Saudi Arabia's MODON Attracts SAR14.45 Bln in Industrial, Logistical Investment in 2023

16:35-8 April 2024 AD ـ 30 Ramadan 1445 AH

Saudi Arabia's MODON Attracts SAR14.45 Bln in Industrial, Logistical Investment in 2023

The Saudi Authority for Industrial Cities and Technology Zones (MODON) released its annual report for 2023, highlighting significant progress in attracting investments, developing industrial infrastructure, and promoting sustainable industrial growth, all in line with the aspirations of Saudi Vision 2030, reported the Saudi Press Agency on Monday.

The report details a SAR14.45 billion increase in cumulative investments during 2023. New investments surged by 63%, with 891 local and foreign investments secured. Notably, foreign investments grew by 85% over 2022.

For successfully attracting the most investments among other government agencies, MODON earned the National Industrial Development and Logistics Program (NIDLP) Award. It received 34 other local, regional, and international awards, solidifying its leading position in industrial and sustainable development.

MODON's commitment to fostering a stimulating industrial environment is evident in the expansion of developed land area in its industrial cities, which exceeds 209 million square meters. The number of factories rose to 6,443, alongside 7,946 industrial, logistical, and investment facilities. Furthermore, the number of ready-built factories increased to 1,301.

The report outlines MODON's dedication to developing model industrial cities and an attractive investment environment. This is exemplified by the launch of the MODON Oasis in Yanbu and the Industrial City in Asir. Moreover, MODON completed 48 development projects at a cost exceeding SAR1.3 billion.

To boost services in industrial cities, MODON increased electrical capacity by 724 MVA in several locations, including the third industrial cities in Dammam and Jeddah, Taif, Waad Al-Shamal, and Najran. Additionally, 45,000 cubic meters of drinking water per day were added to the Sudair City for Industry and Businesses and the Modon Oasis in Yanbu.

Sanitary and industrial sewage services were launched in Sudair City for Industry and Business and the Industrial City in Madinah, with a capacity of 15,000 cubic meters per day.

The report also details MODON's focus on driving industrial transformation. The authority launched the second phase of the National Productivity Program, aligned with the Future Factories Initiative, which evaluates and comes up with transformation plans for factories using the international Smart Industry Readiness Index (SIRI) to assess their adoption of Fourth Industrial Revolution applications. In 2023, 239 factories underwent this evaluation, with plans to assess an additional 240 in 2024.

The report emphasizes MODON's commitment to digitalization. The authority achieved an 89.9% compliance score with basic cybersecurity controls, conducted 1.3 million data exchanges with other parties, and transferred over 24,000 contracts to its electronic system. Its dedication is reflected in its 85.77% adherence to digital governance standards, a key aspect of its digital transformation plans.

Established in 2001, MODON currently supervises 36 industrial cities, including six industrial oases, across Saudi Arabia. This responsibility extends to overseeing private industrial complexes and cities as well.

World Bank Warns that US Tariffs Could Reduce Global Growth Outlook

WASHINGTON, DC - JANUARY 16: Workers build risers in Freedom Plaza ahead of the Inauguration on January 16, 2025 in Washington, DC. US President-elect Donald Trump and Vice President-elect former Sen. JD Vance (R-OH) will be sworn in on January 20. Kayla Bartkowski/Getty Images/AFP

Asharq Al Awsat

18:10-16 January 2025 AD ـ 17 Rajab 1446 AH

Asharq Al Awsat

18:10-16 January 2025 AD ـ 17 Rajab 1446 AH

World Bank Warns that US Tariffs Could Reduce Global Growth Outlook

The World Bank on Thursday warned that US across-the-board tariffs of 10% could reduce already lackluster global economic growth of 2.7% in 2025 by 0.3 percentage point if America's trading partners retaliate with tariffs of their own.
Such tariffs, promised by US President-elect Donald Trump, could cut US growth - forecast to reach 2.3% in 2025 - by 0.9% if retaliatory measures are imposed, the bank said, citing economic simulations. But it noted that US growth could also increase by 0.4 percentage point in 2026 if US tax cuts were extended, it said, with only small global spillovers.
Trump, who takes office Monday, has proposed a 10% tariff on global imports, a 25% punitive duty on imports from Canada and Mexico until they clamp down on drugs and migrants crossing borders into the US, and a 60% tariff on Chinese goods.
The World Bank's latest Global Economic Prospect report, issued twice yearly, forecast flat global economic growth of 2.7% in 2025 and 2026, the same as in 2024, and warned that developing economies now faced their weakest long-term growth outlook since 2000, Reuters said.
The multilateral development bank said foreign direct investment into developing economies was now about half the level seen in the early 2000s and global trade restrictions were five times higher than the 2010-2019 average.
It said growth in developing countries is expected to reach 4% in 2025 and 2026, well below pre-pandemic estimates due to high debt burdens, weak investment and sluggish productivity growth, along with rising costs of climate change.
Overall output in emerging markets and development economies was expected to remain more than 5% below its pre-pandemic trend by 2026, due to the pandemic and subsequent shocks, it said.
"The next 25 years will be a tougher slog for developing economies than the last 25," World Bank chief economist Indermit Gil said in a statement, urging countries to adopt domestic reforms to encourage investment and deepen trade relations.
Economic growth in developing countries dropped from nearly 6% in the 2000s to 5.1% in the 2010s and was averaging about 3.5% in the 2020s, the bank said.
It said the gap between rich and poor countries was also widening, with average per capita growth rates in developing countries, excluding China and India, averaging half a percentage point below those in wealth economies since 2014.
The somber outlook echoed comments made last week by the managing director of the International Monetary Fund, Kristalina Georgieva, ahead of the global lender's own new forecast, to be released on Friday.
"Over the next two years, developing economies could face serious headwinds," the World Bank report said.
"High global policy uncertainty could undercut investor confidence and constrain financing flows. Rising trade tensions could reduce global growth. Persistent inflation could delay expected cuts in interest rates."
The World Bank said it saw more downside risks for the global economy, citing a surge in trade-distorting measures implemented mainly by advanced economies and uncertainty about future policies that was dampening investment and growth.
Global trade in goods and services, which expanded by 2.7% in 2024, is expected to reach an average of about 3.1% in 2025-2026, but to remain below pre-pandemic averages.

Saudi Arabia's MODON Attracts SAR14.45 Bln in Industrial, Logistical Investment in 2023