RIYADH: The Saudi Authority for Industrial Cities and Technology Zones signed multiple contracts and memorandums of understanding worth SR8.8 billion ($2.35 billion) to develop Saudi Arabia’s industrial and logistics sector.
According to a Saudi Press Agency report, these deals, signed on the sidelines of the Global Industry Summit in Riyadh, cover 3.3 million sq. meters of industrial and logistics projects in the Kingdom.
The agreements align with the National Industrial Strategy and Vision 2030 goals to position the Kingdom as a regional hub for industry and logistics by the end of this decade.
On the sidelines of the summit, Modon signed a contract worth SR5 billion with Eternal Prosperity to develop a private industrial complex in the Third Industrial City in Dammam, covering an area of 1.8 million sq. meters.
The authority signed another contract worth SR100 million with China-based Jingdong to develop warehouses on a total area of 50,000 square meters in the Modon Oasis in Jeddah.
Modon also signed a memorandum of understanding with Jingdong to cooperate in the study, development and operation of industrial and logistics projects across various industrial cities in the Kingdom with investments of SR3.75 billion and total areas exceeding 1.5 million sq. meters.
“Modon and China’s Jingdong Property are working to create and provide innovative financing and investment solutions through an investment fund dedicated to the development of industrial and logistics assets, in addition to studying future exit strategies such as listing assets in real estate investment funds, which enhances the attractiveness of investment opportunities for development and operation,” SPA reported.
Modon currently manages over 9,000 industrial, logistics and investment facilities across 40 industrial cities in the Kingdom, with more than 240 million sq. meters of developed space.
Jingdong Property is specialized in the development and management of industrial and logistics assets, with a long experience in the establishment and operation of industrial parks and advanced logistics centers.
“Modon continues its efforts to develop industrial cities, supervise private parks, and provide integrated infrastructure within the framework of its vision to be the preferred destination for local and foreign investments,” added SPA.
In September, Modon signed a deal worth SR375 million with French pharmaceutical company BPI to establish its first manufacturing base in Saudi Arabia.
BPI’s facilities will produce pharmaceuticals for human and veterinary use, medicinal herbs, surgical dressings, chemical sugar, and blood sugar monitoring devices.
