The key importance of industrial gathering of pharmaceuticals is represented in many issues, the most notable being the vast difference between supply and demand, as the studies have indicated that the proportion of imported medical products is greater than 93 percent of the local production. This is a conclusive evidence of the importance of the pharmaceutical industries in the Kingdom and is intended to fulfill the local needs as well as future exports. Also, the importance of the industrial community is to provide specialized national work opportunities and exchange of local and International expertise.
MODON's Director-General Saleh bin Ibrahim Al-Rasheed said: "The new complex in Sudair City for industry and business is a joint effort in cooperation with the National Program for Industrial Communities and McKinsey Consulting Company, and the investors willing to establish medicine factories in the Kingdom. Six such factories were attracted to the complex, which will draw more local and international companies specialized in pharmaceutical industry and medical supplies.
MODON has allocated an area of 250,000 square meters in phase 1 for the pharmaceutical industries complex and more land will be allocated in phase 2 so that the industrial city will comprise a Pharmaceutical Industries Complex.
Al-Rasheed added: "The opportunity to combine quality industries such as medical industries will have a significant impact on the national economy and community, which is being sought by MODON by attracting industries specialized in various fields. Furthermore, the presence of these industries in Saudi Arabia, duly approved by Saudi Food & Drug Authority (SFDA), allows the opportunity to market the products in the Gulf countries in accordance with the high standards and specifications, in addition to the European markets.
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, Madinah, Al-Kharj, Sudair, Hail, Tabuk, Ar'ar, Al-Jouf, Asir, Jazan, Najran, Baha, Qassim (2nd), Taif, Al-Zulfi, Shaqraa and Hafr Al-Batin. There are cities under planning and designing stages as well, which include Salwa, Dhuba, Baha 2nd, military industries and Jeddah 4th. It is targeted that during the coming five years, the number of industrial cities will reach 40 industrial cities with developed industrial lands of not less than 160 million square meters.
The existing industrial cities accommodate more than 3,000 factories with investments exceeding SR250 billion and employing more than 300,000 workers.
MODON is also responsible for creating an ideal environment for developing and upgrading technology zones in the Kingdom, where it 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 government subsidizes the cost of electricity, water and fuel with a tariff dedicated for industry. The government provides funds and banks offer soft loans to industrial enterprises of up to 75 percent of the capital with repayment period lasting 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.
