Nov 2020 WHY MOVE TO RIYADH? 1 Share context of the Regional Headquarters Attraction program Shed light on Saudi Arabia'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 Masmak Fort Al Murabba Palace 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.