A Landmark Partnership Driving Saudi Arabia’s Industrial Growth
Through a strategic pairing of MODON (the Saudi Authority for Industrial Cities and Technology Zones) and JINGDONG Property, the industrial and infrastructural wing of Saudi Arabia has affirmed its industrial and logistics aspirations. The duo has made a commitment to each other via a Memorandum of Understanding to bring 2 million square meters of top notch industrial and logistics assets in the Kingdom into existence.
The MoU was officially signed during the 21st UNIDO General Conference in Riyadh, marking another step forward for Saudi Arabia in establishing itself as a global [player in industrial development, manufacturing and supply chain diversification.
Development to Span Riyadh, Jeddah, and Dammam
The collaboration is aimed at the industrial transformation of Saudi Arabia in three major areas; the capital, Riyadh, Jeddah and Dammam. These three areas are not only the heart of the industrial activity of the Kingdom but also the main places for manufacturing, storage and the national distribution network.
One of the significant aspects of the deal involves the setting up of a pilot project in Jeddah Industrial city of the first 40,000 sqm, which is the first greenfield development of JINGDONG Property in the Kingdom. With this project, the company will cater to Saudi Arabia’s huge demand for contemporary logistics solutions in various fields such as e-commerce, retail, FMCG, automotive, pharmaceuticals and food processing.
Smart, Sustainable and Grade A Logistics Infrastructure
JINGDONG Property will draw on its global expertise to provide top notch industrial buildings that confirm world class excellence. The new facilities will include:
- Premium Speculative Warehouses
- Integration of smart automation technology into the operational systems.
- Built to suit (BTS) facilities that meet the specifications of the tenants.
- BREEAM Excellent rated eco friendliness
The logistics hubs characterized by high automation, efficiency and sustainability will be not only supporting but also facilitating the country’s wider plan of the industrial ecosystem’s modernization and its global competitiveness.
Strengthening Vision 2030 and the National Industrial Strategy
MODON’s management will always prioritize the fact that this cooperation is completely in line with Saudi Vision 2030, which aims to celebrate the national economy by changing its composition, boosting the local market and eventually bringing global investors.
MODON is already responsible for 39 industrial cities which extend over a total area of 220 million square meters and are spread all over the kingdom. These cities are home to the thousands of industrial and logistics investors. The new deal strengthens the authority’s plans to raise the standard of infrastructure and invite the private sector to invest more.
Simultaneously, JINGDONG Property is bringing world class expertise via its portfolio encompassing more than 270 international infrastructure projects, thereby backing Saudi Arabia’s ambition to be the Middle East’s premier industrial and logistics hub.
Boosting Investor Confidence and Future Industrial Opportunities
This partnership is going to be a game changer for industrial investors in Saudi Arabia as it will bring forward more opportunities. One of the key things that the partnership will do is opening modern logistics services and setting up sustainable building standards which in turn will:
- Encourage Foreign Direct investments (FDI)
- Increase the efficiency of operations of the companies in Saudi Arabia.
- Make the Supply chains of the nation stronger in the very sectors that are growing fast.
- Make the Kingdom more attractive for industries
- Speed up the process of updating storage and distribution capabilities.
One of the long term effects of this partnership is going to be the alignment with the country’s vision of becoming a global hub for industry, manufacturing and integrated logistics.
