MODON Secures Over SAR 8.8 Billion In Industrial And Logistics Investments At UNIDO Summit

During the Global Industry Summit in Riyadh, Minister Bandar Alkhorayef led a ceremony for signing contracts and memoranda of understanding. These agreements, valued at SAR8.8 billion, aim to develop industrial and logistics projects over 3.3 million square meters. The summit was part of the 21st General Conference of the United Nations Industrial Development Organization (UNIDO), held from November 23-27.

A notable contract involves creating a private industrial complex in Dammam Third Industrial City. This project covers 1.8 million square meters with an investment of SAR5 billion. It aims to boost industrial productivity and attract high-quality investments. Such initiatives are crucial for enhancing the region's industrial landscape.

Another significant development is a collaboration between MODON and China’s JINGDONG Property company. They have signed a contract to build warehouses in MODON Oasis, Jeddah, covering 50,000 square meters with an investment of up to SAR100 million. This project will enhance storage and distribution efficiency, improving the logistics services ecosystem.

MODON and JINGDONG are also working on innovative financing solutions through a dedicated investment fund. This fund focuses on developing industrial and logistics assets while exploring future exit strategies like listing assets in real estate investment trusts (REITs). These strategies aim to make investment opportunities more attractive.

A memorandum of understanding was signed to facilitate cooperation in studying, developing, and operating industrial and logistics projects across several Saudi cities. This agreement involves investments totaling SAR3.75 billion over an area exceeding 1.5 million square meters.

Economic Impact and Future Prospects

The collaboration between MODON and JINGDONG is expected to improve financing capacity, expand development areas, increase GDP, enhance local content, boost exports, and create job opportunities. It will also strengthen private sector participation in infrastructure projects, positively impacting national economic development and quality of life.

This partnership highlights the importance of city development funds, specialized industrial complexes, logistics centers, technology hubs, and other diverse projects with private sector involvement. Such initiatives are vital for fostering economic growth and improving living standards in the Kingdom.

With inputs from SPA