
Saudi Industrial Property Authority (Modon) was established in 2001 to develop industrial cities across Saudi Arabia
It currently oversees 28 cities that are operational or under construction and aims to create 40 cities covering 160 million square metres of developed industrial land within the next five years.
There are more than 3,000 factories in the existing cities, representing more than SR250bn ($66.7bn) of investment. Combined, they employ more than 300,000 people.
Advantages for those setting up in Modon cities include reduced rent and cheap utilities. Loans are available with extended repayment schedules and the Saudi government offers guaranteed exports to international markets and tax exemptions for the import of raw materials and equipment.
The cities that are overseen by Modon include:
Sudair City for Industry and Businesses
Location: Near Riyadh Industrial City
Established: 2009
Modon has begun to develop the first phase on an area of 8 million square metres. The city will eventually cover 260 million square metres and is home to the planned railway passage.
Jeddah Second Industrial City
Location: 35 kilometres south of Jeddah First Industrial City
Established: 2009
The city’s development commenced in 2009. When completed, it will cover an area of 8 million square metres and will house producers of food, building materials and metals.
Al-Madina al-Munawwara
Location: 190km from Yanbu Seaport
Established: 2003
Its proximity to the holy site Al-Haram al-Shareef supports industrial activity in the region, along with industries such as precious metals.
Tabuk
Location: Next to Tabuk on the Jordanian border
Established: 2003
Built on an area of 1.4 million square metres in the first phase, the city is close to Jordan and the port of Duba, providing transit links with neighbouring countries. Its industries include metals and food.
Hail Industrial City
Location: South of Hail city.
Established: 2003
Phase 1 of the city covers an area of 800,000 square metres. Raw materials used for food and metal industries, such as gypsum and magnesium, are sourced from the surrounding area. The city is linked to neighbouring cities by road and rail.
Jizan
Location: Abi Areesh
Established: 2009
Phase 1 was developed on an area covering 1 million square metres. The city is located 60km from Jizan port and 30km from the Yemeni border.
Riyadh Second Industrial City
Location: Southeast of Riyadh
Established: 1976
In order to satisfy the growing demand for industrial lands in Riyadh, the construction of the industrial city was carried out on an area of more than 18 million square metres in four stages. Foreign firms operating factories in the city include Sweden’s ABB and the Saudi subsidiary of Germany’s Henkel.
Jeddah First Industrial City
Location: 5km south of Jeddah
Established: 1973
Built in five phases, the city has expanded from an area of 0.5 million square metres to about 12 million square metres. It houses companies such as US-based firms Clorox and PepsiCo, and Kuwaiti food manufacturer Americana.
Dammam First Industrial City
Location: Dammam-Al-Khobar expressway
Established: 1973
The city has been developed in three phases covering an area of more than 2.5 million square metres. Its industries include metals and chemicals.
Dammam Second Industrial City
Location: Dammam
Established: 1978
The city was built to spearhead industrial development in the Eastern Province. Its tenants include UK firm Wood Group.
Mecca al-Mukarrama
Location: Madina-Al-Munawwara road
Established: 1985
The city’s proximity to Mecca and Jeddah Islamic port (110km away) provides convenient trade links. It houses 60 factories and is seeking investment in food, metals and textiles.
Al-Qassim First Industrial City
Location: 15km from Buraidah
Established: 1980
The city’s 43 factories manufacture food and metals among other items. Export-oriented factories for firms such as the local pharmaceutical company Spimaco are also located here.
Al-Jouf
Location: 40km from Sakaka
Established: 2003
The city was established on an area of 750,000 square metres in its first phase. It is located in the agricultural region and supplies materials for industrial projects and food manufacturers.
Al-Ahser First Industrial City
Location: Al-Ahser-Dammam expressway
Established: 1981
The city houses more than 52 factories manufacturing goods including plastics, metals and electrical appliances.
Riyadh Third Industrial City
Location: 72km south of Riyadh
Established: 2008
The city is located inside a prison and is operated in partnership between Modon and the General Directorate of Prisons. It provides human resources for industry and teaches the prisoners various skills. Firms setting up here must employ a certain number of detainees from the reformatory, depending on the activity and the area of land required.
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