Saudi Arabia was the fastest growing economy in the G20 nations in 2022. It is the 19th largest economy in the world and the largest in the Middle East and North Africa region. Riyadh is where everything happens. It is now positioned as the Silicon Valley of the Middle East – or the Silicon Oasis, if you will. KAFD boasts a strategic global location in the heart of Riyadh, with excellent internal and international connectivity to more than 40 of the fastest-growing markets within four hours, more than 40% of the world’s GDP within six hours and more than half of the world's population within seven hours. KAFD was conceived to take the economy of Riyadh to new heights and is being developed as Saudi Arabia’s business nerve center. Today, KAFD is well-positioned to become a first-choice destination that encourages and facilitates valuable investments to drive economic growth, unlock opportunities and create employment. Our multifaceted ecosystem also brings together resources, talent and infrastructure and acts as a hub for innovation. We want to create a business ecosystem that feeds itself. The district is currently experiencing a high influx of companies joining us, and our waitlist is only growing. We also actively support small and medium-sized enterprises and nurture entrepreneurship by providing state-of-the-art infrastructure and invaluable resources for startups. We have created an ideal ecosystem that connects, inspires and empowers leaders, changemakers and visionaries. Thanks to our supportive ecosystem, KAFD is drawing businesses, entrepreneurs and investors from around the globe and streamlining local and international investments with the goal of creating jobs for the anticipated workforce of 100,000 people in KAFD by 2025.

Our commitment to sustainability and the environment is at the heart of KAFD.

Businesses are seeking environmentally responsible locations to make their operations more efficient and technologically advanced. In response, sustainability and environmental, social and governance (ESG) practices have become vital considerations for us at KAFD. Operating in alignment with these principles has better positioned us to adapt to changing market dynamics and new preferences. We are recognized as the largest mixed-use business center globally to receive the Leadership in Energy and Environmental Design (LEED) stage two platinum certification. This is the highest accreditation from the U.S. Green Building Council, a global authority on green buildings. More than 40 buildings in our district have achieved silver and gold LEED certifications. We are guided by the United Nations’ Sustainable Development Goals and ESG principles to minimize our environmental footprint, whether through our energy-efficient heating, ventilation and air conditioning systems, water-saving initiatives, eco-conscious design elements or greenification. We are creating healthier and more efficient spaces for our tenants and residents. We recognize that almost 80% of the world's population is going to live in urban areas by 2050. Cities are significant contributors to energy consumption and greenhouse gas emissions globally, often accounting for 60-80% of energy use and 70% of human-induced emissions.

In response, we are developing and adopting an ESG framework for KAFD. This extends to our mobility strategy, which prioritizes convenience and environmental impact. It includes the creation of more than 40 climate-controlled sky bridges that connect all the towers. People can use them to walk around KAFD, which is healthy for residents, promotes eco-friendly commuting and reduces road congestion. We are also talking about developing a monorail for the district that is sustainable and runs on electricity. No district in the world currently has a captive monorail. Additionally, we are looking at water recycling opportunities. We recycle all water within the district for irrigation and potential surplus supply to the city. Water consumption in KAFD buildings is impressively 20-30% more efficient compared to conventional structures. We are also actively addressing climate challenges and exploring the use of solar heat reflective coatings on building surfaces and pavements to reduce heat flow into the district. We are greening the district substantially and looking for more opportunities to create what we call a green spine, which is in line with Saudi Arabia’s green initiatives and its commitment to develop 541 square kilometers of green space in Riyadh. In 2022 alone, KAFD planted approximately 400 palm trees, 3,476 canopy trees, more than 130,000 shrubs and more than 220,000 ground-cover plants in the district. Our park spaces are covered by over 4,000 square kilometers of lawns.

KAFD provides more than just a business advantage and a place to establish business operations; KAFD offers something more profound – a place to call home. This unique blend of business and lifestyle makes KAFD not just an iconic destination but the ultimate space for living, working and playing. Our ultimate goal is to make KAFD a twenty-four-seven district, one that never sleeps and one that is self-contained. Saudi Arabia has outlined tourism as a pivotal sector for economic diversification in which 260,000 job opportunities are expected by 2023 and one million by 2030. We want to provide residents and visitors with everything they need right here in KAFD without having to leave the district. This attractive lifestyle extends to the business community, where executives can easily walk to their meetings and foreign visitors can conveniently travel from the airport via the metro, conduct business, dine, stay in hotels and easily fly back. We are exploring a whole range of entertainment options, including sports amenities, gyms and more. We have a fantastic lineup of events, from cultural exhibitions and food festivals to sporting events. Every Thursday residents and visitors can experience the MDLBeast rooftop music platform. We recently hosted Riyadh Fashion Week in KAFD and the Kingdom for the first time, which was a huge success.

Additionally, the meetings, incentives, conferences, and exhibitions segment is a big part of our future plans. We have one of Riyadh's largest conference centers, spanning 28,000 square meters that features a multi-purpose event hall that can host up to 600 people. The space has already hosted numerous prestigious events such as the KAFD Annual Leadership Conference in 2023, which welcomed around 400 participants and featured distinguished guests such as Deepak Chopra and Mo Gawdat. This conference serves the Riyadh business community and tackles the most pressing issues impacting businesses today from developments in finance to new technologies. Additionally, we regularly organize the KAFD Dialogue series that promotes open and candid discussions between international and Saudi business leaders. We also introduced KAFD Spotlight, a platform that highlights our partnerships to drive discussions about critical thematic topics for business in the Kingdom. These efforts are all part of our mission to create a vibrant and inclusive community for everyone.

We actively seek out like-minded partners who believe that sustainability makes a difference. This shared vision serves as the foundation of our long-lasting collaboration. For example, in 2023 we signed a strategic partnership with the Future Investment Initiative Institute that is bringing to the forefront issues of global importance that we want to address and want our business ecosystem to be a part of. We have also embarked on a series of strategic collaborations in 2023. We signed a partnership agreement with local rideshare company Rekab Solutions Company to introduce a dedicated internal shuttle service as part of our smart mobility strategy. We also partnered with IHG Hotels & Resorts to bring the very first Kimpton hotel in the region right here in KAFD. Additionally, we signed a remarkable partnership with Orange Business and SenseTime to design, build and operate a scalable artificial-intelligence-powered smart city platform to optimize overall operations, enhance asset management and elevate the user experience. These partnerships align seamlessly with our overarching vision to transform KAFD into a luxury destination and a true smart city. In terms of digitization, one of KAFD’s buildings has achieved the SmartScore platinum certification, a globally recognized and ESG-aligned certification for smart buildings from WiredScore. This is something we are immensely proud of. We are transforming this district into a cognitive city; we're creating an environment where buildings, people, work and mobility come together seamlessly through data analytics.

KAFD recognizes the importance of nurturing talent and plays a significant role in supporting Vision 2030's goal of developing the skills of Saudi nationals. The war for talent is a particularly crucial aspect in Saudi Arabia. Over the past two years, the company has implemented a comprehensive human capital transformation program that ensures we offer competitive pay and attractive compensation and benefits to our employees. We have put in place retention policies and extensive training opportunities for all our staff and are actively involved in succession planning. All these components come together to create an employee value proposition that retains workers. While some turnover is inevitable, the trend towards employees leaving is going down and our retention rates are going up substantially thanks to our progressive policies.

KAFD's commitment to human capital development is also evident in our efforts to collaborate with local and global educational institutions to create pathways for young talent to thrive in various sectors, including finance, technology and business. We are thrilled to be partnered with one of the most prestigious British educational institutions, Aldenham Prep School Riyadh. As a key driver of Riyadh's economic aspirations, our partnership with Aldenham helps provide world-class educational opportunities for Saudis through its focus on high standards, strong academic education and rigorous character development. We want to empower young talents, equip them with essential skills and prepare them for meaningful careers within KAFD and the broader workforce.

We have only developed 40% of our land bank and there is still much more to come. We are now focused on making the most of the remaining land and creating assets that complement the offerings we already have. We are committed to delivering and activating all legacy projects and stock. We want to ensure existing developments are thriving and serve the needs of our community. Simultaneously, we are pushing ahead with new greenfield projects on the remaining plots. Currently, we have nine projects that are either in the design or construction phases, all geared towards building a better future for KAFD and providing even more value to our residents and tenants. Throughout this process, we remain dedicated to maintaining the high quality of life that defines KAFD. We want to ensure that the ongoing construction and developments do not disrupt the livability of the city.

There are many opportunities but with them come a fair number of challenges. Being at the heart of the city, KAFD is not just a business hub, it is a vibrant, living district where people both live and work. Balancing ongoing construction and development without letting them impact the city’s livability and lifestyle is one of our most pressing challenges. In line with our high level of expected growth, we are working tirelessly to complete essential infrastructure such as skywalks and thousands of parking spaces. Parking is a large challenge, which we are addressing by building temporary car parks alongside permanent ones. We are also creating additional intersections directly into KAFD to minimize mobility disruptions and ensure people working in the district can move in and out quickly and efficiently. We are looking forward to introducing the skywalks by April 2025. There is no challenge too big for us to tackle. We view challenges as opportunities that require careful management. At KAFD, development never stops, and the journey always continues. There is much more to come as we shape KAFD to become a vivid, authentic glimpse of what the future looks like for Saudi Arabia under Vision 2030.

Saudi Arabia is undergoing a remarkable transformation and is open for business. The region's business epicenter is shifting toward Riyadh, and businesses cannot afford to remain on the sidelines. KAFD stands at the heart of this paradigm shift, setting a new standard for business and lifestyle. It now serves as the ultimate destination for forward-looking multinational and international businesses looking to leverage the Kingdom’s economic growth potential and establish an impactful presence in the region.