Hisham Malaika | Head of Property, KSA | ARCADIS

Tuesday 16 September | Riyadh

Assessing How Performance of Built Assets Contribute to National GDP

• The Research – Built Asset Performance Index

(BAPI)

• A spotlight on Saudi Arabia

• Future Built Asset Performance

• How to boost Built Asset Performance

• ARCADIS | EC Harris

Agenda

The Research • Global Built Asset Performance Index

explores the economic value that is generated

from the built asset wealth of 30 countries

• It reveals how physical buildings and

infrastructure contribute to national GDP across

the world

• Answers the following questions:

o Proportion of a country’s GDP attributable to built

assets?

o Countries generating the greatest return from their

built assets?

o Countries best placed to improve the performance

of their built assets?

o How countries gain better performance from built

assets to develop new sources of competitive

advantage?

Global Highlights

• Built assets generated a total

income of US$27.1trillion of GDP

across all 30 countries in 2013

• This amounted to, on average,

40% of total GDP across these

countries

• This proportion increases to 45%

in emerging economies, but is

lower in advanced economies at

35%

• Built asset performance is forecast

to grow by 70% over the next

decade

Measuring Built Asset Performance

Return on built assets as a proportion of GDP

0%

10%

20%

30%

40%

50%

60%

70%

Ru

ssia

Sa

ud

i A

rab

ia

Chile

Qa

tar

UK

Neth

erl

an

ds

Au

str

alia

Bra

zil

Italy

Ge

rma

ny

Ma

laysia

Hon

g K

on

g

Fra

nce

Can

ad

a

US

A

So

uth

Ko

rea

So

uth

Afr

ica

Ph

ilipp

ines

Eg

yp

t

India

Sp

ain

Th

aila

nd

Jap

an

UA

E

Indo

nesia

Sin

ga

pore

Po

lan

d

Chin

a

Tu

rke

y

Me

xic

o

2013 2014

Country Rank 2013 Rank 2014 2013 % 2014% % change

from 2013

UAE 7 7 44% 43% -1

Qatar 27 27 28% 28% 0

Saudi Arabia 29 29 16% 17% +1

Built asset wealth and income relationship

Relationship between built asset wealth and performance, 2013, US$ PPP measure

• Relatively low returns from its built asset wealth

• Heavy investment underway to support 2025

Economic Vision

• Demographic pressure is a key driver

• The need to create a sustainable economy is driving

the adoption of international quality standards

• On course for a prosperous future supported by its

built asset wealth

Spotlight on Saudi Arabia

2014 KSA Budget

• Education & Training = $56 billion

• Health & Social Affairs = $28.8 billion

• Water & Agriculture = $16.3 billion

• Infrastructure & Transport = $17.3 billion

• Municipality Services = $10.4 billion

Spotlight on Saudi Arabia

Growth Forecasts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Change in built asset performance 2013-2022

Middle East show robust growth

Income from built assets per capita US$ PPP measure, 2013 and 2022 and

percentage growth

How to boost built asset performance

And finally… • There is a strong relationship

between built assets and GDP

• Creating a sustainable built asset

base demands a clear long-term

vision

• Investors, owners and occupiers in

both the public and private sectors

all have a role to play in boosting

their built asset performance to the

benefit of themselves and the wider

economy.

About Us

Imagine the result