Industrial facilities in urban zones start relocation to industrial cities

The recent expansion by the Saudi Industrial Property Authority (MODON) in Jeddah have encouraged the transfer of hundreds of companies that have spent the last 50 years since their establishment inside the city zones, to the newly developed and expansive industrial cities.
A recent report by the authority revealed more than 45 million square meters of land has been allocated in Jeddah in a move that aims to encourage investment and provide new job opportunities in the industrial sector through the development of such industrial cities. Twenty-five million square meters have been already allocated in Jeddah, while 20 million square meters are still under development.
There are also other expansions in the pipelines, including the fourth industrial city in North Jeddah and expansions to the second and third industrial cities.
Companies transferred to the new industrial cities in South Jeddah include Halawani Bros., which invested $100 million in building an industrial complex that hosts 11 factories over an area of 60,000 square meters.
Other companies in the heart of the city that were founded at least 50 years ago, as well as companies along Tahlia Street, are also in the process of transferring to the industrial city. A government committee had warned owners of these factors to move to the new cites outside the city zone in order to preserve the safety of residents from pollutants and other dangers.
The committee includes representatives from several government agencies, such as the Civil Defense, the PME, the Chamber of Commerce, the Ministry of Commerce and Investment, and the electricity company, and is chaired by Prince Mishaal bin Majed, the governor of Jeddah.
Three new industrial cities in Jeddah were planned to be developed by the private sector and Jeddah Municipality, which owns a large portion of the 55 to 88 million square meters of land allocated for these cities, but conflicts regarding licensing has led to a delay in implementation.
MODON revealed the problem lies in developing large sites into industrial cities, as only 9 percent of these lands have been developed; only about 550 million square meters of land remains undeveloped.
According to the MODON’s strategy, the aim is to rely on the private sector for development and implementation, including development of lands that are owned by the private sector, while maintaining rental rights. The project would be under the development of the authority.
Fourteen industrial cities, with an area of 47 million square meters, have been developed.
The Kingdom is home to 3,660 factories, 50 percent of which are inside industrial cities and the rest are outside.

Source: Arab News