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SAUDI SCHEME PULLS IN INVESTORS FOR ITS INDUSTRIAL HUB AMBITIONS
Saudi Arabia's National Industrial Development and Logistics Program (NIDLP) has played a crucial role in realising the goals of the Saudi Authority for Industrial Cities and Technology Zones (Modon).
The NIDLP’s success is evident in Modon’s recent initiatives, which include 10 new development projects across six industrial cities, with a collective value of over SAR 538 million. These projects, carried out in collaboration with various national companies, aim to enhance value chain initiatives and strengthen local content, aligning with Modon's commitment to creating a premier investment environment in the industrial sector.
As part of its mission to empower the private sector and diversify income sources in line with the National Industrial Strategy, Modon has signed agreements to establish 80 factories and ready-made products in the industrial cities of Al-Ahsa and Taif, as well as the Modon Oasis in Al-Ahsa. These facilities, ranging from 350 to 450 square metres (sqm), are designed to support entrepreneurs and SMEs, boosting their contribution to the GDP, as laid out in Saudi Vision 2030.
Further expanding its infrastructure, Modon has finalised contracts for the development of advanced infrastructure over an area exceeding 5.7 million sqm in the Hail Industrial City and Al-Madina Al-Munawwara Industrial City.
These efforts seek to sustain production processes and meet high industry standards within the industrial hubs.The enhancement of basic services, including the implementation of medium and low voltage networks in Taif Industrial City and the establishment of a conversion plant in Tabuk Industrial City, further demonstrates Modon’s dedication to increasing operational efficiency and production capacity
The entity has also expanded its total logistics space in industrial cities across the kingdom to over 4.8 million sqm. The expansion addresses the growing demand for its services and aims to provide a comprehensive range of logistics products. It is part of a plan to develop 59 logistics centres with a total area exceeding 100 million sqm.
Currently, the developed land areas have expanded to over 209 million sqm, encompassing 6,443 factories, and 1,323 ready-made factories, making Modon one of the world's largest industrial cities, utilizing its industrial, investment, and logistical assets to drive growth.
BUILDING INFRASTRUCTURE
Additionally, Modon is improving connectivity through a new road contract linking Dammam Third Industrial City with the King Salman Energy Park (SPARK), leveraging SPARK’s logistical services and upcoming dry port. Another contract for establishing a civil defence station is anticipated to enhance the security of industrial cities and surrounding communities.
Modon continues to support industrialists by providing upgraded land and prefabricated factory products across the kingdom's industrial cities. These efforts are part of a broader strategy to achieve balanced development by leveraging geographical, human, and structural advantages, fostering private sector participation, and promoting sustainable economic growth.
As the authority responsible for the development of integrated industrial land and oversight of private industrial complexes and cities, Modon seeks to elevate the investment landscape in Saudi Arabia, aligning with the Quality of Life Program and facilitating the growth of entrepreneurship and small and medium enterprises (SMEs).
NEW PROJECTS
In addition to these projects, earlier this year Modon secured nine major contracts with the private sector, totalling over SAR 1 billion. These contracts are set to significantly enhance the development of industrial cities across Saudi Arabia, aligning with Modon's vision to become the leading partner in the industrial sector and the preferred destination for investment.
The new projects include the development of infrastructure in the third industrial city in Jeddah, the second industrial city in Makkah, and the third industrial city in Dammam, with land allocations totalling millions of square metres to accommodate growing industrial investment. Modon has also signed deals to establish 132 kilovolts (kV) and 115 kV overhead lines in the industrial cities of Tabuk and Hafar Al-Batin, respectively, to enhance operational efficiency and meet the electrical energy needs of industrial investors.
Through these initiatives, Modon is committed to developing industrial cities that meet international standards, supporting Saudi Arabia’s transformation into a leading industrial power and logistics hub.
In early 2024, Modon launched "Modon Oasis" in Jeddah, furthering its mission to attract quality industries, promote entrepreneurship, and support SMEs. Since its inception, Modon has grown to oversee 36 industrial cities, including six industrial oases, housing facilities that play a vital role in boosting Saudi’s industrial sector and increasing national exports.
ECONOMY
Nothing appears to be holding back the non-oil sector as it continues to prove its mettle and, in the process, raise the country’s profile as an investment hub.
HEALTHCARE
The creation of health clusters and policies that promote social wellness have strengthened the sector, expanded services, and raised patient satisfaction
OIL MARKETS
Current output cuts are still in place, but oil exporters are open to tweaking supply as determined by market conditions.
REAL ESTATE
Efforts by authorities to make it easier for first-time buyers to get on the property ladder are making significant headway in the country.
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Saudi Awwal Bank, a listed joint stock company, incorporated in the Kingdom of Saudi Arabia, with paid in capital of SAR 20,547,945,220, commercial registration certificate 1010025779, unified number 7000018668, Mailing Address: P.O. Box 9084, Riyadh 11413. National Address: 7383 King Fahad Branch Rd, 2338 Al Yasmeen Dist., 13325 Riyadh, Kingdom of Saudi Arabia, Tel. +966 11 4050677, www.sab.com, licensed pursuant to the Council of Ministers Resolution No. 198 dated 06/02/1398H and Royal Decree No. M/4 dated 12/08/1398H, and regulated and supervised by the Saudi Central Bank.