General Director of Saudi
Authority for Industrial Cities and Technology Zones “MODON” Eng. Khaled bin
Mohamed Al Salem suggests that the novel coronavirus (COVID-19) crisis has
revealed the great importance of ready-built factories in mitigating the
effects of the pandemic on the national economy, through its contribution in
providing the needs of the local market for various food and medical products.
Eng. Al Salem said that MODON has been providing ready-built factories
featuring areas ranging from 700 sqm to 1500 sqm to its entrepreneurs and SME
partners operating in clean and light industries, such as food and medical
industries, as well as electrical and electronic industries. He added that the
pandemic led to a significant increase in the demand for food and medical
products in the local market, noting that food industries topped the list of
most activities using ready-built factories at 46%, followed by transformative
industries, notably medical supplies such as medical tubes and masks, which
ranked second at 14%, and pharmaceutical industries, with 9% of total
activities, was in third place.
He stated that investing in
ready-built factories contributes to strengthening the role of SMEs in the
national economy and achieving food and medical security in line with the
Kingdom's vision 2030, which aims to boost their contribution to the GDP to
more than 35%, and in line with MODON’s strategy to empower the industry and
contribute to increasing local content. He noted that the last few years have
witnessed heavy demand from local and international investors for ready-built
factories products due to the incentives and benefits that these offer, as well
as the availability of financing solutions, which help shorten the time and
effort and reduce the cost to the investor.
The many financing solutions
offered to MODON's investors include the
“Factory and Loan” product in cooperation with the Saudi Industrial Development
Fund to provide a ready-built factory and a financing for the project, and the
"OSOS" product that allows the investor to get a ready-built factory
and financing from Social Development Bank of up to SAR 4 million, accompanied
by a set of incentives.
Eng. Al Salem also
highlighted he unique capabilities and designs that help in developing and
continuing a new business, as ready-built factories take into consideration the
provision of office space and open production halls equipped to install
production lines with different models and areas ranging from 450 sqm to 900
sqm, loading and unloading areas, private parking for each factory. The
factories also come with the provision of electricity with appropriate loads,
and offer service facilities such as toilets, water tanks, fire and sewage
systems, as well as firefighting networks and emergency exit systems compliant
with local and international occupational safety and security specifications
accredited by MODON.
The Director General of
MODON also revealed that the number of ready-built factories in the industrial
cities increased to about 560, comprising 16 diversified activities, 15 of
which are industrial and the remaining is in the service sector, represented in
laboratories and the like. He added that MODON witnessed the inauguration of 78
new ready-built factories with areas of 1500 sqm in 2020, including 9 in
Riyadh’s third industrial city, 15 in Dammam’s second industrial city, 24 in
Medina’s industrial city, 20 in Sudair Industrial and Business City, and 10 in
Zulfi’s Industrial City added to the previously inaugurated; 17 ready-built
factories in Makkah’s Industrial City, 12 in Hail’s Industrial City, and 20 in
Ahsa’s Waha MODON, which are all ready for rental. He also informed that a set
of ready-built factories is scheduled to be launched this year to empower the
industry, especially the promising sectors that currently occupy approximately
70% of the total leased units.
Further, Eng. Al Salem shed
light on some successful examples of local and international investments in
ready-built factories, such as Emerson Climate Technologies Arabia Ltd. for the
production of condensing units and control panels, as well as electrical
distribution in Dammam's second industrial city; and Advance Medical's plant
for the production of sterile medical tubes in the third industrial city in
Riyadh; and the Methods of Industry Electricity factory to produce electrical
switches and connections in the industrial city of Al-Kharj. He also cited
Arabian Terra Co., Ltd. for the manufacture of well-drilling rigs and metal
spare parts; "manufacturing and renovation" in the second industrial
city of Dammam; and Shahia Food Limited Company "Dunkin Donut"
for the production of coffee, sweets, sandwiches, drinks and donuts in the
second industrial city of Dammam.
Meanwhile, the second
industrial city of Riyadh hosts a ready-built factory for Camel Step Factory
for Food Industries to produce roasted and ground coffee, as well as Bayar
Saudi Arabia Ltd. for roasted nuts and spices.
Since its inception in
2001, MODON's focus has remained on the development of industrial lands with
integrated services, as a result of which it
oversees today 35 existing and under development industrial cities in various regions
of the Kingdom, in addition to its supervision of private industrial complexes
and cities. The developed industrial lands have exceeded 198.8 million sqm so
far, and the existing industrial cities include more than 3,500 operational
factories.