1. PRIVATE AND CONFIDENTIAL
This document is confidential and is intended solely for
the use and information of whom it is addressed.
Ciyada Development Fund
The Engine of Growth for the Kuwait Development Plan

2. The purpose of this document is to present a high-level vision
prepared by a group of Kuwaitis out of love for our country
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Education
Experience
 This document was compiled by a group of Kuwaiti citizens who have graduated from the world’s
top universities and worked at the world’s top companies.
 It is a zealous attempt to help catalyze the development of our beloved Kuwait and set the country
back on its path towards regional and global competitiveness

3. There has been a lot of high-level press and rumors regarding the
Ciyada Development Fund, with no clear strategy outlined so far
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CURRENT STATUS

4. The Government of Kuwait has a long history of creating state
sponsored companies, the Ciyada Development Fund is next
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All entities operate as autonomous bodies until the political leadership of a capable Minister
Minister of
Finance
Kuwait
Investment
Authority
Minister of
Foreign Affairs
Kuwait
Fund
Minister of State
for Economic &
Development
Affairs
Ciyada
Development
Fund
Est. ~1953 1961 2023

5. The Ciyada Development Fund will fill a necessary gap in the
current local financial system and act as a value creation engine
Value Curve
Kuwait National
SME Fund
National Technology
Enterprises Corporation (NTEC)
Kuwait Investment
Authority
Ciyada Development
Fund
Value
Time
ILLUSTRATIVE

6. Ciyada is the key to boosting non-Oil GDP and creating jobs to
decrease our dependency on the government budget
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22.8 22.5 23.4 23.5
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-4.8
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5
10
15
20
25
30
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KUWAIT GOVERNMENT BUDGET
(KD, BILLIONS)
Budget (KD) Budget Deficit / Surplus (KD)
2019/20 2020/21 2021/22 2022/23 2023/24
 Kuwaiti oil output is barely keeping up
with the government’s budgetary
needs, with further deficits expected
 80%+ of the government’s budget is
salaries
 Ciyada’s creation of 500,000 jobs will
result in a cost savings of 100 billion
KD over the next 10 years
 In addition to positive economic effects
of reclaiming Kuwait’s role as a
regional money center

7. We propose the following high-level strategy for the Ciyada
Development Fund:
5 X 5 X 5
 Build five world class platform companies across five key regional industries, in five years (by
2029) and create 500,000 local jobs in Kuwait to spearhead the Kuwait Development Plan
 The five key industries of the Ciyada Development Fund are:
1. Downstream Petrochemicals: CiyaPetro Platform Company
2. Infrastructure and Logistics: CiyaInfra Platform Company
3. Healthcare and Life Sciences: CiyaLife Platform Company
4. Fourth Industrial Revolution: CiyaTech Platform Company
5. Sports and Entertainment: CiyaPlay Platform Company
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8. Platform 1: CiyaPetro – A Regionally Competitive Downstream
Petrochemicals Holding Company
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9. Case Study: Export-led, Technology-first Petrochemical Strategy
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Petrochemicals
Commodities
Non-
commodities
 Kuwait should increase production of
commodity petrochemicals (Polyethylene,
Polypropylene, etc.) and exporting the vast
majority of its production to China and other
heavy global consumers, taking advantage of
cheap raw material costs.
 However, Kuwait should leverage its balance
sheet to acquire new petrochemical
technologies from existing global players. This
will usher Kuwait into the specialty chemical era.
 Kuwait can then license such technologies as it
chooses to other players in order to improve its
cash cycle.
 Success stories locally include Equate and
regionally include SABIC which exports parts
used in Apple’s iPhone production line.

10. Platform 2: CiyaInfra – A Regionally Competitive Infrastructure
and Logistics Holding Company
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Research
and Development
Local Incumbents
Ciyada
Value
Creation
International Partnerships
Mubarak Al Kabeer Port

11. Case Study 2: Creating a regional leader in infrastructure and
logistics
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CiyaInfra infrastructure fund will warehouse/invests in infrastructure assets, such as roads, bridges,
airports, power plants, and water treatment facilities in Kuwait and the Region to provide:
 Reliable income: Infrastructure assets typically generate stable and predictable cash flows,
which can provide investors with a steady stream of income
 Long-term growth: Infrastructure assets can appreciate in value over time, providing investors
with the potential for capital gains
 Low correlation to other asset classes: Infrastructure assets are often less correlated to other
asset classes, such as stocks and bonds, which can help to reduce risk in a portfolio
Disruptive tech company Flexport rapidly emerged to become a $8 billion company within five years
by focusing on niche logitech services, including:
 Order management: help businesses track their orders from the factory to the customer's door
 Delivery: arrange for the transportation of goods from one location to another
 Trade finance: provide financing for businesses that need to import or export goods
 Insurance: offer insurance to protect businesses from losses due to damage or theft
 Freight forwarding: handle the paperwork and logistics of shipping goods across borders

12. Platform 3: CiyaLife – a Regionally Competitive Healthcare and
Life Sciences Holding Company
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Local Incumbents
Ciyada
Value
Creation
International Partnerships

13. Case Study 3a – Abu Dhabi regional and global healthcare
dominance
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2005-2008 2005-2018 2018-2023
 Government of Abu
Dhabi separates the
General Health
Departments into three
entities:
o Health Authority of Abu
Dhabi (HAAD)
o Dhaman Health
Insurance Company
(80% owned by the
Government and 20%
owned by Munich Re)
o SEHA Hospital
Management Company
(100% owned by Abu
Dhabi government)
 Due to the roll out of
mandatory health
insurance across both
public and private
sector hospitals, local
Abu Dhabi private
hospital companies are
catalyzed to become
regional players with
two companies listing
in the London Stock
Exchange:
o NMC Health
o Al Noor Hospital
 The government of
Abu Dhabi has now
decided to roll up al its
healthcare companies
into a single platform
called Pure Health,
which now aims to
become a regional
player:
o Pure Health now owns
both Dhaman and
SEHA in addition to
building our both
diagnostic and
pharmaceutical/
biotechnology
manufacturing
capabilities

14. Case Study 3b – The recent listing of Al Habib, Saudis top private
hospital operator, was achieved after government investment
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Increase in Stock Price of Al Habib Medical Group
 Prior to the listing of Habib
Medical Group (HMG) in April of
2020, the PIF made a strategic
investment in HMG at around 25
SAR a share
 HMG opened at 50 SAR and
eventually doubles to 100 SAR in
the first six months
 HMG reached a high of 308 SAR
resulting in a MOIC of 12.3X
 In addition, HMG is now poised
to managed KSA MoH hospitals
and medical cities and drive
private sector employment in the
healthcare sector

15. Platform 4: CiyaTech – a Regionally Competitive Technology
Holding Company focused on the Fourth Industrial Revolution
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Local Incumbents
Ciyada
Value
Creation
International Partnerships

16. Case Study 4: The National Science Foundation’s SBIR/STTR
program was a cornerstone in the US’ technological advancement
 The NSF’s SBIR/STTR program has an annual budget of $150M with the goal to stimulate
technological innovation and increase private-sector commercialization of technology. This has
resulted in high-tech jobs, the commercialization of deep-tech research, and follow-on funding from
public and private investors.
 Success stories of the program include Qualcomm (wireless communications), Symantec
(cybersecurity), SUN Microsystems (computing, acquired by Oracle), and A123 Systems (lithium-ion
battery manufacturer), and Moderna (Covid-19 vaccine), generating billions in enterprise value
private and public investors.
 Kuwait faces challenges ahead to promote growth and compete on the regional and global stage. The
innate advantages we have when it comes to labor, cost, abundance of resources, and talent are
incredibly underutilized.
 The program can be adapted to gather Kuwait’s brightest technical, academic, and management talent
to tackle goals and challenges across industrialization, deep-tech, and sustainability. This can be done
by building the right partnerships and localizing de-risked technological innovation to the country.
 This will generate jobs, unlock enterprise value, and pave the path for Kuwait Vision 2035
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17. Platform 5: CiyaPlay – a Regionally Competitive Sports and
Entertainment Holding Company
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Local Incumbents
Ciyada
Value
Creation
International Partnerships

18. Case Study 5: Just as PIF created rival LIV Golf that created a
successful alternative to the PGA, the same can be done for Tennis
 PGA Tour golf players, unlike many other professional athletes in most other sports such as football or
basketball, earn no fixed salaries and instead rely purely on prize money and endorsements
 The PIF’s investment thesis with respect to LIV Golf involved enticing existing PGA Tour golf players
with guaranteed money multi-year contracts to play golf in their tournament schedule
 The financial security offered via guaranteed paychecks led to a mass exodus of PGA Tour golf
players to LIV Golf
 The PGA Tour was eventually forced to enter into negotiations with LIV Golf to stem the outflow of
players and protect their organization
 ATP and WTA Tennis professionals, just as their PGA Tour golf counterparts, also earn no fixed
salaries and instead rely purely on prize money and endorsements
 The LIV Golf template, if adapted properly, could be applied to tennis and revolutionize the way
athletes are compensated while also ensuring a steady alternative income stream
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CiyaPlay Disrupting the Global Tennis Industry

19. Ciyada will be a focused development company entrusted to create
value in Kuwait and the GCC across five sectors
 The goals of the Ciyada Development Fund are:
1. Championing the Development of Kuwait by Increasing Local Investment
2. Attracting Top Kuwaiti Talent from Abroad as a Local and Regional Center of Excellence
3. Setting up Kuwait to Compete on a Regional and International Level.
 The Ciyada Development Fund will operate according to the best practices of international
private equity companies (e.g. KKR, General Atlantic, Blackstone) and state development
companies (e.g. Temasek of Singapore, Mubadala of Abu Dhabi) by both creating and
investing in these local national champion company platforms to spearhead and sustain
the Development Plan of Kuwait and compete at a regional and international level
 The management of the Ciyada Development Fund will be predominately recruited from the
‘brightest technocrats’ that Kuwait has to offer and will act as a magnate for top talent thus
creating a local center of professional excellence
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20. Ciyada Development Fund will be built and mobilized according
to international and regional best practices
International and Regional Best Practices
International
Private Equity
Companies
 Private Equity (PE) companies differ from other investment
companies in that they acquire a majority equity stake in a
company to assume operational control
 Their goal is to create value within the company and then
eventually exit (sell) their investment within five to seven years
either to a strategic investor or the public market
 World leading companies typically enjoy healthy profits of
anywhere from 35 to 500% depending on the particulars of the
deal
 State Development Companies (SDC) employ private equity
processes to develop their respective states
 Their goal is two fold: a) to develop the state’s industries and b)
to make profit both through value creation and regional/
international competitiveness
 PIF of Saudi Arabia, Mubadala of Abu Dhabi and Temasek of
Singapore are all state funded development companies that
invest a substantial amount of their funds, 68%, 40% and 31%
respectively, locally to promote high growth national industries
 Due to the strategic nature of some of the investments, the
returns for SDC’s are usually around 20 to 150%
NON EXHAUSTIVE
State
Development
Companies
Description Examples

21. Mubadala was initially seeded with $20 billion of offset investments
in 2010 and today manages over to ~$270 billion (24.2% CAGR)
Deep Dive on Mubadala Development Company
 Mubadala outperformed major equity market benchmarks in 2022 which were down including Nasdaq
Composite (-33.1%), S&P500 (-19.4%) and Dow Jones Industrial Average (-8.8%)
 AED 107 billion ($29.1 bn) capital deployment in line with strategy, including life sciences,
renewable energy and digital infrastructure
 Portfolio mix broadly similar year on year, with 36% direct and indirect in private equity, 27% in
public markets and 15% in real estate and infrastructure
 AED 106 billion ($28.9 bn) in proceeds including divestments of certain legacy assets and capital
recycling into priority investment areas in line with strategy and responsible investing agenda
 Assets Under Management remained over AED 1 trillion ($270 bn), with a strong performance in
real estate, infrastructure and alternative investments, including private equity and private credit
 Gearing ratio of 8.5%, down from the prior year, reflecting Mubadala’s prudent management of its
finances and a strong cash position to manage the current economic cycle with a long-term view

22. As of August 2023, 23% of the PIF’s assets are international, while
68% are local investments, the remaining 9% are treasury assets
Deep Dive on Public Investment Fund (KSA)
 The PIF's international investments are spread across a variety of sectors, including technology, real estate,
infrastructure, and consumer services. Some of its notable international investments include:
• 5% stake in Uber worth ~$4.9 bn
• 8.2% stake of Carnival Corporation, the world's largest cruise company , worth $1.6 bn
• $45 bn investment in Softbank Vision Fund 1 and $10 bn investment in SoftBank Vision Fund 2
• $10 bn investment in various sports platforms including Football (both local and international), Golf (LIV+PGA) and
even Chess
• $40 bn anchor investment in the $100 bn NEOM smart city project
 The PIF's local investments are focused on developing Saudi Arabia's economy and diversifying its non-oil revenue
sources. Some of its notable local investments include:
• The $500 billion Red Sea Project, a luxury tourism development
• The $200 billion Qiddiya entertainment city
• The $14 bn seed invest in the Saudi Entertainment Ventures Company (SEVEN) to build 21 theme parks and
entertainment desitnations across KSA
 The PIF's investment strategy is to gradually increase its global investments over time. This is in line with its goal of
becoming one of the world's largest sovereign wealth funds. However, the PIF will continue to maintain a significant
focus on local investments, as these are essential to the economic diversification of Saudi Arabia

23. Within & beyond strategy, Ciyada needs to leverage Kuwait’s
intrinsic advantages to generate alternative revenue streams
 Existing State-Owned Enterprises: For example, food companies such as Kuwait Flour Mills
and Al-Mawashi can be expanded via acquisitions of similar enterprises in other geographies
 Heritage State-Owned Enterprises: For example, telecom companies such as Zain can return
to their past international expansionary roots and reembark on a global growth strategy
 Energy Intensity: Partnerships can be established with international players in energy-intensive
industries to localize production in Kuwait
 Labor Intensity: Partnerships can be established with international players in labor-intensive
industries to localize production in Kuwait
 Capital Intensity: Partnerships can be established with international players in capital-intensive
industries to localize production in Kuwait and identifying public and private sector companies that
can be partnered with for further regional and global expansion via capital injection
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Kuwait can leverage its excellent foreign relations to establish such partnerships with
internationally renowned companies based in friendly countries

24. The Ciyada Development Fund will become the engine of growth
for the development plan creating value for Kuwait
 Kuwaiti sovereign wealth funds and investment companies currently invest the majority of their
capital outside of the country. The government of Kuwait must encourage more investment within
the country. The quickest and most efficient way to accomplish this goal is to set up a local
development company, to do local private equity investments thus catalyzing the development
plan as an engine of growth for Kuwait to compete at a regional and international level.
 Companies formed under the Privatization Law of 2010 such as the National Technology
Enterprises Corporation, Daman Health Company, Kuwait Airways Corporation, etc will be
could be added to the portfolio of the Ciyada Development Fund
 The Ciyada Development Fund will then assume joint operational control of its portfolio companies
with the fund’s management through a turn-around team that will establish the management,
economic and financial levers typically used by private equity companies
 The Ciyada Development Fund will partner with both local and international private sector
companies to create value within its portfolio companies and investments, thus acting as the
principal champion of the Development Plan
 Eventually, the Ciyada Development Fund will exit (sell) its portfolio companies to strategic private
sector investors and Kuwaiti citizens through an Initial Public Offering (IPO)
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25. Ciyada will become a center of professional excellence attracting
Kuwaiti talent from abroad as well as top international executives
 Many talented Kuwaitis have left Kuwait during the last two decades to work abroad in global and
regional financial centers of New York, London and Dubai. If Kuwait is to reclaim its positions
as the region’s preeminent regional financial hub to be in line with the vision of HH the
Amir, it needs to attract back its most talented and competitive sons and daughters
 More than any other GCC citizens, Kuwaitis are known to have excelled at top tier professional
services companies around the world including:
– Private Equity: KKR, Perella Weinburg, Deerfield Management, Carlyle, etv
– Investment Banking: Citibank, Deutsche Bank, Goldman Sacs, JP Morgan, Rothchilds, UBS
– Management Consulting: Booz Allen Hamilton, McKinsey & Company, Monitor Group
 There are over 150 Kuwaiti professionals (both male and female) registered in the UAE’s
General Authority for Pensions, who work at in various government and private companies
 Unfortunately, Kuwait is currently not an attractive destination for top management and finance
executives. Ciyada will be an international recruiter, competing with Mubadala, the PIF (Saudi
Arabia) and Temasek in hiring top executives with deep industry experience to train and mentor
the next generation of Kuwaiti Leaders
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26. 25
As next step, we will develop a full business plan for the Ciyada
Development Fund under the support your Excellency
 Further analyze and summarize the Ciyada Development Fund’s short term and long term
strategy and competitive position within Kuwait and the region, including SWOT analyses
and best in practice profiles
 Finalize the five strategic sectors for investment and define criteria for opportunity (deal)
sourcing and evaluation
 Develop job profiles and recruit management leadership through a transparent evaluation
criteria
 Develop key performance indicators (KPIs) to measure the ongoing performance of the
company
 Schedule a monthly follow up meeting with the Ciyada Incubation Team
Overview of Next Steps

27. Team Profile
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Abdul Aziz M.
Al-Bahar
Abdulla Z.
Al-Sharhan
Mohammad H.
Al-Ali
Mohammad A.
Al-Ali
Dr. Mussaad M.
Al-Razouki
Education
Experience

28. Thank You
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