Saudi Arabia: MODON allocated 407 plots of industrial lands worth industrial capital estimated at more than SR24 billion
Saudi Industrial Property Authority (MODON) has issued its annual report for the year 2008. The report included many important achievements shown as follows: An amount of 1505 million riyals spent for the development and rehabilitation of the industrial cities, 4 new development contracts were signed for the development of new industrial cities on an area totaling 16 million square meters and an estimated growth of 30% in terms of area and 20% in terms of number of factories, compared with what have been developed over the past forty years.
The report addressed achievements and projects launched by MODON related to many aspects, including: improvement in the working environment within MODON, provision of new services in the existing industrial cities, development of new industrial cities in various regions of the Kingdom. The report also included planning projects for roads linking with the industrial cities, electricity projects and privatization projects for water services, industrial security and landscaping services.
The report provides strong indications of the importance of MODON's role in achieving the national industry strategy. In the year 2008, four hundred and seven plots of land have been allocated for the establishment of industrial projects on an area totaling 15 million square meters with an industrial capital estimated at more than 24 billion riyals.
The report also mentioned that the cost of development, rehabilitation and planning projects of industrial cities was more than 1505 million riyals, of which 580 million riyals was for infrastructure projects for water services, 510 million riyals for rehabilitation projects in the existing cities to include industrial security and landscaping projects, maintenance of roads and sidewalks, lightning and transference of services to these cities and some new cities. An amount of 415 million riyals was allocated for the designing and development projects of the new industrial cities.
Development and Rehabilitation projects:
The report contains details of developmental projects, including initiating the development of new industrial cities such as Jeddah 2nd industrial city, Al-Kharj, Jizan and Arar industrial cities.
Also, expansion contracts of existing industrial cities in Dammam 2nd industrial city and Al- Medina Al-Munawwara industrial city have been signed.
The new cities and the mentioned expansions will contribute in adding more than 16 million square meters to the total developed land currently amounting to 53 million square meters, at a growth rate estimated at 30% of the total developed area over the past forty years.
The report also included the rehabilitation projects of infrastructure in both Riyadh 2nd industrial city and Jeddah 1st industrial city.
Due to the demand of businessmen and investors to invest in industrial cities, MODON initiated processing necessary land for the development of new industrial lands on lands allocated to MODON. A design was developed for nine new industrial cities to be ready for implementation, namely Sudair industrial city, Aqeeq industrial city, Zulfi industrial city, Qurayat industrial city, Dhuba industrial city, Al-Haer reformation prison, Taif industrial city, 2nd Qassim industrial city and Na’wan industrial city.
The report also included the accomplishment made by MODON regarding transmission of electricity to the industrial cities. Projects have been signed for three industrial cities for a value of 485 million riyals, including Sudair industrial city, Jeddah 2nd industrial city and Jazan industrial city.
The water allocation projects, which reduced the cost to factories, grew up to 50% with high quality service without any cost to the government. These projects will also help to use recycled water, which will provide approximately 50% of the used water. These projects also provide drinking water, sewage and industrial water services in the industrial cities in Riyadh, Jeddah , Dammam, Qassim and Al-Ahsa.
The report included contracts of five leading projects signed by MODON:
1. Signing the Smart Cities contract with Saudi Telecom Company (STC) to provide a distinct communication infrastructure in the industrial cities.
2. Tendering the (District Cooling) project, which will start in Jeddah 2nd industrial city, as the first project of its kind in the industrial cities, characterized with less energy consumption, lower cost and less pollution of the environment.
3. Development of a sophisticated electronic system to manage MODON’s property and facilitate the allocation of industrial lands (PMS).
4. The Security Services project - a company has been contracted to provide security services in the industrial cities around the clock. Approximately 240 employees are working on the project.
5. Agreement with the public administration of prisons for the establishment of industrial cities in the reformatories:
• Al-Ha'er Reformatory.
• Jeddah Reformatory.
Planning of the industrial city in Al-Ha'er reformatory has been undertaken . These cities will contribute to rehabilitate the reformatory inhabitants to be active members in the society.
Development of services in the industrial cities:
In regard to development of services in the industrial cities, MODON’s efforts have surfaced as follows:
• Opening of government services in Riyadh 2nd Industrial City (Passport Branch, Labor Office and Certificate of Origin).
• Studying, monitoring and addressing the environmental impacts in the industrial cities.
• Water and sanitation facilities in Jeddah 2nd industrial city (BOT).
• Establishment of all drinking water, irrigation and industry networks . Establishment of treatment plant and water works region.
• Management of solid and hazardous industrial waste in the industrial cities.
• A unified typical design for mosques and establishment of Community Education Centers.
• A unified typical design for gas stations within the industrial cities.
• Initiating studies for the development of the Geographic Information System (GIS).
•A comprehensive plan to intensify landscaping and improve natural environment in the industrial cities.
Interpretation of MODON’s goal to make the industrial cities as green cities fit for housing and recreation. A comprehensive plan has been developed to afforest the industrial cities and spread out the landscapes. This action will be put into effect soon.
MODON has sought to provide investment opportunities for the provision of commercial and residential services in the industrial cities such as:
• The establishment of commercial centers, which includes offices and shops.
• Sites for banking services.
• Establishment of hotels to suit the needs of the industrial cities.
• Establishment of luxury housing complexes for families.
• Establishment of residential complexes for engineers and technicians in addition to complexes for workers.
• Logistical services.