Saudi Arabia Launches Aviation Industries Cluster in Jeddah to Enhance Supply Chains

MODON; Logo © MODON Saudi Press Agency (SPA)02.03.2025 Aviation Space
Saudi Arabia Launches Aviation Industries Cluster in Jeddah to Enhance Supply Chains

Saudi Arabia Launches Aviation Industries Cluster in Jeddah to Enhance Supply Chains

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The Saudi Authority for Industrial Cities and Technology Zones (MODON) has announced the launch of an aviation industries cluster at the Modon Oasis in Jeddah, covering an area of 1.2 million square meters.

This initiative is a collaboration between the Saudi Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation (GACA), aimed at localizing advanced technologies and enhancing supply chains in the aviation sector.

The aviation cluster in Jeddah aims to create an attractive investment environment for localizing the aviation industry near King Abdulaziz International Airport and the Jeddah Islamic Port.

The cluster will feature well-prepared factories with diverse spaces to support the aviation industry as a key advanced technology sector, the Saudi Press Agency (SPA) reported.

Since its establishment in 2001, Modon has been undertaking the development and supervision of industrial lands and integrated infrastructure. Today, it oversees 36 existing and under development industrial cities across the Kingdom, in addition to private industrial cities and complexes. Modon succeeded in raising the area of developed industrial lands until now nearly 200 million m².

These cities manage 6,587 industrial and investment contracts and more than 4,000 factories between producer, existing and under construction and establishment, employing 517,242 male and female employees - including 185,840 Saudi men and 16,825 women, according to the Authority’s website.

Modon operates on a clearly-defined strategy to fully utilize all the benefits of government-private partnerships. It successfully offered many incentives in industrial cities, thereby attracting leading international industrial companies as well as foreign investments that add value to the Saudi industry sector. Modon also made great progress in its internal partnerships and attracted more than SAR 370 billion (US$ 98.7 billion) in investments to date.

In the midst of the ongoing global industrial transformation, Modon formulated many mechanisms to stimulate the participation of small and medium enterprises, entrepreneurs, and major local companies in the Kingdom’s industrial development, thereby contributing to the realization of Vision 2030’s industry-dependent economic diversification goals.

Modon’s strategy to enable the industry and contribute to increasing local content relies on developing more services and products is centered around an innovative vision that meets the requirements of private sector partners and enhances their participation in economic diversification in line with Vision 2030. This includes its initiatives in the National Industrial Development and Logistics Program (NIDLP) as well as the provision of many products, such as industrial lands with developed infrastructure and services, and service lands allocated for investment in the development of facilities and services, prefabricated factories that have between 700-1,500 square meter in area, and logistics solutions distributed in the Kingdom’s main provinces.​

Modon launched the “Land and Industrial Loan” and “Factory and Loan” product in cooperation with the Saudi Industrial Development Fund (SIDF), and “Osos” in cooperation with the Social Development Bank (SDB). Finally, Modon fosters the highest levels of quality and institutional excellence to achieve the expected outcomes of its strategy, which seeks to develop model industrial cities that utilize innovative technologies to meet the needs of partners and enhance their satisfaction, and as well as support the growth of small and medium enterprises and entrepreneurs. 

 



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