Industrial sector investments in Saudi Arabia jumped 281 per cent in the last 12 months and delivered a staggering 30,000 new jobs despite the headwinds to economic growth as a result of the pandemic, according to Knight Frank.

The fast-paced growth in Saudi Arabia’s industrial sector has also been supported by initiatives led by Modon. Apart from developing and managing 36 industrial cities around the kingdom, spread across more than 200 million sqm of developed land, Modon has started to offer new products and services, such as ready warehouses, self-storage units and financing solutions to small and medium enterprises and entrepreneurs, including ‘plug n’ play’ factories.

The real estate market in Saudi Arabia has remained resilient, with all sectors growing rapidly over the course of the last 18 months. The industrial sector however stands out due to its exceptional expansion, according to the H1 Saudi Arabia Industrial Market Review by Knight Frank, global property consultant.

Faisal Durrani, Partner – Head of Middle East Research, Knight Frank, explained: “The government’s transformational vision for the economy is nowhere more visible than in the real estate market, with the industrial market in particular emerging as a stand-out performer.”

Durrani added: “While the government’s economic initiatives have been a catalyst for the growth in the industrial sector, the pandemic has played an equally significant role. The shift to online shopping has driven a surge in requirements for modern distribution facilities which remain in very short supply.

“We do not expect a let-up in online shopping and indeed the government forecasts revenues for the sector to close in on SR30 billion ($8 billion) this year, up from SR24.7 billion in 2020.”

The market’s buoyancy is driving up lease rates and occupancy levels, according to Knight Frank. In Riyadh, rents have risen by almost 7 per cent over the last 12 months and currently stand at about SR130 psm.