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يوــــنـسـلا رــيرـقـتـلا Annual Report

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يوــــنـسـلا رــيرـقـتـلا Annual Report الـتـقـريــر الـسـنــــوي ANNUAL REPORT 2019 ـAH 1441 - 1440 modon.gov.sa In the Name of Allah, the Most Gracious, the Most Merciful 4 Annual Report 2019 5 Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud May Allah protect him “My first objective is for our country to be a pioneer and successful global model of excellence on all fronts, and I will work with you to achieve that.” 6 Annual Report 2019 7 His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al-Saud Crown Prince, Deputy Prime Minister and Minister of Defense of Saudi Arabia May Allah protect him “Our ambition is to build a thriving country where all citizens can fulfilll their dreams, hopes and ambitions. Therefore, we will not rest until our nation is a leader on the global stage.” Contents Chapter Three 68 Corporate Performance 70 Operational Excellence 86 Human Capital 90 Digital Transformation 92 Communication and Empowerment 96 Social Responsibility 102 Financial Performance 10 Introduction 106 Internal Audit 12 Board of Directors 14 Chairman’s Foreword 16 Director-General’s Statement 18 Organizational Structure Chapter One 20 Modon’s Journey Chapter Four 24 Modon in Numbers 40 Modon’s Strategy 28 Executive Summary 42 Strategy Development and Implementation 110 Industrial Cities, 45 Saudi Vision 2030 Initiatives Services and Products 50 Corporate Excellence 51 Quality Management 112 Modon’s Services 114 Modon’s Products 116 Industrial Cities 222 Private Industrial Cities and Complexes: Building Today for a Bright Tomorrow 231 Technology Zones Chapter Two 54 Industry Enablement Chapter Five 56 Partnerships and Business 59 Attracting Investment 236 Conclusion 60 National Productivity Program 61 Comprehensive Observer Program 238 Challenges and Solutions 62 Business Incubators 241 Thanks and Appreciation 63 Conducive Environment and Business Value 64 How Modon Supports Industrial Productivity 10 Annual Report 2019 11 Introduction This annual report is As the Saudi Authority for Industrial Cities and Technology the facilitation of a modern investment environment that prepared in line with the Zones (Modon) successfully completes another year of adheres to international standards. We work in line with highest transparency business, we continue to establish ourselves as a leading the directives of the government, led by Custodian of the standards and outlines organization in the Kingdom. This has been another Two Holy Mosques King Salman bin Abdulaziz Al-Saud and the authority’s work remarkable year in terms of achievement and we enter a Crown Prince Mohammed bin Salman bin Abdulaziz Al-Saud, and achievements over new year with renewed hope and ambition, guided by a so we can play our part in ensuring Saudi Arabia is a success 2019, as mandated by forward-thinking government and its far-reaching blueprint story on the global stage. Article (29) of the Council for the future – Saudi Vision 2030. We also maintain our This year’s report comprehensively outlines our of Ministers’ law issued longstanding commitment to achieving a leading global achievements, starting with a successful restructuring of through Royal Decree position and high level of competitiveness. the authority. It also covers Modon’s efforts in improving number (A/13), dated 2019 has been a year where we demonstrated innovation, employee performance as we continue to expand our August 20, 1993. creativity and excellence. It is a year where we consolidated portfolio of services provided to the industrial and our position as a sector leader by developing local investment sectors, initiatives to develop human capital, and industry and focused on nationalizing regional and global programs to implement the Kingdom’s Saudization policies investments by leveraging the capabilities and long-standing and actively increase the number of women who work with expertise we have cultivated since the 1970s – a decade us. when the government initially announced the launch of The report will explore the improvements we have made in three industrial cities as a foundation to foster urban and our technical, legal and regulatory performance as well as industrial development in our proud country. Fast forward to the development of services in the industrial cities under our 2020, and we have played a pivotal role in setting up no less purview through the highest level of operational assessment than 35 industrial cities that provide comprehensive services methods. It will also shed light on achievements in the to investors. services we provided, in-progress and completed projects, 2019 has been a year in which we continued to supported corporate performance and business development. Riyadh Second Industrial City 12 Annual Report 2019 13 Board of Directors – Saudi Authority for Industrial Cities and Technology Zones (MODON) HE Mr. HE Eng. Eng. Eng. Mr. Mr. Mr. Dr. Bandar I. Al-Khorayef Osama A. Al-Zamil Khalid M. Al-Salem Ahmed A. Al-Saleem Bader K. Al-Mahri Abdul Salam A. Al-Mana Abdullah I. Al-Ghumlas Yousef M. Al-Youssef Chairman Representative of the Ministry of Representative of the Ministry of Representative of the Ministry of Representative of the Ministry of Representative of King Abdulaziz Minister of Industry and Modon Director-General Representative of the Ministry of Industry and Mineral Resources Municipal and Rural Affairs Economy and Planning Commerce and Investment City for Science and Technology Mineral Resources Finance (KACST) Board Member Board Member Board Member Board Member Board Member Board Member Board Member Eng. Khaled S. Al-Hammad Board Secretary Dr. Eng. Eng. Eng. Eng. Eng. Ahmed H. Al-Thenayan Mohammed A. Al-Mowkley Khaled S. Al-Ohali Mohammed O. Al-Juaid Ziad T. Al-Murshed Khalid H. Al-Qanoon Representative of the Ministry of Private Sector Representative Private Sector Representative Private Sector Representative Private Sector Representative Private Sector Representative Communications and Information Technology Board Member Board Member Board Member Board Member Board Member Board Member 14 Annual Report 2019 15 Chairman’s Foreword It was clear by the end of 2019 that the government’s Every day the global industrial sector witnesses economy and working to develop initiatives and solutions efforts to implement Saudi Vision 2030 was continuing to continuous change as manufacturers upgrade productive that will advance Saudi industry. In turn, this will elevate bear fruit, especially when we consider the huge strides efficiency through the adoption of advanced technologies the national economy so that it is on par with those of the country has made across all sectors. Saudi Arabia is such as the Internet of Things (IoT), robotics, Augmented developed countries, thus achieving the aspirations of our currently the largest economy in the Middle East and Reality (AR), Virtual Reality (VR), 3D printing and Artificial proud country. North Africa, member of the Group of Twenty (G20) Intelligence (AI). These innovations also collectively largest economies in the world, and has been ranked top contribute to the so-called Fourth Industrial Revolution globally for implementing business environment reforms. and Smart Manufacturing (Industry 4.0) paradigm We should rightly be proud of all our achievements under shifts that we are currently experiencing. The sector is the leadership of Custodian of the Two Holy Mosques King increasingly investing in digital technology that enables Salman bin Abdulaziz Al-Saud. This is especially the case factory self-management, enhances decision-making when you consider the extensive economic reform that capabilities and increases manufacturing revenue. has taken place in the Kingdom, the largest of its kind in Economically, these upgrades have helped the global the country’s recent history. sector grow by $4.5 trillion. Saudi Vision 2030 has the overarching objective of We are ready to play an active part in this revolution and achieving sustainable development for all citizens by embed digital transformation and smart manufacturing diversifying the economy. Manufacturing is very much initiatives across our business so we can achieve a central pillar of this vision – HRH Prince Mohammed significant advancements in our production. These bin Salman bin Abdulaziz Al-Saud, Crown Prince, Deputy improvements will be based on facilitating integration Prime Minister and Minister of Defense, launched the between vision development and decision making as well National Industrial Development and Logistics Program as across our entire chain of operations including design, (NIDLP) that focuses on developing four key sectors supply chain management, production, delivery and consisting of industry, mining, energy and logistics. customer service. NIDLP’s aim is to transform Saudi Arabia into a leading At the Ministry of Industry and Mineral Resources, we are industrial power and international logistics hub. witnessing an acceleration of change across the global Minister of Industry and Mineral Resources HE Mr. Bandar I. Al-Khorayef 16 Annual Report 2019 17 Director-General’s Statement Since our establishment in 2001, Modon has focused Modon’s strategy for enabling local industry and increasing and project financing in one package, while the latter aims on developing industrial zones and their integrated domestic industrial production is centered around developing to reduce the time it takes partner investors to complete and infrastructure. Today we oversee 35 cities and many others new services and products in line with an innovative vision follow up applications
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