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1 30 th IASP World Conference Makkah Techno Valley (MTV): Fostering Sustainable Innovation for a Local Context of International Significance Author: Dr. Osamah Alamri ([email protected]) Co-Authors: Dr. Isam Kaysi Makkah Techno Valley, Makkah, Saudi Arabia

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Page 1: 30th IASP World Conference Makkah Techno Valley (MTV ...inhalt.com.br/portodigital/Workshop5OSAMAH(ALAMRI)SAU.pdf · is performed) and Ramadan (the month of fasting), when the city

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30th

IASP World Conference

Makkah Techno Valley (MTV): Fostering Sustainable Innovation for a Local Context of

International Significance

Author:

Dr. Osamah Alamri ([email protected])

Co-Authors:

Dr. Isam Kaysi

Makkah Techno Valley, Makkah, Saudi Arabia

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Makkah Techno Valley (MTV): Fostering Sustainable Innovation for a Local Context of International

Significance

Executive Summary

Makkah Techno Valley (MTV) is a newly established science and technology park by Umm Al-Qura University, located in Makkah, Saudi Arabia. Makkah is a place like no other for all Muslims around the world as it houses Al‐Masjid Al‐Haram (the Holy Mosque), the holiest site in Islam. Nearly one fifth of humankind (i.e. Muslims) shares a single aspiration: to complete, at least once in a lifetime, the spiritual journey to Makkah to perform Hajj (pilgrimage). The local context around MTV is unique in terms of its constraints, requirements and international value. Hence, a unique set of challenges is imposed on the ancient city that requires innovative solutions. This paper will describe the local context of MTV. It will also provide an overview on MTV and its objectives. This paper will specifically describe MTV development requirement and model in order to achieve a

sustainable innovation eco-system.

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1. The Local Context

1.1. The City of Makkah

Makkah Techno Valley (MTV) is a newly established science and technology park by Umm Al-Qura University, located in Makkah, Saudi Arabia. Makkah is a place like no other for all Muslims around the world as it houses Al‐Masjid Al‐Haram (the Holy Mosque), the holiest site in Islam. Nearly one fifth of humankind (i.e. Muslims) shares a single aspiration: to complete, at least once in a lifetime, the spiritual journey to Makkah to perform Hajj (pilgrimage). Throughout history and to this day, Makkah has received countless millions of Muslims longing for a religious and spiritual experience that has no equivalent. Makkah is located in the western part of the kingdom of Saudi Arabia. It lies between 200m and 380m above sea level. Hill ranges and dry sandy valleys characterize the landscape of Makkah and its surroundings. The climate of Makkah is a harsh, dry desert climate with average temperatures varying between 18°C in the winter and 45°C (or even higher) in the summer. The rainfall averages less than 130 mm/year. Natural hazards include sand and dust storms and seasonal flash floods. Environmental issues in Makkah are similar to those in the rest of Saudi Arabia. There are concerns about desertification and the depletion of underground water resources. The lack of perennial rivers or permanent water bodies has prompted the development of re‐filtration/desalination plants. The population of Makkah has doubled during the past 20 years from 1 Million (1993) to 2 Million (2013)1. There is also an enormous fluctuation in the population size according to religious seasons. The peak is during the months of Hajj (during which pilgrimage is performed) and Ramadan (the month of fasting), when the city is swollen by more than 3 million additional worshippers from all over the world. Hence, the city essentially doubles its population in

specific seasons each year.

As mentioned above, Al‐Masjid Al‐Haram (the Holy Mosque) is the heart of Makkah. It is a unique complex in light of both its spiritual and religious significance, as well as the nature, scope, scale and intensity of activity that it experiences. It is the holiest place in Islam, thus experiencing extreme demand during special seasons (Hajj and Ramadan). Over the past fifty years, the Holy Mosque has undergone a number of major expansion projects to accommodate the ever increasing number of visitors. Figure 1 shows the evolution of the Holy Mosque complex during the past 120

years.

With the rapidly increasing number of visitors to Makkah, particularly during the Hajj and Ramadan seasons, there is a dire need to increase the overall capacity of the Holy Mosque to accommodate the growing demand. Currently, the Holy Mosque complex overflows with worshippers during Hajj and Ramadan, with extra demand spilling over into surrounding streets and lanes, thus degrading

the spiritual experience of worshippers and presenting an overall hazardous scenario (see Figure 2).

1.1. The spiritual Journey of Hajj (Pilgrimage)

Hajj is a yearly event that brings together Muslims of all races and tongues for one of life’s most moving spiritual experiences, as shown in Figures 3. The Hajj timing and route are absolutely fixed. By no other date or ritual can the Hajj obligation be fulfilled. Each Muslim is required to go to Makkah for the Hajj at least once in his/her lifetime if he/she is physically and financially able to do so. For more than 14 centuries, countless millions of Muslims, men and women from all over the globe, have made the pilgrimage to Makkah, the birthplace of Islam. In carrying out this obligation, they fulfil the fifth pillar of Islam. Most pilgrims either precede or follow Hajj with Umrah, usually referred to as the lesser pilgrimage. The Umrah, unlike Hajj, takes place only in the Holy Mosque itself and can be performed at any time of the year. Every year, around 4 million people visit Makkah to perform Hajj, which lasts for less than a week. The total number of pilgrims visiting Makkah every year for Hajj and Umrah exceeds 9 million.

1 Government of Makkah, http://www.makkah.gov.sa, (accessed: 20 May 2013).

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2013

1880 1950

1990

Figure 1: Evolution of the Holy Mosque expansions since 1880.

Figure 2: Crowd at the Holy Mosque and the surrounding areas.

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The quality of services provided in Makkah is now at a crossroads with visitor demand and city population reaching unprecedented levels, and with the city embarking on mega‐scale developments including the imminent large expansion of the Holy Mosque. The need for highly innovative solutions and services to improve the experience of the growing numbers of visitors and residents of Makkah cannot be overstated. However, the planning, provision, and operation of such solutions and services is a non‐trivial task, as challenges abound in the ancient city. The central challenge is posed by the severely constrained activities that take place during the peak seasons of Hajj and Umrah. Not only do such mega‐scale events occur at specific times on specific days of year with very little time flexibility, but they also consist of prescribed rituals performed at specific locations which are characterized by limited space and challenging topography. The resulting challenges and issues are obviously not limited to the immediate vicinity where the religious activities take place but they also exist at the city, regional and international levels. Allowing the city to carry out its regular functions and activities while offering the best services to its visitors is of unequivocal importance to all stakeholders. Overcoming the imposed challenges requires innovative solutions that span various fields, such as health, transportation, security, housing, crowd management, logistics, communications, environment and waste management.

Without immediate interventions, the challenges and issues mentioned above are bound to grow more acute as the number of visitors continues to rise at a fast rate due to the following factors:

Increase in number of Muslims worldwide (high growth rates)

Increase in the average income of Muslims, making Hajj and Umrah more affordable

Ease and speed of international travel to Saudi Arabia

Increase in religious awareness of Muslims worldwide

The continuous expansion of facilities and services at the holy sites

Figure 3: Pilgrims moving and performing rituals during Hajj.

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2. Saudi Arabia Development Commitment

The Kingdom of Saudi Arabia is committed to providing a world-class sustainable service to all pilgrims during their entire spiritual journey. This cannot be separated from the country’s general development efforts. Since 1970, Saudi Arabia has started a 5-year development plan series. The Eighth Development Plan of Saudi Arabia (2005-2009)2 has emphasized the need to broaden the base of the national economy and to activate the role of universities in creating a knowledge-based economy through innovation and technology transfer. The Eighth Development Plan also encouraged the establishment of science parks in universities to promote collaborative research with industry. Furthermore, the objectives of the Ninth Development Plan (2010-2014)3 rest upon basic principles and well-established rules that emphasize the keenness of the country to realize comprehensive, balanced and sustainable economic and social development. The Plan's objectives underscore the importance of the private sector's participation in the process of development and the move towards a knowledge-based economy. The Ninth Development Plan has 13 general

objectives, where science parks can help achieve six of them, namely:

To continue to develop the holy places, and improve the services provided to Hajj and Umrah performers to ensure performance of religious rites easily and conveniently.

To achieve sustainable economic and social development by accelerating the rate of economic growth and social welfare.

To diversify the economic base horizontally and vertically, expand the absorptive and productive capacities of the national economy and enhance its competitiveness, and maximize the return on competitive advantages.

To move towards a knowledge-based economy and consolidate the basis of an information society.

To enhance the role of the private sector in socioeconomic and environmental development and expand domains of private investments (domestic and foreign) and public-private partnerships.

To develop the Small and Medium Enterprises sector to increase its contribution to GDP, and create frameworks for nurturing and organizing it.

3. Makkah Techno Valley (MTV)

3.1. Overview

Following the country’s development vision, Umm Al-Qura University, Makkah, took the strategic decision of establishing Makkah Techno Valley (MTV), a science park that will foster innovation and entrepreneurship through partnership between the university, Saudi entrepreneurs and international knowledge-based companies, as well as the support of the political government. With the vision of transforming the economy of Saudi Arabia into a knowledge-based economy that addresses the country’s socio-economic needs through fostering innovation to resolve Hajj related challenges, MTV at Umm Al-Qura University will act as an interdisciplinary technology, innovation, and research hub contributing to the development of sustainable innovative solutions that will improve the experience of 1.5 billion Muslims, when visiting Makkah for Hajj. Every year, Hajj provides a unique test-bed for understanding, analysing and developing innovative solutions to scenarios that may exist elsewhere around the world. Hence, the innovative solutions developed at MTV for Hajj-related challenges will be applicable and valuable not only to the local context, but

also to the international level.

2 Ministry of Econonmy and Planning, ‘The Eighth Development Plan of Saudi Arabia’, http://www.mep.gov.sa,

(accessed: 22 May 2013) 3 Ministry of Econonmy and Planning, ‘The Ninth Development Plan of Saudi Arabia’, http://www.mep.gov.sa,

(accessed: 22 May 2013)

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The operations of MTV will be guided through five main principles: high-impact research and innovation, technology transfer, high-quality students training, society outreach, and high-value healthy working environment. MTV will produce high-quality applied research and provide undergraduate and graduate students with hands-on practical experience. In the industrial sector, MTV is geared towards promoting university-based industry collaborative research and technology transfer through incubation or licensing of promising innovative solutions. MTV will capitalise on Umm Al-Qura University long experience in Hajj-related research; the unparalleled support and commitment of the Saudi government; and the international knowledge-based industries and

technologies. The main objectives of MTV include the following:

Provide the base for a robust presence of international companies and mega projects, thus directing world class technology to the local economy

Commercialize university research to yield economic benefits and help accelerate the transformation of technical innovations to commercial products

Establish programs for business incubators and business accelerators to provide technical, financial and managerial assistance for small and medium sized companies

Benefit from the presence of industrial companies next to the university to provide students with the opportunity of practically recognizing the industrial problems

Provide students with job opportunities during their university studies and after graduation, which allows them to participate in the emerging industrial projects

Help Saudi Arabia achieve advanced positioning on the international level in the fields of

economically viable industrial research and innovative programs

3.2. Makkah Techno Valley Company (MTVC)

Based on the objectives for Makkah Techno Valley, Umm Al Qura University decided that the best

model that achieves MTV success is establishing Makkah Techno Valley Company (MTVC). MTVC:

a. has a 100 Million Saudi Riyal Capital from the university resources; b. has the ability to use the university assigned lands to build Makkah Techno Valley (the park); c. commits to achieve the objectives of MTV; and d. will transfer the ownership of MTV land and facilities back to the university once the

operation period is over.

Umm Al-Qura University has achieved numerous technological and innovation achievements that were published in reputable journals, international conferences, and patent offices. Nevertheless, Umm Al-Qura University was not able to commercialize these various academic achievements due to the lack of the necessary framework. Accordingly Makkah Techno Valley Company, an investment company fully owned by Umm Al Qura University, was established. Thus, MTVC is the university’s investment arm for educational, technological, and knowledge outputs. In establishing MTVC, Umm Al-Qura University is mimicking the offerings of prestigious universities worldwide; and is also in harmony with the country’s development plan to invest in knowledge output through science and

technology parks.

Makkah Techno Valley Company aims to effectively lead the development of a knowledge-based economy in Makkah and in the Kingdom of Saudi Arabia, through partnership between educational institutions and business communities. MTVC would become the leader in (a) cultivating a culture of creativity; (b) fostering innovation; (c) motivating people; (d) advancing ideas; and (e)

promoting commercialization.

MTVC will foster collaboration between the university and the private sector including local and international companies. MTVC shall constitute an innovation eco-system involving different stakeholders that interact with and benefit from the knowledge-based economic activities. Such stakeholders include the research, science and commercial communities; as well as multi-national

companies and international universities.

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MTVC shall achieve economic benefits from the university’s and non-university research projects and will transform technological inventions into commercial products. The company will establish joint ventures and seek investors in various knowledge-based economic activities and industrial projects; thus, creating new job opportunities for Umm Al-Qura University students and Makkah community. As an example, the main project mandate will be to focus on developing technologies and industries that would improve the planning and servicing mega events such as Hajj and Umrah seasons. Such benefits – which would be generated either by university researchers or from joint collaboration effort with the centres operating within MTV – are poised to proliferate within Umm

Al-Qura University, Makkah, Saudi Arabia and beyond.

MTVC goal is to be fulfilled through two-fold initiatives entailed within MTV eco-system that fosters

sustainable growth:

i. Makkah Techno Valley (MTV) – The Park: MTVC will establish and manage a science and technology park that will be constructed on a 200,000 sq. m. in Makkah, as shown in Figure 4. The science and technology park will serve as a channel to connect academia and industry.

ii. Innovation Management: MTVC will develop innovative programs that leverage the skills and expertise of university’s faculty, staff and students, through commercialization of innovation and technology transfer.

The main objectives of MTVC include the following:

Invest in technology transfer, technology localization, and technology development industry

Establish science and technology parks and empower them

Provide a suitable environment for economically viable research to serve the knowledge economy in Saudi Arabia

Invest in patents, intellectual properties, and industrial prototypes

Invest in supportive economic activities and knowledge-based industries

Provide opportunities in scientific research and development for Umm Al-Qura University faculty members

Attract foreign and local investments to participate in supporting company goals

Figure 4: Makkah Techno Valley (MTV) Location.

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3.3. Makkah Techno Valley Development Requirement

The main objective is to foster a sustainable innovation eco-system for MTV (the park). This can be achieved by identifying the strategy and business model necessary to develop innovative programs for MTVC (the company) that merge aspects of both commercial (‎concentrated around commercialization) and scientific (concentrated around research ‎and development) initiatives; which eventually lead to the successful implementation the MTV (park) project. The specific

objectives can be summarized as follows:

Defining stakeholders engagement and interacting with them

Review the experience of existing Innovation and Technology organizations & parks

Recommend MTVC positioning and competitive landscape

Provide value proposition for MTVC ( service offerings and initiatives)

Target the defined industry clusters

Define the initial demand and phasing requirements

Define space requirements

Develop financial model and funding requirements for 5 and 10 years

Identify business units

Define an overall approach to strategy

Define institutional landscape model and interaction model

Define potential partnerships and alliances models

Recommend MTVC organization structure and required staffing

Define the enablers requirements

Provide Business Plan and Implementation Plan

In order to achieve the above-mentioned objectives, the strategy and business plan project involves

the following four tasks:

Task I: MTVC Concept Blueprint and Value Proposition Task II: MTVC Demand Forecast and Financial Planning Task III: MTVC Strategy, Governance and Operating Model Task IV: Business and Implementation Plan

Table 1 provides more details on each task. The overall Makkah Techno Valley strategy and business plan project approach is illustrated in Figure 5.

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Task I:

MTVC Concept Blueprint

and Value Proposition

Stakeholders engagement

Benchmarking and lessons learned

MTVC Positioning and Competitive landscape

Value Proposition: Service Offering, Incentives

Target Industry Clusters

Task II:

MTVC Demand Forecast

and Financial Planning

Demand ramp-up and phasing

Space requirements

Financial modelling (5-10 years) and funding requirements

Business units identification

Task III:

MTVC Strategy, Governance

and Operating Model

Overall approach to strategy

Institutional landscape definition and Interaction model

Partnership and alliances model

MTVC Organization structure and staffing

Enablers requirements

Task IV:

Business and

Implementation Plan

Business Plan and Financial Plan

Implementation Plan

Table 1: Makkah Techno Valley Strategy and Business Plan Project Tasks.

Figure 5: Makkah Techno Valley Strategy and Business Plan Project Approach.

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3.4. Makkah Techno Valley Development Model

In order to achieve the above-mentioned objectives of the park and company as well as to address the four tasks of Section 3.3 successfully, a 10-step approach is implemented. The 10-step approach will define the optimum operating model for Makkah Techno Valley (Park and Company).

STEP 1: STAKEHOLDER ENGAGEMENT

In Step 1, relevant plans will be reviewed. Key stakeholders will be identified and interviewed to discuss typical considerations for the establishment of science and technology parks, namely: available land, location, transportation and infrastructure, labor availability, business operating costs, business operating conditions, current industry makeup, market activity in adjacent areas, market access. Stakeholders’ vision aspirations for the park will be synthesized in order to form the basis for the park’s value proposition.

STEP 2: BENCHMARK COMPARABLE PARKS AND DERIVE LESSONS LEARNED

In Step 2, comparable regional and international parks will be analyzed. Five comparable regional and international developments (e.g. R&D parks, technology parks, etc.) will be identified. Comparable regional/ international developments will be profiled and their characteristics will be

assessed, including:

Concept and value proposition

Technology and sectorial focus

Basic features, service offerings and services prices

Investor profiles

Support / complementary amenities, and other relevant characteristics

Key success factors

Additionally, Step 2 will benchmark identified developments' operating model, such as governance model, organization structure, tenancy profile and ramp-up, and role of government and private

sector.

STEP 3: ASSESS COMPETITIVE POSITIONING OF MTV

Step 3 is to assess the competitive positioning of the Makkah Techno Valley Park. Selection criteria

for competitive analysis will be established. In line with stakeholder aspirations, Step 3 will assess

the primary strategic positioning of Makkah Techno Valley (Park), specifically with respect to the

extent of focus on R&D vs. technology development vs. technology commercialization vs.

technology-driven businesses. MTV's competitive positioning will be reviewed with respect to:

Economic and sectorial performance and market conditions in Saudi Arabia

Performance of technology sectors and sub-sectors targeted by MTV and their respective

growth drivers

Attractiveness of investing in MTV (from industrial perspective) based on infrastructure

readiness, services offering, incentives provision, trade/transport logistics, proximity

considerations, etc.

Regulatory environment relating to investment in MTV

Step 3 will also define the strategic positioning options for MTV. More specifically, it will assess the

competitive positioning of MTV vis-à-vis comparable developments studied In Step 2 and define

MTV's competitive advantages

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STEP 4: CRYSTALLIZE PARK VALUE PROPOSITION AND SECTOR FOCUS

Step 4 will identify Makkah Techno Valley ideal portfolio positioning and value proposition. Various “strategic plays” for MTV will be articulated based on the positioning options and lessons teamed from Steps 2 and 3, respectively. Benefits and risks of each option will be assessed in light of stakeholder aspirations, market attractiveness, competitive intensity and strategic fit in order to crystallize MTV's overall positioning. In alignment with the strategic positioning, the park's value

proposition will be articulated for target investors along the several components including:

Service offering, with respect to real estate services, technology development and commercialization services, business facilitation, etc.

Regulatory environment and incentives (e.g., customs exemption, foreign ownership, repatriation of capital and profits, flexible labor laws, restrictions on employing foreign workers, intellectual property laws)

Provision of technology-supporting infrastructure

The services that will be offered by MTV will be identified from a comprehensive list of potential services presented by similar developments. To develop MTV’s value proposition, Step 4 will assess an exhaustive list of parameters important to attract investors, such as infrastructure, quality of life, ease of setup and exit, factor costs, image and success stories, opportunity and economic

base, labor market, and corporate environment.

STEP 5: DEVELOP DEMAND FORECAST AND RAMP-UP STRATEGY

Step 5 will assess demand for the various components of MTV. Demand forecast will be developed

based on:

Current and expected local demand

Regional demand and supply (as applicable)

Competitiveness of the park based on its value proposition

In addition, complementary services that could be developed within the park will be identified. Overall market demand for support / complementary offerings will be identified and profiled, including segment characteristics and preferences as well as demand drivers, trends, and prospects. Step 5 will also identify current and expected supply of services and assess their characteristics. It will also forecast likely demand for complementary offerings. Moreover, MTV's service ramp-up strategy will be devised. In Step 5, among other components, the key tenant types

of MTV will be identified (e.g. anchor tenant, follower tenant, enabler tenant, etc.).

STEP 6: DEVELOP SPACE, INFRASTRUCTURE, AND INCENTIVES REQUIREMENTS

Step 6 will identify space, high-level infrastructure, and services requirements for MTV. An analytical model will be developed to translate, at a high-level, demand assessment findings into infrastructure and land requirements. Driving factors for land requirements, such as productivity, labor, and space requirement, will be reviewed and confirmed while working with MTV master planner. Utilities and infrastructure requirements will also be discussed with MTV master planner to develop better understanding. Additionally, demand for land and land take-up for a period of 5

years will be projected, including:

Identifying the segments of land use (e.g. commercial, residential, industrial, public space/ communal, infrastructure)

Reviewing and confirming driving factors for land requirements, i.e. productivity, labor, and industrial/ services space requirements

Determining gross land requirements per targeted activity cluster

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Using input from the MTV master planner, the capital and maintenance costs will be identified. Finally, general and support services requirements will be quantified, including government

services.

STEP 7: DEVELOP FINANCIAL MODEL AND FUNDING REQUIREMENTS

In Step 7, a high-level financial model will be developed to assess the MTV's funding requirements. First, Step 7 will identify high-level capital investments required for the land's infrastructure and superstructure including: land development costs, utility elements to be incurred and construction costs (landscaping, walkways, common areas, etc.). Then, high-level operating costs will be identified for the major components of MTV's land development including: running costs (utilities, maintenance, and other services requirements), management and overhead costs. Capex and Opex will be estimated for all infrastructure and utilities based on local and regional benchmarks. Infrastructure and utilities include zone development, offices, light industrial units, power, water, gas, solid and other waste, community service, training facilities, etc. Step 7 will also identify other sources of revenues (e.g., licensing fees, taxes) that could be generated. A financial model will be developed, covering: revenue levels and drivers, ongoing operating and non-operating costs, investment levels, financing requirements and options, government participation, private equity, and structures (concessions, PPPs, other), profit & loss, balance sheet and cash flow statements. During Step 7, sensitivity/risk analyses will be performed on demand projections, ramp-up, pricing, costs, investment requirements, etc. The financial model will be built to take inputs from the

demand assessment and cost estimation to provide key financial forecasts.

STEP 8: DEFINE OPERATING MODEL AND PARTNERSHIP OPTIONS

In Step 8, MTV’s and MTVC’s operating model will be developed (i.e. for park and company). First, the main players involved in the operations of MTV & MTVC will be identified, including: asset owners, service providers and support infrastructure operators, investors, and government agencies. Then, the expected revenue streams will be determined for the services that MTVC can potentially offer. Moreover, the financial feasibility of MTVC’s service offering will be assessed using the model developed in Step 7. Then, the services to be offered by MTVC will be grouped into lines of business with associated revenue streams. Step 8 will also define most optimal operating model that will govern the relationship between the different players based on best practice benchmarks. The operating model typically will have four levels, namely policy setter(s), regulator(s), developer(s), and operator(s). An optimal partnership strategy for infrastructure developments is essential to maximize value in the delivery and operation for assets. Infrastructure partnership strategy will be developed to define the provision approach (e.g. concession vs. management contract) and corresponding business model (e.g. profit sharing vs. management fee). In alignment with the chosen business lines and operating model in Step 8, the organization structure for MTVC will be designed. Additionally, a high-level governance framework for MTVC will

be developed.

STEP 9: DEVELOP MTVC BUSINESS PLAN

In Step 9, MTVC’s detailed business plan will be developed. First, the overall financial outputs and projections for MTVC will be prepared. Then, the funding and capital requirements for MTVC will be

determined. Finally, the overall MTVC business plan will be consolidated, including:

Service offering

Operating and governance model

Partnership model

MTVC organization structure

MTVC financial feasibility

MTVC funding and capital requirements

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STEP 10: DEVELOP IMPLEMENTATION PLAN

In Step 10, MTV’s & MTVC’s implementation roadmap will be developed. The implementation plan

includes:

Deliverables and milestones with associated activities

Sequencing of implementation activities

Implementation responsibilities

Key decisions required/timing

Time schedule and milestones

Step 10 will also identify the main potential risks and develop risk mitigation strategy. A risk heat map and mitigation strategies will be developed for different risk types, such as macro-economic and geopolitical, policy and regulatory, market and competition, design and planning, financial, delivery and execution, tenant attraction, and technology risks. Step 10 will also develop stakeholder engagement plan; and recommend management model required to manage

implementation.

4. Conclusion

This paper described the local context of Makkah Techno Valley (MTV), which is a newly established science and technology park by Umm Al-Qura University, located in Makkah, Saudi Arabia. It was demonstrated that Makkah is a place like no other for all Muslims around the world as it houses Al‐Masjid Al‐Haram (the Holy Mosque), the holiest site in Islam. It was also shown that the local context around MTV is unique in terms of its constraints, requirements and international value. Hence, a unique set of challenges is imposed that requires innovative solutions. The paper provided an overview on MTV and its objectives. More specifically, MTV development requirement and model were described. The purpose of the current development model is to achieve a sustainable innovation eco-system that can mitigate the multi-faceted challenges imposed by the unique local context.