RIYADH: Saudi Arabia’s logistics sector has seen unprecedented growth in recent years, with the volume of investment currently reaching SR2.1 billion ($559 million), revealed a top official.
The investment was facilitated by as many as 208 logistical contracts and leased areas measuring to 3.2 million sq. m, under the Saudi Authority for Industrial Cities and Technology Zones, said Abdul Rahman Al-Askar, the director of its industrial production unit.
Speaking on the sidelines of the authority’s recent meeting with investors in the industrial sector in Riyadh, Al-Askar pointed out that the plan for the sector includes activating logistical platforms approved by the Supreme Committee for Transport and Logistics Services.
Presently, the authority, also known as Modon, has 34 logistical platforms and 17 industrial and logistical cities, some of which have already been activated while others are still under planning and development.
Moreover, Al-Askar revealed that the total number of industrial contracts amounted to 5,895, with a total area of 74 million sq. m.
Al-Askar went on to draw attention to the National Productivity Program, which seeks to achieve national targets to enable factories in Saudi Arabia to harmonize indicators of national transformation and adopt the Fourth Industrial Revolution.
The program was launched to provide free advisory services and build transformation plans that contribute to achieving the highest production efficiency rates.
It also works on applying the principles of operational excellence with the support of the National Industry Development and Logistics Program and the Ministry of Industry. The aim is to inspire others and further motivate other manufacturers to adopt and apply these principles and technologies.
Additionally, Majed Al-Argoubi, the CEO of Modon, held discussions with investors on various challenges they are facing in the industrial sector and how to deal with them with appropriate solutions.
Al-Argoubi has also signed an agreement with the CEO of General Electric in the Kingdom and Bahrain Hisham Bahkali to include the firm’s plants complex on an area of 120,000 sq. m in the Eastern Province under the supervision of the authority.
The total number of private industrial complexes and cities supervised by Modon is currently 18 complexes and cities owned by the Kingdom’s private sector.
Modon provides an industrial environment that stimulates growth while backing it up with all the required industrial services and products as well as the logistical technical solutions that align well with the top global practices in the field.
This move comes as several entities are working to finance industrial projects in the Kingdom, including the Industrial Development Fund and the Import and Export Bank.
Earlier this month, Ali Al-Omeir, executive vice president of business development of Modon, signed agreements worth SR10 million to establish three new entrepreneurial projects on the sidelines of Biban 2023.
