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By drawing trade and investment from neighboring nations, the industrial sector has the potential to position Saudi Arabia as a regional powerhouse for industrial output.  The Kingdom is actively working towards reducing reliance on oil and diversifying its economy. With a keen focus on becoming a central hub for production and manufacturing in the GCC region, Saudi Arabia aims to play a pivotal role in regional development to meet the increasing demands of the area.

Industrial and Manufacturing license in Saudi Arabia

Manufacturing businesses in Saudi Arabia must adhere to environmental standards set by the General Presidency of Meteorology and Environmental Protection. Compliance includes minimizing, removing, or properly disposing of all environmental hazards. 

Industrial operations in Saudi Arabia are facilitated by the Saudi Ministry of Industry and Mineral Resources. Companies obtain licenses from this authority to engage in manufacturing activities, enabling them to produce goods within the country. These licenses cover heavy, light, and transformative industries, ensuring compliance with regulations and promoting industrial development.

Industrial & Manufacturing License Saudi

The implication of Industrial sectors in Saudi Arabia.

  • Saudi Arabia is actively shifting from oil dependence with the National Industrial Development and Logistics Program (NIDLP), aiming for global industrial leadership. 
  • Emphasizing value-added production, the program attracts global investors to create a robust industrial base, fostering economic diversification and sustainable growth.
  • Under the Saudi Authority for Industrial Cities and Technology Zones (MODON), 36 industrial cities host over 3,500 factories. 
  • MODON’s incentives lure investments from the GCC, Arab, and international markets, driving innovation. This strategic initiative seeks to establish Saudi Arabia as a dynamic industrial hub, reducing reliance on oil exports. 

Essential Conditions for Saudi Manufacturing License

  • Saudi Arabia allows 100% ownership of manufacturing licenses by non-Saudi nationals, fostering an attractive environment for international investors.
  • Parent companies, whether forming subsidiaries or branches, must exhibit financial stability through audited accounts during the application process.
  • Businesses need to allocate a nominal share of capital aligned with the scale of their operations in Saudi Arabia.
  • A minimum percentage of production must be sold within Saudi Arabia.

Procedure to start an industrial and manufacturing company in Saudi Arabia.

To establish a manufacturing company in Saudi Arabia as a foreign non-GCC national, the process involves: 

  • Legalizing documents at the Saudi Embassy
  • Obtaining an MISA license
  • Name reservation
  • Drafting article of association
  • Obtaining commercial registration
  • Registering with the Ministry of Commerce.
  • Securing a land contract and building permits.
  • Obtain the final industrial license from the Ministry of Industry and acquire environmental permits. 
  • Post Commercial Registration 
  • Additional registrations with government departments. 
  • Open a company bank account.

Necessary approvals for a manufacturing company to operate in KSA.

  • The Ministry of Industry and Mineral Resources is the topmost authority for manufacturing licenses in Saudi Arabia. 
  • Approval as per environmental standards set by the General Presidency of Meteorology and Environmental Protection.
  • Approval from Saudi Authority for Industrial cities

And technology zones(MODON)

Rules and restrictions for acquiring Industrial license in KSA

  • If any partner has previously been licensed by the Ministry of Investment, it is essential to specify this when completing the partners’ details in the electronic application.
  • Premium residence holders are exempt from the document requirements mentioned above.
  • Applicants must provide data related to:
  • Saudi national identity
  • Premium residence
  • Residence (if applicable)
  • Commercial registration data for participating Saudi companies during the electronic application submission.
  • The licensee should consult the Ministry of Industry and Mineral Resources to obtain an industrial license and also seek approval from the General Presidency of Meteorology and Environmental Protection for environmental compliance.

Is Saudization applicable to Industrial and Manufacturing companies?

Manufacturing companies in Saudi Arabia must adhere to Saudization rules, with rates varying based on factors such as business size and sector. The government provides incentives and financing support to facilitate business setup and operations.

Kickstart your Industrial and Manufacturing Company in KSA with our expert consultation.

Choosing Helpline Group for assistance to start your industrial and manufacturing company and related license will have the following benefits: 

  • Efficiency: We work diligently to complete the process on time and efficiently.
  • Compliance with laws: Our team ensures that your business remains compliant with local laws, minimizing risks and ensuring smooth operations.
  • Proper Documentation: We meticulously create and maintain documentation based on Saudi rules and regulations.
  • Reliability: You can trust us regarding the safety and security of your documents.
  • Support: We are here to answer all your queries regarding the process.

Helpline Group is a reliable business consultant in Saudi Arabia, specializing in expert guidance for obtaining industrial and manufacturing licenses. With a 25 years track record, we excel in delivering prompt and accurate solutions tailored to your business requirements. Our extensive global presence includes ten international branches, and our team of over 300 experts is committed to delivering top-notch services in the industry.