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.

 

 



Norway's Sovereign Fund Proposes Deep Cuts to US Treasury Holdings

A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche
A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche
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Norway's Sovereign Fund Proposes Deep Cuts to US Treasury Holdings

A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche
A general view of the Norwegian central bank in Oslo, Norway March 6, 2018. Picture taken March 6, 2018. REUTERS/Gwladys Fouche

The manager of Norway's $2.3 trillion sovereign wealth fund has proposed significantly cutting its exposure to US Treasuries as part of a wider shake-up of its bond investments to improve returns, according to a letter published this week.

Norges Bank Investment Management has recommended reducing its weighting to government bonds within its benchmark bond index to 50% from 70%, with US Treasuries, the biggest holding, getting the biggest cut, according to the letter.

The changes would mean cutting nearly $80 billion from the fund's current holdings of about $215 billion of US Treasuries as of the end of June, according to Reuters calculations.

Government bond markets have been under pressure recently, with long-term borrowing costs soaring as rising inflation and government debt levels spooked investors.

Norway's sovereign wealth fund, the world's largest, owns on average 1.5% of ⁠all listed companies ⁠globally. Its scale means that portfolio decisions can influence broader market flows. Any cuts to its bond holdings are unlikely to be implemented until several months into 2027 at the earliest.

The letter containing the fund's proposals was sent in response to questions from Norway's finance ministry about the wealth fund's investment strategy for bonds.

Norges Bank IM said it would await the ministry's response, and any changes would be done gradually to limit market impact and transaction costs.

The proposals will form part of recommendations to the ministry in January.

They will be discussed ⁠as part of the fund's annual white paper process next spring, after which the ministry will make a final recommendation to parliament which will then hold a hearing, a Norges Bank IM spokesperson said.

"We recommend that the government subindex of the bond index be reduced from 70% to 50%," Ida Wolden Bache, governor of Norges Bank, and Norges Bank IM CEO Nicolai Tangen wrote in the letter.

"A government share of 50% will be sufficient to cover the liquidity needs, including in periods of turbulence in financial markets."

The fund also proposed considering an increase in investments in unlisted assets in a separate letter, in part as a way to reduce concentration risks that have grown in its equity portfolio amid the boom in the share prices of a handful of US tech companies.

Under its current mandate the fund can own unlisted real estate and renewable energy assets, but it has a lower share of unlisted investments ⁠than comparable funds.

Norges Bank IM said the biggest change to its bond index would be investing in more non-government debt, including mortgage-backed securities, to give it better diversification and exposure to risk premiums.

The spokesperson said total US dollar exposure would remain around 50%, adding: "What changes is the mix inside the dollar market: less US government debt, correspondingly more US mortgage and government-related bonds."

Under the proposals, the bond index weighting to US government bonds would reduce from 34.1% to 21.9%, according to the letter, with the allocation to euro area debt falling more modestly from 16.8% to 14.1%.

The allocation to Japanese government bonds would increase from 4.6% to 7.4%, while the UK allocation would remain unchanged at 4.2%. The fund said the changes would align the index more closely with the broader market weightings.

While US Treasuries exposure would fall, the proposed allocation to US non-government debt would jump from 16.2% to 27.6%, meaning that the overall bond index's weighting to the US dollar would fall only slightly, from 52.9% to 52.5%.

Europe's biggest pension fund, Dutch fund ABP, cut the value of its own US Treasury holdings in the first quarter of this year, Reuters previously reported.


J.P. Morgan, BNP Paribas Forecast December ECB Rate Hike

FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo
FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo
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J.P. Morgan, BNP Paribas Forecast December ECB Rate Hike

FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo
FILE PHOTO: The logo of the European Central Bank (ECB) is pictured outside its headquarters in Frankfurt, Germany, April 26, 2018. REUTERS/Kai Pfaffenbach/File Photo

J.P. Morgan and BNP Paribas said on Thursday they expect the European Central Bank to deliver another 25-basis-point rate hike in December, as persistent inflation risks and elevated energy prices strengthen the case for further tightening.

Both brokerages had previously expected the ECB's tightening cycle to end without a December rate increase.

The revised outlooks suggest borrowing costs in the euro zone will remain elevated for longer than previously anticipated, reflecting resilient regional economic ⁠growth and ongoing energy ⁠supply concerns.

"We think the persistence of the energy shock and the resilience of the economy make second-round effects more likely to materialize," said analysts at BNP Paribas in a note.

Markets have almost fully priced in ⁠a 25-basis-point interest rate hike by the European Central Bank at its September 10 policy meeting, indicating a 99.2% probability, according to data compiled by LSEG.

Oil prices eased but remained above $95 a barrel. At the same time, eurozone bond yields retreated from multiyear highs, following recent market pressure as the escalating conflict in Iran boosted energy prices, stoking fears of persistent inflation and ⁠tighter ⁠monetary policy.

According to Reuters, J.P. Morgan said "an interaction between more persistent energy price pressures, solid growth, sticky core inflation and a neutral rate that the ECB sees edging higher" would be the reason for a further rate hike in December.

BNP Paribas expects the ECB to hike interest rates by 25 bps at its meeting next week while leaving the door wide open to delivering more if evidence of second-round effects builds.


US Sanctions Turkish Bank, 2 Subsidiaries to Pressure Iran

ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)
ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)
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US Sanctions Turkish Bank, 2 Subsidiaries to Pressure Iran

ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)
ASHEVILLE, NORTH CAROLINA - SEPTEMBER 1: Treasury Secretary Scott Bessent arrives for a press conference as the 2026 G20 Financial meetings come to a close on September 1, 2026 in Asheville, North Carolina. Melissa Sue Gerrits/Getty Images/AFPages via AFP)

The US Treasury Department said on Friday it imposed new Iran-related sanctions on a small Turkish investment bank and two subsidiaries as part of the Trump administration's effort to increase economic pressure on Iran.

The entities targeted are Instanbul-based investment bank Golden Global Yatirim Bankasi Anonim Sirketi, asset manager Golden Global Portfoy Yonetimi Anonim Sirketi, and asset leasing company Golden Global Varlik Kiralama Anonim Sirketi, according to the Treasury's Office of Foreign Assets Control.

The sanctions put all three entities on the Treasury's OFAC Specially Designated Nationals list, cutting them off from the dollar-based financial system.

The Treasury Department also issued a general license to allow the wind-down of transactions with the sanctioned entities.

In an interview with news outlet America's Voice News, US Treasury Secretary Scott Bessent ⁠said that the ⁠latest action "is code for you are out of business."

"And we will probably sanction another bank next week, and we are telling the financial system bad actors: 'We know who you are, you know who you are, it's over, and our allies are helping with this," he said.

Golden Global Yatrim Bankasi is the 35th-largest bank in Turkey by total assets, according to database TheBanks.EU, with total assets of 25,024.68 million Turkish lira ($516.63 million) in 2025.

The bank did not immediately respond to a request for comment.

The Treasury said in a statement that Golden Global was established for the purpose of enabling Iran's shadow banking network to transfer oil revenues from China to Türkiye,
where it could then be converted to cash and gold by money exchangers.

The Treasury said that Golden Global has knowingly offered to provide correspondent banking services to Iranian financial institutions, enabling transactions through accounts controlled by the Iranian Revolutionary Guard Corps Qods Force and its proxies.

The action is the latest in the Trump administration's campaign to economically pressure Tehran six months into the US-Israel war with Iran, which has pushed energy prices higher worldwide.

Bessent, who last month announced an "economic onslaught" against Iran's financial links around the world, has said Washington is seeking to force Tehran back to the negotiating table.

Last week, Washington moved to impose Patriot Act curbs ⁠on Egyptian lender Banque Misr's ⁠branches in the United Arab Emirates from US dollar transactions over their dealings with Iran. But the action fell short of full OFAC sanctions on the institution that did not affect Misr's head office or branches elsewhere.

In an interview with Reuters on Sunday, Bessent said the Treasury Department was likely to roll out new secondary sanctions every week, initially focusing on banks, as part of a broader campaign to intensify economic pressure on Iran.