The recent partnership between the Saudi Authority for Industrial Cities and Technology Zones (MODON) and JINGDONG Property, the global infrastructure arm of JD.com, marks a significant milestone in the development of industrial and logistics assets across Saudi Arabia. The two entities have signed a Memorandum of Understanding (MoU) aimed at jointly developing two million square meters of assets, which is set to enhance the Kingdom’s industrial infrastructure and attract international investment.
The agreement was formalized during the 21st UNIDO General Conference held in Riyadh, in the presence of His Excellency Bandar bin Ibrahim Al-Khorayef, Minister of Industry and Mineral Resources.
In attendance were Eng. Majed Rafed Al-Argoubi, CEO of MODON, and Mr. Feng Guo, General Manager of JD.com Middle East, underscoring the strategic importance of the collaboration.
MODON and JINGDONG Property Collaborate on Logistics Projects
This partnership will leverage JINGDONG Property’s extensive experience in developing, operating, and managing modern industrial and logistics facilities, as well as securing institutional capital for significant real estate initiatives. The objective is to bolster Saudi Arabia’s logistics and industrial infrastructure while attracting international investments.
The collaboration will focus on key industrial hubs such as Riyadh, Jeddah, and Dammam. The inaugural pilot project located in Jeddah Industrial City will span over 40,000 square meters and represents JINGDONG Property’s first Greenfield development in the Kingdom. This site will feature Grade-A speculative warehousing that meets BREEAM Excellence standards, incorporating sustainable design, smart automation, and built-to-suit solutions.
The Jeddah project aims to meet the increasing demand for high-quality logistics and storage spaces in Saudi Arabia’s western region, catering to sectors such as e-commerce, fast-moving consumer goods (FMCG), automotive, food, and pharmaceuticals.
Eng. Majed Rafed Al-Argoubi emphasized that the partnership contributes to Saudi Arabia’s ambition of emerging as a global industrial and logistics hub: “This collaboration with JINGDONG Property strengthens our efforts to build world-class infrastructure that accelerates industrial growth, enhances local content, and boosts private-sector participation in line with the objectives of Vision 2030.”
Mr. Feng Guo remarked on the significance of Saudi Arabia in JD.com’s global strategy: “Saudi Arabia is a key market for JD.com’s global expansion. Through this partnership, we will introduce our expertise in sustainable and intelligent logistics infrastructure to support the Kingdom’s growing industrial ecosystem.”
Since its inception in 2001, MODON has played a pivotal role in the development of 39 industrial cities across Saudi Arabia, managing over 220 million square meters of industrial land and around 8,000 investment contracts.
On the other hand, JINGDONG Property oversees more than 270 infrastructure projects globally, serving as a critical component of JD.com’s international supply chain ecosystem.
The partnership between MODON and JINGDONG Property is regarded as a crucial step toward strengthening Saudi Arabia’s industrial and logistics framework, enhancing the Kingdom’s position as an attractive global investment destination.