Saudi Industrial Property Authority (MODON) signed a Memorandum of understanding with Saudi Credit and Saving Bank. The memorandum was signed by the Director General of MODON, Dr. Tawfig Bin Fawzan Alrabiah and General Manager of the bank Mr. Abdulrahman bin Mohammed Al-Suhaibani at MODON headquarters in Riyadh in presence of a number of department managers from both the parties.
This agreement aims to develop small and medium sized enterprises, especially in the less developed regions. On the basis of the principle of cooperation between the government sectors and other relevant private and public sectors to achieve national development goals and provide productive job opportunities for citizens and to activate their participation in the productive works that would be of great benefit to them and the national economy.
It is expected that the agreement shall attract the owners of the industrial enterprises, especially the medium and small in the less developed regions. The number of factories that can be established in those areas is estimated to be more than 600 factories providing more than 60000 jobs over the next ten years.
As MODON has developed industrial cities in Hail, Tabuk, Jazan, Ar’ar, Al-Jouf, Al-Taif, and shortly one in Gurayaat, where industrial lands are available, MODON seeks to increase the industrial investment in these areas.
Whereas Saudi Credit and Saving Bank supports the small and emerging enterprises and Saudi craftsmen and tradesmen and encourages them to run their own businesses and trades by sponsoring and granting them interest-free loans in case the economic feasibility has been proven and in accordance with what has been set forth in the bank’s approved regulations and its executive bylaws. In view of the important role played by MODON, as a public authority of legal independent personality, established by the decision of the Council of Ministers No. 235, dated 27/08/1422 H, to manage and develop the industrial cities as well as to provide industrial lands to achieve the government policy and its directives to support the industry in the Kingdom, the idea of the agreement has been formed, which includes the following:
A. Provision of lands in the existing and future industrial cities for owners of professions and trades whose seriousness and the feasibility of their professions and trades are proved in accordance with MODON regulations and bylaws.
B. The industrial cities are focused to achieve the great amount of the public interest.
C. The promotion for the targeted projects and assisting the tenants with regard to economic feasibility study and obtaining the necessary permits, guidance and administrative and technical support.
On its part, the Saudi Credit and saving Bank in accordance with its regulations and bylaws performs the following:
A. Financing small and medium-sized enterprises and professions and trades whose seriousness and economic feasibility of their enterprises are proved.
B. For the purpose of obtaining the loan, applicants are required to submit their requests to MODON and funding will be made by the Bank in accordance with the priorities and views of both the Bank and MODON based on studying the project by MODON.
On this occasion, the Director General of MODON, Dr. Tawfig F. Alrabiah announced that the agreement will support the small sized industrial projects and will be a strong factor to attract businessmen for industrial investment in the industrial cities, which is reflected on the national development and increase the job opportunities for Saudi youth, especially, since the industry is not affected by the global financial crisis, but there is a heavy demand for industrial land in the main cities of Riyadh, Jeddah and Dammam and leasing the entire areas of the industrial land in these cities is completed, and there are large areas available in other industrial cities such as: Medina, Hail, Tabuk, Assir, Najran, Al Jouf, Jizan and Ar’ar.
As an evidence of the industrial renaissance shown in the industrial cities, during the years 2007 and 2008 a total of (907) plots of industrial lands were allocated which represent 40% of the total number of factories established in the industrial city during the past forty years. This reflects the confidence of businessmen in the distinctive services provided by MODON.
Dr. Alrabiah added that MODON is keen to develop the industrial cities and to provide new and distinguished services; and in order to achieve this, water services have been privatized, also the industrial security services and Smart City services have been launched. Lands for hotels, commercial and service compounds projects have been allocated, in addition to the rehabilitation projects of infrastructure and maintenance of roads, sidewalks, networks, lighting, water and forestation. The cost of these projects is one billion and five hundred million riyals so as to acquire the best results that are in line with the highest global standards.
Dr. Alrabiah added that MODON is currently overseeing 14 industrial cities existing in the various regions of the Kingdom (Riyadh, Jeddah, Dammam, Makkah, Qassim, Al-Ahsa, Medina, Assir, Al Jouf, Tabuk, Hail and Najran). The investments of these cities exceeding 200 billion riyals, and in which more than 300 thousand workers operate. Also, there are non-developed areas allocated to establish new industrial cities in different regions of Saudi Arabia in Sudair, Al-Ahsa, Dhuba, Zulfi, Taif, and Gurayaat.
At the end of his speech, Dr. Alrabiah re-emphasized that MODON welcomes investors to invest in the mentioned areas, whether their investments are in of the industrial, service, commercial or residential sectors.
