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2 BACKGROUND The global aviation sector is growing faster than the worldwide economy led by economic development in emerging countries in Middle East and Asia Pacific region, increased tourism demand and adoption of low cost business model across the globe. The rapid development of the aviation sector in Saudi Arabia and the ongoing market liberalization driven by Vision 2030 program have created a challenging task for the existing setups and a unique opportunity for private sector players 2

3 NAD is a National Airports developer Nesma Holding and Banan Aloula have jointly shared a proactive vision to be the leaders in the ongoing change in the aviation sector with an enhanced role for the national players They have formed a dedicated development platform under the banner National Airports Development Company ( NAD ) with an objective to build national capacity for sustainable airport development and capture the international experience and knowledge into the local content (NAD) is the main development vehicle for NESMA and BAI into Airport business, and one of its strategic initiatives is the establishment of Nation Airports Operator In alliance with major local players. (NAD) is the driving vehicle enabling the aviation sector growth in Saudi Arabia by taking lead in General Authority of Civil Aviation s (GACA) airport development projects such as airports PPP, national airports operations in strategic alliance with Ground Services providers, development of low cost carrier terminals, handling cargo airports operations and logistics, etc. For more info please check 3

4 AVIATION SECTOR GROWTH AND KEY DRIVERS Air traffic evolution in KSA ( ) Passengers (in MN) Key growth drivers Increase of propensity to fly due to growth of income backed up by population and GDP growths Religious tourism in the Makkah- Madinah corridor supported by increasing long-haul connectivity Ambitious investment planned in airport expansion and modernization with private sector engagement (PPP) More Air Service Agreements signed and entrance of international Low Cost Carriers (LCC), increasing competition in domestic and regional markets The rapid development of the aviation sector in Saudi Arabia is outpacing the average GDP growth during the same period (4.3%) Saudi airport network will be under tremendous pressure in the coming years to cope with the growing demand, thus creating a huge potential opportunity for a strategic national operator entity 4

5 NAD IS CREATED TO BE A SAUDI COMPANY FOR AIRPORTS MANAGEMENT AND OPERATION 5 GACA has announced its intention to privatize airports under its management and several supporting services and businesses, thus paving the way for private players to enter the airport development and operations sector Banan Aloula and Nesma Holding have jointly formed a company National Airports Development Company ( NAD ) to take the lead in GACA s airport development projects Growing Market Increasing inbound and outbound demand driven by positive macro-economic environment Steady liberalization of the aviation sector, entrance of new airlines and promotion of competition Plan to unbundle the potential of tourism and pilgrimage as economic drivers Strategic alignment with the country s Vision Supporting the privatization of public-held services Promoting a transparent, business-driven environment Building local capabilities in a key sector of the national economy Driving social & environmental sustainability Room for operational enhancement Decentralized cost monitoring system, generating local efficiencies and savings Challenges to keep pace with the technological evolution Improving passenger experience through process optimization and streamlining Mature regulatory framework for PPP Legal framework in place to allow for private sector participation in the airport business Previous experiences in airlines and airports PPP successfully accomplished Moderate regulatory risk exposure for international partners. Appetite in the global airport business sector NAD will become enabler of the aviation sector growth acting as catalysts of our nation s economic expansion

6 ABOUT NAD Vision To be one of the leading national players in the airport development and logistic industry in KSA and build national capacity for sustainable airport development, capturing the international experience and the know how into the local content Mission Lead participation in developing airports PPP Domesticate international relevant experiences to serve the local needs and cultivate national resources Provide high level of services and contributions to KSA aviation industry that meet the international standards Contribute positively into elevating the customer experience within aviation industry Provide solutions to airport industry in KSA Shareholding structure Nesma Holding (65%) and Banan Aloula Investment (35%) Authorized representation: Banan Aloula is the official representative of NAD and authorized on behalf of all partners. 6

7 POTENTIAL PARTNERSHIPS Potential partnerships NAD can associate with right partners to pursue strategic initiatives in the airports business in KSA: o In addition to the operational services, it can provide ground support and services through strategic alliances with ground service providers and international operators, thus creating National Airports Operator (NAO) to target large airports development. o It can also provide consultancy services for aviation industry through its association with international airport operators and aviation consultancy firms. o NAD can provide F&M airports services through partnership with operation and maintenance companies. o NAD can be also a player in hospitality and catering services dedicated to the aviation industry NAD, in strategic alliance with aviation sector players is well positioned to pursue several development initiatives in the aviation sector 6

8 7 ABOUT THE SHAREHOLDERS ABOUT BANAN ALOULA INVESTMENT COMPANY Banan Aloula Investment Company, incorporated in 2017, is headquartered in Jeddah with a mission to develop infrastructure assets within KSA through partnering with leading international & local firms The founders of the company have a long experience of developing & managing infrastructure assets in Saudi Arabia and GCC region with strong relationships with various Saudi contractors, business houses and lenders Banan acts as principal investor, asset manager or developer on all its investments and invest alongside or on behalf of major public companies, global institutions and public and private companies, adhering to the highest standards of business practices, financial accountability, ethical conduct and reporting transparency. For more info please check FOCUS SECTORS ABOUT NESMA HOLDING COMPANY Nesma Holding Company, incorporated in 1979 and headquartered in Jeddah, is a privately owned company that maintains a varied business portfolio in Saudi Arabia, Dubai, Egypt and Turkey. It operates via its subsidiaries in multiple sectors including aviation and logistics, construction, power and electrical, oil and gas, real estate and property management, hospitality and tourism, operation and maintenance, port, marine and shipping services, and telecommunication and IT Saleh Ali Al-Turki is the President and Chairman of Nesma Holding Company and also the Chairman of Jeddah Holding and Saudi Foras Investment. He is a Director of the Board for Arab Poultry Breeders Company (Ommat) and ReAya Holding. He also sits on the Coutts Middle East Advisory Board.. For more info please check KEY SUBSIDIARIES IN TRAVEL AND TRANSPORATION SECTOR Aviation Social Sector Power Water