The Saudi-Omani industrial partnership between Modon and Osara aims to accelerate industrial development, create new jobs, and advance Vision 2030 goals

In a significant step to strengthen Saudi Arabia’s industrial sector, a Saudi-Omani industrial partnership has been formed between the Saudi Authority for Industrial Cities and Technology Zones (MODON) and Oman’s Osara Real Estate Development Co. This strategic agreement will introduce 52 ready-built factories in Jeddah, boosting the city’s manufacturing capabilities and attracting foreign investment.

The new industrial park, which will span over 45,000 square metres in Jeddah’s Second Industrial City, reflects Saudi Arabia’s drive to expand its manufacturing sector. The project aligns with MODON’s broader goals of supporting the National Industrial Strategy and realising the ambitions of Vision 2030. According to the Saudi Press Agency, the Kingdom is aiming to triple its manufacturing GDP by the end of the decade, targeting an increase in industrial exports to reach SR557 billion ($148.34 billion).

MODON’s collaboration with Osara is not just about expanding infrastructure but also about fostering a dynamic environment for small and medium-sized enterprises (SMEs) and entrepreneurs. By offering ready-made factory spaces, the partnership is designed to lower the entry barriers for new businesses, thus empowering local talent and boosting industrial output. The initiative is expected to generate numerous high-quality jobs, contributing to Saudi Arabia’s economic diversification goals.

In a statement, MODON highlighted that this agreement coincides with the rollout of several innovative solutions tailored to the needs of its industrial partners. These include the introduction of a “ready-made factory” model, which grants companies access to more than 1,500 pre-built facilities, streamlining the process of setting up manufacturing operations. Another new offering, the “Motamim” initiative, aims to provide comprehensive support to factories and businesses operating within designated industrial zones, ensuring they have the resources needed to thrive.

The recent agreement also follows a year of significant expansion for MODON, with the authority completing numerous projects aimed at enhancing industrial capacity across the Kingdom. In 2024, MODON developed 20 factories, each covering 450 square metres, alongside 12 larger production sites in Jeddah’s MODON Oasis. The developments did not stop there; an additional 24 facilities of 225 square metres were constructed in Jeddah’s First Industrial City, complemented by 20 plants in Taif’s industrial zone.

Furthermore, the MODON Oasis in Al-Ahsa saw the construction of 40 supporting units, while the industrial city of Waad Al-Shamal welcomed 32 ready-made factories, each with integrated support facilities. These expansions reflect MODON’s long-term strategy to transform Saudi Arabia into a hub for industrial and technological advancement.

Since its establishment in 2001, MODON has been instrumental in developing and managing industrial cities and technology zones throughout the Kingdom. Today, the authority oversees 37 industrial cities with a total developed land area exceeding 215 million square metres. The number of industrial establishments within these zones has grown to nearly 6,900, underscoring MODON’s crucial role in driving the nation’s economic progress.

By partnering with private sector entities like Oman’s Osara Corp., Saudi Arabia is making a concerted effort to attract foreign direct investment. This is a key component of Vision 2030, which aims to reduce the Kingdom’s reliance on oil by diversifying its economic base. The deal with Osara is expected to accelerate the Kingdom’s journey towards becoming a leading industrial powerhouse in the Middle East.

The focus on pre-built, ready-to-use factory spaces in Jeddah aligns with Saudi Arabia’s strategy to streamline industrial development. These ready-built factories will enable faster setup for manufacturers, thereby speeding up the time it takes to get production lines operational. This approach is designed to attract both local and international businesses looking to invest in Saudi Arabia’s growing industrial ecosystem.

Looking forward, MODON remains committed to its mission of making Saudi Arabia a preferred destination for industrial investment. The recent expansions in Jeddah, Taif, and Waad Al-Shamal demonstrate the authority’s proactive approach to developing infrastructure that supports industrial growth. By continuing to develop such projects, Saudi Arabia aims to raise total investments in the sector to SR1.3 trillion, boost exports of advanced technology products by sixfold, and generate thousands of jobs in high-value sectors.

With this Saudi-Omani partnership, the Kingdom is not just building factories; it is laying the foundation for a robust industrial future, one that is set to drive economic growth, enhance technological capabilities, and improve living standards for its citizens.