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.

Trump Treasury Pick Bessent Backs Fed Independence, Dollar, Sanctions on Russian Oil

Scott Bessent, US President-elect Donald Trump's nominee to be secretary of treasury, looks on as he testifies during a Senate Committee on Finance confirmation hearing on Capitol Hill in Washington, US, January 16, 2025. (Reuters)

08:05-17 January 2025 AD ـ 18 Rajab 1446 AH

Trump Treasury Pick Bessent Backs Fed Independence, Dollar, Sanctions on Russian Oil

President-elect Donald Trump's pick for Treasury secretary, Scott Bessent, said on Thursday that the dollar should remain the world's reserve currency, the Federal Reserve should stay independent and that he is ready to impose tougher sanctions on Russia's oil sector.

Bessent, testifying at a Senate Finance Committee confirmation hearing, underscored an urgent need to extend Trump's 2017 individual tax cuts, saying that allowing them to expire at the end of this year would unleash a $4 trillion tax hike that could crush the US economy.

"If we do not renew and extend, then we will be facing an economic calamity," Bessent said. "We will see a gigantic middle class tax increase."

Bessent, a hedge fund manager and founder of Key Square Capital Management, voiced support for Trump's plans to impose steep tariffs, saying they would combat unfair trade practices, raise revenues and increase US negotiating leverage, including on non-trade issues.

In prepared remarks he said pro-growth tax, investment, trade and energy policies would usher in a "a new economic golden age" of prosperity.

RUSSIAN OIL SANCTIONS

Bessent said that US sanctions against Russia's oil sector have been too weak, partly because the Biden administration was too concerned about increasing prices at the same time it was constraining US oil output. Increased US oil production would allow for tougher sanctions on Russian oil majors, he said.

"I think if any officials in the Russian Federation are watching this confirmation hearing, they should know that if I'm confirmed, and if President Trump requests as part of his strategy to end the Ukraine war, that I will be 100% on board with taking sanctions up - especially on the Russian oil majors - to levels that would bring the Russian Federation to the table," Bessent said.

He also had harsh words for China, calling it "the most imbalanced, unbalanced economy in the history of the world," one that was trying to export its way out of a "severe recession/depression" and the US could not allow China to flood US or world markets with cheap goods.

NO DRAMA

In a hearing marked by few testy exchanges, Bessent coolly fielded questions ranging from child tax credits to tariff impacts on farmers and did not stray from answers consistent with previous Republican Treasury nominees, but without contradicting Trump's policy plans.

He said that US spending on President Joe Biden's clean energy tax credit was "wildly out of control" and that high deficits in recent years were due to a "spending problem." Asked if a 100% tax credit for business research and development needed to be restored, he said his "inclination" would be to support that.

Democrats chided Bessent for taking advantage of a tax loophole, the legality of which has been disputed by the Internal Revenue Service, to reduce the Medicare taxes paid by his hedge fund by $910,000 over three years.

"This is exactly the kind of abusive scheme that leaves Americans feeling disgusted with our tax system," said Senator Ron Wyden, the panel's top Democrat.

Bessent said that he would set aside funds to pay any taxes owing once the case is decided. He has pledged to shutter Key Square to avoid conflicts of interest if his nomination is confirmed.

FED INDEPENDENCE

Markets were expected to scrutinize Bessent's comments on keeping the Federal Reserve independent for clues as to whether Trump would try to exert control over the US central bank given the president-elect's frequent complaints over Fed interest rate decisions.

But Bessent came down firmly on the side of Fed monetary policy independence, adding that Trump would still make his views known.

"I think on monetary policy decisions, the FOMC should be independent," he said, referring to the Fed's rate-setting panel, the Federal Open Market Committee.

Although some economists have said that Trump's plans to impose tariffs, cut taxes and curb immigration would be inflationary, Bessent disagreed, saying Trump's plans, including increased energy production, would lower inflation to the Fed's 2% target while increasing wages.

Despite Trump's longstanding complaints about a strong dollar hurting US exports, Bessent said: "Critically - critically - we must ensure that the dollar remains the world's reserve currency."

Bessent also rejected the idea of a central bank digital currency for the Fed, saying that the dollar's wide use and security made this unnecessary. He said he was open to the idea of creating a US sovereign wealth fund, but said the US needed to get control over short-term deficit growth first.

HIGH DEBT, LESS CAPACITY

Bessent vowed that there would be no debt default on US Treasury debt under his watch. Asked whether Congress should abandon the federal debt ceiling, Bessent said that if Trump requested that, he would work with Congress to make it happen.

The high debt level means that there is less capacity to borrow heavily to combat a crisis, Bessent said, citing examples of the 1930s Great Depression, World War Two and the recent COVID-19 pandemic.

"Treasury – along with the whole of government and Congress - has used its borrowing capacity to save the union, save the world, and save the American people," Bessent said. "What we currently have now, we would be hard pressed to do the same."

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