16/12/2009
Modon PPP Projects Benefit Tenants
The Saudi Industrial Property Authority (Modon) has undertaken a number of projects through Private-Public Partnership (PPP) to improve the quality of services for its tenants. This was disclosed by Dr. Tawfig Bin Fawzan Alrabiah, Director General of Modon, during a meeting with members of the US-based Young Presidents' Organization (YPO) at Asharqia Chamber on Dec 14, 2009. These projects included Smartcities, District Cooling & Steam, Privatizing Water and Sewage System, Electricity and Ready-built Factories.
Mr. Khalid Abdulrahman Al Abdulkarim, Board Member of Asharqia Chamber, welcomed the YPO members. Another Chamber Board Member, Mr. Salman Bin Mohd. Al Jishi, who took the initiative to bring the YPO delegation to the Kingdom, was present on the occasion. Also present on the occasion were a group of key executives from the local leading companies and government organizations. There was a video footage highlighting the opportunities of investment projects in the Eastern Province.
Describing the Modon's PPP projects as a unique idea to raise the standard of its services, Dr Alrabiah said that it has been a successful initiative resulting in conspicuous changes in the Modon working environment. He added that when he joined Modon in 2007, he found it under heavy criticism for its low quality of services and high operational costs. "Now we are able to overcome these problems and challenges and put Modon on the right track," he observed.
Modon has also undertaken other projects in its industrial estates to better serve its clients. These projects are mainly commercial centers, healthcare centers, mergers and acquisitions and logistics supports centers, pointed out Dr. Alrabiah .
He noted that Modon is currently overseeing 14 existing industrial estates in various regions of the Kingdom such as Riyadh 1 & 2, Jeddah 1 & 2, Dammam 1 & 2, Makkah, Qassim, Ahsa, Madinah, Assir, Al Jouf, Tabuk, Hail, Najran, Al-Kharj, Jazan, and Ar’ar industrial estates. Investments in these cities have exceeded SR200 billion. There are at present over 25,000 factories in these estates which account for around 60 percent of the total industrial units in the Kingdom.
Dr. Alrabiah noted that Modon is now developing four more industrial estates with 9 more in the planning stage. Four new estates now under construction are located in Sudair, Zulfi, Taif and Gurayat.
On the back of massive development of new industrial estates and significant improvement of their quality of services, Modon's annual revenue is set to increase to SR400 billion by 2014 from its current revenue of around SR150 billion, said Dr. Alrabiah. He added: "This income target will be achieved with maintaining low rates of land at one Riyal for one square meter of land in all the industrial estates."
Modon was established in 2001 and charged with developing and supervising industrial lands in the Kingdom. Its mission is to undertake, as an independent public agency, the regulation and promotion of industrial estates and technology zones in the country on both public and private industrial lands and to encourage the private sector to become involved in the development, operations and maintenance of these industrial estates..
Mr. Al Abdulkarim, in his welcome speech, gave an overview of how businesses were developed in Saudi Arabia in the olden days comparing the methods of today's business development. He focused on Asharqia Chamber's initiatives in promoting trade and businesses in the Easter Province.
For instance, he said, the Prince Mohammed University,a unique and distinguished institution of higher education in the private sector, was established in the region though fund raising. PMU currently has more than 2,500 students with future capacity exceeding 5,000.
He highlighted activities of the Young Businessmen's Council set up by the Chamber with the objective of creating a young leadership in the business community. This innovative idea of establishing the Young Businessmen's Council, the first of its kind in the Kingdom, he said, has proved to be successful and evoked profound interest among the young generation.
Mr. Al Abdulkarim talked about another novel initiative, "the Entrepreneurship Development Program" launched by the Chamber in order to prepare young men and women to start their own businesses.
He said that the Chamber has also established a Businessmen's Club. Its main objective is to bring together top executives of different companies and leading businessmen in the region. They network among themselves and discuss various problems and impediments related to trade and businesses in order to find their solutions in a meeting on the first Tuesday of a month. They also exchange their ideas and views on various local and international trade issues and regulations with experts invited to the meeting.
Mr. Al Abdulkarim noted that since its establishment in 1952, Asharqia Chamber has been providing training services to the employees of private sector companies and fresh graduates from colleges and universities with the aim of developing a young leadership in the country.
