#1Ipsos Saudi Arabia's Mega-City: THE NEOM PROJECT Overview Of Public Perceptions Towards "The Worlds Most Ambitious Project" January 2019 GAME CHANGERS Ipsos#2Prelude What's Inside... Table Of Contents Sample & Methodology Overview Public Awareness Perceptions of NEOM Concept Evaluation Future Intentions 3 4 6 8 13 23 27 GAME CHANGERS Ipsos#3Prelude The NEOM project has been billed as the "World's Most Ambitious Project". The $500 billion. project in the North-Western region of Tabuk aims at positioning the Kingdom of Saudi Arabia at the forefront of technology, innovation, tourism, and business-friendliness in the region. Given the importance of this project for Saudi Arabia, Ipsos in the Kingdom of Saudi Arabia conducted a survey to explore the perceptions and attitudes of residents in KSA towards the NEOM project, the impact that the public believe this project will have on the Kingdom, and future considerations regarding living, working, and vacationing in NEOM. The survey was conducted by Ipsos using the Ipsos Online Panel in KSA, with a nationwide sample of 1,000 respondents aged 18 years and above, representative of the residents of Saudi Arabia. This report summarizes the key results and findings. GAME CHANGERS Ipsos#4Sample & Methodology GAME CHANGERS Ipsos#5Where? Saudi Arabia Northern Region: 9% Western Region: 33% Southern Region: 13% Sample Size Sample & Methodology Who? Central Region: 30% Eastern Region: 15% 1 41 Males 58% Females 42% 2 Ages: 18 years and above Locals 70% 3 Nationalities: Arab Expats 20% Other Expats 10% (Asian + Western) How? Online Self-administered N=1000 ི་ Interviews GAME CHANGERS Ipsos#6Overview GAME CHANGERS Ipsos#7Overview o Overall awareness levels towards NEOM are quite high, with 3 in 4 people having heard of the project, driven by TV, Online, and Social Media sources. However, a sizable percentage reported not being too familiar with its details. o Perceptions towards the NEOM project were very positive, with 9 in 10 people reporting that NEOM puts Saudi Arabia on the right track for the future, and the majority also feel that the NEOM project is one that will make Saudi citizens proud, will create new job opportunities, and enhance the Kingdom's image worldwide. ○ While many people reported having no concerns towards NEOM, those that did were primarily concerned about the possibility of the project's implication on the loss of Saudi identity, as well as concerns regarding the high costs of living in NEOM. o When compared to other cities across the region, NEOM was predicted to supersede the top cities in MENA on numerous aspects, including technological advancement, education, tourism, and providing the best work and business investment environments, with the city of Dubai currently seen as the leading city currently holding the advantage over others. o The high appeal levels held towards NEOM, and its perceived uniqueness both regionally and globally, have translated into high probability levels that residents in Saudi Arabia would consider working in NEOM, and visiting it as a tourist destination, once the project is complete. GAME CHANGERS Ipsos#8Public Awareness GAME CHANGERS Ipsos#9Awareness & Familiarity Of NEOM 8 In 10 residents of Saudi Arabia are aware and have heard of the NEOM Project. However, less than 4 In 10 claim to be familiar with the details of the project and what it entails on a spontaneous level. Level Of Familiarity Awareness Of Neom 76% Are Aware/Have Heard VERY Familiar With NEOM & Of What It Entails 22% Of Of The Neom Project Those Familiar With NEOM 16% & Of What It Entails Who Are Unsure 28% AWARE Unfamiliar With NEOM 15% & Of What It Entails VERY Unfamiliar With NEOM 20% & Of What It Entails GAME CHANGERS Ipsos#10Awareness Of Neom Awareness Of NEOM By Demographics - By Region, Age, Nationality, Gender, & SEC Northern Region: 74% Western Region: 77% Southern Region: 73% Central Region: 77% Eastern Region: 73% 81% 67% Aware Of Neom Unaware Of Neom 18-24 74% 26% 25-34 73% 27% 35-44 80% 20% 45+ 79% 21% Aware Of Neom Unaware Of Neom A-B 89% 11% C1 83% 17% C2 74% 26% D-E 62% 38% 77% Saudi Locals 75% Arab Expats 63% Other Expats (Asians + Westerners) GAME CHANGERS Ipsos#11Awareness Of The Components Of NEOM Among those who are aware of NEOM, the majority are generally aware of most of the project's core components; strong majorities reported being aware of NEOM's scenic nature, and that the Megacity will be a hub for cultural diversity. Awareness levels towards NEOM's cooler climates and its offering of free high-speed internet were slightly lower. NEOM Will Be A Hub For Cultural Diversity And Interaction NEOM Will Have Beautiful Terrains Including Beaches, Mountains & Islands NEOM Will Have The Latest Advanced Technology & Manufacturing NEOM Will Be An Environmentally Friendly City Aware Of Component Unaware Of Component 88% 12% 87% 13% 86% 14% 82% NEOM Will Be Fully Powered By Renewable Energy 74% NEOM Will Be 10°C Cooler On Average Than The Rest Of The GCC Countries 72% NEOM Will Offer The Highest Internet Speed For Free 18% 26% 28% 70% 30% GAME CHANGERS Ipsos#12Sources Of Awareness Of NEOM Traditional & Digital Media both played a big role in raising awareness levels of the NEOM project, with TV, Online Sources & Twitter being the top three sources of awareness. Newspapers: 25% Friends: 32% Twitter: 35% L Online Sources: 48% TV: 67% Facebook: 24% (f) You Tube YouTube: 21% Top 10 Sources Of Awareness Mi Family: 18% ii Colleagues: 18% O= Radio: 14% GAME CHANGERS Ipsos#13Perceptions of NEOM GAME CHANGERS Ipsos#14Overall Impact On Saudi Arabia: Right Or Wrong Direction? The overwhelming majority of people believe that the NEOM Project is a positive step that puts Saudi Arabia on the right track. × 90% RIGHT DIRECTION 18-24 25-34 35-44 10% WRONG DIRECTION 45+ X By Demographics Will Put KSA In The RIGHT Direction Will Put KSA In The WRONG Direction Western Region 86% 14% Central Region 90% 10% Eastern Region 93% 7% Southern Region 95% 5% Northern Region 91% 9% 89% 11% 91% 9% 86% 14% 97% 3% Male 90% 10% Female 90% 10% Local 89% 11% Arab Expats 90% 10% Other Expats 93% 7% A-B 83% 17% 90% 10% C2 D-E 91% 9% 93% 7% GAME CHANGERS Ipsos#15Implications Of NEOM Project The majority believe that NEOM will be a source of pride for Saudi Nationals, improving the image of Saudi Arabia around the world, and will open doors for new job opportunities. Having said that, a slightly lower percentage believe NEOM will be home to people of all walks of life. Agree Unsure Disagree NEOM Will Open The Door For New Job Opportunities In Saudi Arabia: NEOM Will Result In Positive Economic Gains For Saudi Arabia: 75% NEOM Will Make Saudi Nationals Proud: 74% 16% 9% 15% 11% NEOM Improve The Image Of Saudi Arabia Around The World: 74% 17% 9% NEOM Will Attract Top Talent To Saudi Arabia: <>01 73% 18% 10% NEOM Will Be Mostly Inhabited By The Younger Adult Generations: 68% 64% 20% 16% NEOM Will Result In Positive Economic Gains For The MENA Region: 64% 22% 14% People Who Live In NEOM Will Be More Empowered: 64% 24% 12% Many Businesses Will Move Their MENA Headquarters To NEOM: 61% 25% 14% NEOM Will Be Home To People Of All Walks Of Life: 22% 10% YY 59% 23% 17% GAME CHANGERS Ipsos#16Public's Concerns About NEOM The majority have no concerns regarding the development of NEOM. Among the rest, the biggest concerns were related to the completion and implantation of the project, along with concerns regarding how NEOM will affect Saudi Arabia's cultural and religious identity. Have No Concerns 56% Project Failure 5% 18% Project Implementation Concerns Project Remains Incomplete Delay In Implementation The Substantial Cost Of Project Wouldn't Not Be Put Into Action Properly Difficult To Implement | 1% 4% 3% 3% 2% 10% Cultural/Religious Concerns Loss Of Islamic Identity Local Customs & Traditions Affected Openness In An Exaggerated Way Difference Of Cultures 4% 3% 2% | 1% High Cost Of Living Not Suitable For People With Limited Income 3% 3% 叨 9% Economic Concerns Favoritism | 1% Increased Taxes | 1% Threat To KSA's Economy | 1% 888 4% Employment Concerns Lack Of Jobs For Saudi Nationals Total Dependence On Robots Foreign Residents Unable To Work There 2% 1% | 1% 4% Social/Political Concerns Spread Of Corruption Presence In A Politically Volatile Region Racial Discrimination 2% 1% 1% GAME CHANGERS Ipsos#17Technological Advancement: How NEOM Compares To Other Cities In The MENA Region Dubai Is Considered The MENA Leader When It Comes Technological Advancement. That Said, 7 In 10 Believe That NEOM Will In fact Surpass Dubai In That Aspect. Perceived Most Technologically Advanced City In The MENA Region How Does NEOM Compare To The Top 3 Cities When It Comes To Technological Advancement? - By Those Who Mentioned Each City Dubai 76% Riyadh 8% Abu Dhabi 7% Doha Dubai 3% Jeddah 2% Riyadh Amman 2% + NEOM Will Be MORE Advanced NEOM Will Be The SAME NEOM Will Be LESS Advanced 66% 20% 14% 58% 24% 18% Beirut 1% Abu Dhabi 48% 31% 21% Cairo 1% GAME CHANGERS Ipsos#18Tourism: How NEOM Compares To Other Cities In The MENA Region On Average, 6 In 10 Claim That NEOM Will Be An Even Better Touristic Place Than The Top Ranked Best Cities in Tourism In MENA: Dubai, Cairo & Riyadh. Best Perceived Tourist Destination In The MENA Region How Does NEOM Compare To The Top 3 Cities When It Comes To Being The BEST Place For Tourism? - By Those Who Mentioned Each City Dubai 57% Cairo 7% Riyadh 7% NEOM Will Be BETTER NEOM Will Be The SAME NEOM Will Be WORSE Casablanca 6% Beirut 6% Dubai 63% 25% 12% Abu Dhabi 6% Jeddah 5% Cairo 56% 27% 17% Amman 2% Doha 2% Riyadh 59% 15% 26% Kuwait City 1% Manama 1% GAME CHANGERS Ipsos#19Business Environment: How NEOM Compares To Other Cities In The MENA Region It Is Anticipated That NEOM Will Also Supersede Dubai- The Top Ranked City- When It Comes To Hosting A Favorable Environment For Work & Business. Perceived City With Most Favorable Business Environment In The MENA Region How Does NEOM Compare To The Top 3 Cities When It Comes To Being The Most Suitable Place To Work In? - By Those Who Mentioned Each City Dubai Riyadh 42% 23% Abu Dhabi 10% NEOM Will Be MORE Suitable NEOM Will Be The SAME NEOM Will Be LESS Suitable Jeddah 10% Doha 6% Dubai 61% 26% 14% Kuwait City 3% Amman 2% Riyadh 66% 20% 14% Beirut | 2% Cairo 1% Abu Dhabi 53% 26% 21% Manama 1% Casablanca 1% GAME CHANGERS Ipsos#20Business Investment: How NEOM Compares To Other Cities In The MENA Region It Comes As No Surprise That More Than Half Claim That Neom Will Be Ideal For Business Investments- Better Than The Top In MENA: Dubai, Riyadh & Abu Dhabi. Top Perceived City For Business Investments In The MENA Region How Does NEOM Compare To The Top 3 Cities When It Comes To Being The Best For Business Investments? - By Those Who Mentioned Each City Dubai 53% Riyadh 15% Abu Dhabi 10% NEOM Will Be BETTER NEOM Will Be The SAME NEOM Will Be WORSE Jeddah 8% Doha Dubai 3% 60% 29% 11% Cairo 3% Beirut 2% Riyadh 66% 24% 11% Amman 2% Kuwait City 2% Abu Dhabi 64% 23% 13% Casablanca 1% Manama 1% GAME CHANGERS Ipsos#21Education: How NEOM Compares To Other Cities In The MENA Region 6 In 10 Saudis Claim That NEOM Will The Best In Education In The MENA Region. Best Perceived City For Education In The MENA Region How Does NEOM Compare To The Top 3 Cities When It Comes To Being The Best In Education? - By Those Who Mentioned Each City Dubai Riyadh 30% 19% Cairo 14% NEOM Will Be BETTER NEOM Will Be The SAME NEOM Will Be WORSE Abu Dhabi 10% Doha Dubai 8% 56% 30% 15% Amman 6% Jeddah 6% Riyadh 58% 29% 13% Beirut 2% Kuwait City 2% Cairo 64% 22% 14% Casablanca 1% Manama 1% GAME CHANGERS Ipsos#22Family Upbringing: How NEOM Compares To Other Cities In The MENA Region Riyadh Is Considered To Be The Ideal Place In MENA To Raise A Family, That Said, 7 In 10 Believe That Riyadh Will Become The 2nd After The Emergence Of NEOM. Best Perceived City For Raising A Family In The MENA Region How Does NEOM Compare To The Top 3 Cities When It Comes To Being The Most Suitable To Raise A Family? - By Those Who Mentioned Each City Riyadh 29% Dubai 22% Jeddah 20% NEOM Will Be MORE Suitable NEOM Will Be The SAME NEOM Will Be LESS Suitable Abu Dhabi 7% Cairo 6% Riyadh 43% 29% 27% Doha 5% Amman 3% Dubai 54% 29% 17% Beirut 3% Casablanca 2% Jeddah 51% 24% 26% Kuwait City 2% Manama 1% GAME CHANGERS Ipsos#23Concept Evaluation GAME CHANGERS Ipsos#24NEOM Concept Evaluation The below concept was presented to respondents, after which they were asked about the concept's Appeal, Relevance & Uniqueness (regional and global) NEOM is a Megacity located in Northwestern Saudi Arabia, covering an area of 26,500 km² bordering Jordan and Egypt. It will be the world's first independent special zone that spans three countries. NEOM will be a center of cultural diversity and international activity, and aims to be the leading global hub for technology, advanced manufacturing and robotics. The Megacity will be home to thriving businesses and will host world class working and living conditions. It will be fully powered by renewable energy, and will utilize the latest advancements in agriculture. NEOM will also be a touristic destination, offering guests access to pristine beaches, mountains and islands, and a relatively cooler climate that is 10°C lower than other GCC cities. It also offers the latest in futuristic housing accommodations and will lead in innovations in infrastructure and construction. Concept Appeal 72% Consider The Concept Appealing $ Concept Relevance 57% Consider The Concept To Be Relevant To Their Needs & Lifestyle Concept Uniqueness Regionally 73% Consider The Concept To Be Unique Relative to Other Cities In The Middle East Concept Uniqueness Globally 68% Consider The Concept To Be Unique Relative to Other Cities In The World GAME CHANGERS Ipsos#25NEOM Concept Evaluation: Who Thinks What? Appeal, Relevance & Uniqueness Of The NEOM Concept By Demographics - By Region, Age, Nationality, Gender, & SEC 72% 57%中 Considered NEOM Relevant To Their Needs & Lifestyle 73% Considered NEOM Unique Relative To Other Cities In The Middle East 68% Considered NEOM Unique Relative To Other Cities In The World Considered NEOM Appealing Western Region 71% Central Region 75% Eastern Region 71% Southern Region 69% 60% 59% 55% 50% 53% Northern Region 69% 72% 75% 76% 67% 70% 67% 71% 69% 61% ------ 67% 18-24 25-34 35-44 45+ 68% 54% 71% 65% 73% 58% 72% 68% 73% 57% 73% 70% 60% 63% 79% 70% Male Female 56% 72% 65% 71% 74% 59% 74% 72% Local 58% 73% 68% 72% Arab Expats 59% 78% 69% 79% Other Expats 57% 52% 63% 63% A-B C1 C2 D-E 69% 81% 78% 67% 75% 79% 57% 77% 76% 47% 68% 64% 75% 72% 69% 67% GAME CHANGERS Ipsos#26Evaluating The Components Of The NEOM Concept After reading the concept, respondents where then asked to select the one component of the concept which they "Liked Most", "Liked Least", the component they find to be "Most Unique/New", and the component they think is "Most Challenging To Implement". Concept Component ६ $ Most Challenging To Implement Most Liked Least Liked Most Unique/New The Leading Global Hub For Technology, Advanced Manufacturing & Robotics 16% 5% 17% ☐ 12% 叨 World Class Working And Living Conditions ☐ 11% 4% 6% ☐ 7% Powered By Renewable Energy ☐ 10% 5% 15% 12% Pristine Beaches, Mountains & Islands ☐ 10% 5% 5% 6% The World's First Independent Special Zone ☐ 10% 8% 12% 7% Located In The Northwestern Region Of Saudi Arabia Bordering Jordan & Egypt ☐ 9% 8% 7% 4% A Center Of Cultural Diversity 6% 6% 5% 5% Nothing In Specific 6% 24% 7% 16% Home To Thriving Businesses 5% 4% 4% 3% International Activity Cooler Climate Innovations In Infrastructure & Construction Latest In Futuristic Housing Accommodations Utilize The Latest Advancements In Agriculture 5% 6% 5% 6% 4% 12% 5% 10% wwwwwww 4% 3% 6% 5% 2% 5% 3% 4% 2% 4% 3% 3% GAME CHANGERS Ipsos#27Future Intentions GAME CHANGERS Ipsos#28Public's Opinion On Who Would Live In NEOM The majority of people think that NEOM will mostly be occupied by Saudi Nationals, but significant percentages also believe that the city will also attract Western and Arab expats. Opinions On Who Will Occupy NEOM - By Nationality - Saudi Nationals Who Thinks What? Who Will Occupy NEOM- Nationals Vs. Expats Saudi Nationals Arab Expats Asian Expats Western Expats ■Other Expats 72% 37% 24% 34% 31% 69% Saudi Nationals Think That NEOM Will be Mostly Inhabited By: Western Expats 38% Other Expats 68% (Asian + Western Expats) 30% Arab Expats 38% 29% Think That NEOM Will be Mostly Inhabited By: 36% 19% Other Expats 29% 61% Arab Expats 43% Asian Expats Think That NEOM Will be Mostly Inhabited By: 25% 52% 25% 26% GAME CHANGERS Ipsos#29JOB 19 Future Intentions Approximately two-thirds of people mention that they would consider going to NEOM on vacation, and would also consider seeking employment in NEOM. However, just below half report considering living in NEOM. JOB Going On Vacation To NEOM: Consider Seeking In NEOM: Employment Consider Living In NEOM: Unlikely Unsure ➤By Demographics Those Likely To Go On Vacation TO NEOM Those Likely To Seek Employment In NEOM Those Likely To Live In NEOM Likely Western Region 66% 63% 49% Central Region 69% 59% 46% 15% Eastern Region 61% 55% 43% 19% 25% Southern Region 63% 62% 46% Northern Region 66% 59% 48% 20% 18-24 60% 58% 45% 21% 25-34 66% 60% 46% 35-44 68% 65% 52% 28% 45+ 69% 55% 44% Male 63% 61% 43% Female 70% 59% 5% Local 66% 57% 45% 66% 60% Arab Expats 62% 72% 54% 47% Other Expats 69% 60% 47% A-B 70% 63% 55% C1 69% 68% 47% C2 71% 60% 48% D-E 59% 58% 42% GAME CHANGERS Ipsos#30For More Information: Mohammed Minawi Chief Client Officer - Ipsos MENA [email protected] At Ipsos we are passionately curious about people, markets, brands and society. We make our changing world easier and faster to navigate and inspire clients to make smarter decisions. We deliver with security, simplicity, speed and substance. We Are Game Changers Visit www.ipsos.com to learn more about Ipsos. GAME CHANGERS Ipsos