ventures with the right recognized expertise, and the talent for the next decade. partners. We have implemented opportunities we have here in As we carefully make these this approach with several the Kingdom are unmatched and plans, we will emphasize and businesses, including the Nesma remain the key to our success. support internal recruitment Renewables Group and Nesma and promotion, to best keep Holding’s work on the Makkah our existing culture and Public Transportation Program, management systems intact. which leverage collaborative ventures with well-established partners that can provide market presence, stable assets, and technical expertise, while building on the strengths that Nesma brings to the table.

Makkah Public Transport

The success of Nesma’s stake in the Makkah Public Transportation Program’s bus line rollout continues to depend, in part, on the bus transport expertise of several Spanish partners and intelligent transportation resources sourced from NEC Japan and Modern Bus Company Limited, a Spanish/ Saudi Consortium.

Looking Forward 57 Employee Empowerment

From our most senior leadership to entry-level newcomers, Nesma has and will continue to provide important opportunities for continuing education and professional development for employees.

Management, Finance, IT, vehicle for motivation, and an Human Resources, and Diversity opportunity to highlight and & Inclusion Forums, along with spread leading management a series of strategic workshops practices across the company. and other group-wide meetings Nesma High Training Institute will continue to provide senior and the Nesma Training Center managers and employees from continue to expand their reach all Nesma’s businesses an and are the most important opportunity to share expertise means for delivering lifelong and innovative ideas. continuing education and skills We will also continue our annual training to both employees and Management Awards, which for other community members. We many years have recognized the also plan to continue leveraging contributions of line managers the new I Am Nesma platform and projects from our different to give employees advanced companies. Covering multiple training in Nesma values, ethics, categories across all our lines anti-harassment, and other of business, the Awards will emerging business issues. continue to be an excellent

I Am Nesma reporting ethical violations. The site also includes information on the vision, Launched in 2019, the I Am Nesma mission, and values of Nesma Holding. intranet site is designed to make New employees will find information it easier and quicker for Nesma and advice including reminders of employees to gain access to the their rights and responsibilities and an information and resources they need orientation to working in the Kingdom to do their jobs effectively. A Business of Saudi Arabia. There is also a section Ethics section contains processes for with up-to-date corporate policies and signing and reaffirming commitment documents relevant for different teams to the Nesma code of conduct, and users. conflict of interest declaration, and for

58 Nesma — 40 Years of Impact Community Investment

A memorandum of understanding signed with the Makkah Region Governorate in September 2019 brought us one step closer to achieving our vision of expanding our nonprofit community center, Nesma Embroidery & Tailoring Center, to every village in the Kingdom.

Nesma today and into the future our business, we will strengthen will continue to use the power our ability to invest in our of private enterprise to advance communities and to become community interests. Through a driving force for the positive the growth and profitability of transformation of Saudi society.

Looking Forward 59 60 Nesma — 40 Years of Impact Looking Forward 61

1 — Chapter Title 63