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Modon Proceeds Towards Completing Infrastructure in Saudi Industrial Cities

The Saudi Minister of Industry, during a previous visit to an industrial city (Asharq Al-Awsat)
The Saudi Minister of Industry, during a previous visit to an industrial city (Asharq Al-Awsat)
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Modon Proceeds Towards Completing Infrastructure in Saudi Industrial Cities

The Saudi Minister of Industry, during a previous visit to an industrial city (Asharq Al-Awsat)
The Saudi Minister of Industry, during a previous visit to an industrial city (Asharq Al-Awsat)

Saudi industrial cities are witnessing tangible progress to become the preferred investment destination.

During the past year, the Saudi Authority for Industrial Cities and Technology Zones (Modon) updated its strategy in line with Vision 2030.

The strategy seeks to place Modon as the best investment destination through several initiatives to complete the infrastructure and adopt the Fourth Industrial Revolution.

The strategy was based on the National Industrial Development and Logistics Services Program (NIDLP) requirements.

A recent report issued by Modon, a copy of which was reviewed by Asharq Al-Awsat, revealed that infrastructure works in al-Kharj Industrial City are 58 percent completed, 54 percent in Dhurma Industrial City, and 4 percent in Qassim Industrial City.

The report indicated that infrastructure in Riyadh's 2nd and 3rd Industrial Cities is 37 percent complete and 33 percent in Medina.

Modon continues to establish infrastructure and rainwater drainage in Jeddah's 1st, 2nd, and 3rd Industrial Cities with a 16 percent completion rate.

Infrastructure and stormwater drainage systems in the 2nd and 3rd Industrial Cities in Dammam are 29 percent completed.

According to the report, the ready-made products initiative to support entrepreneurs and owners of small and medium enterprises was about 57 percent done last year, while the development of the Taif Industrial City reached 40 percent.

Modon recently launched a program to support small and medium enterprises in innovation in cooperation with King Abdullah University of Science and Technology (KAUST).

The program aims to develop the industrial sector in the Kingdom and is done within the framework of the memorandum of understanding signed between the two at the end of 2019 to support and implement projects that contribute to industrial development in the Kingdom.

The Authority confirmed that the program was launched in two phases last year and included several workshops and meetings from KAUST University to help Modon's partners within the industrial cities overcome development and innovation challenges.

The program comes within the strategy to empower the industry and increase the content to establish integrated partnerships with the public and private sectors and achieve objectives of Vision 2030.

Modon also has several initiatives within NIDLP aiming to diversify the national economy and establish sustainable development concepts in the Kingdom.

The various initiatives and programs create a successful model for cooperation between the industrial sector and the academic and scientific community to help small and medium-sized enterprises generate job opportunities, adopt innovation foundations, diversify and increase their customer base and reach new markets.

Since its establishment in 2001, Modon has been developing and supervising industrial lands and integrated infrastructure.

It oversees 36 current and planned industrial cities across the Kingdom with over 4000 factories and private industrial cities and complexes.

Modon seeks to develop and manage distinguished industrial cities and technology zones in line with national priorities and partnerships with the public and private sectors. It also aims to enable private sector partners to contribute to the diversification of national income for a prosperous economy.

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Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.