Complete Guide to Industrial Cities in Saudi Arabia 2025: How to Get Industrial Land and Start Your Project in MODON

Introduction: Why Industrial Cities?

Have you ever thought about establishing a factory? Perhaps the idea crossed your mind but you stopped at many questions: Where do I start? How do I get land? How much will it cost? And what permits are required? In this comprehensive guide, we'll take you on a detailed journey through the world of industrial cities in Saudi Arabia, answering all your questions in an easy and practical way.

Industrial cities are not just lands for factories; they are an integrated system that provides everything you need for success: ready infrastructure, integrated services, easy financing, and a professional work environment. Most importantly, competitive rental prices starting from just one riyal per square meter annually!

First: What is MODON?

The Saudi Authority for Industrial Cities and Technology Zones "MODON" is the government body responsible for developing and managing industrial cities in the Kingdom. Established in 2001 by Cabinet decision, it has since been working to provide an integrated industrial environment that supports investors and contributes to achieving Vision 2030.

MODON Statistics in Numbers

MODON today oversees 39 industrial cities distributed throughout the Kingdom, containing more than 7,000 factories, and more than 7,900 industrial, investment, and logistics contracts. Developed areas exceed 219 million square meters, with an investment value exceeding 440 billion riyals. More than 517,000 employees work in these cities, including 185,000 Saudi employees.

Second: Types of Available Products

MODON offers several options suitable for different investor sizes and capitals:

Industrial Lands

Fully developed lands in terms of infrastructure and services such as electricity, water, and sewage. Available in various sizes starting from 1,920 square meters for small projects and reaching 5,000 square meters and more for large factories. MODON recently launched small areas in 7 industrial cities to support small and medium enterprises.

Ready Factories

An ideal option for those who want to start immediately without getting into construction and design complexities. Available in two sizes: 700 square meters and 1,500 square meters, including equipped production halls, administrative offices, parking, and green areas. They target clean and light industries such as food, medical, and electronic industries.

Land and Industrial Loan

An integrated product in cooperation with the Saudi Industrial Development Fund, allowing you to apply for industrial land and financing together in one application. The major advantage is that land allocation and billing occurs after the Fund approves financing, reducing your financial burden.

Factory and Industrial Loan

Same concept but with a ready factory instead of land. MODON offers a 15% discount on annual rent for the first five years in promising industrial cities.

Third: Steps to Obtain Industrial Land

Here are the practical steps to get your industrial land:

Step One: Register in Shareek System

Access MODON's official website and register in the "Shareek" electronic system. You'll need a valid commercial registration that includes industrial activity and basic establishment information.

Step Two: Submit Allocation Request

After activating your account, submit a new contract request through the system. Specify the required industrial city, activity type, required area, and registered capital. The allocation process is based on criteria including activity type, capital, and production capacity.

Step Three: Obtain Industrial License

Apply for an industrial license from the Ministry of Industry and Mineral Resources through the "Sinaei" platform. The license represents official approval to practice industrial activity, valid for 3 years and renewable (or 5 years according to recent updates).

Step Four: Sign the Contract

After MODON approves your request, you'll be invited to sign the lease contract. Industrial land contract terms reach up to 25 years, and logistics land up to 50 years.

Step Five: Pay Fees

Pay allocation and annual rent fees through the SADAD system. Rent fees are paid annually at the beginning of each contract year.

Step Six: Start Construction

After receiving the land, you can begin construction work according to MODON's specified standards and requirements. You'll need to contract with an accredited consulting office and qualified contractor.

Fourth: Costs and Fees

One of the most important advantages of industrial cities is competitive costs:

Industrial Land Rent

Land rental prices range from one riyal to 4 riyals per square meter annually. Major cities like Riyadh, Jeddah, and Dammam reach 4 riyals, while promising and remote cities start from one riyal. These prices are the lowest in the region compared to neighboring countries.

Ready Factory Rent

Annual rent for ready factories starts from 90,000 riyals annually, reaching up to 150,000 riyals depending on the city and area. This means an approximate cost of 60 to 100 riyals per square meter annually.

Allocation Fees

The allocation fee system has been modified to be more encouraging for production. Instead of paying a large amount upfront, you pay a fee ranging from half a riyal to one riyal per meter monthly until you start production. This encourages you to speed up building your factory and starting production.

Infrastructure Costs

The good news is that infrastructure is ready and included: electricity, water, sewage, roads, and communications. You won't need to bear additional costs to connect these services.

Fifth: Financing and Financial Support

Don't worry if your capital is limited; there are several financing entities that support industrial projects:

Saudi Industrial Development Fund

The main partner in financing industrial projects. It provides loans up to 75% of the project's capital cost, with repayment periods up to 20 years, without interest. The Fund's capital is 105 billion riyals, having disbursed more than 121 billion riyals as loans to investors.

Promising Factories Program

Easy financing up to 50% of capital, with a 24-month grace period, terms up to 10 years, and without personal guarantees.

"Asas" Product

In cooperation with the Social Development Bank, it allows investors to obtain a ready factory and financing up to 4 million riyals, with additional incentives. Ideal for small projects and entrepreneurs.

Who Can Apply for Loans?

Individuals, sole proprietorships, and Saudi and mixed companies registered commercially within the Kingdom, provided they have an industrial license to practice manufacturing.

Sixth: Industrial License

The industrial license is your passport to the world of industry. Here's what you need to know:

What is an Industrial License?

An official document issued by the Ministry of Industry and Mineral Resources authorizing you to establish and operate a factory within the Kingdom. Without it, you cannot practice any industrial activity.

Basic Requirements

You need: a valid commercial registration including industrial activity, a land allocation contract from MODON or a valid lease contract, an investment permit from the Ministry of Investment (for foreign investors), and an economic feasibility study for the project.

Issuance Steps

Register on the "Sinaei" platform, submit a new license application, attach required documents, enter labor and production capacity data, then wait for the application to be studied. Issuance is immediate for unrestricted activities.

Validity Period

License validity reaches up to 5 years after recent updates (was 3 years previously), renewable subject to compliance with conditions and standards.

Seventh: Target Industrial Sectors

Target industries in industrial cities are diverse and include:

Food and Beverage Industries

One of the fastest-growing sectors. Includes manufacturing food products, beverages, dates, bakeries, and dairy products. Cities like Sudair and Madinah are major centers for this sector.

Pharmaceutical and Medical Industries

A strategic sector with significant government support. Sudair city houses the first pharmaceutical industries complex, and 77,000 square meters have been allocated for a cancer drug production complex in Saudi-Korean partnership.

Chemical and Petrochemical Industries

Benefiting from proximity to raw material sources. Includes manufacturing basic chemicals and petrochemical derivatives.

Building Materials Industries

To support massive construction projects in the Kingdom. Includes concrete, cement, bricks, and cement products.

Metal and Mechanical Industries

Manufacturing machinery and equipment, spare parts, metal structures, and metal processing industries.

Electronics and Technology Industries

An emerging sector including electronic devices, telecommunications equipment, and industries relying on 3D printing.

Furniture and Wood Industries

Manufacturing home and office furniture, wood products, and decorations.

Textile and Clothing Industries

Manufacturing garments, textiles, leather products, and fabrics.

Eighth: Major Industrial Cities

Industrial cities are spread across all regions of the Kingdom:

Central Region

Contains 12 industrial cities, most notably three in Riyadh and Sudair Industrial City, which is the largest industrial city near Riyadh. Sudair is distinguished by its industrial diversity and houses a medical industries zone and the first pharmaceutical industries complex.

Western Region

Contains four industrial cities in Jeddah, and cities in Makkah, Madinah, Yanbu, Taif, and others. Jeddah Industrial City is one of the oldest, established in 1971.

Eastern Region

Contains 10 industrial cities, including three in Dammam and two in Al-Ahsa. Distinguished by proximity to ports and energy sources.

Ninth: MODON Oases for Women

In a pioneering step to empower Saudi women in the industrial sector, MODON established industrial oases specifically designed for women's work:

What are MODON Oases?

Industrial cities specifically designed to suit women's work nature, considering privacy and special needs. They focus on light and clean industries such as jewelry, accessories, cosmetics, fashion, textiles, electronics, and medical products.

Number and Locations of Oases

Currently, there are 5 industrial oases in: Al-Ahsa (the first of its kind), Jeddah, Qassim, Jouf, and Yanbu. They are distinguished by proximity to urban areas and provide services such as nurseries and health and recreational centers.

Goals

Vision 2030 targets raising women's investment share in the industrial sector from 1% to 20% by 2030. Female employees in industrial cities have risen to 17,000 workers.

Tenth: Advantages of Investing in Industrial Cities

Integrated Infrastructure

Everything you need is ready: electricity, water, sewage, paved roads, telecommunications networks, and security systems. You won't need to spend millions on infrastructure.

Competitive Prices

Rents starting from one riyal per meter annually, compared to hundreds of riyals for industrial lands outside official industrial cities.

Easy Financing

Interest-free loans up to 75% of project cost, with long repayment periods and grace periods.

Integrated Services

Field management in each industrial city oversees your daily needs and operation and maintenance work.

Strategic Location

Proximity to ports, airports, and highways, facilitating export and import operations.

Government Incentives

Customs exemptions on raw material imports, export support, and various tax incentives.

Eleventh: Building Requirements

After obtaining land, you must comply with building requirements specified by MODON:

Building Coefficient

Varies by city type and activity, determining the ratio of built area to total land.

Safety Requirements

Fire fighting and alarm systems, electrical connection safety certificate, safety systems maintenance contract, and plans approved by Civil Defense.

Environmental Requirements

Filters to reduce gas emissions, industrial drainage filters, and compliance with the "MEMS" environmental management system.

Contracting with Approved Entities

You must contract with an accredited engineering consulting office and a qualified contractor from MODON.

Twelfth: Industries Not Allowed in Ready Factories

To ensure a clean and safe environment, there are industries not accepted in ready factories:

Recycling industries, oils and greases, large machinery and equipment, toxic and polluting chemicals, polluting industries in general, aluminum (except value-added products), glass, and paints and dyes.

Thirteenth: Tips for New Investors

Start Small

If your capital is limited, start with a ready factory instead of building from scratch. This saves you time, effort, and money.

Choose Location Carefully

Choose the industrial city based on: proximity to target market, availability of raw materials, rental costs, and target industries in that city.

Utilize Financing

Don't hesitate to apply for Industrial Fund loans. Interest-free financing is a golden opportunity.

Get Consultation

Before starting, consult specialists in feasibility studies and industrial licensing to avoid costly mistakes.

Follow Updates

Regulations and systems change constantly. Follow MODON's website and Ministry of Industry for the latest developments.

Frequently Asked Questions

How much does industrial land rent cost?

Ranges from one riyal to 4 riyals per square meter annually, depending on the industrial city location. Major cities (Riyadh, Jeddah, Dammam) at 4 riyals, promising cities at lower prices.

What is the smallest area available?

MODON recently launched small areas starting from 1,920 square meters in 7 industrial cities to support small enterprises.

How long do procedures to obtain land take?

Depends on how quickly you complete requirements. With the electronic "Shareek" system, the process has become faster and more transparent.

Can foreigners invest in industrial cities?

Yes, provided they obtain an investment permit from the Ministry of Investment and an industrial license.

What is the lease contract duration?

Up to 25 years for industrial lands, and 50 years for logistics lands.

Can land be transferred to another investor?

Yes, provided the factory is producing, and according to specific MODON conditions.

What is the emergency number in industrial cities?

MODON's emergency reports number is 1920.

Conclusion

Industrial cities in Saudi Arabia provide an exceptional opportunity for industrial investors, with low costs, ready infrastructure, and easy financing. Whether you're planning a large factory or a small project, you'll find options that suit you from the diverse choices available.

The first step is always the hardest, but with this guide, the picture is now clear before you. Register in the "Shareek" system, explore available industrial cities, and choose what suits your project. Saudi industry is in its golden age, and you're invited to be part of this renaissance.

At Raghdan, we believe that knowledge is the foundation of the right decision. Share your experience or questions with us, and we're here to help you on your journey to industrial success.