Saudi Gazette report

RIYADH — The Saudi Authority for Industrial Cities and Technology Zones (MODON) has attracted new investments from the private sector at a value of SR2.77 billion during the second quarter of 2023.

The new investments in the industrial cities during the Q2 of the current year has recorded an increase by 23%, compared to the same period in 2022, which recorded at that time SR2.26 billion.

The volume of the foreign investments in the industrial cities has witnessed a growth reaching 1,226 factories from 67 countries, the most prominent of which are: Egypt, Jordan, India, USA, and the UK.

The foreign factories are focused on a number of main industrial activities such as the manufacture of shaped metal products, the manufacture of rubber and plastic products, other non-metallic mineral products, chemical industry and its products, in addition to the manufacture of food products.

The total number of factories in the 36 industrial cities is about 6,005 factories during the Q2 of 2023. The industrial contracts have also witnessed a growth in the same period by 23%.

Most of the industrial contracts are in the third industrial city in Jeddah by 29%, followed by the industrial city in Al-Kharj and Sadeer by 13%, then the second industrial city in Dammam and the industrial city in Madinah by 7%.

The qualitative industries recorded the highest percentage in the volume of allocation, with the food and beverages sector coming on the top by 17%, followed by the mining industries by 9%, then the chemicals and rubber products by 6%, and the machinery and equipment industry by 5%.

MODON has also developed the qualitative capabilities to attract the global and regional investments, which contributed in increasing the total number of the ready-made factories to reach 1,263 units.

The allocated industrial areas increased by 100%, and the total number of logistical contracts recorded 234 contracts.

In order to achieve its strategic goals in providing services and products that enhance the investments of MODON’s partner that achieve business sustainability and create an enabling investment environment, MODON has achieved during the Q4 of 2023 several achievements, of which, is the launching MODON Oasis project in Yanbu on an area of 500,000 square meters.

It has also signed 6 contracts and 2 agreements with a value exceeding SR230 million at the Saudi Food Exhibition “Saudi Food”, in addition to launching 98 ready-made factories in the third industrial city in Jeddah.