News and events

14 August 2011

Dr. Alrabiah: 40 new industrial cities by the end of 2015

Riyadh, August 14, 2011 - Dr. Tawfig Bin Fawzan Alrabiah, the Director General of Saudi Industrial Property Authority (MODON) revealed that the total cost of the establishment, expansion and development of the industrial cities projects in the Kingdom of Saudi Arabia, which were signed during the past four years amounted to about 7 billion riyals.

During a press conference held on Saturday evening at the MODON headquarters, Dr. Alrabiah emphasized that the total costs of the industrial cities projects include the projects 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 the context of his presentation of the details of the new and future industrial cities projects that will contribute to support the industrial sector in the Kingdom, Dr. Alrabiah added that MODON currently oversees 20 industrial cities spread all over Kingdom regions. MODON plans to establish new cities and expand the existing ones, adding "each single riyal spent by the government generates 66 riyals as profit to the national economy, and the industrial cities so far directly provided 320 thousand jobs."

Dr. Alrabiah mentioned that the industrial cities have witnessed tremendous leaps in recent years by virtue of the unlimited support given by the government of the Custodian of the Two Holy Mosques King Abdullah Bin Abdulaziz to the industrial sector in the Kingdom, in addition to plans and strategies approved by MODON for the establishment or development or expansion of the industrial cities. "There are a number of industrial incentives offered to investors," said Dr. Alrabiah, "including a nominal rent for industrial lands, provision of water and energy at subsidized prices, granting of loans of up to 50 percent of the capital, as well as custom exemption for machinery, raw material, loans , exports warranty and preference given to the local product in government procurement."

Dr. Alrabiah indicated that MODON plans to increase the number of industrial cities to more than 40 by the year 2015, while the number of these cities did not exceed 14 cities in 2007; which would double the developed area of the industrial cities to 160 million square meters.

The new industrial cities planned by MODON to be developed by 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.

The total area of Jeddah 3rd. project, which is located east of Laith road, south of Jeddah governorate, amounts to about 20 million square meters, while the execution cost of the project amounts to 277 million riyals. The scope of work in this project includes the development of roads networks; floods water drainage networks, street lightings and medium voltage electrical networks. The total area of Dammam 3rd. project amounts to 48 million square meters, at a cost of up to 250 million riyals, while the total area of Riyadh 3rd., which is located in Al-Ha'ir, south of Riyadh near the reformatory, is about 1 million square meters, while the total cost of the project amounts to 24.4 million riyals.

The costs of developing the first phase with the road linking to Baha Industrial City amounts to SR 50 million on an area of 1 million square meters from the total area of the project amounting to 3 million square meters. The execution cost of Al-Kharj Industrial City project amounts to 545.3 million riyals on a total area of up to 99.5 million square meters, while the area of the first phase of this project amounts to 5 million square meters, and the number of the existing factories and those under inception in Al-Kharj amounts to 172 factories.

The development costs of Sudair City for industry and business in its first phase amount to about 1,09 million riyals, while the total area of the first phase of the project is 8 million square meters. The cost for the development of Jeddah 2nd. project amounted to 731 million riyals on a total area of 8 million square meters, while Al-Zulfi Industrial City Project cost amounts to 8 million riyal on a total area of 18 million square meters.

The execution costs of Shaqraa' Industrial City amounts to 5 million riyals, while the total area of the project is 9,6 million square meters. The execution costs of Qassim amounts to 32 million riyals, while the development area reached up to 1,3 million square meters. In Taif, the execution costs of the project amounted to 4.9 million riyals, while the development projects in Riyadh 1st. and 2nd. amounted to 449 million riyals.

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