Saudi industrial cities exceed 240 million square meters and comprise 7,800 factories providing more than 660,000 jobs; Riyadh Chamber's Riyadh Trade magazine examines foreign ownership of real estate as a new phase of investment openness

October 12, 2026

Prepared and Analyzed by | Strategic Media Department – BETH News Agency

Majed Al-Argoubi, CEO of the Saudi Authority for Industrial Cities and Technology Zones (MODON), revealed that private-sector investments in the industrial cities overseen by the authority have reached SAR 470 billion, while developed areas have exceeded 240 million square meters, reflecting an accelerating industrial transformation that strengthens the role of the non-oil sector in the Saudi economy.

Figures presented by Riyadh Trade, a magazine published by the Riyadh Chamber, showed that the number of industrial cities has reached 42, comprising approximately 7,800 factories and providing more than 660,000 jobs, while MODON accounts for more than 52% of the total number of factories.

Expansion and New Investments

Al-Argoubi explained that MODON has evolved from an industrial land developer into an integrated system for enabling investment and production, encompassing infrastructure, logistics services, financing, and streamlined procedures.

He pointed to the entry of more than 1,200 new investors into the Saudi market during 2025, as well as a portfolio of projects under implementation exceeding SAR 9 billion, aimed at developing an additional 40 million square meters and providing 1.2 gigawatts of electrical capacity, alongside water services and infrastructure.

Localization of Supply Chains

MODON is focusing on localizing complementary industries and strengthening the competitiveness of Saudi factories, particularly in products that currently depend on imports.

The significance of this approach is highlighted by merchandise imports reaching approximately SAR 900 billion, creating opportunities to develop domestic industries capable of replacing imported products and subsequently expanding into export markets.

Among the examples presented is the localization of plastic bottle cap manufacturing in Dammam, transforming an activity that previously relied on imports worth SAR 30 million into domestic production generating exports to Gulf markets exceeding SAR 40 million.

Real Estate: A Parallel Opening to Investment

In another economic development, Riyadh Trade devoted the cover of its latest issue to real estate ownership by non-Saudis in the Kingdom, under the headline “The Major Opening of the Real Estate Market.”

The magazine examined the investment and regulatory dimensions of the new framework, opportunities to attract foreign capital, and the stimulation of real estate development, within regulations designed to organize the market and maintain its stability.

This direction represents a parallel path to industrial expansion. Both are linked to developing the investment environment and expanding private-sector participation, although the instruments and direct economic effects differ between the two sectors.

BETH Analysis

MODON's figures reveal an important shift in Saudi Arabia's industrial economy, from expanding industrial land and facilities to building an integrated production ecosystem encompassing investment, services, technology, and supply chains.

The importance of industrial investments lies in their ability to increase domestic production, create jobs, and develop complementary industries that reduce reliance on imports and open opportunities for exports.

At the same time, regulations allowing non-Saudis to own real estate reflect a direction toward expanding international investment opportunities in another sector with a significant impact on economic activity.

The common thread between these two transformations is the shift from attracting capital as an objective in itself to deploying it in the development of productive and real estate assets, thereby strengthening the long-term competitiveness of the Saudi economy.