1. Hisham Malaika | Head of Property, KSA | ARCADIS Tuesday 16 September | Riyadh
Assessing How Performance of Built Assets Contribute to National GDP
2. •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
3. 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:
oProportion of a country’s GDP attributable to built assets?
oCountries generating the greatest return from their built assets?
oCountries best placed to improve the performance of their built assets?
oHow countries gain better performance from built assets to develop new sources of competitive advantage?
4. Global Highlights
•Built assets generated a total income of US$27.1trillion of GDP across all 30 countries in 2013
•This amounted to, on average, 40% of total GDP across these countries
•This proportion increases to 45% in emerging economies, but is lower in advanced economies at 35%
•Built asset performance is forecast to grow by 70% over the next decade
6. Return on built assets as a proportion of GDP
0%
10%
20%
30%
40%
50%
60%
70%
Russia
Saudi Arabia
Chile
Qatar
UK
Netherlands
Australia
Brazil
Italy
Germany
Malaysia
Hong Kong
France
Canada
USA
South Korea
South Africa
Philippines
Egypt
India
Spain
Thailand
Japan
UAE
Indonesia
Singapore
Poland
China
Turkey
Mexico
2013
2014
Country
Rank 2013
Rank 2014
2013 %
2014%
% change from 2013
UAE
7
7
44%
43%
-1
Qatar
27
27
28%
28%
0
Saudi Arabia
29
29
16%
17%
+1
7. Built asset wealth and income relationship
Relationship between built asset wealth and performance, 2013, US$ PPP measure
8. •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
9. 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 = $10.4 billion
Spotlight on Saudi Arabia
10. Growth Forecasts
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Change in built asset performance 2013-2022
11. Middle East show robust growth
Income from built assets per capita US$ PPP measure, 2013 and 2022 and percentage growth
13. 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.
