70
EEC Investor Relations Presentation Q2 2019 EEC Treasury Sep 11, 2019
EEC
Investor Relations PresentationQ2 2019
EEC Treasury Sep 11, 2019
1- EEC Update
KAEC – A desirable destination
Ease of business | affordable lifestyle| leisure |security |tranquility|…… and much more KAEC is a fast growing coastalcity in the western region ofSaudi Arabia with growingmanufacturing and logisticshub, up and coming vibrantliving community and aburgeoning entertainmentdestination….
3
KAEC has grown to become a major hub on the Kingdom’s West Coast
4
7,000+residents living and
working in the city
115+ companies with a
presence in the city
#1 port in the
Kingdom in terms
of efficiency
50+ major events
hosted in the city
8,000+jobs in a variety
of sectors
300,000+annual visitors
(more than double
previous year)
Value & Promise
6
KAEC – Value Proposition
..KAEC offers immense value to investors with its unique model and diversified asset base offering opportunities in different business sectors……
• Supported by Saudi Vision 2030
• Well positioned to benefit from strong demand and favourable outlook, driven by social, demographic and macroeconomic tailwinds
• Creating a stable business ecosystem to attract investment (FDI, third party investment)
• Developing a logistics gateway to capitalize on KAEC’s strategic location on the Red Sea coast
• Establishing a manufacturing hub, focusing on high-growth non-oil industries
• Creating a tourism and leisure destination to meet demand from domestic and international tourism
• Supporting the development and activities of SMEs and entrepreneurs
• Fostering a modern Saudi lifestyle through fully serviced residential communities
• Unique business model with a diversified asset base with a long term goal of delivering results to shareholders
• Portfolio of built assets consists of:
Residential communities and industrial zone, with land and developed properties that are either sold or leased;
50% ownership in King Abdullah Port (KAP), KSA’s 2nd largest deep sea port;
Commercial assets (hospitality, retail, F&B, office space), generating recurring income
Developing the largest privately
funded new city in the
world
Diversified portfolio of assets that
creates long-term benefits to
shareholders
Clear, focused strategy aimed at capitalizing on emerging
opportunities
KAEC – Growth in enterprise value
2006
2009
2012
2015
2018
SAR 3.8 Bn
AcquisitionGround breakingInfrastructure Development
SAR 18.8 Bn
Residential Development, KAP expansion, Juman District
SAR 12.5 Bn
Port & IV Development, Business Park,
SAR 41 Bn
Social Amenities, Babson College, GEMS Academy School, Healthcare Facility, BaylaSun Hotel
SAR 49.5 Bn
Golf Course, Desert Camp site, Floating Water park, Talah Gardens. AlMurooj District
Enhanced city Infrastructure
Modern city with organic population growth , Harmain Railway connects
Building foundations & early development
New city was born
Foundation of Economic Hub
Masterplan coming to Fruition
In excess of SR 40 bn capital invested since inception (by EEC and third parties)
Third party valuations and internal estimates
7
0.03.8
12.5
Y2006 Y2008 Y2012 Y2015 Y2018 Y2028
Term
inal
Val
ue
of
Lan
d
TVo
fP
roje
cts
expansion, KAP expansion
18.8
2022-
28amenities
41.0
Focus: V2030,Golf Course, MSP Bonded Zone, Operations
57.3
87.0
19.5
0
10
20
30
40
50
60
70
80
90
100
Years 10Y Business Plan ImplementationStrategic Investments Project not part of current BP awaiting MoF support which will add to PV
PV of Future Cash flows
KAP & IVDevelopment
LandResidentialDevelopment
BLS, Infraexpansion, IV
acquisition, Initial Infra Development
TH-1SAR 186MM 2022-2025
Haramain(SAR 579 MM)
2022-2028
Shurooq 2 –(SAR 539 MM)
(2019-2028
Waha Ph 2(SAR 689 MM)
2028
Bonded Zone (SAR 730 MM)
Ph1 – SAR 175 MM2019-2022
RO Plant SAR 152 MM
2019-2021
Emerald Shores(SAR 578 MM)
2019-2022
Shurooq 3(SAR 439 MM)
2023-20
Canal Apartments (SAR 444 MM)
2022-2027
Hejaz Mix SR 318 MM2020-2024
Leisure & Tourism
MBSC, School,Healthcare, Commercial Est, Other Social
Terminal Value (SAR mm)
PV of Land Valuation 43,428
TV of Projects 19,227
PV of Projects 5,643
PV of TV 49,071
Industrial Valley ( SAR 815 MM)
2019 -2028
Waterside ResSAR 236 MM)
2025-2028
Lagoona SAR 18 Bn
2022 -
Specialized HealthcareSAR 1.8 Bn
2020 -
KAEC: Value creation Model
Exceptional value creation from an initial investment of SAR 3.8b to SAR 57b (source of valuations: Valustrat, JLL, BSFC)
Pre
sen
t V
alu
e o
f K
AEC
@ 2
01
8
8
8,31410,554
12,98416,898
22,26723,900
28,378
33,642
38,376
44,341
49,623
56,063
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
14,46916,218
18,284
22,980
28,23231,446
35,150
39,49142,648
46,846
50,198
54,359
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Jobs forecast2019-30
Population forecast2019-30
Jobs are categorized in
four income levels:
• Minimum (<5k)
• Low (5-10k)
• Medium (10-30k)
• High (>30k)
Jobs converted to theoretical
population by income level:
• Minimum (1:1)
• Low (1:2)
• Medium (1:2)
• High (1:3)
Population forecast is calculated based on average population to jobs ratio
(between Q3 2017 and Q4 2018) and applied to theoretical population:
• 34% for employees, increasing 3.73% yearly up to 75% ceiling.
• 46% for construction laborers, increasing 2.64% yearly to 75% ceiling.
Jobs and population growth are expected to growfour-fold over the next 10 years
9
KAEC’s distinctive value drivers will enable its continued growth and expansion
VALUE DRIVER GROWTH DIMENSION
Industry, logistics
1
Entertainment, leisure
2
Religious tourism, retail
310
Healthcare, education
4
King Abdullah Port, the Industrial Valley and the Land Bridge
Unmatched Red Sea coastline with close proximity to Jeddah
Haramain Rail
Streamlined regulatory environment and unique approach to partnerships
10
2- King Abdullah Port Update
11
King Abdullah Port (KAP): Highlights
Complementing the Industrial valley with unmatched progressComplementing the Industrial valley with unmatched progress
81% growth in breakbulk volume as
of YTD July 2019
787% growth in bulk volume as of YTD
July 2019
115,391 TEU of full imports YTD July 19 compared to 113,878
TEU in 2018
Berth 15/16 ready and equipment
being commissioned
Total container handling capacity
to reach 5.Mn TEU by year end
OOCL, a leading container line,
started operations at KAP in August 2019
Discussions underway with leading global
operator
Main hub for MSC and the MSC/ Maersk 2M
alliance
Key discussions with major importers to
bring containers exclusively through
KAP
12
KAP: Market Share evolution
72% 71% 72% 69%61%
53% 53% 51% 47%
25% 26% 25% 25%26%
25% 22% 20%18%
2% 3% 4% 5%6%
5% 7%8%
8%
7%16.7% 17.6% 20.9% 26.5%
2010 2011 2012 2013 2014 2015 2016 2017 2018
MARKET SHARE OF KSA MAIN PORTS
Jeddah Dammam Market Share King Abdullah Port
KAP has grown consistently, handling over a quarter of the Kingdoms total container volumes
100% 100% 100% 99%89%
76% 75% 71%64%
11%24% 25% 29%
36%
2010 2011 2012 2013 2014 2015 2016 2017 2018
MARKET SHARE OF KSA WESTERN REGION
Jeddah KAP
KAP has obtained a 36% market share for all containers handled in the Red Sea coast of the
Kingdom
13
KAP: Growth Potential
• Potential agribulk terminal: The port has signed an MOUwith a leading player to develop an agribulk terminal at KAP.
• Logistics business: Finalizing Bonded Zone and a non bonded Logistics Zone at KAP which is expected to attract more import/export customers.
• Petrochemical Hub: KAP will form a special petrochemical hub for handling products from major petrochemical companies like SABIC and Petro Rabigh.
• Land Bridge: KAP is expecting to be connected with the Saudi Land Bridge (via rail), which would secure fast and cost-effective connectivity with Yanbu, Petro Rabigh and Riyadh.
• Other potential revenue streams include: Developing PCS-as-a-service; ship-to-ship services; bunkering facilities;biodiesel refineries; and a marine services complex.
• Alignment with Vision 2030: KAP aspires to be a vitalcontributor to fulfilling Vision 2030’s objective of having theKingdom be a trading hub for Asia, Africa and Europe.
• Land availability: KAP has ample empty land, available foruse by leading industrial and logistics companies.
• Potential tariff increases: Tariff increases, which have notoccurred over the last two decades,would be beneficial to PDC and would have a direct positiveimpact on its earnings.
• Capacity restrictions at JIP vs. KAP expansionpotential: Capacity expansions in JIP are restricted due to itslocation, whereas KAP has tremendous expansion potential dueto its location and land bank.
• MSC/TIL Vision: MSC, the world’s second largest shippingline and the majority owner of TIL Group (which in turn is themajority owner of NCT), has informed PDC that it aspires tomake its terminals at KAP a major MSC global hub, withthroughput of 10-12 million TEU’s.
14
3- Industrial Valley (IV) Update
15
Industrial Valley Land - Phases and Areas by locationOut of Total IV Land of 28.6 Mn SqM (NLA) excl. Northern Parcel, 56% of is dedicated for Lease and 44% for sale
CAPEX
NP
BRZ
IV3.C
IV3.D
IV1.B
IV1.A
Lease
Navy land
IV3.A
Lease and Sales
Breakdown of NLA is as below:
Phase 1 => 3.1 Mn SqM
Phase 2 => 14 Mn SqM
Phase 3 => 5.4 Mn SqM
Phase 4 => 3.6 Mn SqM
Bonded Zone => 2.4 Mn SqM
Land Utilization
IV3.E
IV3.F
IV3.B
Sales
Northern Parcel
NP
16
A global logistics and
light-industry hub
• Bonded Zone
• Special Economic Zone I
• Gas Zone
• Technology Park
• Logistics Center II
IV sub
pillar
Short-term
(2019)
Long-term (2025-
2028)
Short-term
(2020)
Medium-term (2021-
2024)
• Special Economic Zone
Logistics Center I
• Big Box Warehouses
• Commercial Plots
• Special Economic Zone Logistics Center II
• Port Servicing Zone
• Commercial Hub
• Tech Hub
• Cold Storage
• Containers Yard
• Residential Projects
• Special Economic Zone
Phase II
• Additional Offices
• Hotel
Industrial Valley developments by strategic sub pillars
17
Vision and Mission
MissionTo become the hub for job creation in King Abdullah Economic City and provide holistic solutions to industrial and logistics tenants; while establishing an integrated customer-centric industrial and logistics community focused on efficiency and excellence in operation.
VisionTo be among the top preferred regional hubs for manufacturing industries and value-added logistics.
• Drive land sales to secureboth EEC and IV fundingrequirements
Offer value-added value products and services that will:
• Ensure the long term sustainability ofIV business model
• Differentiate IV from other local, regionaland international competitors
• Special Economic Zone, Bonded Zone, Technology Park, and Renewable EnergyCluster
• Creation of jobs into the city and developing human capital to support IV tenants through training and developmentprograms
• Create integrated operational platforms to enhance customer experience and drive efficiency
• Grow leasing and other sources ofprofitable recurring revenue
Added value andinnovation
Recurringrevenue andprofitability
Operational excellence
Job creationand humancapital
Funding
Hub for newclusters
Strategic objectives
1
2
4
5
6
3
18
Industrial clusters and strategic partnerships
Eight strategic engagements are activated with the government to promote IV, attract anchor tenants and establish new services and clusters.
Government engagements and partnerships Sectors include
1 2
Activation of land
and loan initiative
in KAEC
(MoU signed)
Shortlist KAEC/IV
as a preferred
industrial location
(MoU signed)
Offering IV
customers loans
for exports
(MoU signed)
Establishment
of a building
systems cluster
(MoU signed)
Pilot a special
economic zone
in KAEC/IV
(In progress)
Localization of
renewable energy
projects
(In progress)
Creation of light
defense cluster in
KAEC/IV
(In progress)
Prioritize KAEC/IV as a
preferred location for
industrial companies
(In progress)
Pharmaceuticals
* Clusters are in compliance with the National Industrial Strategy
Food processing Building materials and systems
Plastics Renewables
Machinery and equipment
Medical equipment
Industry 4.0
Automotive
3 4
5 6
7 8
19
Business segments at IV
Home to over 106 leading global and local non-oil businesses
6 fully serviced clusters
Building
materials
Logistics
Consumer
Goods
Pharma
Automotive
Packaging
20
Price - Land Sales & Lease & Vertical Projects
21
Inventory - Land Sales
9,172(72%)
Developed
Under Development
1,210(10%)
2,321(18%)
Un Developed
2,890(23%)
Inventory
9,814(77%)
Sold
770(7%)
Inventory
9,612(93%)
Sold
Total10.4M
Total12.7M
Total12.7M
Total Net Sellable Area Sold %age of Total Sellable Area Sold %age of Developed/Under Develop. Sellable
Industrial Commercial
Phase 1B 49,892 - 49,892 - 100%
Phase 2.1 3,805,395 - 3,805,395 - 100%
Phase 2.5 3,038,560 168,318 3,206,878 - 100%
Phase 3B 897,060 - 844,776 52,284 94%
Phase 3E 876,612 - 876,612 - 100%
Phase 3F 336,607 - 336,607 - 100%
Sub-Total Area Developed 9,004,125 168,318 9,120,159 52,284 99%
Phase 4B 514,248 - 310,582 203,666 60%
Phase 4D 695,587 - 181,353 514,234 26%
Sub-Total Area Under Development 1,209,835 - 491,935 717,899 41%
Sub-Total Area Developed & Under Developed 10,213,960 168,318 9,612,095 770,183 93%
Phase 2.2 201,472 - 201,472 - 100%
Phase 4A 511,485 - - 511,485 0%
Phase 4C 599,161 - - 599,161 0%
Phase 4E 163,267 - - 163,267 0%
Phase 4F 217,032 - - 217,032 0%
Phase 3A-1 Sale 628,628 - - 628,628 0%
Sub-Total Area Undeveloped 2,321,044 - 201,472 2,119,572 9%
Total - Sale Areas 12,535,004 168,318 9,813,567 2,889,755 77%
Project NLA (SqM) Sold
(SqM)
Inventory
Jun 30, 2019
(SqM)
Sold %
22
11,555(72%)
Under Development
1,339(8%)3,059
(19%)
Un Developed
Developed
12,426(78%)
Inventory
3,527(22%)
Leased
2,147(49%)
2,250(51%)
Inventory
LeasedTotal4.4M
Total15.9M
Total15.9M
Total Net Leasable Area Leased %age of Total NLA Leased %age of Developed/Under Develop. NLA
Inventory - Land Lease
Industrial Commercial
Phase 1A 1,094,129 196,041 965,106 325,064 75%
Phase 1B 1,589,215 179,342 990,838 777,719 56%
Sub-Total Area Developed 2,683,344 375,383 1,955,944 1,102,783 64%
Phase 3C 1,071,906 32,775 191,038 913,643 17%
Phase 4B - 233,947 - 233,947 0%
Sub-Total Area Under Development 1,071,906 266,722 191,038 1,147,590 14%
Sub-Total Area Developed & Under Developed 3,755,250 642,105 2,146,982 2,250,373 49%
Phase 2.2 3,505,926 - 1,185,911 2,320,015 34%
Phase 2.3 2,518,977 784,701 193,917 3,109,761 6%
Phase 3D 451,714 356,405 - 808,119 0%
Phase 4A 161,972 300,857 - 462,829 0%
Phase 4C - 142,478 - 142,478 0%
Phase 4E - 116,424 - 116,424 0%
Phase 3A-1 Lease 643,366 95,263 - 738,629 0%
BRZ 2,465,387 11,577 - 2,476,964 0%
Sub-Total Area Undeveloped 9,747,342 1,807,705 1,379,828 10,175,219 12%
Total - Lease Areas 13,502,592 2,449,810 3,526,810 12,425,592 22%
Project NLA (SqM) Leased
(SqM)
Inventory
Jun 30, 2019
(SqM)
Occupancy
%
23
4- Bonded Zone (BRZ) Update
BRZ is a pillar in global logistics & light industry hub
A designated securely controlled area, within customs territory of KSA, offering
diverse solutions for storage &/or processing of imported intermediate goods pending
payment of any duties due.
Basic Storage Yards (under re-masterplanning): Area designed for short term open storage of general cargo, standard
intermodal containers and referees associated with the activities in the
remained of BPRZ.
Land allocated for Value added logistics, supply chain management
& light industrialThe area will be allocated for the construction of high quality buildings for use
as light manufacturing and complex logistics operations and value addition.
Land allocated for Warehousing Warehouses for storages of goods by freight forwarders and basic logistical
operations such as container stuffing , de-stuffing, palletizing and kitting.
What is BRZ?
Commercial and retail Space, offices & Warehouses (Vertical)
Commercial and office space catering for the service providers within the
zone
25
Bonded Zone regulations & Govt. engagements has well progressed
Status Highlights Progress
• Completed and approved by ECA
• Completed Review and Aligned with Customs
and ECA
• DAFZA MoU Received
• Detailed negotiations to follow
• Brand identity developed
• EoI’s with 10 tenants
• Detailed Design Completed
• Grading in progress
1
2
3
4
5
Master plan & Infra.
BRZ Regulations
Construction
Marketing & T.A
Operators
26
Post proposal meeting conducted (4 shortlisted)
MoU from DAFZA received and under approval
Detailed Negotiation stage with the potential
operators for the two preferred structures
Progress:
Status
Next Steps:
*Preferred Structure
1. Operator model
2. Joint Venture
• EEC Investing Land in kind
• DAFZA investing in CAPEX & Working
Capital
• Equity shares to be calculated as per the
joint business plan
Engagement of Bonded Zone Operators is progressing
27
BRZ
~1.2 Million Sqm
SEZ
~2Million sqm
Products
• Basic Storage
• Basic warehouses
• Value Added
Logistics
Services
• Fence Line for all
BRZ
• Customs Plaza
(S.G)
• Inspection Area
• Customs &
Operators offices
• Mosque
• Commercial
building
Phase 1: BRZ
NLA: 867,929 Sqm
# of Plots: 89Products
• Light industrial
units
• Value added
Logistics
Services
• Commercial
Building
• Offices
Phase 2: SEZ
NLA: 1,603,318 Sqm
# of Plots: 111 New scope finalized and aligned with stakeholders
Tendering On-Going
Evaluation & Award for re-masterplanning services
Finalize Concept & Detailed Masterplan
Secure Municipality Approval on masterplan changes
Commence Commercial & Physical Activities for the zone
Progress:
Status
Next Steps:
*Scope of Works
Removal of the Basic Storage area (KAP/EEC product mix)
Increase boundary area due to HCIS classification
Value Engineering Exercise mainly to:
Enhance TIA to improve operational efficiency
VE utility networks to improve Storm & Sewage
networks as well as utility plots.
BRZ remasterplanning is on the move Bonded & Re-Exporting Zone Update
28
Bonded Zone: Market Demand
Some of the top companies in business
• Al Majdouie Logistics: MOU signed, a business plan was shared with PDC in Nov. - Potential lease of 300,000m2 on two
phases for logistics services, warehousing and petrochemical hub facility.
• TAJMEEA: MOU under signature process, a business plan will be shared with the MOU doc. - Potential lease of 100,000m2 for an LCL /
Consolidation hub facility.
• Naghi Group (Cigalah): PDC received an official EOI to shift the business in the BZ once ready. Warehouse requirement between
2500-3,000 m2 as phase1.
• Jolly Chic: Potential 100,000 m2 in Bonded Zone as a national/regional storage & distribution Hub.
• Al Saif Group (Sadia/Sharabatly/Aramco): Potential 60,000 m2
• DHL: Potential 50,000 m2
• IMA: Potential 100,000 m2 hub
• NOMAC/ACWAPOWER: Potential 50,000 m2
29
IV Competitive Advantage
Prime Site Location
Adjacent to King Abdullah Port container terminal designed with a total capacity of 20m TEU’s
On the Red Seas with direct access to global shipping routes
Next to North South KSA highway with direct links to Jeddah & Madinah (major markets in KSA)
Direct Road and passenger rail links to Jeddah, Mecca & Madinah
Terminal for proposed KSA Land bridge Project providing East West cargo rail transport
Streamlined Customs Procedures
Duty free importation of intermediate goods for storage and processing prior to subsequent re-export or supply to KSA
Ability to import otherwise restricted products (non-compliant products) for storage and processing prior re-export
Advanced Buildings & Services
General Warehousing & Light Industrial unites in a range of sizes
Specialized logistics solutions
Commercial space for offices and supply chain providers in addition to regulatory organizations
Proximity to Large & Growing Geographical Markets
Direct Access to KSA – largest market in the GCC
Proximity to the MEA Region and ability to serve the emerging markets in Africa
30
5- Financial Update
32
Quarterly Revenue and Net Income 2018-2019 (Q2)
3
-45
-135
474
-125
281244
112
371 346
210
Q3 2018Q1 2018 Q4 2018Q2 2018 Q1 2019 Q2 2019
Residential
Industrial Valley
Hospitality & Leisure
4(1%)
79(24%)
244(75%)
YTD Jun 2019 Order intake breakdown(%)
YTD Jun 2019 Order intake
SAR 328Mn
Net Income Revenue
32(6%)
Residential
Other Industrial Valley
38(7%)
109(20%)
Hospitality & Leisure
376(68%)
1%
YTD Jun 2019 Revenue breakdown(%)
Revenue and Net Income (SAR Mn)
32
33
Q2 Results
KAEC had a loss in Q2 owing to market conditions
• Continued developments ( PI and social infrastructure and amenities aligned to V2030)
• Lower order intake due to economic conditions
• Lesser collections from receivables
• Restructuring of payment plans
• Strategic shift on development of projects
33
34
Invested capital and debt & equity profile
Invested capital, healthy financial leverage has enabled us to build KAEC, and will continue to support our growth
8.5
5
5
Paid up Capital
MoF Loan
Commercial Loan
• Financial leverage is significantly lower than regional and international property developers
Breakdown of EEC’s invested capital (SAR Mn) Debt and equity (SAR Bn)
• KAEC is the largest privately funded city in the world
SAR 18.5 bn
debt and paid up capital
307
707 9621,073
1,227
1,472
2,605
3,367
3,780
4,207
Education & Healthcare Fixed Assets
Utilities & Smart City Residential Land Developmnent
Industrial Valley Infrastructure Commercial Hospitality & Leisure
Port Primary Infrastructure
Land (purchase) Housing
SAR 19.8 bn
invested in building
KAEC (as of Jun
2019)
34
35
Cash and liquidity analysis
Good liquidity position with a comfortable cash buffer to help fund current projects and pay down debt S
AR
Mil
lio
ns
SA
R M
illi
on
s
768 743
2018 Q2 2019
AR
603
996
50
100
1,096
653
2018 Q2 2019
Murabaha term deposits
Cash & cash equivalents
1.95
Capital Work in Progress (as
of Jun 30, 2019)
SA
R B
illi
on
s
35
36
Recurring income from operational assets
Recurring revenue is contributing to a greater portion of our profit, and as more operating assets come online we expect that contribution to escalate
• Over 30 projects earmarked for hospitality, leisure and tourism segment
• Smart budgeting and liquidity management to cover SAR 11 bn CAPEX over next 10 years
6 3281 116
186237 222 251
348
1,022
1,351
1,668
2,083
2,473
3,039
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Recurring revenue & planned CAPEX
Budgeted CAPEX Recurring Income (Actual)
Recurring Income (Projected)
19
34
6063
160Number of projects under operation
36
201720162015 2018 2025
6- Additional Information / Appendix
37
Development through other strategic pillars
KAEC developments by strategic pillars
A global logistics and
light-industry hub
A location for businesses
to succeed
• Bonded Zone
• Special Economic Zone I
• Gas Zone
• Technology Park
• Logistics Center II
• International Centre for
Culinary Arts
Pillars Short-term (2019) Long-term (2025-2028)Short-term (2020) Medium-term (2021-2024)
• Special Economic Zone
Logistics Center I
• Big Box Warehouses
• Commercial Plots
• Special Economic Zone Logistics Center II
• Port Servicing Zone
• Commercial Hub
• Tech Hub
• Cold Storage
• Containers Yard
• Residential Projects
• Special Economic Zone Phase II
• Additional Offices
• Hotel
• Hejaz Hotel
• Hejaz Exhibition Center
• Mohammed Bin Salman University
• Women Driving Academy
• Jamjoom Hospital
A unique city-living
experience
Quality leisure experience
on the Red Sea
• Esmeralda Family Recreation
Center
• Motorsports Park
• Lagoona Escape
• Bay La Sun Perfect Mosque
• Al Waha Perfect Mosque
• Al Shurooq Perfect Mosque
• Canal Residence
• Al Shurooq II
• Perfect Affordable Home
• The World Academy Boarding School
• Al Khaleej Private Affordable School
• Al Shurooq Public School
• KAEC Transportation Hub
• KAEC Gas Station & Service Hub
• KAEC Central Command & Emergency Response Facility
• Safety Command & Control Center
• KAEC Waste Management & Material Recovery Facility
• Waterside Community
• Emerald Shores Resort
• Rove Hotel
• Lagoona Waterpark Resort
• Address Hotel
• Lagoona Equestrian Club
• Haramain Highspeed Railway Station Outlet
• Kite Beach
• Lagoona Theme Park
• Red Sea Marine Observatory
• Juman Carnival and Entertainment Zone
• Hejaz Gateway Mall
39
A location forbusinesses to succeed
MissionTo grow KAEC’s business ecosystem by enabling partnership and investment opportunities for the private and publicsectors, to continuously develop KAEC’seconomy and provide maximum value toall customers
VisionTo establish KAEC as a leadingunique business destination of choicein Saudi Arabia for businesses togrow and sustain; impacting thenational economy and aligning with ‘Vision 2030’
A location for businesses to succeed is a key strategic pillar that leads the non- industrial and manufacturingbusiness sectors’ conversation with KAEC.
Vision and mission
41
Sector Current (2019)Short and mid-term future
(2022-2027)
Long-term future
(2028 – onwards)Impact on Vision 2030
• FMC (ambulatory polyclinic) • Tertiary destination
hospital formation• Healthcare ecosystem, including
health science colleges
•
•
Enhance quality of healthcare
(preventive and therapeutic)
Develop rehab capabilities after
critical care and long-term
hospitalization
• Primary: TWA (K12 school)
Higher education: MBSC
Vocational: Tomouh Academy
Culinary Centre (ICCA)
•••
• TWA (boarding)
Mid-level and and public
MBSU (University)
ITP house of brands
Tourism and hotel school
••••
• Education hub for all student levels
• Increase Saudi talents
Provide quality education
Lower unemployment rate to 7%,
boost Saudization targets
••
• NAA: Pilot and Maintenance
Program (Saudi)
• Comprehensive aviation
program (Middle East,
Asia, Africa)
New business (MRO)•
• Aviation cluster (component
manufacturing, machine assembly,
engine design, etc)
• Increase number of qualified
Saudis in aviation; commercial and
military pilots, and ground services
••
BayX (convention centers)
Five accommodation and hotel
offerings
••
Hejaz District
Hejaz Convention Center • 360-degree MICE ecosystem•
•
Promote local business to foreign
investment to drive economic growth
Improve business environment in KSA
• Bay Views (office space)/360 Hub• Full entrepreneurship
ecosystem creating
unique jobs in KAEC
• Self-sustained and growing sector-
specific SMEs
•
•
Empower Saudi entrepreneurs and
SMEs from 20% to 35%
Create unique jobs for Saudis and
contribute to dropping
unemployment rate to 7%
Healthcare
HCD
Aviation
MICE
Entrepreneurship
Current sector outlook
Third-party investment/JV partnership Government funding/grant Offset program Public Investment Fund
Strategic plans to succeed
42
Focused on synchronizing and integrating projects and efforts with the government towards the development of current and new sectors in KAEC
Interim strategy
• Prioritize based on funding needs,
impact created and time/ease of
execution
• Further develop governance
structure following key accounts
management approach
• Align and engage ECA
Pillars
Tactics
Government
engagement
Developing current
and new sectorsGo to market
1 2 3
• Identify and prioritize sectors
• Asset allocation and business
model development
• Identify financial outcomes
• Develop sector-specific ecosystem
including partners and partnership
models, enablers, etc
• Establish investment promotion
strategy, team, structure, and
resources
• Activate third-party engagement
(government, private, and NGOs)
• Roll out marketing and
communications campaigns
Grow and sustain businesses towards the development of current and new sectors.
Interim strategy
43
13
Government entity Engagement Partnership structure Support Status
Attract PIF funding for
various projects in KAEC ••
Lagoona Fun District funding
Additional investment projects
Financial
Establish SMEs hub
and support developing
KAEC ecosystem
•
•
KAEC to offer SMEA hub space free of charge
excluding utilities and SC.SMEA to operate space
Program and
financial
Promote KAEC as part of
Invest in Saudi • KAEC to provide all marketing materials, offerings, andinvestment kits. SAGIA to include materials in all channels
Promotion
Media district
• GCAM to fund and support attracting tenants,
KAEC to build and operate
Financial and
regulation
New unconventional
educational institutes
in KAEC
••
Scholarship program for NAA Approve
boarding school regulations Fund
building a public school in KAEC
Partner in attracting new global colleges and or universities
Support MBSC’s expansion to other colleges: media,
design, hospitality
•••
Financial and
promotion
1-Government engagements for 2019
44
Focus is on further developing the current sectors that KAEC promotes, and identifying other potential sectors that add value commercially and to the city
Economic
impact (financial
assessment)
Job creation
(high-value jobs)
Population
generation
Government
support and
commitment
City integration
(synergies)
JV opportunities
(investment level
of attractiveness)
Sector of potential priority due to: government strategic direction, economic and social benefit spillover to KAEC, stakeholder patronage.
2-Developing current and new sectors (1/2)
Future potential sectors
Renewable energy
Media and film-making
Science and technology
Smart agriculture
Current
Healthcare
Human capital development
MICE
Entrepreneurship
Aviation
Elite sports
45
A 360-degree go-to-market plan will solve current investors’ pain points and attract new sectors.
Partners
•
•
Establish the one-stop Investor Service Center in
partnership with ECA, showcasing the end-to-end
process and cost of establishing businesses in KAEC
Promote industry-specific government and NGOs
partnership
Campaigns, channels and materials
•
•
•
• Tap into partners’ channels such as SAGIA’s
Invest in Saudi platform
• Leverage forums, conferences, exhibitions
etc while maintaining cost efficiencies
• Continuously analyze impact by channel in
parallel with identifying new ones
Team and resources
•
•
•
• Team’s core role is to drive the investment
promotion agenda and generate leads including
leading relevant government engagements, NGOs
etc
• Overall vertical governance will impact
team structure, dynamics etc
• Budgets are to be allocated separately
Materials and campaigns
•
•
• Ensure all forms of materials are ready to use:
print, digital (email, WhatsApp, LinkedIn etc)
• Smart and creative campaigns that drive lead
generation
Targets by industry
•
•
••
• Understand current customer base and identify
new targets by industry
• Analyze against mega-projects and raising
competition at KSA level and regionally
• FDIs: prioritize global target markets by targeted
industry Classify targets against ecosystem and
analyze impact
Customer offering
•• Competitively priced assets Compelling
business offering Winning ‘Live in KAEC’
offer
• Unique education (TWA, Tomouh, MBSC) Access to
market, talent (Tomouh program), info and business
events
••••
Campaigns,
channels, and
materials
Customer
offering
PartnersMaterials and
campaigns
Targets by
industry
Team and
resources
Go to
market
3- Go to market
A globallogistics and
light- industryhub
A locationfor
businessesto succeed
A uniquecity- living experience
Qualityleisure
experienceon the Red
Sea
46
10 -year business plan 2019-2028
A unique city-livingexperience
4
7
A global logistics andlight-industry hub
A location forbusinesses to succeed
A unique city-livingexperience
Become the city of choice for high quality of life and exceptional living experience.
REDCO & REMCO:Residential development, sales
and lease, and residential
facilities management.
Facility management (Select): Provides a broad variety of
integrated and advanced facility
management services such as
maintenance of buildings and
public networks, as well as
logistics and technical services.
City management: Provides city-wide public
services such as landscaping,
safety and security, utilities,
cleaning and waste
management.
City operations: Transportation, utilities,
addressing
Smart City:Fiber to the home, digital
services
A unique city-living experience
Strategic pillar and business model vehicles
Quality leisureexperience on the
Red Sea
48
Mission
Provide quality housing with supporting infrastructure
and health and education facilities for all income
segments in line with Vision 2030
Vision
To be a leading city in the Kingdom of Saudi Arabia that contributes to its
socioeconomic development by developing and managing best-in-class
communities and living solutions catering to all income levels
• Provide quality health and
education facilities for all segments.
• Create integrated operational
platforms to enhance customer
experience and drive efficiency.
• Develop and operate quality
infrastructure, lifestyle amenities,
and family-friendly communities.
• Offer wide range of well-planned
communities and housing products
tailor-made for all income segments.
Strategic objectives2
4
1
3
Quality of lifeLiving
Operational
excellence
Health and
education
A unique city-living experience
Strategic objective
49
Real estate and
lifestyle amenities
High-end housing
Mid-income housing
Affordable housing
Operations
BLS townhome – REOM
Education and
healthcare
City services and
infrastructure
Boarding school
TWAschool including
daycare
Autism
FMC including executive clinic
Khaleej School – affordable
(assuming TPD)
Public school – Al Shurooq
(assuming TPD)
Smart City
• Fiber
Transportation
Primary infrastructure
•
•
•
RO water plant
Power substation
Other primary infrastructure
City management revenue and cost
Utility revenue and cost
A unique city-living experience
Sub-pillars
50
•
Asset and facility management of all
KAEC communities
Village staff accommodation
Leasing operations
Bay La Sun, Al Waha, Al Shurooq
Royal Greens Golf & Country Club
Esmeralda Sports & Leisure Club
• Affordable housing communities
Al Shurooq and Hejaz South
End-to-end development of residential
and mixed-use real estate communities
and lifestyle amenities
Asset management and operations
for recurring revenues
• Mixed-use and leisure communities
Bay La Sun (Marina, Beach, and Canal
Residences), Waterside Community
• Middle-income communities
Al Talah Gardens, Al Waha, Hejaz Miram
• High-income communities
Golf and Beach communities
•
•
•
•
Real estate and lifestyle
Real estate business overview
51
Well-positioned to attract
foreign investment
10,000+ jobs in
construction sector
Engage with MOH to
partner in affordable
housing solutions
Wide range of
living solutions
Quality of life
Socioeconomic outcomes
Job creation
Local and foreign
investment
attraction
Growing
local firms
Housing for all
income levels
Real estate and lifestyle
Alignment with Vision 2030
52
Proximity to IV,KAP, KAUST,Petro Rabigh etc
Strategic drivers that contribute to the success of the residential business
Sea view locations and proximity to beach
Haramain Railway connects KAEC to the Holy Cities andJeddah
Valueproposition
World-class residential communities
Foreign ownership (non-GCC) of property will accelerate success
Control over masterplan to ensure the experience
Mortgage availability for all income levels
Properties with world-class golf course and sports center
Quality infrastructure
Real estate and lifestyle
Success drivers
53
Capitalize on Haramain
High Speed Railway and
focus on expansion of
Hejaz District
Revisit pricing strategy
with market demand
Achieve target ROI of
15-20%+ on vertical and
20-30%+ on land
Delivering 7300+
housing units and 6600+
land plots by 2028
GCC activation and
foreign ownership
Engaging with Ministry
of Housing
New product offerings
as 2nd home and leisure
segment
Continue to build quality
of life aspects in all of
our communities
Mortgage solution for
all income levels
Social amenities
Capitalize on two
international award-
winning leisure facilities
in KAEC and create
value of surrounding
properties
Maximize benefits from
Saudi International Golf
Tournament (2019-21)
by marketing KAEC at
international level and
drive purchase of
leisure product
Social amenities in
each community
High, Mid and Affordable income segment Development approach
Introduce building technology Reduce costs, improve quality
and increase speed of delivery
Expand already tested pre-
cast concept to other vertical
products
Engage third-party developers to
reduce cash outflow
Considering KAEC job growth,
provide housing solutions to IV labor
staff, city service providers
Committed to provide workers’
accommodation with improved
health, safety, and productivity
Accelerate handover of vertical
units to customers and earn
service charges
Lease around 600+ units in BLS, Al
Waha, and Al Shurooq communities
Recurring revenue
Begin operations of Esmeralda
Sports in 2020
Drive operations of Royal Greens to
ensure break-even on cash basis over
the period
Grow recurring revenue at least
20% YoY
Real estate and lifestyle
Business model KPIs, strategy, and drivers
54
55
Family leisure
Niche and elite sports
Sun and sea
Iconic entertainment
experiences
Focus
Quality leisure experience on the Red Sea
KAEC is changing the face of Saudi leisure
A global logistics and light-industry hub
A location for businesses to succeed
Quality leisure experience on the Red Sea
KAEC to be an emerging destination of choice for leisure and tourism in the Kingdom.
A unique city-living experience
REOM:
Development and operation of
leisure and hospitality assets.
RLO:
Development and operation of
retail spaces and leisure assets.
DMO:
Tourism activities events designed to bring people
together, entertain families and enrich KAEC’s culture.
Quality leisure experience on the Red Sea
Strategic pillar and business model vehicles
56
• Families with larger household size where children are the main focus contribute USD 15 billion spending on outbound tourism.
• A growing young population with 69% of residentsin Saudi Arabia below the age of 39.
• A changing reality… lowering of disposable income amongst Saudis, emergence “Stay-cations”, socialchange and liberalization, Government Promotion &Investment in Tourism.
• The opportunity to target a large addressable inbound market (excluding Hajj tourists) who have limitedaccess to leisure offerings – 15 million by 2020, 30million by 2030.
• Current competitive landscape allows for development of a mega entertainment destination offering in the Western Region.
The value of Saudi spending onforeign tourism in 2016 amountedto $26.4 billion compared to$22.4 billion in 2015.
Saudis left the country to make21.3 million trips in 2016compared to 20.8 million in 2015,a 2.0 percent increase.
Quality leisure experience on the Red Sea
Macro drivers – support KAEC’s potential
57
A phased development approach towards realization of the strategy and vision:
• Royal Greens Golf Course
• Esmeralda Sports Centre
• Million visitors annually
• Five hotel/accommodation products, 709 keys
• 2,300 direct operational jobs
• L&E: deliver 15 quick-win projects
• Launch motorsports park
• Ground-break for Lagoona phase 1a
• Business diversification (culinary academy, land
sales, JVs etc)
2019-21
Kick-starting growth
• 3.5 million visitors
• Nine hotels, 1,819 keys
• 5,900 direct operational jobs
• Lagoona phase 1b/2
• Destination resorts
• Introduce innovative commercial and retail
offerings
• Continued business diversification
• Expand development footprint and position as a
premier tourism destination
• Continue development of Bay La Sun, Hejaz,
Lagoona and other new waterfront districts based
on market feedback
Objectives Objectives Objectives
2022-25
Building critical massPost-2025
Major expansion
58
Quality leisure experience on the Red Sea
Tourism strategic objectives
Stimulate city economic activity
The value chain investment and
multiplier and the overall impact on
other sub-sectors (transport, retail,
accommodation, banking etc)
Promote job creation
Job creation and labor
absorption potential, with low
skills base requirements
Supports increasing
value of land bank
Positive correlation
between successful tourist
destinations and real estate
value (land and built)
Increase absorption of
residential products
Facilities and infrastructure
developed for tourism can also
benefit residents
Increase recurring revenue
generation
Tourism helps balance the
service cost burden to for city
residents
Encourage third-party
investment
Visitor spend supports local
businessIncrease KAEC
profile & brand
equity
Stimulate city
economic activity
Promote job
creation
Supports increasing
value of land bank
Increase absorption
of residential
products
Increase recurring
revenue generation
Encourage third-
party investment
Increase KAEC
profile and
brand equity
Quality leisure experience on the Red Sea
Tourism has the potential to make a significant impactin KAEC’s development
59
• Mixed-use serviced plots
• Driving sales targets and
cash receipts
• Accelerate the
development of the city
• Create success stories as
a rewarding investment
destination
• Ease of doing business at
KAEC
• Better regulatory
framework
• Low-risk transactions
• Relaxed payment plans
• Relaxed/reasonable
development obligations
• Located in established
districts
• Local/individuals
investors
• Mid-scale developers
• GCC
• Alternative investment
• Emerald Shores
• Lagoona
Projects
• City Views
Land sale Incentives Target
Quality leisure experience on the Red Sea
60
Company critical development factors
Education andhealthcare
A unique city-living experience
Sub-pillars as critical enablers
62
Mission
Provide best-in-class HCED services to the KAEC community and the region to ensure
urban health and wellbeing and the development of the workforce of tomorrow
Vision
To be recognized as one of the top healthcare
and education destinations in the GCC
Establish a medical ecosystem to excel
in three main pillars:
• Primary and secondary ambulatory
services to deliver personable and
comprehensive healthcare
• Destination tertiary services and
advanced medical investigation (R&D)
• Health sciences education to
develop Saudi’s future healthcare
professionals
Healthcare Education Vocational
Set up a formal educational destination
that encourages life-long learning from
classroom to boardroom, through
reputable global and domestic partners
• K-12 transformational education
accessible to all socioeconomic classes
• Higher education targeted to sustain
KAEC’s ecosystem and fulfill KSA’s
professional gaps
Put in place the non-formal educational
hub that provides enterprises, in KAEC
and KSA-wide, with professional
development training programs and an
attractive Saudi talent recruitment pool
• Training programs to integrate the
unemployed into the labor force
• Development programs across
different sectors
Vertical
Strategic
objective
Education and healthcare
Strategic objectives
From setting the foundation to provide essential services to a full fledged ecosystem that serves the region’s HCED needs
Healthcare
Education
FMC
• Enhance quality of
healthcare services
(preventive and therapeutic)
• Increase private sector
contribution in total
healthcare
• Provide home care
Tertiary hospital
• Develop rehabilitation
capabilities to provide HC
after critical care and long-
term hospitalization
• Improve treatment for
chronic diseases
Autism Center
• Increase in the percentage
of children benefiting from
special programs, providing
equal opportunities, and
ensuring integration as
members of society
Wellness Center
• Increase preventive program to promote healthy
living, help to reduce the communities’ obesity
and increase life expectancy
TWA
• Develop children’s
character and improve
students’ values and core
skills
• Increase KG enrolment
Boarding school
• Build culture that rewards
determination; an education
that contributes to
economic growth
Public & Al Khaleej schools
• Provide education services
to all student levels and
increase KG enrolment
Health Science College
• Increase number of qualified Saudis in nursing
• Lower unemployment rate
• Boost Saudization target in the HC sector and reduce foreign
workers’ dependency
Offer an education that contributes to economic growth and boosts the Saudization targets
Tomouh Program
• Contribute to the
development and
employability of young
Saudi men and women (KS
of HCD Program)
Boarding school
• Increase number of Saudis
enrolled in training
programs
• Boost SMEs for economic
growth (+20% of GDP)
Women Driving School
• Enable dependency
mobilization to increase the
female population workforce
integration
Aviation Academy
• Increase number of
qualified Saudis in aviation;
commercial and military
pilots, and ground service
Provide citizens with knowledge and skills to meet the future meets of the labor market
Vocational
• Improve quality of
education by the teacher
training and development
program
Teachers’ Academy
63
Education and healthcare
HCED strategic roadmap
Establish an ecosystem that promotes healthy living and best-in-class services to position KAEC as the healthcare and education destination of the GCC, managed through different business models – either in-house or in collaboration with global and domestic partners.
Ecosystem:
• Sustainable development to improve quality of life
• From essential to sophisticated modern services
• Technology and data driven
• Attracts and develops talent
• Community network
• Stakeholder investment
Business model:
The operating model to expand HCED’s offering will be strategically selected based on clear guidelines, including, but not limited to: opportunity size, regulations, time-to-market, complexity of service, market gaps, management style (board vs management) etc.
Pharmacy
Learning for future
generations
Personal & professional development
EcosystemGood health, for effective learning
Urban health and wellbeing
CommunitySupport
PhysicianOffice
Autism Center
Home HC
Wellness Center
EMS
Hospital
TomouhAcademy
Women Driving School
Aviation Academy
Teacher Academy
TomouhProgram
CSR
Health Science College
TWA
Public SchoolAl Khaleej
Boarding School
Teachers and administrative staff
Education and healthcare
HCED’s future: Contributing to Saudi Arabia’s economic growth
64
Prince Mohammad Bin Salman College
A location for businesses to succeed
With the successful launch of the College of Business & Entrepreneurship, MBSC is aiming to partner with new globally renowned
colleges in critical fields based on Vision 2030 and the 2020 National Transformation Program. The goal is for MBSC to expand
from a college into Prince Mohammad Bin Salman University (MBSU).
Introduce inter-disciplinary
synergies
Align with labor
market demands
Maintain niche advantage
(first mover)
Address student needs
and interests
GOAL
Hotel & Hospitality
Management College
Design College (fashion, interior,
industrial, communication)
Technology and
innovation college
Media and
Journalism School
• Investment of SR 171 billion in tourism
by 2020
• 1.2 million jobs to be created in tourism sector
• 82 million tourists planned with over
500 events and festivals
• 176,000 new hotel rooms and apartments
to be developed
• 15 million Umrah pilgrims to be accommodated
• 1 million additional Saudis to be employed
within the retail sector by 2020
• Lower rate of unemployment from 11.6% to 7%
• Increase women in the workforce from 22% to
30%
• Increase SME contribution to GDP from
20% to 35%
• 125 locally developed technologies in targeted
sectors
• 5,000 patents issued in the Kingdom
• 350 technically skilled Saudi experts
• In technology, we will increase our investments
in – and lead – the digital economy
• SR 6.6 billion to be generated through the
media industry
• 16,000 jobs to be created in the media sector
• 58% improvement in the perception of KSA
locally and abroad
• 55% ability to disseminate messages regarding
government achievements
Current focusNational focus:
66
MBSC business model presentation
Aligning growth strategies with Vision 2030 and NTP
One government
• Waiver of investment license fee of SR 25,000
• Regulatory and investor support
• Policies and governance enabling the
entrepreneurship ecosystem
Incubators and accelerators
• Incubation services including training, advisory,
business infrastructure support, and funding
• Free co-working spaces for three years
• Networking opportunities
• Activations, events, and exhibitions
Business growth opportunities
• KAEC venture capital fund of SR 38 million
• Access to angel investors
• Seed funding (startup)
• Growth and expansion funding
• Access to KAEC market and biddings
• Access to talent through Tomouh Academy
Colleges and universities
• Full-time and part-time MBA programs
• 160+ MBA students to date
• 24+ executive education programs (550+ trained)
Mentorship and professional services Legal
Relocate to KAEC
• Free office space for three years
• Housing:
• HOP: 2.5% dp/10Y/0% interest
• Lease: 30% discount on all verticals
• Education: 55% discount on TWA, all levels
• Free transportation for two years
• Special discounts on all KAEC assets
Strategic Partners
Incubators and
accelerators
Relocate to
KAEC
One
government
Colleges and
Universities
Mentorship
and professional
services
Business growth
opportunities
Entrepreneurship
Ecosystem
67
• Legal
• Accounting
• Advisory and consulting.
• Strategy building
• Marketing
• Admin
MBSC business model presentation
KAEC entrepreneurship ecosystem
Financial stability MBSU expansion Student baseCenters of excellence and
technical training institutes
• Flagship full-time and part-time MBA program
launched in 2017 and 2018
• Future programs may include masters in
accounting, finance, and general
management
• 24+ programs with over 550+ participants
and 116+ organizations
• 21+ programs planned in 2019 with 500+
participants and 150+ organizations
• 21 journal articles and case studies published
• 30 local case studies and research projects
under development by faculty and case
writers
• 20+ events, seven speaker series with over
4,600 visitors footfall at MBSC campus
• 6,000+ expected footfall at MBSC
campus in 2018
• 8,000 m² campus (300+ student capacity)
• 3,600 m² campus expansion
(400+ student capacity)
• 83,000 m² MBSU campus (to be designed)
• 12 international founding faculty hired from
500+ applicants across fields of
entrepreneurship, information systems,
operations management, economics, and
marketing
• Automated and digitalized the back office
support and academic affairs functions
• Automated and Integrated key business
processes across remaining functions
• Renewed MBSC’s educational
license in 2019
• Members of AACSB, EQUIS, and
AMBA (top four international
accreditation bodies)
• Established the SR 375 million endowment
fund. SR 60 million received and deposited
in Delaware trust fund managed by newly
incorporated EKC Endowment LLC (~SR 1
million accumulated interest to date)
• Activated the SR 50 million student
scholarships fund. More than SR 20 million
in financial aid disbursed to students of
MBSC to date (2017-18-19)
• Partnerships in progress with The New
School, Parsons School of Design, and
Singularity University
• Strategy for expansion towards a
university is under progress, evaluating
different colleges including hospitality and
hotel management, media and
communications, and computer sciences
• 88 FT and PT MBA students enrolled out of
2,325 prospects in 2017. Graduated on 2
May 2019
• 78 students enrolled for FT and PT MBA out
of 6,500 prospective applicants in 2018
• Established the Babson Global Center of
Entrepreneurial Leadership (BGCEL)
• Established a financial trading center in
collaboration with Bloomberg
• Future centers of excellence include
digital transformation, urban development,
government and public policy, and
philanthropy
Academic programsExecutive and
continuing education Research and case studies Events and speaker series
Facilities Founding faculty Operations Licensing and accreditation
68
MBSC: progress snapshot
9 10 14 23 26 26 27 27 27 27 28 28
4554
5861
65 68 69 70 71 71 71 71
0
20
40
60
80
100
120
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
MBSC job creation (cumulative)
Academic jobs Administration jobs
75156
160
256
357
419 463490 500 500 500 500
0
100
200
300
400
500
600
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Student numbers (cumulative)
Student numbers
77
132 139
204
269
308335
352 359 359 359 359
0
50
100
150
200
250
300
350
400
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
~KAEC residents (direct cumulative)
KAEC residents
An estimated ~60% of MBSC students and employees
will become KAEC residents. The figures below do not
take into account families in the household
69
MBSC business model presentation
Fostering job creation and socioeconomic impact (estimate)
70
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Future matters:
This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of EEC. Those intentions, expectations, future plans,
strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected
by known and unknown risks. The performance and operations of EEC may be influenced by a number of factors, many of which are outside the control of EEC. No
representation or warranty, express or implied, is made by EEC, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans
will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause EEC’s actual future
results, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on these
intentions, expectations, future plans, strategy and prospects. EEC does not warrant or represent that the actual results, performance or achievements will be as
expected, planned or intended.
