ECONOMIC CITIES

INNOVATIVE INDUSTRIAL LANDSCAPE BRINGS INVESTORS TO SAUDI

Saudi Arabia is making significant strides in the industrial sector, aiming to position itself as a regional and global industrial powerhouse. These efforts are led by the saudi Authority for lndustrial Cities and Technology Zones (MODON), which is playing a pivotal role in developing industrial cities that meet advanced international standards.

MODON has been instrumental in boosting the kingdom's industrial footprint. It has expanded from managing nine industrial cities to overseeing a total of 36. In addition to this geographical expansion, MODON is working to develop an investment-friendly environment within these industrial zones, integrating modern logistics, digital infrastructure, and services to attract both local and global investors, according to its latest annual report.

SHAPING KSA’S INDUSTRIAL STRATEGY

To remain competitive in the global stage, MODON is prioritising digital transformation and applications related to the Fourth Industrial Revolution. The focus is on creating industrial cities equipped with state-of-the-art infrastructure, logistics solutions, and digital tools to support industries of the future. This vision aligns closely with the broader goals of Saudi Vision 2030, which is to diversify the economy and reduce dependence on oil revenues.

MODON's efforts have already led to the development of more than 209 million square metres (sqm) of industrial land, housing nearly 8,000 industrial and logistics investors. The industrial landscape has grown to include over 6,400 factories, and more than half a million workers across 36 cities.These expansions have made Saudi Arabia an attractive destination for industrial investments, both local and international, solidifying its role as a hub for sustainable development and industrial innovation. The 36 cities boast just under 7,500 investors, and close to 600,000 workforce comprising men and women.

In a bid to enhance logistics capabilities, MODON has been commissioned to develop 17 new logistics platforms under the National Logistics Platform programme. This includes improving the logistical infrastructure and centres within the kingdom’s industrial cities, in partnership with relevant authorities. Initiatives are focused on sustainable development, with an emphasis on modernising logistics services, increasing local content, and encouraging competitive investments. MODON has already invested SAR 900 million in various projects, including a major electrical transformer in Hafar Al-Batin and a water supply system in Jeddah.

MODON is also working to localise industries and enhance national  food security. This includes supporting small and medium enterprises (SMEs) and encouraging the participation of entrepreneurs. The organisation has approved over 13 initiatives targeting business cost reductions and enhancing industrial competitiveness. MODON's approach aligns with the National Industrial Strategy, aiming to boost local content, improve export capabilities, and foster sustainable industrial growth. 

MAJOR PROJECTS

Some of the major projects unveiled over the past two years include the launch of the MODON Oasis in Yanbu, an industrial city covering 500,000 sqm, to enhance local content and promote the "Made in Madinah' brand, it offers a moder, integrated industrial environment designed to attract investors.

The Industrial City in Asir, spanning 17.3 million sqm, is a result of a strategic partnership with the Asir Region Development Authority. It focuses on leveraging the region’s unique advantages while contributing to the broader national industrial goals. 

Water and sanitation enhancements have also been critical for the development of key industrial cities like Sudair and Yanbu, improving industrial sanitation services with a capacity of up to 45,000 cubic metres per day.

In addition, electrical upgrades across several industrial cities, including  Dammam and Jeddah, with a total capacity of 274 megavolt-amperes (MVA) were completed, supporting increased industrial activities.

A major driver of MODON's strategy has been the integration of the private sector into the development process. In 2023, private sector participation in new industrial projects reached 70%. Additionally, 260 ready-built factories were established in cities like Riyadh, Jeddah, and Qassim. This move has opened new opportunities for SMEs and entrepreneurs, with privatisation efforts driving increased applications for industrial contracts.

The focus on industrial diversification is not just about expanding the number of factories, but also fostering a competitive environment that can attract high-quality investments. These efforts are evident in the recent development of food complexes within Jeddah's industrial zones, which cover over 1.4 million sqm.

Looking ahead, MODON plans to continue expanding Saudi Arabia’s industrial capacity. This includes additional industrial land to be developed across seven cities, catering to various sectors, including food production and logistics. 

Raising electrical capacity by 149 MVA across five industrial cities to ensure reliable supply of power for industrial growth is another key aspiration.