Royal Commission for Jubail and Yanbu

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

Jubail City Planning Forum

12 February 2014

Martin Cooper, Director, Deloitte Corporate Finance Limited

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Introduction

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© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Introduction

The purpose of this presentation is to set out how the development of Jubail City Centre (“JCC”) can be used to generate inward investment and economic development at Jubail Industrial City (“JIC”)

This presentation is structured to answer the following three questions:1. What is the offering of JCC?2. What models can be used to deliver JCC? 2 examples3. How can JCC generate economic development and inward

investment?

3 Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

What is the offering of JCC?

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© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Jubail City Centre – regional contextThe catchment of JCC will extend from Ras Al Khair Industrial City in the north to the Dammam Metropolitan Area (“DMA”) in the south

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Source – Google Earth, Deloitte Note - illustrative locations only

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Jubail City Centre – local contextJubail City Centre is located at the heart of the community areas within JIC

6 Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

Source – Google Earth, Deloitte Note - illustrative locations only

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Jubail City Centre – City Centre Plan JCC is a major mixed-use development planned over 275 ha and 119 land parcels

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Source – RCJY

JCC is planned at the heart of the community areas in JIC and the City Centre Plan comprises:

• 275 ha

• 119 Land Parcels

• Over 500,000 sq m retail GFA

• Over 700,000 sq m office GFA

• Over 10,000 residential units

• 1,000 hotel rooms

• Over 40,000 parking spaces

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

©2014 Deloitte Corporate Finance Limited – Private and ConfidentialSupporting Inward Investment and Economic Development in Jubail City Centre, KSA

Jubail City Centre – constituent components The following examples represent JIC constituent components that will be available to investors, developers and end users

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Retail Centre Lifestyle and Food & Beverage (“F&B”) retail

Shopping Street

Outdoor Mall

Retail led mixed-use high street

Promenade

Public square with retail led mixed-use

Waterfront Souk

Civic Centre Park

Waterfront retail led mixed-use

Municipal one stop shop with retail use

Marina

Waterfront retail led mixed-use

Residential

Petropolis

Private yacht club with F&B retail

Public entertainment use with retail

Waterfront residential district

Aquarium Park Public entertainment use with retail

Al Deffi Window Waterfront residential led mixed-use

Source – RCJY

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

What models can be used to deliver Jubail City Centre?

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Delivery of Waterfront City Centre ProjectsExample 1: Waterfront Toronto, Toronto, Canada

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Source – Waterfront Toronto

Fast facts:

• 800 ha regeneration programme• 25 year implementation

programme (launched in 1999)• 40,000 new residential units• 40,000 new jobs• 3.5 km of waterfront development

Key themes:

• People first• Parks and public spaces• Our future is green • Innovation• Economic growth • Design excellence• Return on investment

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Delivery of Waterfront City Centre ProjectsExample 1: Waterfront Toronto, Toronto, Canada

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA11

Establishment Delivery

•Establish Waterfront Toronto entity

•Public consultation and master plan/ infrastructure planning

•Initial negotiations with private sector developers

Ke

y A

cti

vit

ies

Ph

as

e

•US$108 million generated primarily from land sales

•Revenue initiatives will now focus on land sales

•Other revenue sources include parking, asset management and public realm contributions from developers

•Phased delivery of infrastructure

•Funding used to deliver:

•Roads

•Public transit

•Flood protection

•Public parks

•Parking

Infrastructure

• Transfer of land from three Government entities

• Initial funding US$1.4 billion for infrastructure

• Future revenues delivered from land sales to private sector developers

• Reinvestment into future infrastructure

• To date US$1.2 billion of the initial budget has been spent on priority infrastructure projectsFu

nd

ing

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Delivery of Waterfront City Centre ProjectsExample 2: Melbourne Docklands, Melbourne, Australia

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Fast facts:

• 190 ha redevelopment programme

• 25+ year implementation programme (launched in 1997)

• 20,000 residents• 60,000 workers• US$15.5 billion of private sector

investment by 2025

Key themes:

• Liveable city• Waterfront living • Sustainable city• Multimodal transport • Entertainment and leisure • Innovation

Source – Places Victoria

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Delivery of Waterfront City Centre ProjectsExample 2: Melbourne Docklands, Melbourne, Australia

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA13

Establishment and Private

Sector Funding

Completion by 2025

•Development agreements signed to deliver Stadium

•Docklands Authority given Municipal powers

•Key infrastructure including highway improvements, bridges and tram

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•Plans to accommodate 60,000 workers in over 760,000 sq m of office space

•Plans to accommodate 20,000 residents

•Target to attract 20 million visitors per annum

•Home to 7,000 residents and 40,000 workers in 2013

•12 ha open space and parks

•Stadium sold on a long leasehold in 2006 for US$293 million

•Development agreements sought

Mid-way at 2013

• Docklands Stadium Consortium funds initial US$410 million development

• To 2025 a further US$8 billion private sector investment is anticipated within the project

• To 2013 US$7.6 billion of private sector investment has been attracted to the projectFu

nd

ing

© 2014 Deloitte Corporate Finance Limited – Private and Confidential

How can Jubail City Centre generate economic development and inward investment?

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© 2014 Deloitte Corporate Finance Limited – Private and Confidential

Benefits of developing a City Centre at JICA City Centre at JIC can be used to support inward investment, economic development and the provision of wider amenity

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JIC City Centre

Economic Development

Inward investment

Education and Skills

Planning and Infrastructure

Education and skillsLabour force attraction and retention

Productivity

Economic diversification

Innovation and entrepreneurship

Support services

Amenity and Culture

Master planning framework

Physical infrastructure

Social infrastructure

Entertainment and Leisure

Culture

Lifestyle offer

New jobs

New technology

New “knowhow”

Supporting Inward Investment and Economic Development in Jubail City Centre, KSA

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