Recent Public Investment Fund's initiatives in line with Vision 2030's pillars:

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1 RECENT PIF'S INITIATIVES Special Recent Public Investment Fund's initiatives in line with Vision 2030's pillars: (A Vibrant Society) - Rou'a Al Hiram project in Makkah - Rou'a Al Madinah project in Madinah city - Development of New Jeddah Downtown (A Thriving Economy) - New energy service company, Super Esco - Saudi Recycling Company - Funds for Small and Medium Enterprices (SME's) - Future Investment Initiatives (FFI) - October 24-26, 2017

2 3 themes of saudi vision October 2017

3 pif's initiatives and investments This special issue is dedicated to the important recently initiatives developed The Public Investment Fund (PIF) in line with the pillars and goals of Vision Saudi Arabia aims to achieve long-term financial returns from its domestic and international investments and its working in tandem with the Kingdom's Vision 2030 strategy to diversitfy the Saudi Economy. In order to apply revenue earned from the IPO of Aramco to sectors that will benefit from large-scale promotion, the Government of Saudi Arabia has identified the PIF as a conduit for investment flows. PIF was originally established in 1971 to invest in commercial projects. In March 2015, the Council of Ministers issued a decree to transfer oversight of the Public Investment Fund to the Council of Economic and Development Affairs (CEDA). Fund's Strategy and Mandate have been redefined in line with Saudi Vision 2030 to help achieve Saudi Arabia s vision of a sustainable and diversified economy. Vision 2030 aims to increase assets held by the PIF from SR 600 billion to over 7 trillion within the span of less than two decades and invest 50 percent of PIF funds abroad. Returns on investments, among others, will help the Kingdom meet its goal of reducing oil dependence by Among the largest PIF's investments since the release of Vision 2030, it is worth to remember the announcement of a $35 billion injection into the Silicon Valley giant Uber in June 2016 and Saudi-Japanese Soft Bank Group projected to grow as large as $100 billion, positioning it as one of the world's largest private equity investors. PIF is set to contribute up to $45billion to the Softbank Vision Fund. more info:

4 rou'a al haram A Vibrant Society To increase our capacity to welcome Umrah visitors from 8 million to 30 million every year On 02 October 2017, the PIF has announced it is preparing to launch Rou a Al Haram, a development company set to increase capacity for pilgrims and visitors to the Grand Holy Mosque performing Hajj or Umrah. Rou a Al Haram will act as a catalyst for developing the areas around the holy sites and raising the quality of services in the local hospitality sector. The company s establishment is in line with Vision 2030, which aims to provide an opportunity for the largest possible number of Muslims to perform Hajj and Umrah, and to enrich and deepen their experience through the development of the two Holy Mosques. The number of people visiting Makkah is expected to reach more than 30 million by The first phase of the company s projects will cover an area of 854,000 square meters, delivering 115 buildings of various architectural designs. 70,000 new hotel rooms will enable the site to receive 310,000 visitors per day.in addition, the first phase will see the development of around 9,000 residential units, 360,000 square meters of commercial space and prayer areas designated for more than 400,000 worshipers. The project will take place only 1,430 meters away from the Holy Kaaba. Rou a Al Haram will raise the level of development in the areas surrounding the Grand Holy Mosque, making it among the best examples of development worldwide. In addition, it will support job creation and investment as part of a wider plan to diversify the national economy. Initial preparation works are currently underway, with construction due to start in The first phase of the project is anticipated to launch in The projects will create around 160,000 job opportunities by 2030, with an estimated annual contribution to GDP of SAR 7 billion. Initial preparation works are currently underway, with construction due to start in 2018.

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6 rou'a al madinah A Vibrant Society To increase our capacity to welcome Umrah visitors from 8 million to 30 million every year On 02 October 2017, the Public Investment Fund (PIF) has announced the establishment of Rou a Al Madinah, a company that will deliver projects designed to increase capacity for pilgrims and visitors to the Prophet s Mosque, whilst also enriching spiritual and cultural experiences across the holy city of Al Madinah. The company s establishment is in line with Vision 2030, which aims to provide an opportunity for the largest possible number of Muslims to perform Hajj and Umrah, and to enrich and deepen their experience through the development of the two Holy Mosques. Preliminary estimates indicate that the total number of annual visitors to Al Madinah will increase to 23 million by The company aims to develop a 1.3 million square meter site no more than 1,000 metres away from the east wing of the Prophet s Mosque. The project will see the development of 500 new housing units and 80,000 hotel rooms, increasing hotel capacity to receive 240,000 guests per day, in addition to increasing the number of prayer areas to accommodate 200,000 worshipers per day. The company s activities will include the development of hotel, commercial and residential projects, as well as the development of cultural centres and museums to enrich Al Madinah s religious, cultural and historical offerings. The company will broaden opportunities for investment and private sector participation through the development of strategic partnerships.

7 The project will also take into consideration the sacred nature of the Prophet s Mosque, and create a comprehensive system for pedestrian passages separated from the movement of vehicles, as well as update the public transport stations at the end of the pedestrian passages. The projects will create around 200,000 job opportunities, with an estimated annual contribution to GDP of SAR 7 billion. Initial preparation works are currently underway, with construction due to start in The first phase of the project is anticipated to launch in 2023.

8 new jeddah downtown A Vibrant Society To have three Saudi cities be recognized in the top-ranked 100 cities in the world On 27 September 2017, The Public Investment Fund (PIF) has announced it will lead the redevelopment of Jeddah s waterfront corniche, creating a unique tourist, residential and commercial destination, to become the New Jeddah Downtown. The project, which will contribute SAR 18 billion of investment over 10 years as well as 36,000 new jobs, aims to create a distinctive and attractive environment to support Jeddah s ambition of becoming one of the world s top 100 cities. The project will include spaces for entertainment, shopping, and commercial activities, which are accessible for both residents and visitors. In total, the project aims to deliver over 12,000 housing units to accommodate 58,000 new residents. The project will take place across a 5 million square meter development site that is currently occupied by the Ministry of Defence and its subsidiaries on Jeddah waterfront, all of which will be relocated to a new site. The project site will be divided into six main sections, including new homes; new museums, and cultural and social centres; areas for business and innovation; gardens, amusement parks and sports facilities; hotels and hospitality facilities; retail spaces; as well as coastal areas for seaside activities, and walking routes along the private boat and yacht pier. In total, residential will comprise 42 percent of the new development, with 35 percent dedicated to entertainment and retail areas, 12 per cent to office space, and 11 percent to new hotel and hospitality facilities. Initial preparation works are currently underway, with construction due to start in The first phase of the project is anticipated to launch in the final quarter of The project is in line with Vision 2030 objectives to develop tourism sites in accordance with the highest international standards and provide investment opportunities that contribute to the development of the private sector.

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10 small medium-size authority (sme's) A Thriving Economy To increase SME contribution to GDP from 20% to 35% On October , The Public Investment Fund (PIF) has announced the establishment of the Fund of Funds, a new investment vehicle designed to provide small and mediumsized enterprises (SMEs) with access to capital by investing in venture capital and private equity funds targeting the SME sector. The Fund of Funds will also support the creation of a thriving private equity and venture capital ecosystem in the Kingdom. The Fund will empower the private sector and increase its contribution to national GDP by encouraging venture capital and private equity investments. With capital of SAR 4 billion, the Fund is aligned with the Vision 2030 objective of facilitating private sector growth and supporting the development of SMEs in creating job opportunities, promoting innovation, and increasing exports as per the commercial by-laws, to support and encourage investment in SMEs. The Fund of Funds vital role will be reflected in its contributions to national GDP, estimated to be around 400 million SAR by the end of 2020, and the provision of more than 2,600 jobs. Its contribution to GDP is expected to increase to 8.6 billion SAR by the end of 2027, creating around 58,000 jobs. Small and Medium Enterprises contribute to the GDP by only 20% compared to 70% of some economies. Small and Medium Enterprises Authority is working on reviewing regulations, removing barriers and facilitating access to finance. Moreover, helping young people and innovators in marketing their ideas and products. At the same time, we will seek to establish more business incubators, training institutions and specialized venture capital funds to help entrepreneurs develop their skills and innovations. more:

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12 the saudi recycling company A Thriving Economy NEWS On October , The Public Investment Fund (PIF) is planning to establish the Saudi Recycling Company, a new waste management government enterprise aiming to support and operate the PIF s investments in domestic recycling sector projects, it was announced here today. Aligned with the Kingdom's Vision 2030 goal to safeguard the country s environment by improving recycling across the Kingdom, the new company will develop and operate projects designed to increase landfill diversion rates and recycle waste, creating alliances with private sector companies to achieve the highest international standards. Preliminary studies have indicated that the Kingdom currently recycles around 10 percent of recyclable waste matter, with 90 percent disposed through landfill sites, causing damage to the environment, and not making full use of the potential of recyclable materials. More than 40 percent of recyclable materials in the Kingdom are produced in three major cities: Riyadh, Jeddah, and Dammam. Recyclable materials in the Kingdom amount to 50 million tons, and the new plan offers the opportunity to recycle around 85 percent of this material, utilizing it as a source of alternative energy to be used in manufacturing. The company will play a key role in achieving the strategic goals of Vision 2030 in preserving the environment and developing and protecting the natural resources by developing innovative solutions to preserve the quality of life within the Kingdom. The company s scope of operations will cover all recyclable materials, as well as each stage of the value chain. In addition to its core activities, the company will increase public awareness through campaigns and initiatives designed to introduce the concepts of recycling, its sustainability and importance.

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14 energy service company "Super Esco" A Thriving Economy NEWS On October , The Public Investment Fund (PIF) has announced the establishment of a new energy service company, Super Esco, designed to increase energy efficiency across government and public buildings and stimulate the growth of the Kingdom s energy efficiency industry in line with the objectives of Vision 2030 to diversify the economy and drive environmental sustainability. In partnership with the Ministry of Energy, Industry and Mineral Resources, the Ministry of Finance, and the Saudi Energy Efficiency Center, Super Esco will provide new investment opportunities by creating partnerships with the private sector to deliver projects. Projects in the Kingdom of Saudi Arabia s energy efficiency sector have an estimated value of SAR 42 billion, or around SAR 3 billion annually. Internationally, the sector is valued at SAR 130 billion, with projects in the US, Europe, and China accounting for 90 percent of the global market share. Super Esco has been established with a capitalization of SAR 1.9 billion. The company will fund and manage the retrofit of government and public buildings, which represent over 70 percent of overall projects in the sector. These projects will help reduce government spending on the electricity sector, which will in turn reduce natural resource consumption while rationalizing capital investments in expansion projects for the production, generation, transmission, and distribution of electricity.

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16 future investment initiative A Thriving Economy Riyadh, October 24-26, 2017 The inaugural edition of the Future Investment Initiative (FII), an exclusive global business and investment forum hosted by the Public Investment Fund, will take place in Riyadh from 24th to 26th October The FII will be the first of its kind, bringing together the most visionary, innovative and renowned leaders from government, business and global investment to discuss the most exciting investment opportunities of our time. Hosted under the patronage of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud, and the leadership of His Royal Highness Prince Mohammad bin Salman bin Abdulaziz Al-Saud, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic and Development Affairs (CEDA) and Chairman of the Public Investment Fund, this Initiative presents an opportunity to explore the interconnected investment opportunities being created by the Kingdom of Saudi Arabia s Vision 2030 and what will become the world s most powerful investment fund. Global CEOs, together with leading experts and public officials, will take part in a wide range of discussions during the FII, including a high-profile Summit on Artificial Intelligence and Robotics on Wednesday 25 October. The discussions happen after SoftBank, alongside PIF, announced the creation of the SoftBank Vision Fund. The US $ 100 billion fund is the world s largest technology fund, and has made robotics and AI a key investment focus. At the conference, Masayoshi Son of SoftBank will highlight the strategic importance of investing in technology. The summit will cover vital issues such as identifying which industries will be transformed most by artificial intelligence and how societies can provide smooth transformations for workers disadvantaged by the next waves of technological disruption. Speakers will also highlight new opportunities and partnerships for global investors.

17 future investment initiative Italian Minister of Economy and Finance, Pier Carlo Padoan The summit has attracted influential and inspiring leaders from around the globe. Among the invited speaker is the Italian Minister of Economy and Finance, Pier Carlo Padoan, who will partecipate into the session: "The Visible Hand: What Policies Can Drive Growth And Prevent The Next Financial Crisis?". The Honorable Bill Morneau, Minister of Finance, Canada, H.E. Ahmed Bin Mohammed AlKhalifa, Minister of Finance, Ministry of Finance, Bahrain and the CNBC's anchor Hadley Gamble will also partecipate into this session. Other experts from the fields of robotics, digital healthcare, artificial intelligence and nanotechnology will be featured in additional in-depth discussions. The Kingdom of Saudi Arabia is on a clear and defined path in respect to the implementation and advancement of technology. The theme of technological change complements PIF s investment strategy. More info:

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