Saudi Authority for Industrial Cities and Technology Zones (Modon) has signed a partnership agreement for the development of 14 Modon warehouses in Jeddah.
The agreement includes the establishment, development and operation of warehouses with flexible areas in Jeddah 1st Industrial City.
The Modon warehouses in Jeddah will be operated based on a public-private partnership (PPP) model.
Modon expects PPP delivery to enhance quality standards and the operational efficiency of services and products.
The facilities will feature smart automated systems to deliver rapid and temporary logistical solutions.
It is expected the projects will support local industry and entrepreneurs, as well as stimulate investment in the retail sector.
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The project to develop the Modon warehouses in Jeddah includes the construction of fully digital and automated facilities that do not require human intervention.
Technology and equipment will be enabled to provide access to storage units through smartphone apps and smart door locks.
Saudi industrial sector outlook
In October 2022, HRH Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister and chairman of the Council of Economic and Development Affairs, launched the kingdom’s National Strategy for Industry.
The strategy aims to build an industrial economy to attract investment, achieve economic diversification and develop Saudi Arabia’s product and non-oil exports in line with Vision 2030’s mandates.
“We have all the capabilities we need to enable a competitive and sustainable industrial economy, from ambitious young talent, a distinguished geographic location, rich natural resources, and the presence of leading national industrial companies,” the crown prince said.
“Through the National Strategy for Industry and in partnership with the private sector, the Kingdom will become a leading industrial power that contributes to securing global supply chains and exporting high-tech products to the world.”
Saudi Arabia has previously launched the National Industrial Development and Logistics Programme and an independent ministry to oversee the sector.
The number of industrial establishments in Saudi Arabia have increased by more than 50% since the launch of the Vision programme, reaching 10,640 industrial facilities in 2022.
Saudi national industrial strategy
The National Industrial Strategy is expected to bring the number of facilities to around 36,000 by 2035.
The strategy focuses on 12 sub-sectors and has identified more than 800 investment opportunities worth SR1 trillion.
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Its goals include tripling national industrial domestic product and doubling the value of industrial exports to reach SR557 billion.
The National Strategy for Industry is also aimed at bringing SR1.3 trillion of additional investment in the sector.
A governance model for the industrial sector was developed through the formation of the Supreme Committee for Industry, headed by the crown prince, to oversee the development of the sector.
An Industrial Council has also been created with the private sector participation.
Saudi Arabia’s Industrial sector adds over SR340 billion to the GDP.
Modon warehouses in Jeddah and beyond
Modon is among the entities driving industrialisation efforts in Saudi Arabia.
In January 2023, a United Nations delegation visited Modon’s facilities to explore its role in Saudi Arabia’s industrial sector.
Modon CEO Eng. Majed Al-Argoubi received a delegation of the UN Industrial Development Organisation (UNIDO) at the Riyadh 2nd Industrial City.
In January 2022, Modon revealed the number of its mineral products factories totalled 1,290 factories as of end-2020.
The western sector includes 15 industrial cities and is the biggest host of mineral products factories with a total of 487 factories, including 168 factories for non-metals and 319 factories for moulded minerals, except machinery and equipment.
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Modon’s central sector has 12 industrial cities with a total of 446 factories, including 189 for non-metals and 257 factories for moulded minerals except machinery and equipment.
The third largest centre for mineral products factories is the eastern sector with nine industrial cities with a total of 364 factories, including 96 for non-metals and 268 factories for moulded minerals except machinery and equipment.
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