"Investments amount to 124 Million Saudi Riyals "
Saudi Industrial Property Authority "MODON" signed the third residential investment project in Riyadh 2nd. Industrial City, where Mawten Real Estate Company will invest an amount of SR 12 million for the development of two residential complexes in Riyadh 2nd. Industrial City. This agreement is part of MODON's efforts for establishing residential complexes in the industrial cities for the purpose of providing appropriate environment, close to the workers operating in the factories. The industrial cities in Riyadh are particularly considered the largest industrial complex in the Middle East. MODON is currently overseeing two private industrial cities which include more than 1000 factories where almost 120 thousand employees and workers are employed to run these factories.
The area of the residential complex which will be established by Mawten Real Estate Company is 18,000 square meters; while the area of the other complex is 16,000 square meters composed of 1773 residential units to accommodate 6000 workers and technicians.
The agreement was signed by the Director General of MODON Eng. Saleh bin Ibrahim Al-Rasheed and Dr. Ra'ed Al-Dakheel, the CEO of Mawten Real Estate Company.
Following the signing of the agreement, the Director General of MODON Eng. Saleh Al-Rasheed said: "MODON" is working hard to support the industrial cities with Real estate products supporting the industrial projects aimed at creating integrated service industrial zones and overcoming all obstacles encountered by the workers operating in the industrial cities such as, lack of the available residential units. We motivate the developed national companies to establish high-quality residential complexes to provide the industrial cities an attractive environment of competencies and leading industrial projects".
Eng. Al-Rasheed indicated that the selection of Mawten Real Estate Company to implement this project was undertaken by following the procedures implemented by MODON to verify the eligibility of the Real Estate companies to perform these types of projects and to realize the extent of its capacity to execute, as well as, to realize the financial position of the company. Mawten Real Estate Company is the third real estate developer investing in Riyadh 2nd.Industrial City for the purpose of establishing a residential complex. MODON had previously signed contracts for residential projects with ABRAM Company to construct 520 residential units, accommodating more than 4,000 technicians and workers.
On his part, Dr. Ra'ed Al-Dakheel, the CEO of Mawten Real Estate Company explained that the execution of the project will take almost 24 months after the completion of the final designs of the project and after the project is awarded to the contractor for execution.
He said that Mawten Real Estate Company is giving extreme care to provide real estate products supporting the industrial services. He added that the current project was among the company's desire to enlarge the base of its industrial real estate investments, taking into account that the company is currently implementing the Industrial Gate project, approved by MODON, on an area of 6,5 million square meters.
The CEO of Mawten Real Estate Company emphasized that the project will provide an ideal residential environment for factory workers and technicians operating in Riyadh 2nd.Industrial City, as shown in the study prepared by the company, regarding the preferred locations for factory personnel in the city.
Dr. Al-Dakheel expected that the Mawten residential project will contribute in providing high-class services, and when completed will provide an ideal model of residential complexes with regards to the provision of accommodation for workers and therefore, reducing reliance on temporary housing in the adjacent districts designated for housing of families.
Meanwhile, the Saudi Industrial Property Authority (MODON) was established in 2001. MODON is responsible for the development of integrated service lands, where MODON has established industrial cities in various regions of the Kingdom and currently oversees 28 existing or underdevelopment cities which include: Riyadh (1st., 2nd. & 3rd.), Jeddah (1st., 2nd. & 3rd.), Dammam (1st., 2nd. & 3rd.), Makkah, Qassim 1st. , Al-Ahsa, Al-Madinah, Al-Kharj, Sudair, Ha'il, Tabuk, Ar'ar, Al-Jouf, Assir, Jazan, Najran, , Al-Baha, Qassim 2nd.,Taif, Al-Zulfi, Shaqraa, Hafr Al-Batin. There are cities under planning and designing stages as well, which include Salwa, Dhuba, Al-Baha 2nd., Military industries and Jeddah 4th. It is targeted that during the coming five years, the number of industrial cities shall reach 40 industrial cities with developed industrial lands of not less than 160 million square meters.
The existing industrial cities accommodate more than 3 thousand factories with investments exceeding 250 billion riyals and employing more than 300 thousand workers.
MODON is also responsible for creating ideal environment for developing and upgrading technology zones in the Kingdom of Saudi Arabia, where MODON is currently overseeing two technology zones and six private industrial cities.
The industrial cities have many economic advantages and incentives for attracting the industrial, technical, service, residential and commercial projects. The annual rent of the land starts from one riyal per square meter. The cost of electricity, water and fuel is subsidized by the government with a tariff dedicated for industry. The government provides funds and banks offer soft loans to industrial enterprises of up to 75% of the capital with repayment period lasting to 20 years. In addition, there are other facilities to subsidize the exports through provision of exports warranty and customs duty exemption of imports including raw materials and machinery.
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© Press Release 2012
