Modon Authority
Overview
The Saudi Authority for Industrial Cities and Technology Zones (Modon) is the government entity entrusted with developing and managing industrial cities and technology zones in the Kingdom of Saudi Arabia. Established in 2001 by Council of Ministers Resolution No. 235, Modon currently oversees 35 industrial cities — both operational and under development — across various regions of the Kingdom. Modon works in partnership with the private sector to provide fully serviced industrial lands and infrastructure for investors, supporting Saudi Vision 2030's goal of making Saudi Arabia a leading industrial power. This guide explains Modon services, the Shareek system, industrial land costs, investment incentives, and joint financing programs with the Saudi Industrial Development Fund.
Modon is one of the primary entities for achieving the objectives of the National Industrial Strategy in Saudi Arabia. Its mission is to develop fully serviced industrial lands and provide a competitive investment environment to attract quality investments:
- Full name: Saudi Authority for Industrial Cities and Technology Zones.
- Abbreviation: Modon (MODON).
- Establishment: 2001 (27/8/1422 AH) by Council of Ministers Resolution No. 235.
- Supervisory scope: 35 industrial cities and technology zones across the Kingdom.
- E-services system: the unified Shareek system.
- Beneficiary categories: industrial investors (local and foreign), private-sector partners (contractors, developers, suppliers), government partners.
Modon's Role in Saudi Vision 2030
With the launch of Saudi Vision 2030 — which adopted industry as a strategic option to enrich the structures of the national economy — Modon became one of the primary entities to achieve these aspirations through:
- Developing industrial lands, cities, and integrated infrastructure.
- Providing an advanced and stimulating environment for investment in partnership with the public and private sectors.
- Attracting global companies to invest in the Saudi industrial sector.
- Encouraging value-added industries (food, energy, gas, mining, manufacturing).
- Localizing the industrial sector and supporting SMEs and entrepreneurs.
- Providing employment opportunities for Saudi citizens across all regions.
Joint Financing Programs with SIDF
In partnership with the Saudi Industrial Development Fund (SIDF), Modon offers exceptional programs that combine industrial land allocation and financing in a unified application:
1. Factory and Industrial Loan Program
- Unified application for financing + allocation of a ready-to-use factory for industrial investment.
- Partnership between Modon and the Saudi Industrial Development Fund.
- Goal: shortening time and effort for the investor.
- Aligning the requirements of the Industrial Fund and Modon in a unified package.
- Suitable for investors who prefer starting with a ready-to-use factory.
2. Land and Industrial Loan Program
- Unified application for industrial financing + allocation of ready industrial land.
- Partnership between 4 entities: Saudi Industrial Development Fund + Special Economic Cities and Zones Authority + King Abdullah Economic City + Modon.
- Unifying policies and procedures for obtaining land + loan.
- Developing the industrial sector and stimulating investors.
- Suitable for investors who prefer building their own factory on allocated land.
Notes on Financing Programs
• Both programs significantly reduce time and effort by integrating land/factory requests with financing applications.
• Terms and eligibility are subject to the Saudi Industrial Development Fund's evaluation.
• Complete information is available through sidf.gov.sa and communication with Modon via the Shareek system.
• Suitable for industrial investors seeking financing and land in a single step.
Industrial Investment Costs at Modon 2026
Modon strives to provide the best services at competitive prices locally, regionally, and globally, with a financial incentive system for those committed to environmental and safety standards:
| Item | Details |
| Annual industrial land fee | Variable based on industrial city, location, and area |
| Allocation fee (incentive) | Paid monthly for 24 months or as a one-time payment |
| Allocation fee suspension | Stops immediately upon commercial production start (incentive to accelerate production) |
| Financial incentive consideration | For establishments committed to environmental and safety requirements for a full year |
| Value-Added Tax (VAT) | 15% is added to all fees (not included in announced prices) |
| Payment mechanism | Direct payment via the Industrial Cities Authority according to the issued invoice |
Notes on Costs
• Prices vary significantly between the 35 industrial cities (Riyadh, Jeddah, Dammam, Al-Qassim, Hail, Al-Jouf, etc.).
• Modon does not publish a unified price schedule publicly due to the diversity of cities, locations, and areas.
• For an accurate price quote: direct communication with the regional sector manager of the target city.
• The financial incentive may revert to its original value in case of violations of environmental and safety requirements.
Steps to Invest at Modon
- Obtain an industrial investment license from the Ministry of Investment (MISA) - for foreign investors.
- Extract a commercial registration from the Saudi Business Center.
- Select the appropriate industrial city for the activity from among 35 available cities.
- Register in the Shareek system via modon.gov.sa/ar/Eservices/Pages/Shareek.aspx.
- Submit an industrial land or ready factory allocation application through the system.
- Upload the required documents (feasibility study, technical data, investment license).
- Wait for application review by Modon and approval of the allocation.
- Receive the allocation contract and pay the allocation fee (monthly for 24 months or one-time).
- Begin construction and development work through Modon-qualified contractors.
- Obtain the operating license and start commercial production (allocation fee stops).
- Comply with environmental and safety requirements to benefit from the financial incentive.
For investors who prefer integrated financing: submit a unified application through the "Land and Loan" or "Factory and Loan" program in cooperation with the Saudi Industrial Development Fund.
Official Modon Integrations
Modon Authority is connected to an integrated network of government entities to enable industrial investors:
| Entity / Platform | Integration Type |
| Ministry of Industry and Mineral Resources | Regulatory authority over the Saudi industrial sector |
| Saudi Industrial Development Fund (SIDF) | Partnership in "Land and Loan" and "Factory and Loan" programs for industrial financing |
| Special Economic Cities and Zones Authority | Partnership in the unified "Land and Loan" program |
| King Abdullah Economic City (KAEC) | Partnership in the unified "Land and Loan" program |
| Ministry of Investment (MISA) | Investment license is a prerequisite for foreign investors before allocation |
| Saudi Business Center | Commercial registration is a prerequisite for Shareek system registration |
| Shareek System | Unified electronic ecosystem for all Modon services |
| Suppliers Portal | Electronic communication system with Modon suppliers |
Correct order for industrial investment through Modon:
MISA license (for foreigners) → Commercial registration → Shareek system registration → Industrial city selection → Allocation request or "Land and Loan" program → Approval and accreditation → Allocation fee payment → Construction and development → Operating license → Commercial production start.
When You Need Modon
Need for Modon Authority appears in the following cases:
- Establishing a factory or industrial facility in Saudi Arabia (ready land or ready factory).
- Obtaining integrated industrial financing combined with land allocation (Land and Loan program).
- Obtaining integrated industrial financing combined with a ready factory (Factory and Loan program).
- Expanding an existing factory to another industrial city.
- Qualifying as a contractor or developer to work within industrial cities.
- Registering as a Modon supplier through the suppliers portal.
- Benefiting from Modon's financial incentives (allocation fee suspension upon production start).
- Benefiting from the financial incentive for compliance with environmental and safety requirements.
- Investing in value-added industries (food, energy, gas, mining, manufacturing).
- Benefiting from integrated infrastructure in industrial cities and logistics connectivity.
When Do You Need Specialized Help with Modon Procedures?
Industrial investment in Saudi Arabia through Modon, especially for foreign investors, requires a precise understanding of the map of the 35 industrial cities and their specializations, selecting the appropriate program (land allocation, ready factory, Land and Loan, Factory and Loan), preparing the feasibility study correctly, and coordinating between several entities (Modon, MISA, SIDF, Saudi Business Center). Any error in choosing the city or program may result in wasted time and effort.
Companies and foreign investors commonly face recurring challenges in:
- Selecting the appropriate industrial city from among 35 cities.
- Selecting the most suitable program (direct allocation, Land and Loan, Factory and Loan).
- Obtaining a MISA license before applying to Modon.
- Preparing the technical and economic feasibility study in the format required by Modon.
- Coordinating between Modon and the Saudi Industrial Development Fund in joint programs.
- Contacting the regional sector manager concerned with the target city.
- Providing the Saudi/resident authorized representative to manage the Shareek system account.
- Following up on environmental and safety compliance to obtain financial incentives.
Book a Free Consultation with the Motaded Team
Motaded Limited provides complete support services for foreign industrial investors in Saudi Arabia, including: obtaining the MISA license, extracting the commercial registration, Shareek system registration, identifying the appropriate industrial city, preparing the feasibility study, submitting allocation applications or joint financing programs (Land and Loan, Factory and Loan), coordinating with regional sector managers, and providing the Saudi authorized representative. Reach out at info@motaded.com.sa or book a meeting to learn how we can open the doors of Saudi industrial investment for your company.
When you need this platform
Industrial Land Allocation
Modon's core service — enabling investors to obtain industrial land in one of the 35 industrial cities:
- Submitting an industrial land allocation application through the Shareek system.
- Selecting the appropriate industrial city (based on location and sector).
- Determining the required area according to the nature of the industrial activity.
- Initial reservation and completing the allocation procedures.
Shareek System (E-Services)
Modon's integrated digital ecosystem, launched as part of the digital transformation strategy to unify all electronic systems:
- Unifying all Modon transactions in a single platform.
- Information interconnectivity and enhanced flexibility.
- Integration with other government systems.
- Reducing transaction costs for investors and partners.
- High-quality outputs including reports and statistics.
Contractor and Developer Qualification
A service enabling contractors and real estate developers to obtain accreditation to work within industrial cities:
- Submitting a qualification application to perform construction and development work.
- After approval, the contractor becomes qualified to provide services to Modon partners.
- Verification of technical and financial competence of contractors.
Suppliers Portal
A specialized electronic portal for communication between Modon and suppliers, to improve overall performance rates through more effective communication channels.
Various Administrative Services
- Subcontract registration for tenants within industrial cities.
- Operating license management.
- Geographic Information System (GIS) providing accurate data for decision-making.
- Logistics services and connecting industrial cities to land and air transportation networks.
Requirements
-
For the Industrial Investor:
- Valid commercial registration from the Saudi Business Center.
- Industrial investment license from the Ministry of Investment (MISA) - for foreigners.
- Technical and economic feasibility study for the industrial project.
- Parent company and investor data (for foreign companies).
- Audited financial statements (for existing establishments).
- Detailed business plan including required area and production capacity. -
For Contractors and Developers:
- Valid commercial registration in the required activity.
- Qualification certificates from competent authorities.
- Qualified technical staff and track record.
- Audited financial statements to prove financial solvency.
- Submitting the qualification application via the Shareek system. -
For Foreign Companies:
- Valid MISA license.
- Saudi commercial registration.
- Saudi national or Saudi resident authorized representative to manage the Shareek account.
- Legalization of foreign documents by the Saudi embassy or apostille.
- Certified legal translation of non-Arabic documents.
Resources
Frequently asked questions
What is Modon Authority?
Modon is the Saudi Authority for Industrial Cities and Technology Zones, established in 2001 by Council of Ministers Resolution No. 235. It oversees 35 industrial cities across the Kingdom, and its mission is to develop industrial lands and provide an integrated investment environment for local and foreign industrial investors.
How is payment made to Modon?
Payment is made directly via the Industrial Cities Authority according to the issued invoice, not through a fixed SADAD biller code like other government entities. The payment mechanism is determined according to the contract concluded with Modon, and may include monthly installments for the allocation fee over 24 months, or a one-time payment.
How much does industrial land cost at Modon?
Costs are entirely variable, with no fixed published prices. They differ based on: the industrial city (Riyadh, Jeddah, Dammam, Al-Qassim, etc.), location within the city, area in square meters, and type of industrial activity. To obtain an accurate quote, direct communication with the regional sector manager of the target city is required.
What is the Shareek system?
Shareek is Modon's unified electronic system, launched by the Authority as part of the digital transformation strategy. It unifies all electronic systems in a single platform and integrates with other government systems. Through it, registration, land allocation requests, contractor qualifications, and all investor transactions with Modon are conducted.
What is the Land and Loan program?
A joint program between 4 entities: Saudi Industrial Development Fund + Special Economic Cities and Zones Authority + King Abdullah Economic City + Modon Authority. It enables the investor to submit a unified application to obtain allocated industrial land + industrial loan in a single process, saving time and effort.
What is the Factory and Loan program?
A joint program between Modon Authority and the Saudi Industrial Development Fund. It enables the investor to submit a unified application to obtain a ready-to-use factory + industrial financing in a single package. Suitable for investors who prefer starting with a ready factory rather than building one from scratch.
How many industrial cities does Modon oversee?
Modon currently oversees 35 industrial cities across various regions of the Kingdom, both operational and under development. Their distribution covers the Central, Eastern, Western, and Northern sectors, with diversity in targeted industrial sectors. Each city has a regional sector manager for direct communication with investors.
What is the allocation fee and why does it stop?
The allocation fee is an amount paid by the investor after industrial land allocation, paid monthly for 24 months or as a one-time payment. This fee stops automatically when actual commercial production begins. It is an incentive system from Modon to encourage investors to accelerate production and avoid project delays.
What is the financial incentive consideration?
An additional incentive offered by Modon to industrial establishments committed to environmental and safety requirements for a full year. This consideration may revert to its original value if the establishment commits violations of environmental and safety requirements. The goal: enhancing environmental compliance and safety standards in the industrial sector.
Can foreign investors invest at Modon?
Yes, Modon is open to foreign investment, but obtaining an industrial investment license from the Ministry of Investment (MISA) first is required, followed by extracting the Saudi commercial registration, before submitting the allocation request. A Saudi national or Saudi resident authorized representative is also required to manage the Shareek system account. Motaded Limited provides the integrated service.
What industrial sectors does Modon target?
Modon targets value-added industries, most notably: food industries (with a specialized hub), gas and energy, mining, manufacturing industries, and logistics industries. Each industrial city may specialize in a particular sector, so it is necessary to verify the compatibility of your activity with the chosen city before applying.
How do I contact Modon?
To contact Modon: through the official "Contact Us" page at modon.gov.sa/ar/ContactUs/Pages/ContactUs.aspx, through the Shareek system for registered investors, or direct communication with the regional sector manager of the target industrial city (Central, Eastern, Western, or Northern). Each sector has a manager and officials with different contact information.