Saudi Arabia expands industrial cities

 The Kingdom of Saudia Arabia is on its way to develop more industrial cities in the next few years. Dr. Tawfig Bin Fawzan Alrabiah, the Director General of Saudi Industrial Property Authority (MODON) announced that the development, expansion and improvement of additional industrial cities have been scheduled and would entail substantial investments. MODON plans to increase the number of industrial cities to more than 40 cities by the year 2015. This is a dramatic increase from the 14 cities in 2007. The new industrial cities planned by MODON to be developed until the end of 2015 include: the expansion of Sudair, expansion of Al- Kharj , Shaqraa', Dammam 3rd., Jeddah 3rd., Hafr Albatin, Ahsaa 2nd., Gurayaat , Dhuba, Qassim 2nd., Baha 2nd. and Rabigh.
Investments would cover the project costs for providing services to the industrial cities such as, road networks, electric power and water projects as well as infrastructure development projects, which include networks of lighting, electricity, flood water drainage, sewage, water projects, wastewater treatment plants, establishment and equipment of administrative offices; in addition to the development projects for facilities and support services, such as residential, commercial and logistical complexes.
In his presentation, Dr. Alrabiah said that new and future industrial cities projects will contribute towards supporting the industrial sector. MODON currently oversees 20 industrial cities spread all over Saudi Arabia. These include: Riyadh 1st. and 2nd., Jeddah 1st. and 2nd., Dammam 1st. and 2nd., Makkah, Madinah, Qassim, Al-Ahsa, Assir, Al-Jouf, Tabuk, Hail, Najran, Jazan, Al-Kharj and Ar'ar, in addition to Sudair City for Industry and Business, and Rabigh complex for plastic industries.
The industrial cities currently play an important role as they serve as most  appropriate location to industries. Projects in these industrial areas number about 3,000, representing 60% of Saudi factories with investments exceeding SR250 billion. MODON receives applications for obtaining land electronically through its website. Industrial cities have available lands for industrial projects, residential uses, commercial activities and marketing exhibitions, services centres and public facilities. Promotional prices and multiple options are extended to local as well as foreign investors, whether in industrial, residential, commercial or service sectors.

Committed to industrial development
The Kingdom saw rapid development in industrial cities due mainly to the support extended by the government to the industrial sector. MODON has been instrumental in the planning and execution of strategies for the establishment and expansion of industrial cities. A number of industrial incentives are offered to investors, including a nominal rent for industrial lands, provision of water and energy at subsidised rates, provison of loans of up to 50% of the capital, and exemptions from duties for machinery, raw material, loans, exports warranty and preference given to the local product in government procurement.
The Jeddah 3rd. project, which is located east of Laith road, south of Jeddah governorate, will cover about 20 million sq.m. and will be constructed at a cost of SR 277 million. Development of this industrial city will cover construction of roads networks, floods water drainage networks, street lightings and medium voltage electrical networks. MODON has announced tenders for other projects to complete tMercurial Superfly low