MODON Logistics Spaces Exceed 4.8 Million Square Meters

The Saudi Authority for Industrial Cities and Technology Zones (MODON) has expanded its total logistics space across the Kingdom’s industrial cities to more than 4.8 million square meters, responding to growing demand for its services and a comprehensive range of logistics products. The announcement was made during MODON’s participation in Transport Logistics, Asia’s leading trade fair for logistics, transportation, information technology, and supply chain management, held in Shanghai, China, from June 25 to 27, 2024. MODON is showcasing its industrial investment opportunities and logistical projects within the National Industrial Development and Logistics Program (NIDLP) pavilion, highlighting incentives and capabilities available to both local and foreign investors.

Context and Background

Under the visionary leadership of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, MODON is responsible for developing and supervising several logistics centers as part of the general plan for logistics centers launched in August 2023. This ambitious plan aims to develop 59 logistics centers with a total area exceeding 100 million square meters, positioning Saudi Arabia as a global logistics hub. MODON’s participation in Transport Logistics Shanghai underscores the Kingdom’s commitment to attracting international investment and fostering strategic partnerships in the logistics sector.

MODON has diligently followed an ambitious plan to develop industrial cities in line with its objectives. These cities are designed to attract investment, empower the industry, and ensure stability. The developed land areas have expanded to over 209 million square meters, currently encompassing more than 6,600 industrial and logistical facilities to enhance local content and maximize exports, all in line with the goals of Saudi Vision 2030.

Key Details

MODON provides investors with a comprehensive package of services and products, including the development and operation of specialized warehouses, dry and refrigerated warehouses, warehouse areas, yards, and centers for shipping truck services. This comprehensive offering underscores MODON’s commitment to providing a conducive environment for industrial and logistical investment. The expansion to over 4.8 million square meters of logistics space is a direct response to the growing demand for MODON’s services, reflecting the Kingdom’s thriving industrial and logistical sectors.

During the Shanghai trade fair, MODON is promoting the incentives and capabilities it offers to investors, such as streamlined licensing procedures, infrastructure support, and access to a vast network of industrial cities. These efforts are part of the National Industrial Development and Logistics Program (NIDLP), a key initiative under Vision 2030 aimed at diversifying the economy and boosting non-oil exports.

Implications and Impact

The expansion of logistics spaces within MODON’s industrial cities has significant implications for Saudi Arabia’s economic diversification and global trade position. By enhancing logistical infrastructure, the Kingdom is better positioned to serve as a strategic gateway between Asia, Europe, and Africa. This development not only attracts foreign direct investment but also empowers local industries by providing world-class facilities that enhance competitiveness and export capabilities.

Furthermore, MODON’s participation in international events like Transport Logistics Shanghai demonstrates Saudi Arabia’s proactive approach to engaging with global markets and showcasing its investment-friendly environment. The Kingdom’s logistics sector is poised for substantial growth, contributing to job creation, technology transfer, and the overall modernization of the Saudi economy.

Vision 2030 Alignment

This milestone aligns seamlessly with Saudi Vision 2030, which seeks to transform the Kingdom into a global logistics hub and diversify the economy away from oil dependency. By expanding logistics infrastructure and attracting international investment, MODON is playing a pivotal role in realizing the Vision’s objectives of economic growth, industrial development, and enhanced global connectivity. As Saudi Arabia continues to invest in world-class logistics capabilities, it reinforces its position as a leading destination for business and investment, driving sustainable development and prosperity for future generations.

20 Questions

Q1. What is MODON and what does it do?

A1. MODON is the Saudi Authority for Industrial Cities and Technology Zones. It develops and supervises industrial cities and technology zones across Saudi Arabia, providing infrastructure and services to attract investment and support industrial growth in line with Vision 2030.

Q2. How much logistics space has MODON allocated in industrial cities?

A2. MODON has expanded its total logistics space in industrial cities to over 4.8 million square meters. This increase responds to growing demand for its services and provides a comprehensive range of logistics products to investors.

Q3. Why is MODON participating in Transport Logistics Shanghai?

A3. MODON is participating to promote industrial investment opportunities and logistical projects in Saudi industrial cities. It is showcasing incentives and capabilities to attract both local and foreign investors within the NIDLP pavilion.

Q4. What is the National Industrial Development and Logistics Program?

A4. NIDLP is a key initiative under Saudi Vision 2030 aimed at diversifying the economy. It focuses on developing industry, mining, energy, and logistics to boost non-oil exports and create sustainable jobs.

Q5. What is the general plan for logistics centers launched in August 2023?

A5. The plan aims to develop 59 logistics centers with a total area exceeding 100 million square meters. It is part of Saudi Arabia’s strategy to become a global logistics hub under Vision 2030.

Q6. Who is leading this initiative in Saudi Arabia?

A6. The initiative is under the vision of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister. MODON is responsible for developing and supervising the logistics centers.

Q7. What types of logistics products does MODON offer?

A7. MODON offers specialized warehouses, dry and refrigerated warehouses, warehouse areas, yards, and centers for shipping truck services. These products cater to diverse logistics needs and support industrial investment.

Q8. How many industrial and logistical facilities are in MODON’s cities?

A8. There are over 6,600 industrial and logistical facilities within MODON’s developed land areas, which exceed 209 million square meters. These facilities enhance local content and maximize exports.

Q9. How does this expansion benefit investors?

A9. The expansion provides investors with world-class logistics infrastructure, streamlined processes, and access to a vast network. It creates a conducive environment for industrial and logistical investment, boosting competitiveness.

Q10. What incentives does MODON offer to foreign investors?

A10. MODON offers incentives such as ready infrastructure, licensing support, and access to industrial cities. These are designed to attract foreign direct investment and facilitate business operations in Saudi Arabia.

Q11. How does this align with Saudi Vision 2030?

A11. It aligns by diversifying the economy, enhancing non-oil exports, and positioning Saudi Arabia as a global logistics hub. Vision 2030 seeks economic growth and global connectivity, which MODON supports.

Q12. What is the significance of the Shanghai trade fair?

A12. Transport Logistics Shanghai is Asia’s leading trade fair for logistics and supply chain management. MODON’s participation showcases Saudi Arabia’s investment opportunities to a global audience.

Q13. How does MODON support local content?

A13. MODON enhances local content by providing facilities that empower local industries, increase production, and boost exports. This supports economic diversification and job creation for Saudi citizens.

Q14. What is the total area of MODON’s developed land?

A14. MODON’s developed land areas exceed 209 million square meters. This vast area hosts over 6,600 industrial and logistical facilities, contributing to Saudi Arabia’s industrial growth.

Q15. What role does MODON play in Saudi Arabia’s logistics sector?

A15. MODON is a key enabler, developing logistics infrastructure and industrial cities. It attracts investment, supports industry, and helps achieve the goals of Vision 2030 for a diversified economy.

Q16. How does MODON ensure stability for industries?

A16. MODON ensures stability by providing reliable infrastructure, services, and a supportive regulatory environment. This helps industries operate efficiently and grow sustainably within its industrial cities.

Q17. What are the benefits of dry and refrigerated warehouses?

A17. Dry and refrigerated warehouses cater to different storage needs, including temperature-sensitive goods. They enhance supply chain efficiency and support sectors like food, pharmaceuticals, and manufacturing.

Q18. How can investors access MODON’s services?

A18. Investors can contact MODON directly or through its website to explore opportunities. MODON provides comprehensive support, from land allocation to infrastructure and licensing, facilitating a smooth investment process.

Q19. What impact does this have on Saudi Arabia’s global trade?

A19. It strengthens Saudi Arabia’s position as a strategic trade hub, improving connectivity between continents. Enhanced logistics capabilities boost export efficiency and attract international partnerships, driving economic growth.

Q20. What is the long-term goal of MODON’s logistics expansion?

A20. The long-term goal is to establish Saudi Arabia as a leading global logistics hub, supporting Vision 2030’s economic diversification. It aims to attract investment, create jobs, and enhance the Kingdom’s global competitiveness.

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