Saudi’s Modon equips mining industries with $68mn foreign investments

By Arya M Nair, Official Reporter
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Modon attracts investment for mining industries

The Saudi Authority for Industrial Cities and Technology Zones (MODON) has enhanced the activity of the mining and manufacturing industries by attracting foreign investments amounting to $68 million.

This was achieved by allocating developed lands covering an area of 87,547 sq km in the industrial city of Al-Kharj. This development happened during MODON’s participation in the third edition of the Future Minerals Forum at the Riyadh-based King Abdulaziz International Conference Center.

The new investments included the signing of allocation contracts with two companies, one Chinese and another Egyptian, aiming to establish two factories. One of them has an area of 58,800 sq km for the production of primary iron products, and the other has an area of 28,747 sq km for manufacturing marble and granite tiles.

MoUs signed

During the forum, MODON signed two memoranda of understanding (MoUs);

  • The first was the Saudi Geological Survey for collaborative research projects in areas of mutual interest, including technology localization, local content support, and human capital development.
  • The second MoU was signed with Saudi Arabian Mining Company (Ma’aden) to collaborate in supporting local content, enhancing national expertise, increasing employment, and promoting regional economic development through Ma’aden’s “Tharawat” program launched at the end of 2022.

MODON also participated in a panel discussion at the forum on supporting the stability of mining industry supply chains. The Deputy CEO of MODON for Business Development, Engineer Ali Al-Omair, highlighted Modon’s role in supporting and supplying the metal industries, ensuring the sustainability of mineral supplies in its industrial cities.

MODON achieved a 4.36 percent increase in the number of mining and manufacturing factories in 2023, reaching 1,629 factories, primarily concentrated in industrial cities in Riyadh, Jeddah, Dammam, and Al-Kharj, contributing to record revenues in Saudi Arabia’s mining sector.

The authority works on diversifying the production base and supporting the mining sector in line with the Saudi National Industrial Strategy (NIS), aiming to increase value-added, raise the percentage of technically based manufactured products, and boost national exports, aligning with the Kingdom’s Vision 2030 aspirations.

The industrial cities under the supervision of Modon contribute to enhancing local content in several related specific industries, including the manufacturing of cable, glass, stone, marble, and granite, steel, aluminum sheets, and ceramics, ready-mixed concrete, and building materials.

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