20230331_Nour Knowledge Center_Exec Summary_V04

" المجتمع المعرفي" تعبير بات شائعاً اليوم في العالم،لكونه استراتيجياً في مخططات معظم الحكومات والهيئات القيادية في العالم، كما هو الحال في المملكة حيث بدأ التفكير بشأنه قبل أكثر من عقد من الزمن،وتكلل ذلك باطلاق "استراتيجية المعرفة" على يد المغفور له بإذن الله خادم الحرمين الشريفين الملك عبدالله بن عبدالعزيز في عام 2013م. وها هو "التحوّل المعرفي " عنوان كتاب تضمن فصولاً من ذكريات الأمير فيصل بن عبدالله بن محمد آل سعود. فهذا الكتاب ليس سيرة ذاتية وفق المفهوم التقليدي للسير الذاتية،ولا هو تسجيل كامل لكل ماشهدتها المملكة،وتشهده اليوم، من جهود في سبيل التحول الى مجتمع معرفي بل هو وقفة رجل يتأمل فيما أنجزه،وما يسعى لإنجازه، بعدما تقلد مسؤوليات عديدة، كان ولايزال يرى أن رسالته فيها هي قبل كل شيء تطوير الكفاءات البشرية وتعزيز قدرات شباب الوطن، تلك هي الاستراتيجية التي كان سموه أحد روّاد التفكير فيها وصياغتها بالمعنى الدقيق للكلمة. وبدلاً من التوسع في التفاصيل التي في غاية الأهمية والتنوع، ومن باب الاستفادة مما باتت تتيحه التقنيات الحديثة، قرر سموه اختصار النص المكتوب حتى أقصى حدٍ ممكن، واعتماد تقنية "كيو. آر." ،لإحالة القارىء إلى مايكمّل النص المكتوب ويوضحه ويدعمه، في رحلة بين أفلام الفيديو والكتب والوثائق المختلفة. إنها تقنية جديدة في عالم النشر، وكونها غير شائعة حتى الآن يجب أن لايثنينا عن الإقدام عليها. أليس الانفتاح على التقنيات الحديثة والإقدام بجرأة على الاستفادة منها أحد أعمدة التحوّل المعرفي؟

Knowledge and Innovation Hub

Quick feasibility & Initial Blueprint design

March 2023 Phase 1 – Executive Summary

Program aims to establish a Knowledge Hub as a contributor to KSA’s economic transformation

Establish a universal, global, futuristic, and socially responsible accelerator and knowledge sharing hub An organization focused on human advancement, and key contributor to the economic transformation of the KSA; at the nexus of business, technology, culture and social development

Program approach consists of 3 phases – with Phase 1 focusing on concept development

Go / no-go

3 Weeks

5 Weeks

2 Weeks

2. Detailed Business Model Blueprint and Financials

1. Quick feasibility & Initial Blueprint design

Investor’s Pitch preparation

1.1 Analyze the landscape • Analyze benchmark accelerators / centers • Identify key trends, challenges and gaps 1.2 Define “where to play” • Analyze KSA startup landscape • Identify focal sectors, themes, startups and partners 1.3 Set the model blueprint • Design business model options • Select optimal option through Leadership workshop

2.1 Detail the business model components

3.1 Develop pitch document for investors

2.2 Define the set-up strategy options 2.3 Define “right-to-play” requirements and identify quick wins 2.4 Develop high-level operating Model 2.5 Develop high-level financial plan

Focus of this document

1 Build a distinctive universal global hub for innovative businesses and ideas that help advance humanity, and follow equitable business principles, at the nexus of humanities & technology

2 Attract new ideas and innovative startups from within the KSA and internationally , and unleash their untapped tech & entrepreneurial potential

3 Support the social and knowledge economy in the KSA and be an enabler of Vision 2030 , by driving entrepreneurship and free flow and advancement of knowledge

The concept is built based on the aspirational brief of the leadership

4 Become a key player in community building & engagement , integrated in and a key contributor to major projects transforming the KSA economy

5 Be financially and operationally sustainable, via an innovative , and socially responsible business and operating model

6 Leverage and build upon on the “Al Madinah Factor”, taking a major role in the region’s socio- economic transformation

Source: Nour Nouf team, Kearney

Multiple sources of input have been leveraged…

Document reviews

Local Benchmarks 6 local entities benchmarked for learn on (strategic direction, value proposition, business model)

International benchmarks 6+ well-known entities to derive success factors in strategies, value proposition, business model

Vision2030 document, Al- Aghar knowledge strategy, and Nour Nouf Knowledge documents

Expert discussions

Research Papers & Studies

Focus Group Meetings with Nour Nouf Team 7+ meetings with Nour Nouf team to discuss findings and align on/ refine the concept design

3 experts with local and international experience in entrepreneurship ecosystem and with accelerators

4+ research papers from well- known organizations, such as world bank and Global entrepreneurship monitor

…to inform the design based on the KSA’s economic context and benchmarks

ASPIRATION

KI-HUB DESIGN

Strategic Direction & Positioning

B BENCHMARKING

A KSA’s ECONOMIC CONTEXT

Customers & Value Proposition

Business & Strategic Operating Model

How are the Saudi and Al Madinah economies poised and what opportunities exist?

How other players are positioned in the relevant space, what they offer, and what can we learn?

Source: Kearney

Vision 2030 has established many objectives and goals related to entrepreneurship, knowledge, heritage and social impact…

Vision 2030 goals related to entrepreneurship, innovation, SMEs

Selection

Support SME entrepreneurship , privatization and investments in new industries

Increase SME contribution to GDP from 20% to 35%

An ambitious nation

A vibrant society

A thriving economy

Establish new incubators , specialized training institutions , venture capital funds

Encourage young entrepreneurs with business- friendly regulations

15+ objectives related to entrepreneurship, knowledge, heritage and social impact…

Selection – Detailed in the appendix

Encourage young entrepreneurs with international partnerships

Source: Vision 2030, Kearney analysis

The goals are reinforced by the VRP initiatives

National Transformation Program

Human Capital Development Program

Quality of Life Program

National Industrial Development and Logistics Program

Financial Sector Development Program

Entrepreneurship

E.g. Increase contribution of SMEs to the economy

E.g. Enable financial Institutions. to support private sector growth

E.g. Support the innovation and entrepreneurship culture

E.g. Increase the local content in non-oil sectors

Knowledge Economy

E.g. Build a lifelong learning journey

Culture and Heritage

E.g. Foster the values of mastery and discipline

E.g. Boost Saudi contribution to arts and culture

Social Impact

E.g. Grow the contribution of renewables to the national energy mix

E.g. Encourage volunteering

Non-Exhaustive - Detailed in the appendix

# No. of highly related initiatives

And with a significant growing entrepreneurial drive, there is a need for higher MSMEs support in KSA

Growth of Saudi MSMEs (thousands)

77%

2% 16% 978

20% 2% 664

2% 22% 627

of MSMEs are Micro- sized businesses ~83%

3% 552 25%

83%

78%

76%

72%

2021

2019

2020

Q3 2022

Medium-sized Small-sized Micro-sized

Regional distribution of MSMEs

Riyadh

Makkah Eastern P.

Assir

Qassim Medina

36% 20% 12% 6%

Source: Monshaat report, MAGNiTTreport, Saudi Venture Capital (SVC), Kearney

Despite multiple programs and significant progress, challenges remain in the entrepreneurial support ecosystem in KSA

Pressing challenges in the entrepreneurial support ecosystem

Regulations

Financing

Information, and capabilities

Business support & development

Non-Exhaustive

 Insufficient ability of MSME ecosystem to support knowledge development  Challenges in access to know-how and capabilities

 Relatively high

 Limited sources and availability of funds for MSMEs  Limited Private sector funding to MSMEs  Not fully activated certain key sources of funding for MSMEs

 Limited tangible business development support from incubators and accelerators to MSMEs

Government fees and taxes (and increasing)  Cumbersome licensing processes

Source: Expert interviews, desk research, Kearney

And Business support players, mostly in Riyadh & Makkah, fall short in certain areas

Non-Exhaustive

Insights

Northern Borders

Al-Jouf

• No center is positioned as global hub • No center acting as the intersection of accelerator, research, knowledge sharing and innovation • ~80% of research entities are universities and not focused on social impact • Lack of high-caliber mentorship for entrepreneurs • Limited private sector focus on knowledge sharing • Limited private/corporate funding and bank loans - funding mostly from the government

Tabuk / Neom

10%

Hail

Al-Qassim

40%

22%

55%

16%

Al Madinah

45%

33%

40%

35%

Makkah

Eastern Province

Riyadh

Al Baha

Asir

Najran

Jizan

Knowledge Sharing & Exhibition Centers 1

Incubators/Accelerators

Research Centers 1

Source: Kearney 1. Mainly the well-know organizations in Saudi

Business Incubators & Accelerators

Research Centers & Think Tanks

Knowledge Sharing & Exhibition Centers

We have learned from local and global best practices

Non-Exhaustive

• No entities that integrate incubator/ accelerator, research and exhibition center functionalities - entities typically focus on either one or two business lines • A broader positioning could be a key differentiator if efficiently and effectively operationalized

Strategic Direction & Positioning

• Success lies in providing strong networking, partnerships, robust trainings, and a prime footprint . • Funding (support) is typically provided by well-established accelerators • Startups in acceleration (last) stage typically subscribe to established accelerators, mainly for funding

Customers & Value Proposition

Business & Strategic Operating Model

• Key revenue sources are subscriptions, events, space rental; which require a track record to activate • Research centers typically focus and evolve around specific sectors or themes • Typical partners are Venture Capitals, Corporations, Angel Investors, and Government Entities

Source: Expert interviews, desk research, Kearney

…and developed a preliminary concept for the hub

Vision and Mission Global hub championing transformative power of innovation & entrepreneurship, art, culture, positively impacting societies Champion research, innovation, entrepreneurship, social impact; empower leaders to create positive change in society

Positioning & Strategic Objectives

Focus Themes

Strategic Direction & Positioning

1. Integrated multiple functionality areas 2. Global, progressive; with roots in Al Madinah to branch out to the world 3. Conceive, attract, nurture & unleash potential of ventures that have social impact

1. Nexus of culture, technology and business 2. Social impact & advancement 3. Knowledge sharing and advancement 4. Responsible capital

Target Markets 1. Global with initial focus on Muslim neighborhood 2. Fintech, Education, Healthcare & Wellness, Agri & Food, Energy & Sustainability, Tourism, Entert. (plus a other lower priorities) Value Proposition

Target Customers 1. Startups (KSA and int’l) contributing to society, aligned with equitable values 2. General Public interested in social, knowledge economy, and equitable business

Service Offerings

5. Research 6. Events & Others 7. Training 8. Access to Funding

1. Mentorship 2. Networking 3. Partnerships 4. Office Space

Customers & Value Proposition

Seamless, integrated mission-critical support to innovators, from pre-idea research all the way to financially sustainable business One-stop hub to develop ideas into socially impactful businesses, via research, training, funding, business development support

Branding & Inst. Set-up 1. Stand-alone brand 2. Limited liability legal entity (or equivalent) - possibly with special status (e.g., non-for- profit)

Footprint

Financing Model 1. Internal Funding 2. External Funding & Donations 3. Revenue Streams, e.g., fees 4. Investment streams (direct & syndicated VC funding)

Partnerships

Roadmap & Budget 1. Built gradually, strategically leveraging partnerships 2. ~10 Mn SAR/year to operate the Hub and 630 Mn SAR to build the iconic structure

1. Public Entities 2. Accelerators 3. Research & Think Tanks 4. Corporations 5. Venture Capitals 6. Philanthropists 7. NFP Foundations

1. Multicentric with hubs and spokes 2. Multichannel (integrated physical and virtual)

Business & Strategic Operating Model

Vision, mission, strategic objectives, and themes

Become a global hub that champions the transformative power of innovation and entrepreneurship, art, and culture and positively impacts societies

To champion research, innovation, entrepreneurship, and social impact, and empower the next generation of leaders to create positive change in society

Empower startups and entrepreneurs through providing necessary and critical enablers

Foster social impact by conducting and disseminating research

Promote cultural appreciation through the exhibition of diverse and authentic art

Cultivate a vibrant community of artists, researchers, and entrepreneurs by facilitating collaboration and learning

Research & Innovation

Knowledge Building & Sharing

Social Impact

Culture & Heritage

Entrepreneur- ship

Source: Nour Nouf team, Kearney

The hub will deliver its objectives through the integration of 3 distinct arms and a multi-purpose facility

Incubator & Accelerator provide startups and individual entrepreneurs with resources and a

Research Arm conduct cutting-edge research on critical

Knowledge Sharing Arm facilitate the exchange of information and knowledge among its members and the general audience

Business arms

range of services required to succeed

societal issues, deliver actionable solutions and create sustainable social impact

Multi-purpose facility serving the business arms

Innovation Space

Conference Space

Events Space

Training Space

Co-working Space

Source: Nour Nouf team, Kearney

Target sectors are identified based on a set of strategic criteria

Prioritization criteria

Alignment with leadership aspirations

Alignment with national targets

Potential social impact

Level of Competition

Market demand

Energy & Sustainability

Art & Edutainment

Fintech

Travel & Hospitality

Infrastructure 1

Agriculture & Food

Mobility & Logistics

Education

Healthcare & Wellness

Target Sectors

Priority 1 sectors Priority 2 sectors

AI & Machine Learning

Original slides

Source: Kearney 1. Including innovative technologies

Together with the target customers and service offerings for each business arms

Multi-Purpose Facility/ Platform

Knowledge Sharing Arm

Hub Business arms:

Research Arm Incubator &

Accelerator Arm

Target Customers

Service Offerings

Government Entities

NGOs

Mentorship & Coaching

Networking

Corporates

Educational Entities

Partnerships Facilitation

Office Spaces

Startups & Innovators

Research Centers

Research

Events & Others

Investors

Researchers

Trainings & Capability Building

Access to Funding

Policy Makers & Thought Leaders

General Public & Visitors

Source: Kearney

Original slides

A Saudi hub for the KSA and the World

The proposed design enables a compelling value proposition for the three major customer groups of the KI-Hub

One-stop support hub to help develop ideas into economically viable, socially impactful businesses, through research, training, funding and business development support

Privileged access to a wide array of socially responsible early-stage businesses, backed with government support, offering a balance of financial and ESR returns

Business Incubator & Accelerator

Knowledge Sharing Arm

Research Arm

Multi- Purpose Facility/Platform

Innovation Space Seamless, integrated mission -critical support to innovators, from pre-idea research all the way to financially sustainable business Conference Space Events Space Co-working Space Training Space

NATIONALTRANSFORMATION PROGRAMS

Tangible support in enabling and delivering Vision 2030 programs in the areas of entrepreneurship, SMEs, knowledge, culture & heritage, and social impact.

Source: Kearney

Original slides

• Recommendation: Stand-alone brand with own identity and aspirations, e.g., Social Knowledge & Innovation Hub • Key benefits: o No limitations to aspirations, themes, objectives, sectors, etc. o Higher control/operational ownership for the hub o Lower value leakage outside of the KSA • Other options: Part of Nour Nouf Knowledge, or International Brand

The KI-Hub will be a stand-alone organization, possibly positioned as non- for-profit, with its own brand

BRAND

• Legal form: o Limited liability legal entity (or equivalent) o Possibly with special status (e.g., non-for-profit), to be investigated in Phase 2 • Governance: as per best practices, i.e.:

INSTITUTIONAL SET-UP & GOVERNANCE

o BoD, ExCom, AudCom, NRC, and other committees o To be established at the onset in simplified form

• Short-term: o Flat & nimble: very few (3-4) highly experienced executives with an entrepreneurial mindset o Focused: stakeholder engagement, fundraising, partnerships, scouting network development • Long-term: likely organized by business line, with mechanisms ensuring customer centricity (to be investigated in Phase 2)

HIGH-LEVEL ORGANIZATION

Original slides

KI-Hub proposed long-term global footprint (indicative international locations) New York, USA

Main locations are in KSA with a strong international presence via digital platforms, and a partner networks

London, UK Rationale: critical

Brussels, Belgium Rationale: United Nations HQ, presence of large

Saudi Arabia HQ Location: Al Madinah 1

Rationale: world hub for United Nations, high presence of large NGOs, philanthropic organizations, and Venture Capitals

business center, access to European accelerators and startups

social impact organizations

Iconic multi-purpose facility hosting incubator, research, co-working spaces. 3-5 sectors of focus Satellite Office 1: Riyadh Facility hosting incubator, research, and co-working spaces. 3-5 sectors of focus Satellite Office Option 2: NEOM Facility hosting incubator, research, and co-working spaces. 4-6 sectors of focus Satellite Office Option 3: Dammam Facility hosting incubator, research, and co-working spaces. 2-3 sectors of focus

San Francisco, USA Rationale: world hub for startups from all industries, Venture Capitals, and technological advancement

Physical hub facilities and offices

Minimal presence via affiliates for specific purposes Digital platform

Casablanca, Morocco Rationale: Arabic community, potential market for startups and businesses

Cairo, Egypt Rationale: Arabic community, potential market for startups and businesses

Kuala Lumpur, Malaysia Rationale: Islamic community, successful startup community aligned with Islamic values

Notes: 1. HQ options evaluation in the appendix

Funding - multiple sources should be leveraged

Research Arm

Knowledge Sharing Arm

 High relevance source of fund

 Less relevant

Incubator & Accelerator Arm

Multi-Purpose Facility/ Platform

Source of Fund 1

Financing

Service

Area

Type of Fund

Business Arm

Private Financiers 2

Philanthropic Organizations

VCs & Angel Investors

Government

Customers 3

Equity (e.g., equity crowdfunding) Debt (e.g., shareholder loans) Grants (e.g., government grant ) Donations (e.g., shareholder donations) Earned Revenue 4 (e.g., income generated from office space rental fees) Grants (e.g., research grants) Donations (e.g., donations for research)



Initial Setup & Operation Cost



Service Delivery Cost



Source: Kearney 1. Represents the most relevant sources of funds, can be expanded as needed; 2. Includes: KI-Hub shareholders, corporations, and crowdfunding; 3. Includes government entities, VCs and others; 4. Can include shares in incubated entities

Partnerships – are crucial to successfully deliver the value proposition

Partner categories

Government Entities

Corporate Partners

Art Galleries & Exhibitors

Accelerators

Business Arm Served

Academic Institutions

NGOs & Philanthropic Orgs

Research Centers & Think Tanks

Collaboration Areas



Access to customers / scouting

  

 

Sharing knowledge & resources

 



Hosting events & conferences



 

Startups - BD & growth

Startups - acceleration



 

Public relations & Networking



Generating research papers

The Hub should be built gradually, leveraging partnerships from the early stages, and with a start-up mentality

Reaching goal

Steady growth and long-term evolution (2027…) • Key capabilities internalized, with well established partners • Physical presence in 3-4 KSA cities + 1-2 international satellite hubs • Key focus on:

• Becoming go-to entity for innovation in KSA • Further expanding beyond KSA borders

Early growth phase (2025-26) • In-house team expanded • Physical presence in 3-4 KSA cities • Key focus on: • Building track record in each of the three business segments • Building in-house capabilities

Launch & initial build up (2023-24) • Small in-house, start-up-minded team, complemented by external partners • Physical presence in 1-2 KSA cities • Key focus on • Build a “scout network” to attract innovators • Gain support from government / institutions and secure funding

Source: Kearney

Especially in the first 6-12 months, the footprint and service offering must be chosen strategically

KSA footprint (first 6-12 months)

Satellite unit

Offerings Key activities 1. Central gov’t relations 2. Stakeholders & partners mgmt. 3. Main business development 4. Incubator (all segments) 5. Research (government backed)

Northern Borders

Al-Jouf

Tabuk

Hail

Al-Qassim

Physical entities/facilities 1. Satellite office

Offerings Key activities 1. Regional gov’t relations 2. Incubator (segments relevant to Al Madinah, East regions) 3. Research (opportunistically, gov’t backed)

Al Madinah

Riyadh

Eastern Province

Makkah

Al Baha

Asir

Najran

Research Arm Business Incubator & Accelerator Arm Knowledge Sharing Arm Multi-Purpose Facility/ Platform

Physical entities/facilities 1. Hub’s legal entity 2. HQ address/office

Jizan

International presence in select key locations only - no physical offices • To run mission critical activities, e.g., scouting, funding donors • Adequate on-ground presence via contracted professionals or partners

The KI-Hub will require ~ SAR 64-83 Mn to operate (to be covered by service revenue), and ~ SAR 570-741 Mn for building the multipurpose facility in Al Madinah

5-year Cumulative Operating Costs, (SAR Mn)

Multipurpose Facility Cost, (SAR Mn)

SAR 741Mn

SAR 83Mn

122

Contingency Costs

Contingency Costs Building General Costs

4 5

94 28

Incubator/ Accelerator Costs General Costs (Shared Ops) Multi-purpose Platform Costs Research Arm Costs

171

244 56

7 6

3 1 5

188

366

1 2

570

3 3

2 4

281

3 2

2 1

Year 3

Year 2

Year 1

Year 3

Year 5

Year 4

Year 2

Year 4

Year 5

Non-Building Costs

Total Building Costs

Notes: 1. Accounts for all other costs, including salaries, rental, marketing, events, trainings, research material, virtual set-up, etc.; 2. Costs increase starting after year 3 as the hub becomes fully operational with HQ and satellite offices

Notes: 1.Accounts for all building-related costs, including utilities and contingencies; 2. Costs incurred during Y1-3 refer to design & construction and are projected on the assumption of a front-loaded development plan; 3.Costs post-year 3 represent basic maintenance & facility mgmt. costs

Next steps

Date

Status

Key next steps

Pending scheduling

Present to His Highness

TBD

Pending scheduling

Hold workshop with external stakeholders / review panel

TBD

Refine KI-Hub concept

TBD

Decide on go/no-go to start Phase 2

TBD

Initiate phase 2

TBD

Finalize KI-Hub concept

TBD

Source: Kearney

Socialize concept with key stakeholders and partners (road-show)

TBD

The workshop with stakeholders could be aimed at showcasing a pre- validated concept, getting feedback for refinement, and kick-starting socialization and marketing activities

PROPOSED WORKSHOP DESIGN (1/2)

OVERALL PURPOSE AND OBJECTIVES

• Start socializing concept and marketing the hub • Obtain feedback from important stakeholders/target partners to fine tune concept & communication material • Obtain initial/general buy-in from stakeholders

ATTENDEES

Stakeholders & External Review Panel • Ministry of Culture • Ministry of Tourism • Ministry of Economy and Planning • Public Investment Fund • Small and Medium Enterprises Authority (Monsha’at) • Research, Development and Innovation Authority • Al Madinah Governorate • Al Madinah Municipality • King Abdulaziz City for Science and Technology • King Abdullah University of Science and Technology • Successful startups (e.g., Tamara, PayTabs)

Nour Nouf & Project Team • His Highness • Eng. Reda • Dr. Ali • Rafee • Nabil • Alessandro Massa • Elie Khoury • Alessandro Palmos • Simon Deek (remote) • Feras Matar

Preliminary, for discussion

FORMAT / DELIVERY APPROACH

• In-person, engaging and interactive marketing/focus group crossover event • Mix of: ‒ compelling marketing communication (e.g., hub intro video) ‒ structured presentation materials (i.e. concept presentation and discussion workshop presentation) ‒ tools facilitating audience engagement and targeted feedback • Content positioned and tailored to invite feedback with guidance/focus on fundamentals

Source: Expert interviews, desk research, Kearney

The workshop could be held after having pre- validated the concept in individual meetings with a select group – tentative date May 2, venue to be determined

PROPOSED WORKSHOP DESIGN (2/2)

FIT WITHIN PROJECT TIMELINE

• Workshop to be the linking point between end of Phase 1 and start of Phase 2 • Sequence of key events in project’s critical path • Presentation to His Highness • Finalization of initial concept & preparation of workshop (end of Phase 1) • Go/no-go decision to launch Phase 2 • Workshop & summary of feedback (as part of and providing inputs for Phase 2) 5

DATE & VENUE

1. Welcome and social gathering 2. General intro by His Highness (and intro video?) 3. Workshop 1. Ambition 2. Case for change (learnings from benchmarks, context and landscape, gaps to fill) 3. Break 4. Proposed concept (strategic direction, value proposition, select business model elements) 5. Q&A and feedback 6. Closing remarks by His Highness 4. Social gathering/dinner • Date: ‒ 2-3 days after presentation to His Highness, to address comments to hub concept and finalize workshop materials ‒ Tentatively on 2/5/2023 • Venue: To be discussed ‒ Location options: Jeddah, Riyadh, Al Madinah, plus online ‒ Venue options: Nour Nouf HQ, external venue (linked to arts?), other

Preliminary, for discussion

AGENDA

Source: Expert interviews, desk research, Kearney

Thank you

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Appendix

CONCEPT DESIGN FRAMEWORK

We completed all key elements of the concept design framework

Vision and Mission What the hub stands for, and the overarching, long-term aspirations and goals it wishes to achieve

Positioning & Strategic Objectives What the hub wants to be (e.g., universal hub), and the tangible objectives it aims to achieve as part of its overall strategy (e.g., accelerating innovation, supporting community development)

Focus Themes Focus themes for startups, research topics and other activities targeted by the hub (e.g., social impact, innovation)

Strategic Direction & Positioning

Target Markets Target industries (e.g., tech, tourism) and geographic focus of the hub (e.g., MENA, Pan-Islamic, Global)

Service Offerings Service offerings provided by the hub to target customers (e.g., infrastructure, mentorship, access to funding, etc.)

Target Customers Businesses (& founders) targeted by type of business (e.g., tech, brick-&-mortar) and by stage (e.g., pre-seed, seed)

Customers & Value Proposition

Value Proposition Values and benefits that meet customer needs distinguish the hub from its competitors

Branding & Inst. Set-up

Footprint

Financing Model Combination of revenue / income (e.g., membership fees, ROI) and funding streams (e.g., donations)

Partnerships

Roadmap & Budget High-level roadmap to establish and operate the Hub along with the high- level required budget

HQ, main and secondary

Partnerships that will enable the hub in conducting its main activities (e.g., financiers, other incubators, etc.)

Brand positioning of the Hub (e.g., part of existing network, standalone) and type of institution it will be registered as (e.g., corporation, not-for-profit)

Business & Strategic Operating Model

locational footprint of operations for the hub, both physical and virtual

Source: Expert interviews, desk research, Kearney

Vision 2030 has established a variety of objectives related to entrepreneurship, knowledge, heritage and social impact…

Most Relevant/Addressable Sub-Objectives

Main themes

General Objectives Strengthen Islamic Values, national identity

1.1 Foster Islamic values (excellence, equity) 1.3 Strengthen the national identity (Islamic, Arab & National heritage)

A vibrant society

2.5 Promote culture and entertainment (Saudi contribution to arts & culture) 2.X Multiple social impact themes across sub-objectives (health, safety, welfare, etc.) 3.1 Grow Private Sector contribution to the economy (PPP, FDI) 3.2 Maximize value captured from the energy sector (O&G adjacent industries) 3.3 Unlock potential of non-oil sectors (digital, tourism, localization)

Offer a fulfilling & healthy life

Grow & diversify the Economy

3.4 Grow the PIF's assets and role as a growth engine (unlock, localize, edge-tech, knowledge, strategic partnerships) 3.6 Further integrate Saudi Economy regionally, globally (cross-border ties)

A thriving economy

3.7 Grow non-oil exports (develop promising local companies)

4.1 Develop Human Capital in line with labor market needs (equity education, brightest minds, align education-market) 4.3 Enable job creation through SMEs (innovation, entrepreneurship, SME contribution) 4.4 Attract relevant foreign talents for the economy (source foreign talent)

Increase employment

6.1 Enable citizen responsibility (volunteering) 6.2 Enable social contribution of businesses (businesses' social responsibilities) 6.3 Enable larger impact of non-profit sector (support, empower non-profit)

An ambitious nation

Enable social responsibility

Source: Vision 2030, Kearney analysis

… and a wide array of goals related specifically related to entrepreneurship, innovation and SMEs

Non-Exhaustive

Selected entrepreneurship- related Vision 2030 goals

Main themes

A vibrant society

Support SME entrepreneurship , privatization and investments in new industries

Rise from top 25 to top 10 countries on the Global Competitiveness Index

Encourage young entrepreneurs with business-friendly regulations

Focus education on innovation in advanced technologies and entrepreneurship

Help SMEs export by leveraging e- commerce and collaborating with international stakeholders

Encourage young entrepreneurs with easier access to funding

Increase SME contribution to GDP from 20% to 35%

Enable microfinance to support productive families

Encourage young entrepreneurs with international partnerships

A thriving economy

Motivate non-profit sector to build capabilities and fund initiatives of our productive families

Encourage young entrepreneurs with share of national procurement and government bids

Establish new business incubators , specialized training institutions and venture capital funds

Open up new investment opportunities, facilitate investment, innovation and competition

Encourage our financial institutions to allocate up to 20% of overall funding to SMEs by 2030

Facilitate access to social media and digital marketing for productive families

An ambitious nation

Source: Vision 2030, Kearney

…which were further reinforced by the focus areas of the VRPs

Non-Exhaustive

Human Capability Development Program

National Transformation Program

Quality of Life Program

Financial Sector Development Program

 Facilitate doing business  Increase the contribution of small and medium-size enterprises (SMEs) to the economy  Support national companies to consolidate their leadership globally  Develop promising local companies into regional and global leaders  Develop the digital economy  Enhance business focus on their social responsibilities  Encourage volunteering  Enable non-profit organizations to achieve greater impact

 Enable financial institutions to support private sector growth

 Boost Saudi contribution to arts and culture  Preserve and introduce the Kingdom's Islamic, Arab and national heritage  Upgrade the quality of services provided in Saudi cities

 Nurture and support the innovation and entrepreneurship culture  Uphold the Arabic language  Foster the values of mastery and discipline  Build a lifelong learning journey  Improve equal access to education  Improve fundamental learning outcomes  Improve ranking of educational institutions  Develop our brightest minds in priority fields

National Industrial Development and Logistics Program

 Increase the local content in non-oil sectors  Grow the contribution of renewables to the national energy mix

Entrepreneurship

Knowledge Economy

Culture & Heritage

Social Impact

Source: Vision 2030, Kearney

The main service offering of research centers, incubators/ accelerators, and multi-purpose facilities comprises a variety services

Research & Knowledge Sharing Centers

Multi-purpose Facilities/ Platforms

Business Incubators & Accelerators

Research Conduct research on specific topics based on requests from internal and external stakeholders Analysis Conduct data analyses to identify relevant trends and key topics for the community. Create reports and issue publications based on analysis. Capability Building Leverage expertise to build the capabilities by providing trainings on specific topics to individuals and participating entities

Mentorship Well-designed mentorship programs that provide entrepreneurs with helpful guidance to support their growth

Training & Capability Building Leverage expertise to build the capabilities by providing trainings on specific topics

Events & Others Host and organize mega events and exhibitions on different topics

Networking Provide an access to national and global entrepreneurship ecosystems

Funding Directly provide funding to promising startups in return for shares and equity

Office Space Offer co-working space with the access to office services for individuals, startups, and other companies

Legal Support Provide legal advisory services to entrepreneurs and businesses through workshops and individual sessions Access to Funding Facilitate access to funding for startups through existing partners, investors and network

Partnerships Facilitation Facilitation of partnerships with relevant entities (government or corporate)

Source: Desk research, Kearney

For the headquarter of the hub, four main options have been assessed

Option 1: Al Madinah-based

Option 2: Jeddah-based

Option 3: Riyadh-based

Option 4: Dammam-based

Headquarter of the hub in Al Madinah Satellite physical units in other major cities, focused on city’s main economic clusters center in Al Madinah Al Madinah has a very strong connection with the Islamic and Arab heritage Large number of visitors for visiting the Prophet Mosque

Headquarter of the hub in Jeddah Satellite physical units in other major cities , focused on city’s main economic clusters center in Al Madinah Ease of integration/ collaboration with other functions/businesses of Nour Nouf Close to Makkah , which host millions of people each year

Headquarter of the hub in Riyadh Satellite physical units in other major cities , focused on city’s main economic clusters

Headquarter of the hub in Dammam Satellite physical units in other major cities , focused on city’s main economic clusters

•

• Main knowledge sharing /exhibition

• Main knowledge sharing /exhibition center in Al Madinah  Eastern province is the center for some critical

center in Al Madinah

 The biggest business hub in the Kingdom, and one of the biggest in the region  Home to most accelerators/incubators in KSA (more than 50%)  Easier access to partnerships with private sector and government



industries in the Kingdom (such as energy)



 Higher-level of

Smaller number of corporates and businesses compared to Riyadh Higher-level of competition in the exhibition and museum arm of business (home to Ithra and Scitech)

Lack of success stories for incubators and accelerators in the region Small number of corporates and businesses compared to Riyadh or Jeddah

Smaller number of corporates and businesses compared to Riyadh



competition compared to other regions

Option assessed as more suitable



Source: Kearney

All Options would have virtual settings

Thank you

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