The nation has embarked on a series of courageous endeavors to cultivate its economy, decrease its reliance on petroleum resources, and play a role in realizing the objectives of Vision 2030. These objectives encompass the establishment of a versatile and enduring environment, the nurturing of small and medium enterprises (SMEs), and the facilitation of entrepreneurial growth by means of collaborative efforts between the private and public sectors. It leads to an investment time for SMEs in Saud 36 industrial cities.
Investment Opportunities in Saudi Arabia’s Industrial Cities
Saudi Arabia has been on a transformative journey in recent years, diversifying its economy and opening doors to foreign investors. One of the cornerstones of this economic diversification plan is the development of 36 industrial cities across the country. These industrial cities present an abundance of opportunities for Small and Medium-sized Enterprises (SMEs) looking to invest in a dynamic and growing market. In this blog post, we will delve into the vast potential of investing in these industrial cities, exploring the benefits, key sectors, and the government’s support for SMEs.
Saudi Arabia’s Industrial Cities Open for SMEs Businesses
In the heart of the Middle East, Saudi Arabia’s industrial cities are beckoning Small and Medium-sized Enterprises (SMEs) to embark on an exciting journey of investment and growth. With a strategic location at the crossroads of global trade routes, investor-friendly policies, and state-of-the-art infrastructure, these industrial cities are primed to become vibrant hubs for entrepreneurial endeavors. Now Saudi Arabia’s 36 industrial cities open for SMEs businesses to enhance their participation in economic diversification in line with Vision 2030:
- Riyadh 1st Industrial City: Downtown Riyadh on the western side of Riyadh Dry Port in Al-Malaz District.
- Riyadh 2nd Industrial City: On Al-Kharj Road south of Riyadh city, 10 km away from the intersection with the Southern Ring Road.
- Riyadh 3rd Industrial City: South Riyadh city.
- Jeddah 1st Industrial City: South of Jeddah Province, east of Al-Rahmaniyah Market
- Jeddah 2nd Industrial City: West of the Coast Road south of Jeddah near the Red Sea, 30 km away from Jeddah First Industrial City.
- Jeddah 3rd Industrial City: East of the Coast Road that lies south of Jeddah near the Red Sea, 30 km away from Jeddah First Industrial City
- Rabigh Industrial City: It’s South of Rabigh on the Jeddah-Rabigh Road, east of the Haramain High-Speed Railway Maintenance Station and 7 km to the east of King Abdullah Economic City.
- Dammam 1st Industrial City: Southeast of Dammam near the coast of the Arabian Gulf, at the intersection of King Abdulaziz Road with King Fahd Road.
- Dammam 2nd Industrial City: West of Dhahran City on Dhahran-Abqaiq Road east of King Fahd Military City.
- Dammam 3rd Industrial City: South of Dhahran, on the Eastern Coastal Road leading to Salwa and 5 km south of Half Moon Bay.
- Sudair City for Industry and Businesses: 150 km away from Riyadh, West of the Riyadh-Qassim Road extension.
- Makkah Al-Mukarramah second industrial city: On the Fifth Ring Road and the intersection of “Makkah Al-Mukarramah – Taif – Jeddah”, at a distance of 20 km to the city center.
- Qassim 1st Industrial City: South of Buraidah, east of King Abdulaziz Road and 1 km away from the intersection of the Riyadh-Qassim Highway with King Abdulaziz Road.
- Qassim 2nd Industrial City: Southeast of Buraidah city, 5 km before the intersection of the Eastern Ring Road with Riyadh-Qassim Highway.
- Al-Kharj Industrial City: Southwest of Al-Kharj Governorate, 15 km away from the intersection of Al-Dalam Road with the road to Al-Kharj Industrial City.
- Ha’il Industrial City: West of Hail, 5 km east of the King Abdulaziz Road intersection with King Abdullah Road.
- Al-Ahsa 1st Industrial City: North of Al-Ihsaa city, in Al-Oyoon city north of Soltaniyah District on Dhahran Road.
- Al-Madina Al-Munawwara Industrial City: Southwest of Medina, next to the sea and air pilgrims reception station from the south side
- Makkah Al-Mukarrama 1st Industrial City: North of Makkah Al-Mukarrama on Al-Madinah Road, opposite the Makkah College of Technology.
- Tabuk Industrial City: Northeast of Tabuk city, 120 km away from Halat Ammar Port
- Al-Baha Industrial City: North of Al-Aqiq Governorate, at a distance of 23 km from King Saud Domestic Airport.
- Assir Industrial City: Northwest of Khamis Mushait on Al-Madinah Al-Munawarah Road, 3 km south of the National Gas and Industrialization Company (GASCO).
- Najran Industrial City: Northeast of Najran city, 45 km from downtown Najran city and west of Al-Husainiyah Village.
- Jazan Industrial City: East of Jazan city and near Abu Noura village to the east
- Ar’ar Industrial City: Northeast of Arar City on Arar-Iraq North Road.
- Hafr Al-Batin Industrial City: southeast of Hafr Al-Batin Governorate, at a distance of 22 km from the city of Qaisumah in the south, and near the borders with Kuwait.
- Shaqraa Industrial City: Southwest of Shaqra, 12 km south of Shaqra University.
- Al-Zulfi Industrial City: Southeast of Al-Zulfi, on the intersection of the Eastern Ring Road extension with the Southern Ring Road, 6 km away from Zulfi housing project.
- Dhurma Industrial city: West of Riyadh, 7 km northwest of Dhurma.
- Wa’ad Al-Shamal Industrial City: 20 km east of Turaif Governorate, near the border with the Kingdom of Jordan.
- Taif Industrial City: It is located about 58 km from Taif city center.
Some other industrial cities are under the process of development.
Role of Modon in Governance of Saudi 36 Industrial Cities
Since its inception in 2001, the Saudi Authority for Industrial Cities and Technology Zone (Modon) has played a pivotal role in the development and management of industrial lands and their infrastructure. Presently, it administers 36 existing and under process industrial cities throughout the Kingdom, alongside private industrial complexes and cities.
Modon meticulously follows a well-defined strategy aimed at harnessing the advantages of government-private partnerships to their fullest potential. By doing so, it has effectively extended a range of incentives within its industrial cities, a move that has enticed prominent global industrial firms and foreign investments to contribute significantly to the enhancement of Saudi Arabia’s industrial sector. Furthermore, Modon has made remarkable progress in nurturing domestic partnerships, facilitating the influx of over SAR 370 billion in investments to date. So it’s an investment time for SMEs in Saud 36 industrial cities.
Saudi Arabia’s new regulations approved by its Council of Ministers help Modon’s strategy to strengthen and sustain investors’ experience in the industrial cities.
In line with its commitment to attract investment and flourish businesses in Saudi Arabia’s 36 industrial cities, Modon provides innovative time frame high quality services to accelerate new businesses in the following ways:
- Approval of plans in 5 working days.
- Issuance of permits in 1 to 3 working days.
- Issuance of safety related operational licenses in 7 working days.
- Allocation of products in 45 working days.
- Amendment of partner contracts in 10 working days.
Key Sectors for Investment in Saudi Industrial Cities
- Manufacturing: The industrial cities offer an excellent platform for manufacturing businesses, from automotive to petrochemicals.
- Logistics and Warehousing: With their strategic locations and modern infrastructure, industrial cities are ideal for logistics and warehousing businesses connecting Asia, Europe, and Africa in the global supply chain.
- Technology and Innovation: Information technology, biotechnology, and renewable energy can find ample opportunities in these cities.
- Construction and Real Estate: As the industrial cities continue to expand, there is a growing demand for construction and real estate services.
And others including services sectors are offered Saudi government’s support to develop and flourish their businesses.
Conclusion: Investment Time for SMEs in Saudi 36 Industrial Cities
The time is ripe for local and global companies including SMEs to explore and invest in the numerous opportunities that Saudi Arabia’s industrial cities have to offer. By doing so, they can contribute to the country’s economic growth while reaping the benefits of a vibrant and emerging market.
Contact our experienced legal advisors for investment in Saudi Arabia’s industrial cities.