by PASP Project Committee KFUPM 14 January 2004

1. Prince Abdullah Bin Abdulaziz Science Park(PASP)“Knowledge to the modern economy is what coal and steel were to the industrial revolution”Presentation to SABIC Delegation by PASP Project Committee KFUPM 14 January 2004

2. Members of the PASP ProjectCommittee & Their Responsibilities Dr. Mohammad Abul-Hamayel Dr. Mohammad Al-Ohali Dr. Mohammad Ramady Dr. Sadiq M. Sait Dr. Halim Hamid Redhwi (Chairman)

3. Presentation Outline • Part I: A Brief Overview about Science Parks • Part II: Plan of PASP • Part III: Progress and Status

4. What Are Science Parks? • A property based initiative which: • Has operational links with universities and research centers • Is designed to encourage knowledge based industries • Has an element of technology transfer and job opportunities • Over a thousand Science parks around the world: Australia, Singapore, Hong-Kong, Morocco, Finland, Brazil, UK, USA, and others • IASP (International Association of Science Parks, 250+ membership almost half are University Parks) • Different from Research Institutes (RI)?

5. Benefits from the Park • Economic development of the country • University to become skilled at industry collaboration • Tenants forming associations with the University • Commercialization of University research, including incubation facilities for start-ups • Development of the region and creation of wealth and employment opportunities

6. What is in their for KFUPM • Joint research projects, especially for graduate and doctoral students • Work experience programs for undergrads (part- and full-time jobs for university students) • Sharing of university equipment and laboratories • Custom-designed education programs for tenants • Many staff in tenant companies can enroll in our graduate programs • Advice from tenants (companies) on course design • Adjunct appointments of industry experts to teach and research in the university

7. Benefits to Tenant Firms • Tenant companies can have a significant point of presence in the from an R&D perspective • Availability of a highly skilled work-force pool from faculty members, researchers, grad. and undergrad. students body • Assistance in identifying university programs and resources that best relate to the tenant’s research • Adjunct faculty participation from tenants • Opportunity for commercial deployment of university’s proprietary patents and innovations • Access to the university’s advanced educational and training programs

8. Different from an RI • External Research projects at KFUPM departments and RI differ from Science Park concept • At the Science-Park, companies conduct research independently for their own motives, by their own researchers, utilizing their own facilities, and may involve University researchers & facilities, without intervention of University • It differs from funded project awarded to University faculty

9. What is an Incubator? • An incubator generates and sustains the dynamic process of business enterprise development for individuals eager to start companies to build commercially viable products. • It provides support of infrastructure, logistics, finance, training, and advice, until the businesses find their own place outside.

10. Chronology of Events • KFUPM Science Park Project Committee Formed: 19/05/2002 • International Companies Contacted: 20/06/2002 • Letters of Intent Received: 15/07/2002 • Conceptual Plan (prepared by PASP Project Committee): 15/09/2002 • PASP Website Created (http://www.ccse.kfupm.edu.sa/~cadprj): 01/10/2002 • Foundation Stone by HRH Prince Abdullah Bin Abdulaziz: 20/10/2002 • UNESCO Experts Visit to KFUPM: 22-25/02/2003 • PASP Plan Finalized: 25/03/2003 • Schlumberger Contract Signed: 04/04/2003 • Project Awarded for Layout/Infrastructure Planning: 09/04/2003 • Marketing Campaign Launched: 15/04/2003 • Presentation to HH Prince Saud Al-Saud, Chairman SABIC: 26/04/2003 • Preliminary Report on Layout/Infrastructure finalized: 27/04/2003

11. Plan of PASP • The Vision • The Mission • Other issues

12. Vision To make a significant contribution to the wealth & welfare of the Kingdom of Saudi Arabia through the development of knowledge based companies that will also strengthen the achievement of the mission of KFUPM to be a leading institution in the creation and dissemination of knowledge in its chosen fields of study

13. Mission • To develop financially self-sustaining physical and operational entity designed to create wealth through the commercialisation of scientific and technological knowledge from KFUPM; • Development of an entrepreneurial culture amongst faculty, researchers, students, of KFUPM and providing technical, business, and financial advice to clients; • Providing space in incubator and science park with access to university facilities and creation of a self sustaining and self supporting community of knowledge based companies.

14. Objectives • Commercialization of University research and to act as a vehicle for entrepreneurs by providing a strong point of presence for national and international companies; • Providing incubator programs to young Saudis and promoting emerging small-businesses and enterprises; • Utilizing the Kingdom’s industrial and market strength for the benefit of making KFUPM a focal point for attracting International R&D Personnel from Schlumberger, CIBA, Nippon, Microsoft, Bell, GE, etc.; • Generating employment opportunities for students and graduates in these knowledge based business houses; • To perform relevant and high quality R&D for transfer to industry, and provide a focal point of industry-University relationship;

15. Proposal for Funding & Finance • Given its ideal location and the explicit returns for the Industry, it is proposed that PASP-KFUPM Company be formed that is financed by: • KFUPM • Private Investments (VC) • Saudi Mega Companies • The University would be a responsible for laying down standards for leasing tenants, while operation, maintenance and construction would be the responsibility of the company

16. Governance & Management • For effective management and governance it is suggested that PASP-KFUPM Company is formed based on the collaboration between three major parties: • University: knowledge and resources (and partial funding) • Industry: financing and R&D • Government: regulations and incentives • Park managed as a commercial enterprise by a Park Manager, who heads the management team, and is overseen by a board of directors

17. Part IIIProgress and Status

18. UNESCO Experts Recommendations • Supreme aim is the development of a community that will create wealth and welfare in the Kingdom, and the creation of an entrepreneurial culture that maximises the commercialisation of ideas from KFUPM; • A combination of patience compatible with the achievement of PASP’s Vision in the long-term (30 years); and a sense of urgency compatible with producing early visible performance

19. UNESCO Experts (Recommendations, Contd.) • An arms-length company separate from the University and Research Institute should manage the Park (PASP) • The Board of PASP should be chaired by the Rector and should have members from the University, Government, tenants, and other key stakeholders • HRH Prince Abdullah bin Abdulaziz could be approached for becoming the honorary President of the Board • A Park Manager (CEO) should be appointed as soon as possible • The site development plan of the Park should be completed and approved by the PASP Board

20. First Tenant in PASP( Schlumberger, USA) • Schlumberger/KFUPM collaboration began in year 2000 • Formal contract as park tenant signed in 2003 • Schlumberger Foundation Stone Placed • Site allocated in proposed PASP Site (2500 Square meters) • Building design completed, construction began • Currently Schlumberger renting space in KFUPM • Schlumberger employees working at KFUPM • Conducting joint projects with KFUPM

21. Potential Tenants in PASP(JCCP, Japan) • Contract Duration: 1995-2005 • HSFCC project foundation stone by HRH Prince Abdullah Bin Abdulaziz • Utilizing RI laboratories for housing equipment and instruments • Japanese researchers working full time at KFUPM • HSFCC Lab Facilities developed in KFUPM and Ras Tanura • More projects committed

22. Potential Tenants in PASP(CIBA Chemicals, Switzerland) • Contract Duration: 2002-Open-ended • Using KFUPM laboratories for housing equipment and instruments • Using KFUPM laboratory and field facilities for research projects • CIBA researcher working full time at KFUPM • Training KFUPM researchers for CIBA business related research work

23. Interest of International Companies in PASP(Letters of Intent received from;) • Idemitsu Kosan Company Ltd., Japan • Cytec Industries, B.V., The Netrherlands • Institute France Petrole (IFP), France • Membrana GmbH (a member of the ACORDIS Group), Germany • DevCorp International, Bahrain

24. Saudi Aramco and SABIC Participation • Invitation letters sent to Saudi Aramco and SABIC for involvement and participation in PASP • Potential Advantages Cited; • Availability of additional R&D laboratory space for expansion of R & D activities not covered in existing R&D facilities • Opportunity for company’s researchers with new and novel ideas to begin to exploit them in a separate atmosphere • Opportunity to come into direct contact with, and to evaluate, students who are potential new company’s employees.

25. PASP SITE

26. Look Ahead PlanFor Q1 & Q2, 2004 • Site development work to start by 2004 • LOI from 5 new Potential Tenants • Confirmation of involvement by Saudi Aramco and SABIC • Marketing Brochure finalized • Public Awareness in Electronic- and Print-Media • Visits to International Science Parks • Attendance in related Conferences • Visits of International Experts to KFUPM (British Council) • Sub-Committee (Legal, Marketing, etc.)

27. Action Plan for 2004 • Board of Directors Approved • 10 Tenants Agreement • Legal and Administrative Issues Resolved • Site Developed • Defining The Role of Faculty members, researchers and Students in PASP • Incubator Program Launched

28. Finally … • The PAASP is a strong statement of KFUPM’s determination to maintain its high standards in research, technological development and academic excellence. • It is an initiative to couple the University’s research resources with the technological capabilities of the industrial sector, thereby creating a highly collaborative environment with vast potential for joint technological R&D.

29. And.. With the establishment of this science park, KFUPM moves forward into its fiftieth year with a far-reaching initiative that will be a dynamic catalyst for technological development and collaboration between the university and the industry.

30. THANK YOU