Investor PresentationQ1 2019

2

What to look forward to

Investment

thesis3

King Abdullah

Economic City4

How we are

different5

Business

model6-9

Financial

position

10-

13

Intrinsic &

future value

14-

29

Management

team

30-

31

Additional

information

32-

39

Financial

results 40-

43

3

• Supported by Saudi Vision 2030

• Well positioned to benefit from strong demand and favourable outlook, driven by social,

demographic and macroeconomic tailwinds

• Creating a stable business ecosystem to attract investment (FDI, third party investment)

• Developing a logistics gateway to capitalize on KAEC’s strategic location on the Red

Sea coast

• Establishing a manufacturing hub, focusing on high-growth non-oil industries

• Creating a tourism and leisure destination to meet demand from domestic and

international tourism

• Supporting the development and activities of SMEs and entrepreneurs

• Fostering a modern Saudi lifestyle through fully serviced residential communities

• Unique business model with a diversified asset base with a long term goal of delivering

results to shareholders

• Portfolio of built assets consists of:

• Residential communities and industrial zone, with land and developed

properties that are either sold or leased;

• 50% ownership in King Abdullah Port (KAP), KSA’s 2nd largest deep sea port;

• Commercial assets (hospitality, retail, F&B, office space), generating recurring

income

Investment thesis

Developing the

largest privately

funded

new city in the

world

Diversified

portfolio of

assets that

creates long-term

benefits to

shareholders

Clear, focused

strategy aimed

at capitalizing

on emerging

opportunities

Page 4

King Abdullah Economic City

KAEC is a fast growing coastal city in the western region of Saudi Arabia with a booming manufacturing and logistics hub, up and coming vibrant living community and a burgeoning entertainment destination

5

Emaar Economic City – why we are different

Unique business model with a diverse portfolio of real estate and

infrastructure assets, providing synergies and self-sustaining growth

1BUSINESS MODEL

Well-capitalized and growing balance sheet supported by smart

cash-flow management

2FINANCIAL POSITION

Significant value creation opportunity backed by a focused strategy,

allowing us to grow profitably

3INSTRINSIC & FUTURE VALUE

Experienced and dynamic management team with a proven track record

of creating value and managing risk

4MANAGEMENT TEAM

Unique business model with a diverse portfolio

of real estate and infrastructure assets,

providing synergies and self-sustaining growth

1 BUSINESS MODEL

7

Our approach and unique competitive advantageWe take a long-term, value focused view and leverage our unique proposition to expand in a

measured way

Our balanced approach

Identify opportunity

Develop relevant assets and smartly

manage project pipeline

Actively manage assets

Diversify revenue source

Provide earnings visibility for shareholders in various stages of economic cycles

1

Our competitive advantage

Partnership & endorsement from various Government entities

Strategic location and ease of access

Sole owner and operator of mega greenfield project in

KSA

8

Our business model

Residential

CashDebt and Equity

Land Bank168 million sqm

+

Primary infrastructure supports assets and increases base land value

Port

Sales

Cover debt obligations

IndustrialCommercial

& LeisureRetail and

F&BPort

City Operations

Ca

pE

X+

O

pE

X

Leasing

Operating Activities

ChargesOne time revenue Recurring revenue

Fund projects

Pay dividends

Re

inve

stm

en

t

Banks and creditors

Investors

1Our business model will help us to deliver financial returns in a sustainable way

Disbursement

Long term

9

Multiplied value

Building foundations & early development

Aggressive development & expansionNew city was born

Modern city with organic population growth

Vibrant city contributing to KSA’s socio-economic development

Land acquisition value

= SAR 3.8 bnValue of Investment

Property = SAR 48 bn*

Multiplied value

Funded via debt, operating income

2006

2035

Self-sustaining

In excess ofSR 30 bn capital invested since inception (by EEC and third parties)

2018

1

Operations & maintenance

* Based on fair value assessment survey conducted by Valustrat as of Dec 31, 2018

Well-capitalized and growing balance sheet

supported by smart cash-flow management

2 FINANCIAL POSITION

11

Invested capital and debt & equity profile

Invested capital, healthy financial leverage has enabled us to build KAEC, and will continue to

support our growth

2

8.5

5

5

Paid up Capital

MoF Loan

Commercial Loan

• Financial leverage is significantly lower than regional

and international property developers

Breakdown of EEC’s invested capital (SAR Mn) Debt and equity (SAR bn)

• KAEC is the largest privately funded city in the world

SAR

18.5 bn

debt and

paid up

capital

305

940 9841,072

1,207

1,442

2,605

3,307

3,780

4,193

Education & Healthcare Utilities & Smart City

Fixed Assets Residential Land Developmnent

Industrial Valley Infrastructure Commercial Hospitality & Leisure

Port Primary Infrastructure

Land (purchase) Housing

SAR

19.8 bn

invested in

building

KAEC

(as of Mar

2019)

12

Cash and liquidity analysis

Strong liquidity position with a comfortable cash buffer to help fund current projects and pay down

debt

SA

R M

illio

ns

• Combination of liquid assets and unused commercial loans can cover construction in progress

• Comfortably cover our short-term debt obligations

2

SA

R M

illio

ns

768 759

2018 Q1 2019

AR

603

477

50

50

2018 Q1 2019

653

527

Murabaha term deposits

Cash & cash equivalents

1.02

Current Ratio (as of Mar 31, 2019)

1.78

Capital Work in Progress (as of Mar 31, 2019)

SA

R B

illio

ns

13

Recurring revenue is contributing to a greater portion of our profit, and as more operating assets come online we expect that contribution to escalate

Number of projects under operation

2 Recurring income from operational assets

• Over 30 projects earmarked for leisure and tourism segment

• Smart budgeting and liquidity management to cover SAR 16 bn

CAPEX over next 7 years

SA

R M

illi

on

s

6 3281 116

186237 222 251

348

1,022

1,351

1,668

2,083

2,473

3,039

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Recurring revenue & planned CAPEX

Budgeted CAPEX Recurring Income (Actual)

Recurring Income (Projected)

19

34

6063

160

20182015 20172016 2025

Significant value creation opportunity backed

by a focused strategy, allowing us to grow

profitably

3 INTRINSIC & FUTURE VALUE

15

3.9

12.5

18.8

41.1

54.0

47.7

13.8

8.27.1

11.0 11.5 6.7

DEC 2006 DEC 2009 DEC 2012 DEC 2015 DEC 2017 DEC 2018

Valuation Mkt Cap

Valuation vs. Market Capitalization

SA

R B

illio

ns

We are trading at a discount to our intrinsic value; our stock price does not reflect the strength of our assets or our future earnings potential

3 Intrinsic value

Initial developments,

infrastructure

IV, Residential

developments

KAP, IV, residential

developments,

hospitality

KAP, IV, residential developments, hospitality, leisure amenities

So

urc

e o

f

va

lua

tio

n

Purchase

price

Internal

estimation JLL

Commercial

Banks Valustrat Valustrat

16

There are some imminent catalysts that are set to increase our value in the short to mid-term

3 Near term value enhancers

Easy access to 10

million people

within 1 hour of

KAEC.

Haramain high-

speed rail is now

operational

Additional 48 IV

licensed

companies

expected to

come online in 12-18

months

KAP’s operational

volume rose

significantly. YOY

Container volume up

by 295%, Bulk and

general cargo

handling operation

started and 1,360 MT

of cargo already

handled in H1 20191,023 ready to

move vertical units;

464 residential land

units readily

available for sale

and 546 near

completion

Imminent opening of

2 specialty, high

quality assets;

development of a

mega water park

17

Future outlook3

Well integrated and focused strategy to capitalize on new

demand trends

Macroeconomic and social tailwinds

accelerating demand

Multiplied value for all major stake holders

Shareholders

Residents

KSA

Business owners

We are well positioned to benefit from the socio-economic changes underway in Saudi Arabia and are capitalizing on those opportunities by having a focused strategy for each segment

Saudi Vision 2030

Growing population, with

young demographic profile

Regulation and changes to

industry framework

Modernization of Saudi

Arabian society

Industry,

Commerce

& SME

Leisure &

Tourism

Residential

KAEC

18

Unlocking value via industry & commerce segment033

Ease of foreign business establishment

Growing private sector contribution to GDP

Underdeveloped specialized non-oil industrial zones

Increasing the role of SMEs in the economy

Fast growing regional market of over 600 million people

Increase in Red Sea cross border trade

Strategically located on the Chinese maritime trade

route, connecting Asia, Europe and Africa

Attract greater number of non-oil manufacturing

companies

Increase container volumes in port by capturing greater

volume of trade via Red Sea

Catering to underserved local manufacturing industries

(automotive, pharmaceuticals etc.)

Entice entrepreneurs to establish presence in KAEC

Operating environment

Opportunity Development of re-export zone

On schedule development of KAP

On schedule development of IV

Gas zone to provide feedstock for

industrials

Tech hub to support data centers

Managing a viable entrepreneur/start

up ecosystem

Current activity

19

Industrial Valley

36 companies in operation; 32 under construction; 48 under licensing

Land value tripled since 2012

Phase 1

(launched 2007)

2,162 thousand sqm leased

Phase 2

(launched 2011)

7,012 thousand sqm sold

1,581 thousand sqm leased

Phase 3

(launched 2014)

2,110 thousand sqm sold

191 thousand sqm leased

Phase 4

(launched 2017)

369 thousand sqm sold

033

¾ of developed industrial land sold

20

4 King Abdullah Port

Commercial operation began in 2014

3

2nd fastest

growing port in

2018.

(Alphaliner)

2nd Largest port

in KSA by

capacity &

market share

and throughput.

82nd largest port

in the world

Multipurpose

Terminal

handled Bulk

cargo

throughput of

1,360k Tons in

H1 2019, up by

295% vs. 2018.

At par with

world’s deepest

water berths

(18m)

Reached

4.5 million TEU

capacity

in 4 years. 4 new

STS cranes and

20 RTG cranes

are currently

being erected.

SAR 5.2 bn initial invested capital

Capacity of

20m TEU,

15m tons of

Bulk cargo and

1.5m vehicles

upon

completion

438 vessels

received in H1

2019

70% Customs

clearances are

completed

within 24 hours

Crown Prince Muhammad Bin Salman, Deputy Premier and Minister of

Defense, inaugurated the King Abdullah Port on 11 Feb 2019

21

Supporting youth and entrepreneurship

Circle 301 is an EEC initiative which serves to create an efficient start-up ecosystem

3

Circle

301

KNOWLEDGE

EMPOWERMENT

GOVERNMENT

SERVICES

ENTREPRENEURSHIP

HUB

VENTURE

CAPITAL (SAR 75

MILLION FUND)

SCHOLARSHIP

HOUSING

SOLUTIONS

22

Unlocking value via residential segment033

Growing Saudi population with a young demographic

profile

Shifting mindset of young Saudis towards modernity

Expanded private-sector role in mortgage market

Attract first-time home buyers

Cater to various income groups and psychographic

needs

Operating environment

Opportunity Develop high end and middle income

housing communities

Building unique, upscale golf

community

Sports complex and other amenities

Enhancing landscaping and

beachfront

Current activity

23

Complete portfolio of housing solutions readily available

Bay La Sun

is an urban

district

Residential communities

75% of launched

vertical units

Sold / Leased

80% of launched

residential

land sold

3

Al Murooj

is an upmarket

community

(golf or

beachfront

options)

Al Talah

Gardens

is a series of mid-

income housing

community villas

and community

plots on the

coastal road

Al Waha

is an award

winning

mid-income

district

Miram Al-

Hejaz

is a mid-

income

community

close to

Haramain

station

Al Shurooq

is suitable for

first time home

owners

The Village

is located

within the

Industrial

Valley

Many

upcoming

unique,

modern

residential

communities

24

Unlocking value through leisure & tourism 033

Introduction of leisure tourist visa

Increase in number of Muslim pilgrims

Boom in nascent entertainment sector

Latent demand for international quality entertainment

and leisure

Convert repeat visitors to home owners

Attract greater number of visitors by positioning KAEC

as leisure lifestyle and tourism destination

Leverage location and Haramain rail, (catchment area

of 10m people within 1 hour of KAEC)

Operating environment

Opportunity

Over 30 projects under development

including:

• Sports complex (Esmeralda)

• Souq

• Malls

• Islamic exhibition center

• Tethered balloon

• Laguna (amusement & waterpark)

• Motor park

• Desert camps

• Culinary academy

Current activity

25

Booming leisure and entertainment destination

2018

700,000 visitors

2017

400,000 visitors

Visitors

2019

1 million visitors

(expected)

Integrated

resorts and

independent

hotels

Bay La Sun

Hotel and Marina

The Views

Sunrise

Apartments

World-class

golf course

Royal Greens

selected for PGA

European Tour

Championship

2019-21

Independent

exhibition

centre

Bay X exhibition

centre to offer

2,800m of hall

space

Juman Park

Over 70,000

sqm of family

friendly park,

walking, cycling

and games

30+ projects

under

development

Theme park,

water park,

desert camping,

motor park,

Culinary

academy

Fully

integrated

leisure and

entertainment

Lagoona:

water-park,

ecology park,

outlet mall

033 Leisure and tourism assetsInvested around SAR 2bn in developing a premier leisure and entertainment destination

26

Lagoona

A large scale leisure destination situated within the lagoon waterfront; designed

around a unique blend of local and international IP

033

27

Bay la Sun Yacht Club and Marina

Luxury marine and

watersports facility with

berthing for private boats

Opening up nascent

marine tourism industry

for KAEC

033

28

Royal Greens Golf and Country Club

The Royal Greens Golf

and Country Club is an

exclusive, first-class golfing

experience.

Successfully hosted the

European PGA Tour

Championship in Feb

2019. Also, scheduled to

host in 2020 and 2021.

Formally opened in April 2018, the first of its kind golf course in the Kingdom

033

29

Esmeralda Sports & Wellness Center

First of its kind family

fitness and leisure center

in the kingdom

Won 2017 International

Property Award for Best

International Leisure

Development

Expected to open in Q3 2019

033

4 MANAGEMENT TEAMExperienced and dynamic management team with a

proven track record of creating value and managing risk

31

World-class management teamLocal and international management team with proven track record of creating value and managing risk

4

Board of Directors

H.E. MR. MOHAMED

ALABBAR

Chairman

MR. ABDULLAH

KAMEL

Vice Chairman

MR. AHMED

LINJAWY

Group CEO

Board Members

H.E. ENG.

KHALID

AL-MOLHEM

H.E. SAUD

AL-SALEH

MR. JAMAL

BIN

THENIYEH

MR. AHMED

LINJAWY

ENG. MR.

ABDULRAHMAN

AL-ROWAITA

MR. AHMED

JAWA

Management Team

ENG. MR.

ABDULLAH

TAIBAH

ADDITIONAL INFORMATION

33

Prince Mohammad Bin Salman Collegeof Business and Entrepreneurship (MBSC)

1st private business and

entrepreneurship college

in Saudi Arabia offering

MBA program

Inspired by Vision 2030

Female and male students

taught by high caliber

professors

Practical learning and academic teachings to

cultivate a well rounded entrepreneurial culture

Under the umbrella of MISK

Foundation

Established in partnership with Babson Global, Lockheed Martin and MISK foundation

34

GEMS World Academy was set up in 2014, now with a capacity of 2,000 students, offering an international K-12 education

Tomouh provides thousands of young Saudi men and women with the skills and training required to compete in the modern work environment

Education & training

Vocational training facilities including: • Culinary Academy, in partnership with

MISK Foundation• Aviation Academy in partnership with

GACA

Offering every generation the ability to explore, learn, create and teach

35

Haramain Station

The High Speed Railway has reduced the travel times significantly making KAEC an ideal housing location and leisure destination

450 km high speed train

• 25 minutes to new Jeddah

International Airport

• 35 minutes to downtown

Jeddah

• 55 minutes to Makkah

• 55 minutes to Medina

Area around Haramain

Station will be the new

downtown with retail,

housing and other

commercial centers

Harmain station is currently operational

36

KAEC

Strategic geographic location

Prime location along the Red Sea trade route

Tourism

attraction: Red Sea coastal city

located close to

Jeddah offering a

variety of

entertainment and

leisure facilities

Business

advantage:Opportunity to join

the Western

Region’s well-

established

international and

local business

clusters

Commerce &

Trade advantage: >10% of world trade

passes through the

Red Sea which is a

prime East-West hub

on the main trade

route between Asia,

Europe and Africa

Gateway to the

Middle East’s 400+

million population

Resident

attraction: Proximity to Jeddah,

Makkah, Madinah and

well connected by every

mode of transport to

other cities

37

KAEC’s development

38

Hard and soft infrastructure All of KAEC’s offerings are underpinned by high quality infrastructure that serves businesses, residents and visitors

Secondary

roads

84.5 km

Primary roads

83 km

Water network

127.6 km

Bicycle ways

11.0 km

12 Shops and

Retail

18 tenants

office space

Sewage network

94.1 km

6 mosques

Electricity

network

425.8 km

19 Restaurants

and cafes

3 renowned

education

institutions

Water ways

3.1 km

1 fire, 2 security

stations

Gas stations

Sports arenas

and facilities

2 clinics

27 beds

Parks

Irrigation

121.2 km

Telecom

network

227.7 km

39

Industrial Valley

Home to over 116 leading global and local non-oil businesses

6 fully serviced clusters

Building

materials

Logistics

Consumer

Goods

Pharma

Automotive

Packaging

APPENDIX: Q1 2019 FINANCIAL RESULTS

41

Quarterly Revenue and Net Income 2018-2019

Revenue and Net Income (SAR Mn)

3

-45

-135

474

281244

112

371 346

Q1 2019Q1 2018 Q2 2018 Q3 2018 Q4 2018

135(64%)

71(34%)

Residential

Industrial Valley

4(2%)

Hospitality & Leisure

Q1 2019 Order intake breakdown(%)

Q1 2019 Order intake

SAR 211Mn

Net Income Revenue

Hospitality & Leisure

18(5%)

Residential

Other

68(20%)24

(7%)

Industrial Valley

236(68%)

1%

Q1 2019 Revenue breakdown(%)

42

2018 Revenue breakdown by segmentS

AR

mill

ion

s

40% 72%

Op

era

tin

g p

rofit

ma

rgin

• Residential and Industrial business segments are very profitable and are helping fund the expansion into

hospitality and leisure

236

346

6824

18

Residential Total RevenueOtherHospitality & LeisureIndustrial Valley

43

Intrinsic valueAppraised value of investment property, as disclosed in the financial statements, implies high upside potential to market capitalization

Investment property valued at SAR

47.7 billion

based on fair value assessment survey conducted by Valustrat

as of Dec 31, 2018

Development and Investment Property

on the books as of Mar 31, 2019

is SAR 6.9 billion

Market capitalization of the company is

SAR 8.5 billion (as of Mar 31, 2019)

Va

lue

me

tric

s

Page 44

IR@kaec.net T. +966 12 510 6955KAEC.net/Investor-Relations

KAEC Investor Relations APP44

45

DISCLAIMER

This presentation (Presentation) has been prepared by Emaar the Economic City (EEC) and/or its subsidiaries based on information available to it internally and thirdparty sources. This Presentation does not purport to contain all the information that a prospective investor may require in connection with any potential investment inEEC. You should not treat the contents of this Presentation, or any information provided in connection with it, as financial advice, financial product advice or advicerelating to legal, taxation or investment matters. No representation or warranty is made by EEC or any of its advisers, agents or employees as to the accuracy,completeness or reasonableness of the information in this Presentation or provided in connection with it. No information, including but not limited to numbers, maps,drawings, or maps contained in this Presentation or any other written or oral communication in connection with it is, or shall be relied upon as, a promise orrepresentation and no representation or warranty is made as to the accuracy or attainability of any estimates, forecasts or projections set out in this Presentation. Noliability will attach to EEC, with respect to any such information, estimates, forecasts or projections. EEC does not accept responsibility or liability for any loss ordamage suffered or incurred by you or any other person or entity however caused (including, without limitation, negligence) relating in any way to this Presentationincluding, without limitation, the information contained in or provided in connection with it, any errors or omissions from it however caused (including without limitation,where caused by third parties), lack of accuracy, completeness, currency or reliability or you, or any other person or entity, placing any reliance on this Presentation, itsaccuracy, completeness, currency or reliability. EEC does not accept any responsibility to inform you of any matter arising or coming to EEC’s notice after the date ofthis Presentation which may affect any matter referred to in this Presentation. Any liability of EEC, their advisers, agents and employees to you or to any other personor entity arising out of this Presentation including pursuant to any applicable Saudi law is, to the maximum extent permitted by law, expressly disclaimed and excluded.

This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of EEC. Those intentions, expectations, future plans,strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affectedby known and unknown risks. The performance and operations of EEC may be influenced by a number of factors, many of which are outside the control of EEC. Norepresentation or warranty, express or implied, is made by EEC, or any of its directors, officers, employees, advisers or agents that any intentions, expectations orplans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause EEC’s actual futureresults, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on theseintentions, expectations, future plans, strategy and prospects. EEC does not warrant or represent that the actual results, performance or achievements will be asexpected, planned or intended.