Saudi Industrial Property Authority (MODON)
Prince Maximilian Liechenstein, Group GEO of LGT Group Foundation, of the Principality of Liechtenstein visited the Saudi Industrial Property Authority - MODON. The purpose of this visit was to appraise the investment opportunities, as the industrial cities of MODON are characterized with many advantages and investment opportunities. Mr. Ihsan bin Abbas Bafakih, Chief Financial Officer presented a brief presentation about MODON and its achievements, projects and investment opportunities and the economic benefits provided to the investors and developers, and the important role played by MODON in the field of industry and development in the Kingdom of Saudi Arabia.
The Prince met with the executive managers at MODON’S headquarter and expressed his admiration for what was presented and confirmed the importance of the role of industry in the national economy. He commended MODON and the importance of its role in the industry and the distinguished and attractive benefits and incentives provided to investors and industrialists, compared with other countries and stressed that the Saudi economy has proved its durability and strength.
It is worth mentioning that the Principality of Liechtenstein, despite being geographically small and having less population, was able to develop a thriving economy, based on industry and free market economy. This economy is based on a vital financial sector and the standard of living in Liechtenstein is matching the standard of living of its major European neighbors.
The economic system in Liechtenstein is broadly diversified and has a large number of small projects. Liechtenstein is sharing Switzerland in a customs union and using the Swiss franc as local currency. Liechtenstein imports more than 90% of its energy needs. Since May 1995, Liechtenstein participates in the European Economic Area, which is a bridge between the European Free Trade Organization and the European Union. The average per capita of GDP is US$.118,000. The sources of the Gross Domestic Product (GDP) can be divided according to estimates of 2001 as follows: agriculture sector: 6%, industry sector: 39%, services sector: 55%.
Major industries in Liechtenstein are: electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, delicate instruments, tourism and optical instruments.
The major exports are: specialized minor equipment, audiovisual connections, vehicle engine parts, dental products, metal hardware, processed food, electronic equipment and optical devices.
On other hand, MODON currently oversees 18 industrial cities existing in various regions of the Kingdom (Riyadh 1 & 2, Jeddah 1 & 2, Dammam 1 & 2, Makkah, Qassim, Ahsa, Madinah, Asir, Al- Jouf, Tabuk, Hail, Najran, Al-Kharj, Jizan and Ara’r). The investment of these cities is exceeding 200 billion riyals where more than 300 thousand workers are employed. In addition, development of new cities in different regions of Saudi Arabia will be tendered this year in Sudair, Zulfi, Al-Taif and Gurayaat.
MODON has published a number of advertisements in newspapers announcing the availability of industrial lands in ten industrial cities at attractive prices, namely: Sudair, Jeddah 2, Al-Kharj, Medina, Tabuk, Hail, Ar’ar, Al-Jouf, Jazan, and Najran. It was mentioned in the advertisement that industrial loans of up to 100% of the total funding are available. Such loans are provided for the first time in the history of the industry in the Kingdom. The amount of these loans reaches up to 100% of the total funding and are free from any annual fees whereas the re- payment period will be ten years. These loans are allocated for distinguished projects in the less developed regions, where land requests are very few, namely: Tabuk, Al-Jouf, Hail, Ar’ar, Jazan, and Najran. The amount of a loan for a single project is up to three million riyals. These loans are applied for and approved by MODON and funded through Saudi Credit and Savings Bank.
Thus, MODON has tendered investment opportunities before the investors to invest in the said regions, whether their investments be in industrial, service, commercial or residential sectors.
