Saudi Arabia Beyond Oil

Saudi Arabia Beyond Oil

Saudi Arabia at a Glance tal Population 1.7 illion entage of Youth er 25) 50% GDP $646 Billion Population Growth Rate 2.5% FDI Inward Sto $224 Billion Source : 1) UNCTAD 2016 2) General Authority for Statistics Sep. 2017 3) World Bank 2016

The Saudi Arabian Economy th th th st Largest Economy Highest Growth (G20) Largest Exporters Largest Importers * Source : IMF World Bank Data 2016

Saudi Arabia Today Young, large and growing demography Rich cultural heritage Central location between Europe, Asia and Africa Bedrock of regional stability Energy resources Blessed with rich mineral resources Global leader in Petrochemicals Committed to economic diversity

Diversified Economy 30 Million Telecom & ICT Infrastructure Digital Content 8 Million Energy Transportation Health Care Umrah Visitors Clean-Tech Retail Tourism & Hospitality

An Investment Powerhouse The Main Arm of the Governmental Investment in Saudi Arabia $2 Trillion $160 Billion Launch Strategic Sectors Increase Effectiveness of the Funds Will become the Largest Sovereign Wealth Fund Globally PIF Assets

A Thriving Economy 5.7% 65% 6% 35% 3.8% 40% 20% FDI s Contribution to GDP Private Sector Contribution to GDP SME Contribution to GDP

Business Operating Environment 100% 20% Foreign Ownership* Corporate TAX Source : SAGIA * Applies to Most Sectors

Financial Support SIDF finance Up to 75% Project Cost Repayment period of 15 Years Grace period of 2 Years HRDF finance up to 50% Saudis Salaries Period of 2 Years * Certain Conditions Apply

Investors Benefit from Incentives Programs Export credit financing, guarantee, insurance Financial support Energy and utilities subsidies Financial incentives for R&D Loan programs Fiscal support Employment support Custom duty drawback, exemption Tax credit, exemption Employment funding urce: Saudi Fund for Development, Industrial Clusters, Saudi Technology Development And Investment Company, Saudi Customs, Ministry of Commerce and Investment, Public estment Fund, Saudi Industrial Development Fund, The Arab Fund for Economic and Social Development, General Authority of Zakat and Tax, Passport General Department

elected key ncentives ffered to nvestors for his pportunity Custom duty exemption Custom duty drawback Refund to importers/ exporters of raw material imports t are processed in Saudi Arabia and re-exported as more finished products Loans Up to 75% of project financing through soft loan by SIDF Land incentives Nationalization incentives Customs duty exemptions for primary raw materials and spare parts (not available in KSA) Land for lease starting from $ 0.26 per sqm Up to 50% of the salaries of KSA nationals employees to b covered by HRDF (for one year) Ownership 100% foreign direct ownership allowed Repatriation of capital No restrictions on repatriation of capital SAGIA 2018 Invest Saudi Source: Responsible entities

Saudi Arabia s Reform Journey vibrant society A thriving economy An ambitious nation ecreation, religious tourism, lifestyle reforms at the eart of societal progress Private sector growth recovering, more women in the workforce, and the Public Investment Fund investments diversifying Fiscal balance improving, governance efficiency an transparency increasing Since Sept-16, entertainment events attended by 2.3M visitors, generated 20,000 jobs and returned SAR 2.05 on every SAR 1 spent 1 10% increase in women participation in private sector workforce in 2016 vs. 2015 3 Reduced budget deficit by ~50% vs. planned spend in 2017 5 Up to 85% reduction in wait time for Hajj pilgrims for some nationals 2 Growth in non-oil revenues by 14.2% in 2017 expected versus 2016 4 KSA issues quarterly budgets for the first time to boost transparency Legal reforms allowing physical education for females in schools and female-only gyms to open across the country Public Investment Fund co-invests with Softbank to form a $ 93Bn fund to invest in Saudi technology sector Increased administrative efficiency via e-governance initiatives (e.g., Ministry of Commerce and Investment web portal, customs clearance) General Entertainment Authority 2. National Information Center of the Saudi Ministry of Interior 3. MLSD, July 2017, 4. 9.6% growth in 2016 vs. 2015, SAMA report, 5. SAMA urce: Saudi Arabia's Vision 2030

Saudi Arabia s Reform Journey Successes Saudi Arabia's reform journey Recognition of business environment advancement Enhancing the business environment for the private sector is among the top priorities laid down by the Vision 2030. The Tayseer's committee has been established to pursue four main objectives Increase efficiency of government services Position Saudi Arabia among the top 20 countries globally for doing business Implement regulations aimed at stimulating the private sector growth Increase private sector engagement with direct involvement in decision-making Broad and ambitious reforms, e.g. new regulation for the trading across borders, judicial development policy and procedures aimed at enhancing transparency, have been already completed More than one hundred additional reforms are in pipeline for approval and implementation Saudi Arabia is making tremendous efforts in advancing its business environment Ranked 2 nd as best reformer among the high income countries in the G20 over the last 12 years by the World Bank. Among the best 20 countries globally in overall reforming effort 30 th most competitive economy according to the World Economic Forum's Global Competitiveness ranking

Six Key Reasons to Invest in Saudi Arabia Saudi Arabia's iversification and reform journey Game-changing opportunities Integrated infrastructure Attractive property solutions Young and skilled workforce Expanding quality of life Development of Vision 2030, with clear priorities & alignment amongst stakeholders Strong governance Clear 3-year planning, through 12 programs Undeniable initial successes across multiple themes (ease of doing business, entertainment, social, cultural, localization of industries, women participation in work, fiscal balance) Privatization program to unlock state-owned assets and to increase private investors participation Localization of value chain cooperating with both local and international investors Giga projects to create integrated economic ecosystems Large commitment to attract investors by improving overall business environment Strategic natural location linking three different continents Largest seaport on Red Sea, capturing 80% of maritime flows Internal transport network wellinterconnected Efforts to optimize logistics for turning Saudi Arabia into a leading logistic hub Digital infrastructure development with private sector >35 industrial and economic cities, strategically positioned Many of those creating cluster-effects (e.g., chemicals, mining, maritime) leveraging synergies and fostering system productivity Presence of readybuilt supporting infrastructure Land at very competitive prices ~30% of Saudi working age population below 29 years old ~400k young Saudis entering the labor market every year, contributing to strengthen the development of workforce capabilities Education as the second largest area of government spending Leading universities growing scientific research activities Tax free salaries Among the world's lowest levels of tax High safety and security One of the safest places in the world Advanced healthcare systems and facilities Ranking 26th worldwide Expanding lifestyle Women driving, entertainment, plan for cultural projects, alternative tourism

Thank you