Investments in Saudi Arabia’s textiles industry have exceeded $1 billion, Majed Al-Argoubi, MODON CEO
Saudi Arabia’s textiles and fabrics industries have seen investments worth over $1 billion, as the industrial sector in the country undergoes significant development, according to Majed Al-Argoubi, the CEO of the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON. This funding has been distributed over 125 industrial contracts in 19 industrial cities, covering a total area of more than one million sq. m. The textiles and men’s supplies sector is experiencing high growth in the country, as most of its raw materials are sourced from Saudi Arabia, making it an attractive sector for investments, Al-Argoubi said.
MODON is a government body that is responsible for the development of fully integrated service industrial lands to the highest standards. The agency currently oversees 35 existing and under development industrial cities in various regions of the Kingdom, in addition to supervising private industrial cities. Al-Argoubi added that the industrial sector in the Kingdom is going through remarkable developments, thanks to the support and facilitation provided by the Saudi leadership to invest in value-added projects.
The CEO shared these details at the inauguration of the second edition of the Men’s Fabrics and Accessories Exhibition at the Riyadh International Convention and Exhibition Center, which was sponsored by MODON. The five-day event aimed to strengthen the industry in this sector, which has been witnessing significant growth in recent years.
MODON’s developed industrial lands currently exceed 1,988 million sq. m, with the existing industrial cities including 3,474 productive factories, in addition to 6,190 industrial, service, and logistic contracts, and more than 435,000 employees. The agency has also prepared advanced infrastructure, supporting logistical services, and several ready-made products and innovative solutions in all regions across the Kingdom and different areas to build factories in various sectors.
Earlier this month, MODON revealed that it will establish, develop and operate 14 warehouses in Jeddah 1st Industrial City. These new warehouses will be based on smart automated systems to provide quick and temporary logistical solutions to support industrialists and entrepreneurs, as well as stimulate investment in the retail sector. The project involves the construction of fully digital and automated warehouses that do not need human intervention, using the latest technology and equipment that provides access to storage units via a smartphone app. The warehouses will be operated based on the public-private partnership model, which is expected to enhance quality standards and operational efficiency of services and products, and stimulate investment.
The textiles and fabrics industries are not the only sectors experiencing investment and growth in Saudi Arabia’s industrial sector. The country has been implementing a series of reforms and measures to diversify its economy away from oil and gas, with a particular focus on boosting its manufacturing and industrial capabilities. The Saudi Vision 2030 initiative, which was launched in 2016, aims to transform the country’s economy and society, with a focus on developing new sectors and industries, increasing employment opportunities for Saudis, and enhancing the quality of life for citizens.
As part of these efforts, the government has been investing heavily in infrastructure, including transportation networks, energy, and water projects, to support economic growth and development. The country is also promoting entrepreneurship and innovation, with a number of initiatives aimed at fostering a culture of innovation and entrepreneurship, and providing support and funding for startups and small and medium-sized enterprises.
Overall, Saudi Arabia’s industrial sector is expected to continue to see significant growth and investment in the coming years, driven by the government’s commitment to economic diversification and the development of new sectors and industries.
