Abha: The development of the Second Aseer Industrial City Project has begun at Al-Hafeer Center, located northwest of Khamis Mushait Governorate, igniting an economic transformation in the Aseer Region.

Implemented by the Saudi Authority for Industrial Cities and Technology Zones (MODON) and the Aseer Region Development Authority, the project covers an area of 17.3 million square meters. Its primary objectives are to create job opportunities and attract investment.

Governor of Aseer Region and Chairman of Aseer Development Authority Prince Turki bin Talal bin Abdulaziz announced the beginning of the project development on December 20, 2023.

The new city aims to support the National Industrial Strategy's economic goals, including tripling the industrial contribution to the GDP, to SAR895 billion. It also targets doubling job opportunities in the sector, to 2.1 million, and increasing industrial exports to SAR557 billion. This aligns with MODON's strategy to attract investments, diversify national production and promote non-oil exports, in line with the objectives of the National Industrial Strategy.

The project focuses on 11 industrial domains, including food, medicine, pharmaceuticals, wood and furniture, clothing and textile, and metal, with a view to maximizing the economic value of the industrial sector and lending support to the objectives of the National Industrial Development and Logistics Program (NIDLP) by increasing local manufacturers' contribution to government purchases and capital, and increasing government expenditure of government companies in the sector, developing human capital, and attracting investment to localize industries.

The city contributes to achieving the National Industrial Strategy's primary goals by building a flexible national industrial economy, reducing supply chain risks, developing the industrial business environment, supporting small and medium industrial projects, and increasing local contribution to the industrial sector.

In the first phase of development of the city, MODON is developing a two-million-square-meter area by building a well-connected road network to optimize supply chain management, developing infrastructure, such as roads, electricity, water networks, firefighting techniques, treated water facilities and a sewage-treatment plant, with the aim of establishing a competitive and sustainable industrial city.

The early work in the new city involved land allocation and infrastructure projects; it contributed to an industrial and economic renaissance in the region. Notably, investments of SAR100 million were made by a national company to establish a modern construction materials factory. Another investment of SAR150 million was directed toward a business incubator and accelerator.

Additionally, SAR35 million was allocated to establish a factory specializing in manufacturing medical supplies, while SAR80 million was invested in a factory supporting local agricultural production. Furthermore, SAR24 million was dedicated to a factory focused on animal feed production, to increase local production capacity.

MODON has partnered with the Technical and Vocational Training Corporation (TVTC) to address the anticipated demand for national workforce in the new industrial city. Through this collaboration, training opportunities will be provided in the factories of the First Aseer Industrial City to qualify and improve the craft and technical skills of national cadres in the industrial sector, aligning with labor market requirements and contributing to the job-localization efforts.