Saleh Al-Rasheed, director general of Saudi Industrial Property Authority (MODON ), says lands have been allocated to establish 300 factories during the first half of this year. With these, the number of factories will double to 600 one by the end of the year.
Al-Rasheed confirmed that some lands were withdrawn from investors as it turned out that they are not serious in their efforts to invest, or for reasons out of their control.
MODON has withdrawn more than 100 pieces of land from investors during the first quarter of this year. The aim behind this move is to limit arbitrary trading in the industrial lands, and compel investors to build the factory on the allocated land, in compliance with the contractual terms and conditions. The program for following up the operations starts from the moment of allocating the land, until the production phase.
"The most prominent achievements of MODON for this year is the establishment of factories fully equipped for the benefit of small and medium enterprises," Al-Rasheed said, adding: " MODON has taken this initiative to encourage SMEs."
In a statement issued recently, MODON explained that it achieved in the past year an increase in terms of developed land in the industrial cities, with a total of 142 million square meters. "This is translated to an increase of 28 percent against 2011, where the total space area of lands was 111 million square meters provided with the necessary infrastructure and the supporting services," said the statement.
Minister of Commerce and Industry Tawfiq Al-Rabiah, citing the annual report ofMODON 2012, said that MODON is seeking to realize its strategy by acquiring 160 million square meters of fully developed lands.
Al-Rasheed said the revenues of MODON increased to SR 352 million in 2012, against SR 304 million in 2011, a growth of 16 percent in revenues. The number of factories, he added increased to 4,718 factories employing more than 250,000 persons and investments of more than SR 300 billion.
The annual report showed that lengths of connecting roads have doubled as well to 230 km, with an increase of 130 percent against 2007. The same is true for water networks, where it increased from 262 km in 2007 to 720 km in 2012.
Electricity power has grown in MODON also, to 3,360 megawatt, with an increase of 110 percent against the year before, where it was only 1,600 megawatt.
MODON embarked on the first investment of its kind, which is building ready-to-operate factories and lease them to industrialists. It signed also contracts to build residential and commercial complexes, hotels, a hospital, fuel stations and logistic facilities.