Interview with Gautam Sashittal, CEO, King Abdullah Financial District (KAFD)

29 Feb Interview with Gautam Sashittal, CEO, King Abdullah Financial District (KAFD)

Having previously hailed it as “The first manifestation of Saudi Vision 2030”, KAFD has been a cornerstone in shaping Saudi Arabia’s financial landscape, and with its prestigious LEED Platinum certification, it stands as a testament to the district’s commitment to innovation and growth. To begin, could you detail the evolutionary journey and unique attributes that distinguish KAFD, emphasizing its pivotal role within the Saudi economy?

KAFD stands as probably the largest city within a city in Riyadh, spread across 1.6 square kilometers. We aim to create a 24/7 living, breathing district encompassing all the necessary components. It is not just a financial district, but a business, residential, and entertainment hub. We have structured KAFD around five asset classes, setting it apart from any similar district worldwide.

Firstly, we have office space, boasting the largest collection at over 900,000 square meters. The demand from various entities, both local and international, reflects the uniqueness of this district’s business ecosystem. The second asset class comprises retail — ranging from high-end F&B (food and beverage) to general necessities like barbershops and supermarkets — catering to the needs of the working and resident population.

Our third asset class revolves around residences; nearly 1,000 are being furnished, with 225 already leased out. These residences are not just standard; they are smart, setting a new standard for the city. The idea is to facilitate living and working in the same space, emphasizing sustainability.

Alongside office and retail spaces, residencies, and smart living, our fourth asset class includes hospitality. We are in the advanced stages of completing three hotels, with many more hotels in the pipeline. This aspect is vital for international business travelers who can stay and conduct their business within the district, utilizing the largest metro station in Riyadh that is connected to the airport.

Entertainment is our fifth asset class. This encompasses lifestyle options such as cinemas, indoor events, leisure parks, and other facilities ensuring round-the-clock engagement for our residents and tenants. This lively district hosts events like the Noor Riyadh festival, drawing crowds from the city of Riyadh, not just our residents, transforming KAFD into a 24/7 city that never sleeps.

By creating such experiences, we are not only making it attractive for those living and working here but also for the entire city itself. The aim is to create an all-encompassing district that caters to various needs, ensuring its vibrancy throughout day and night.

By employing state-of-the-art technology and smart city solutions, KAFD showcases its commitment to sustainability and innovation. With the region’s largest waste management installation utilizing Envac’s Advanced Automation Platform (EAP) integrated with AI and sensors, the district achieves up to a 50% reduction in energy consumption. How have these advancements reshaped KAFD into a smart city, and what measurable impacts have they made on sustainability and operational efficiency within the district?

Sustainability remains paramount at KAFD, distinguished as the largest LEED Platinum stage two certified district globally. Our platinum status arises from several factors – a sophisticated automated waste collection system, solar panels generating power, water recycling within each tower, and two district cooling plants supplying the entire area with chilled water, heating, and cooling.

We boast 43 LEED gold or LEED silver certified buildings, a concentration rarely found within a Platinum stage two certified neighborhood. But our efforts do not stop there. We are actively evolving our sustainability strategies via automation, smart city initiatives, and a focus on transitioning from reactive to preventative maintenance, recycling water for irrigation. Our goal is to solely use recycled water for irrigation within the district within 12-18 months, potentially even supplying excess to the city.

Shuttles have been established to ferry individuals from their parking spots to work or residences. Our objective is to reduce road congestion, aiming to craft a “10-minute city” where living, working, dining, and entertainment are all within close proximity. Sustainability by design underpins our future projects. The goal is to embed sustainability into every aspect, from building efficiency to material choices like green concrete and steel, ensuring LEED Gold as the minimum standard for future builds. Notably, the ongoing construction of the world’s first LEED fire station outside of the US is part of our commitment.

Reducing road traffic is a priority. We are constructing a network of over 50 skywalks and developing additional infrastructure to facilitate diverse mobility needs. This includes the introduction of a sustainable electric monorail system. All these efforts contribute significantly to our sustainability endeavors.

Moving forward, our focus shifts to smart city solutions. Our aim is to create a cognitive city, utilizing data and analytics for effective management. This involves deploying various smart technologies like sensors, IoT devices, and smart cameras for security, safety, and smart home options within residences. All these smart city solutions tap into a central platform, enabling intelligent decision-making.

The development of a KAFD app is underway, set to incorporate features such as smart parking, enabling users to reserve and navigate to parking spaces seamlessly. Leveraging partnerships with Saudi Post and Google, we are mapping our district horizontally and vertically, facilitating guidance within the city, avoiding the need for extensive walking or driving.

Functionalities like facial recognition and artificial intelligence (AI) are integrated into our smart solutions. Achieving the first wide-score smart city in EMEA and the first smart score platinum in Saudi Arabia, we are progressing towards further “smartifying” our functions. Our focus is on more than just creating a platform but utilizing data and AI to enhance the customer experience. Our future aim is for all event operations to be managed through our app for improved accessibility and convenience.

We have also just started trials with Japan’s Sumitomo Corporation and have used their Epoxy on certain parts of roofs to see the temperature differential from using this Epoxy and if it worked. We also implement this technique on our roads and towers as it possesses heat-reflective properties.

Considering 80% of the Earth’s emissions originate from urban areas, every effort we make as a district to diminish these emissions, particularly as a vertical city, contributes to Saudi Arabia’s Vision 2030 objectives. These goals aim to achieve net zero by 2060 and bolster our ESG credentials. Essentially, this Epoxy element radiates heat, curbing its impact in our public spaces. When applied to buildings, it results in reduced energy usage and prolonged asset lifespan. We include all these factors in our considerations.

US foreign direct investment (FDI) in Saudi Arabia amounted to $12.2 billion last year and with the proactive legal, economic, and social reforms initiated under Vision 2030, how do you envision the amplification of US-Saudi business collaborations within KAFD?

Saudi Arabia stands as the largest economy in the MENA region. It was the fastest growing economy in the G20 in 2021, growing at 8.7%. There is a huge amount of nation building happening for Saudi Vision 2030, hence any international business that is seeking new markets or is already present and wants to grow its market share, needs to be here.

Well-developed programs actively encourage the establishment of regional headquarters. Incentives for regional headquarters include 30 years’ tax-free benefits among many others. This is indeed the opportune time to consider Saudi Arabia since businesses are gravitating here. The country is dynamically changing, offering a tremendously exciting opportunity for people to live and work.

Furthermore, improving the lifestyle within the district involves introducing various amenities. Things like bowling alleys, indoor adventure parks, schools, and medical facilities are vital. We have recently signed our first school, operated by the British Aldenham brand, covering education from kindergarten to A-levels. We are also actively developing entertainment options suitable for all ages, including families and children. This aspect is a key consideration for us.

How do you plan to apply insights gained from your extensive background in both the private and public sectors to align KAFD’s plans with the ambitious goals of Vision 2030? Could you elaborate on the strategies or initiatives you foresee for 2024?

Today, our primary challenges revolve around finalizing the remaining legacy assets we inherited. By year end, we will have completed over 90% of these tasks. With substantial demand in place, our focus shifts from construction to the operational aspects, aiming to establish a vibrant, functional city. However, our ongoing challenge lies in future development.

Despite the sounds of ongoing construction around us, we are already working on 10 new projects either in design or construction phases. Therefore, our most pressing challenge is maintaining the livability of the city while aligning it with the global brand we are striving to create. It is crucial to ensure that the construction projects do not significantly impact the quality of living experiences for our residents.

Any final message to the readers of USA Today?

Saudi Arabia is the place to be, whether you are considering starting a business, bringing in multinationals or regional companies, or even for individuals seeking vast opportunities. The current moment in Saudi Arabia holds immense potential, given the substantial growth across all sectors.

We are talking about significant growth in construction, architecture, and ongoing nation-building efforts. This is the opportune time to be here – the Kingdom is incredibly exciting, open for business, and welcomes people to live and work within its borders.