Interview: Majed Rafed Al Argoubi
What role will industrial cities play in implementing the National Industrial Development and Logistics Programme (NIDLP)?
MAJED RAFED AL ARGOUBI: By spearheading infrastructure development, industrial cities form the cornerstone of NIDLP implementation. MODON manages approximately 200m sq metres of developed land area, 78% of which is currently occupied. To house the industrial expansion envisioned by NIDLP, MODON plans to develop an additional 24.5m sq metres of land by 2027.
Industrial cities are business-nurturing ecosystems. MODON sells developed industrial land at prices starting at $0.3 per sq metre and has 1263 ready-built factories on offer, with this number expected to double in a few years. Such incentives are complemented by financing solutions, high liveability, Industry 4.0 programmes, technology zones, advanced logistics, longterm regulatory stability and a simplified procedures for potential investors or tenants.
The development of industrial cities is supported by several Vision 2030 programmes and is recognised as contributing to regional development, industrial diversification and job creation. MODON operates industrial cities in each province, hosting over 6000 factories catering to every major industrial segment.
We are implementing projects designed to empower the private sector and enable public-private partnerships. For example, we are preparing to launch a number of food clusters equipped with research and development facilities that will support crucial parts of the supply chain once construction is complete.
To what extent do industrial cities support small and medium-sized enterprises (SMEs)?
AL ARGOUBI: SMEs thrive in industrial cities. Cluster effects, access to logistics solutions and innovation facilities, and the availability of business and government services are the primary advantages that SMEs enjoy. MODON aims to address the main challenges facing SMEs by offering ready-built units at affordable prices; integration into value chains through a business-to-business platform; access to finance through dedicated products in partnership with financial institutions; and skills development through training centres.
Successful SME clients cover a multitude of profiles, from socially motivated investors to top innovators. One of the many notable success stories is Technical Principles Company for Metal Industries, a Saudi grounding and lighting protection systems producer that developed its business through results-based financing and recently leased land from MODON for expansion.
How are industrial cities balancing development with environmental sustainability commitments?
AL ARGOUBI: MODON has taken action to reduce electricity and water consumption and ensure that all business premises, warehouses and equipment are environmentally compliant, as described in our 2021 sustainability report. Our Environmental Management System, initiated in 2013, monitors carbon emissions and air quality in our cities. We provide potable water to residents and operate industrial wastewater treatment plants and irrigation networks.
Additionally, an integrated waste-management system has been put in place in our cities, as well as a circular economy initiative mapping the transition from a linear to a circular value chain. Several recycling facilities are active in cities managed by MODON, including a medical waste recycling plant, an electronics recycling facility and a natural fertiliser factory.
Partnerships are driving environmental sustainability efforts. For example, a zero-energy wastewater bioreactor technology developed at King Abdullah University of Science and Technology will be implemented at scale in Jeddah First Industrial City. Further, tenants are incentivised to make their businesses more sustainable through stimulus packages, afforestation events, awareness campaigns and innovation support.
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