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This story appeared in the November 2025 issue featuring the Top 100 CEOs in the Middle East ranking.
For decades, oil powered Saudi Arabia’s rise. Today, industry is shaping its future. Under the National Industrial Strategy, the Kingdom aims to increase manufacturing’s contribution to gross domestic product from 88.3 billion dollars in 2020 to 238.7 billion dollars by 2030 and 376.8 billion dollars by 2035. Over the same period, manufacturing exports are expected to grow from 45.1 billion dollars to 148.5 billion dollars by 2030 and 237.9 billion dollars by 2035, while employment in the sector is projected to rise from 893,000 to 3.3 million jobs. Reflecting this momentum, Saudi Arabia ranked forty first globally on the latest Industrial Competitiveness Index published by UNIDO in 2023, placing second in the Arab world after the United Arab Emirates and underscoring the rapid progress driven by Vision 2030.
Established in 2001, the Saudi Authority for Industrial Cities and Technology Zones, known as MODON, is leading this transformation by developing and managing industrial lands and integrated industrial cities across the Kingdom. Today, MODON oversees 39 industrial cities covering more than 220 million square meters and supporting advanced industries, emerging technologies, and logistics. Under MODON’s umbrella, these cities host more than 7,500 manufacturing facilities, 450 logistics facilities, and 20 data centers, generating over 600,000 jobs and attracting private sector investments valued at 122.7 billion dollars, says Majed Al Argoubi, Chief Executive Officer of MODON.
MODON continues to expand its industrial footprint. During the first nine months of 2025, the authority attracted nearly 1,000 new investors, increasing total investment within its cities to 7.4 billion dollars, up from 5.5 billion dollars during the same period the previous year. Between January and September 2025, MODON allocated 15 million square meters of industrial land, reflecting strong demand and sustained growth. To support this expansion, MODON signed agreements in February 2025 with local and international partners to establish four data centers with investments totaling 1.7 billion dollars, reinforcing Saudi Arabia’s ambition to build a digitally integrated industrial ecosystem.
As investment accelerates, MODON is also advancing technology led transformation. In August 2025, it partnered with Saudi based Takween AI and other stakeholders to develop an artificial intelligence center of excellence that integrates artificial intelligence and blockchain into operational processes. Al Argoubi explains that the goal is to reduce complexity while improving efficiency by empowering the existing workforce through technology rather than expanding headcount. MODON plans to launch 20 artificial intelligence tools in the coming year. By 2024, all MODON services had been fully digitized, enabling investors to complete processes such as land allocation and construction permitting entirely online.
This digital transformation is reinforced through innovation driven partnerships. Ahmed Sulaiman, Founder and Chief Executive Officer of Takween AI, says the Sadeed Center of Excellence represents a major step in advancing industrial innovation in Saudi Arabia. In partnership with MODON, the initiative focuses on developing practical artificial intelligence solutions that support smarter and more sustainable industrial cities. The center aims to localize artificial intelligence capabilities, promote data sovereignty, and support Vision 2030 by enabling industries to adopt intelligent systems in a secure and responsible manner.
Beyond digital transformation, MODON is actively empowering small and medium sized enterprises, which now represent a significant share of its investor base and are critical to industrial diversification. To lower barriers to entry, MODON introduced new ready built factory models in 2022, offering units of 1,500 and 3,600 square meters. More than 1,400 units are currently occupied, with utilization exceeding 95 percent. In November 2024, MODON launched its first entrepreneurship center, The Shop Floor, at Modon Oasis in Jeddah. The 11,000 square meter facility is designed to support more than 200 entrepreneurs through collaborative workspaces, prototyping support, mentorship, and streamlined government services to help transform ideas into market ready businesses.
Building on this momentum, MODON launched Saudi Arabia’s first multi story factory complex in Dammam in August 2025, with similar projects planned for Jeddah and Riyadh. The eight story facility in Dammam includes 78 units ranging from 156 to 251 square meters and is designed to maximize land efficiency while providing advanced infrastructure, consulting services, and training support for small manufacturers. Al Argoubi notes that these developments are designed as connected communities, offering shared workshops and access to marketing and financial advisory services.
In 2024, MODON also introduced sector specific industrial clusters to strengthen ecosystem development. One of the most notable is the Jeddah Food Cluster, launched in November 2024. Spanning 11.2 million square meters, the cluster is expected to attract investments of 5.3 billion dollars by 2035. By integrating cold chain logistics, halal processing, and packaging facilities, the cluster strengthens the Kingdom’s food supply chain and supports ambitions to become a global food export hub.
These initiatives reflect growing confidence in Saudi Arabia’s industrial sector. Aziz Al Sammarai, Assistant Vice President and Analyst at Moody’s Ratings, notes that manufacturing and broader industrial activity in the Kingdom are improving in terms of growth prospects. He highlights significant investments by the Public Investment Fund, including initiatives aimed at localizing manufacturing across sectors such as smart devices, appliances, and semiconductors. While challenges remain related to funding and infrastructure development, he emphasizes the importance of utilities, energy frameworks, and regulatory support in sustaining momentum.
Al Argoubi views these challenges as opportunities. He explains that global supply chain disruptions have created openings to strengthen local manufacturing capabilities. With stable policies, strong localization efforts, and consistent government support, Saudi Arabia is well positioned to play a central role in global industrial growth. This perspective led to the launch of the Motamim Program in 2022, which supports small manufacturers by improving operational efficiency and enhancing supply chain integration. Since its launch, more than 114 factories backed by local and international investors have joined the program.
Logistics development is another strategic priority for MODON. In February 2025, the authority issued a request for expressions of interest in partnership with the National Center for Privatization and Public Private Partnerships to develop a logistics zone in Dammam. Al Argoubi explains that MODON’s role has evolved beyond land provision to delivering integrated solutions that include residential communities, utilities, and digital infrastructure to ensure long term sustainability.
With more than two decades of experience, Al Argoubi has played a key role in shaping Saudi Arabia’s transport and industrial sectors. Before becoming Chief Executive Officer of MODON in 2022, he served as Director General of Jeddah Islamic Port and as Vice President for West Coast Port Operations at the Saudi Ports Authority. Earlier roles included Deputy Minister for the Roads Sector at the Ministry of Transport and Logistic Services and senior project engineering positions at Aramco. He has also held leadership roles at Saudi Binladin Group and has served as chair of ASAS for Developing and Operating Industrial Cities since 2023.
Under his leadership, MODON has expanded both international and domestic partnerships, including agreements with Türkiye and Singapore in 2024. Domestically, Saudi Arabia’s Industrial Production Index rose by 7.1 percent year on year in August 2025, driven by growth across mining, manufacturing, energy, and waste management. For Al Argoubi, MODON’s true achievement lies in translating strategy into execution. Today, its industrial cities integrate production, logistics, and livability, with new developments connected to national rail and gas networks to support the next generation of industrial hubs.
Internally, MODON has sustained progress through strong employee engagement driven by its Work Environment Committee, which identifies operational challenges and empowers teams through structured delegation. This approach, Al Argoubi says, has created a confident and capable workforce prepared to drive continued progress.
Looking ahead, MODON’s industrial expansion will focus on food processing, machinery and equipment, pharmaceuticals, and metals, alongside precision manufacturing projects designed to strengthen supply chains and promote sustainable growth. To support national industrial objectives, MODON aims to attract up to 1,000 new investments each year. Al Argoubi concludes that the goal is for every MODON city to serve as a catalyst for innovation, sustainability, and global competitiveness, ensuring that Saudi Arabia’s industrial sector not only grows, but leads the future.the bullish CEO envisions.
