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.
2 min
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’
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
Total income was higher by 10% year-on-year (YoY) at AED 300 million in the six-month period
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United Arab Bank PJSC (UAB or “the Bank”) has announced its financial results for the six months ended 30th June 2024. UAB reported a net profit before tax of AED 152 million for H1 2024, a 26% increase compared to AED 121 million for H1 2023. The net profit after tax for H1 2024 stood at AED 139 million, up 15% from AED 121 million in the same period last year. Earnings per share rose to AED 0.07 in H1 2024 from AED 0.06 in H1 2023.
Total income increased by 10% year-on-year to AED 300 million for H1 2024, compared to AED 273 million for H1 2023, driven by a 26% increase in net interest income. The Bank’s capital position remains strong with a CET1 ratio of 13% and a total capital adequacy ratio (CAR) of 18%.
UAB‘s liquidity profile is robust, with advances to stable resources ratio of 75% and an eligible liquid asset ratio of 19%, both comfortably above regulatory thresholds. The Bank’s credit ratings were affirmed by Fitch and Moody’s at BBB+/Ba1, with stable and positive outlooks respectively.
UAB’s performance in the first half of 2024 demonstrates significant growth in total assets, increasing by 12% compared to December 2023, and reflects a strategic focus on quality and farsighted risk management. These results indicate that the Bank is well-positioned to continue its growth trajectory.
Commenting on the Bank’s performance, H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, said: “UAB’s strong performance in the first half of 2024 reflects the successful implementation of our growth strategy and reinforces our commitment to delivering sustainable value to our shareholders. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”
He added: “As we move ahead into the second half of the year, we remain committed to enhancing our customers’ banking experience and contributing to the growth and prosperity of the UAE’s economy.
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented: Our customer-centric approach and sustainable growth model has led to a 15% increase in net profit and a 12% growth in total assets. Our positive performance is a testament to the successful execution of our strategic priorities and clear evidence of the success of the many initiatives that have been implemented at the Bank. Going forward, we will continue investing in our growth strategy and digital capabilities, while equally focusing on developing innovative products and services that meet our customers aspirations whilst upholding the highest standards of compliance and internal controls.”
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
