Saudi Arabia’s Industrial Sector Sees Unprecedented Growth and Investment
MODON’s 2023 report reveals Saudi Arabia’s advancements in investment, industrial infrastructure, and sustainable development.
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The Saudi Authority for Industrial Cities and Technology Zones (MODON) announced a remarkable improvement in its 2023 annual report, underscoring the Kingdom’s strides in boosting investment, enhancing industrial infrastructure, and advocating for eco-friendly industrial progress. This aligns directly with the goals of Saudi Vision 2030.
The MODON report highlights a significant rise in overall investments, reaching SR14.45 billion ($3.9 billion) in 2023. There was a 63% jump in new investments, totaling 891 from both domestic and international sources. And remarkably, the volume of foreign investments increased by 85% compared to the previous year.
Infrastructure Development and Digitization
MODON stood out by winning the National Industrial Development and Logistics Program (NIDLP) Award for attracting the highest number of investments compared to other government bodies. It also clinched 34 awards on various levels, asserting its dominance in the fields of industrial and sustainable development.
The authority has been instrumental in expanding the developed land area within its industrial cities to over 209 million square meters, raising the number of factories to 6,443, and increasing the count of industrial, logistical, and investment facilities to 7,946. The ready-built factories in the Kingdom have also seen an increase, now totaling 1,301.
Efforts to improve services within these industrial cities have led to a 724 MVA increase in electrical capacity across several locations, and the introduction of 45,000 cubic meters of drinking water per day in Sudair City for Industry and Businesses and the Modon Oasis in Yanbu. It also launched sanitary and industrial sewage services in Sudair City and the Industrial City in Madinah, each capable of handling 15,000 cubic meters per day.
A significant part of the report was devoted to MODON’s drive for industrial transformation, launching the second phase of the National Productivity Program in line with the Future Factories Initiative. This initiative assesses and formulates transformation strategies for factories based on the international Smart Industry Readiness Index (SIRI), considering the adoption of Fourth Industrial Revolution technologies. In 2023, 239 factories were evaluated, with a goal to assess another 240 in 2024.
The report also highlighted MODON’s focus on digitization, achieving an 89.9% compliance with essential cybersecurity controls, facilitating 1.3 million data exchanges, and digitizing over 24,000 contracts. Its commitment to digital governance was evident, with an 85.77% adherence rate, showcasing its dedication to digital transformation initiatives.
Since its establishment in 2001, MODON now oversees 36 industrial cities, including six industrial oases, highlighting its expansive role across the Kingdom in managing both government and private industrial zones.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Employment grew for the 16th consecutive month as companies expanded.
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According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
