MODON Boosts Saudi Supply Chains With More Than $147 Million in Investments

A safety and security vehicle operated by MODON (MODON) 
A safety and security vehicle operated by MODON (MODON) 
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MODON Boosts Saudi Supply Chains With More Than $147 Million in Investments

A safety and security vehicle operated by MODON (MODON) 
A safety and security vehicle operated by MODON (MODON) 

Saudi Arabia’s Industrial Cities and Technology Zones Authority (MODON) has strengthened the Kingdom’s position as a global logistics platform and a key hub for trade linking three continents, backed by more than SAR553 million ($147.5 million) in new investments during 2025.

The spending expanded developed logistics space within industrial cities to more than 16 million square meters, representing annual growth of 35 percent and supporting the objectives of the National Transport and Logistics Strategy.

The investment surge underscores MODON’s growing role in developing and managing industrial land and integrated logistics zones across the Kingdom.

Established in 2001, the authority currently oversees a network of 36 industrial cities, either operational or under development, in addition to private industrial complexes and cities. It also serves as a strategic enabler for investors by providing advanced infrastructure, smart logistics solutions and ready-built factories, in line with Saudi Vision 2030 goals to increase private-sector participation and diversify the economy.

Speaking to Asharq Al-Awsat, logistics expert Nashmi Al-Harbi said MODON has become the operational backbone of Saudi Arabia’s drive to establish itself as a global logistics hub.

He noted that the authority attracted SAR24 billion ($6.4 billion) in high-quality investments in 2024, including SAR6 billion ($1.6 billion) in foreign direct investment, strengthening national supply chains and increasing the sector’s contribution to gross domestic product.

Alignment With National Strategies

MODON’s expansion is closely aligned with the National Transport and Logistics Strategy. The authority is developing industrial and logistics platforms, as well as advanced distribution centers designed to ensure the smooth and flexible flow of goods.

The effort has been supported by the National Industrial Development and Logistics Program (NIDLP), which enabled MODON to develop more than 13 million square meters of land, launch new industrial cities in Taif and Asir, and establish a specialized logistics zone in Dammam.

NIDLP’s support also included adding more than 600 megawatts of electrical capacity and creating over 700 ready-built factories and industrial products, as well as self-storage facilities, support units and multi-story factory complexes aimed at simplifying business operations for investors and small and medium-sized enterprises.

Al-Harbi said the real value of these projects lies in their ability to translate national strategies into tangible infrastructure, linking industrial cities directly with international gateways while reducing both transit times and transportation costs.

Integrated Logistics Ecosystem

In recent years, MODON has expanded its logistics offerings to include logistics land plots of varying sizes, dedicated distribution centers, third-party logistics (3PL) warehouses, cold-storage facilities, container yards, fully serviced truck parks, self-storage units and open-air storage areas.

According to Al-Harbi, MODON now hosts 23 operational logistics centers covering more than 34 million square meters. Their proximity to ports and airports, combined with integrated support services, provides investors with a cost-efficient and highly productive operating environment.

Investments Strengthening Supply Chains

In 2025, logistics land covering more than one million square meters was allocated across 18 industrial cities, attracting investments exceeding SAR500 million ($133.3 million). Projects included warehouses, distribution centers, truck-service facilities and third-party logistics operations.

Among the major investments was a project by Jingdong Property to develop a 40,000-square-meter warehouse complex at MODON Oasis in Jeddah, with investments totaling SAR100 million ($26.7 million).

At Jeddah’s Third Industrial City, Kudu Food and Catering established an 18,000-square-meter distribution center valued at SAR50 million ($13.3 million). Saudi Commercial MASCO Co. Ltd. launched a 10,000-square-meter third-party logistics project worth SAR10 million ($2.7 million), while SMSA Express developed a logistics facility in Al-Ahsa’s First Industrial City on a 6,000-square-meter site with investments of SAR10 million.

Al-Harbi said manufacturing and food-processing industries are driving demand for logistics services, while rapid growth in e-commerce and pharmaceuticals is increasing the need for specialized distribution centers.

Connecting Industrial Cities to Trade Gateways

As part of its infrastructure development program, MODON completed a freight rail station at Dammam’s Second Industrial City, linking the logistics zone directly to King Abdulaziz Port and improving cargo flows between industrial centers and maritime gateways.

The authority also allocated six fuel stations across industrial cities in Al-Kharj, Tabuk, Madinah, Jeddah and Makkah, covering 65,100 square meters and attracting SAR36.6 million ($9.8 million) in investments.

In addition, 14 fully serviced truck yards covering nearly 500,000 square meters were allocated in several industrial cities, including Jeddah, Riyadh and Dammam. MODON also signed 16 logistics contracts worth SAR500 million ($133.3 million) to develop bus-support parking facilities for the Hajj and Umrah seasons within Makkah’s Second Industrial City on a site exceeding 850,000 square meters.

To support sustainability goals, the authority launched two electric-vehicle charging stations in Riyadh’s Second Industrial City, with capacity to serve four vehicles.

Smart Logistics and Future Growth

Al-Harbi said technology has become the main driver of logistics operations, noting SAR8.8 billion ($2.35 billion) in investments across 15 data centers supporting digital transformation and Fourth Industrial Revolution applications.

MODON is increasingly adopting automation and smart technologies to improve tracking accuracy and operational efficiency, while seeking to transform 100 factories into global “Factories of the Future.”

He identified rapid digitalization and environmental sustainability requirements as the sector’s main challenges, adding that MODON is addressing them through its Green Cities initiative, cybersecurity investments and workforce development programs.

Saudi Arabia recorded more than 290 million delivery orders in 2024, underscoring the need for advanced warehouses and efficient distribution networks. Al-Harbi said automated smart warehouses, specialized logistics centers, cold-chain solutions for food and pharmaceuticals, and green logistics services represent some of the Kingdom’s most promising investment opportunities.

He added that logistics services have become a critical enabler of Saudi exports by reducing costs and accelerating access to global markets through direct connections to international shipping routes and supply chains. Looking ahead, he expects the logistics sector’s contribution to GDP to rise to 10 percent as Saudi Arabia strengthens its role as a pivotal trade gateway linking Asia, Europe and Africa through expanding logistics and digital infrastructure.

 

 



Dammam Airports Company Wins Six International ACI Accreditations in Istanbul

King Fahd International Airport also secured accreditation for health and safety compliance - SPA
King Fahd International Airport also secured accreditation for health and safety compliance - SPA
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Dammam Airports Company Wins Six International ACI Accreditations in Istanbul

King Fahd International Airport also secured accreditation for health and safety compliance - SPA
King Fahd International Airport also secured accreditation for health and safety compliance - SPA

Dammam Airports Company achieved a significant milestone by receiving six international accreditations in accessibility, health and safety, and customer experience from Airports Council International (ACI) during the 2026 ACI World Airport Experience Summit in Istanbul.

Under accessibility benchmarks, King Fahd, Al-Ahsa, and Al Qaisumah international airports each earned level 1 accessibility accreditation, underscoring the operator's commitment to inclusive infrastructure and services for all traveler categories, SPA reported.

King Fahd International Airport also secured accreditation for health and safety compliance, verifying its operational readiness and adherence to global protective standards.

In customer experience, both Al-Ahsa and Al Qaisumah international airports received level 1 customer experience accreditation, highlighting ongoing upgrades to passenger journey touchpoints and overall service quality.

The recognitions demonstrate Dammam Airports Company's strategic alignment with global aviation best practices across its network, bolstering operational efficiency, safety, and regional connectivity in Eastern Region.


US Diesel Prices Hit New High amid Iran War Disruption

Crude oil, gasoline, and diesel storage tanks at the Kinder Morgan terminal in Los Angeles (Reuters)
Crude oil, gasoline, and diesel storage tanks at the Kinder Morgan terminal in Los Angeles (Reuters)
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US Diesel Prices Hit New High amid Iran War Disruption

Crude oil, gasoline, and diesel storage tanks at the Kinder Morgan terminal in Los Angeles (Reuters)
Crude oil, gasoline, and diesel storage tanks at the Kinder Morgan terminal in Los Angeles (Reuters)

The price of diesel -- the vital fuel used for road hauling, agriculture and construction -- hit a new record in the United States on Friday, the AAA motorists' association said amid disruption from the US war with Iran.

The price is now $5.85 a gallon, up from $3.71 a year ago, the AAA said.

Because diesel is used for many freight and delivery networks, higher diesel prices mean higher transportation costs for a long list of everyday goods.

This could add to Republicans’ political challenges ahead of November’s midterm elections, with voters already sour on President Donald Trump’s management of the economy. AP-NORC polling this summer showed two out of three U.S. adults disapproved of how Trump is handling the economy.

More expensive fuel is increasing bills for businesses across sectors — some of which have already passed on costs to consumers in the form of added fees on online orders and packages in the mail. And shoppers may see more and more sticker shock trickle down to store shelves.

One of the most immediate strains is being felt in the grocery aisle, particularly with produce, meat and other perishable foods that need to be hauled in and restocked frequently — or even harvested using diesel-powered farm equipment. It can take time for all of those costs to trickle down.

Still, experts warn that price hikes could mount the longer diesel remains expensive. A range of other products are also transported by diesel trucks, trains and boats, including clothing, cosmetics, furniture and more.

The price for regular gasoline has also been going up, although not as fast as the price of diesel. The average price was $4.15 a gallon, compared with $3.20 at this time last year, according to AAA, which says gas has never been above $4 a gallon on Labor Day. Prices for regular gasoline, however, are far from the record of $5.02 a gallon set in June 2022.


FAO: World Food Prices at Highest Since 2022 as Supply Risks Mount

A vendor loads coconuts into a cart to transport them by tricycle in Quezon City, Metro Manila, Philippines, 04 September 2026. EPA/ROLEX DELA PENA
A vendor loads coconuts into a cart to transport them by tricycle in Quezon City, Metro Manila, Philippines, 04 September 2026. EPA/ROLEX DELA PENA
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FAO: World Food Prices at Highest Since 2022 as Supply Risks Mount

A vendor loads coconuts into a cart to transport them by tricycle in Quezon City, Metro Manila, Philippines, 04 September 2026. EPA/ROLEX DELA PENA
A vendor loads coconuts into a cart to transport them by tricycle in Quezon City, Metro Manila, Philippines, 04 September 2026. EPA/ROLEX DELA PENA

World food prices rose in August to their highest since late 2022, as adverse weather and war disruption in the Gulf and Black Sea heightened concern over supply of staples, the United Nations' Food and Agriculture Organization said on Friday.

Extreme heat and drought in Europe, the threat of a severe El Nino weather pattern and trade upheaval caused by the Ukraine and Iran wars have unsettled agricultural markets, pushing grain prices to three-year highs and sugar to a one-year ⁠peak.

The FAO Food ⁠Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 133.3 points in August, up from July's revised reading of 130.8.

That was the highest score since November 2022, though nearly 17% below a record peak from March 2022, ⁠after Russia's full-scale invasion of Ukraine.

"August’s increase in global food prices is a warning that the risk premium is returning to food markets: climate shocks, geopolitical tensions and disrupted trade logistics are converging to tighten supply expectations," FAO Chief Economist Maximo Torero said in a statement, according to Reuters.

The FAO's price benchmarks for cereals, vegetable oils, sugar, meat and dairy all rose in August.

The extreme weather in Europe affected prospects for the maize and sugar beet ⁠harvests ⁠as well as livestock output, while the anticipated El Nino phenomenon fueled concerns for vegetable oil and sugar output, it said.

Escalating attacks in the Black Sea have curtailed grain shipments from Russia and Ukraine in their 4-1/2-year-old war, while the US-Iran conflict was still straining flows of fertilizer for crops.

In a separate report, the agency cut its 2026 global cereal production forecast by 3.4 million metric tons from July to 2.980 billion tons, now 2.0% below 2025, though still the second-largest harvest on record.