Saudi Arabia industrial license is one of the most essential permits for foreign investors looking to enter the Kingdom’s fast-growing manufacturing and production sectors — offering strategic access to a market being rapidly transformed under Vision 2030.
Driven by Vision 2030, Saudi Arabia has introduced major FDI reforms and liberalized regulations related to business setup, making it easier than ever for international investors to establish industrial operations. These reforms have significantly advanced the industrial sector, positioning the Kingdom as a regional manufacturing hub and reducing its long-standing reliance on oil.
Manufacturing Industries in Saudi Arabia must adhere to environmental guidelines established by the General Presidency of Environmental Protection and Meteorology. Compliance includes minimizing, removing, or properly disposing of all environmental hazards.
Procedure to Start an Industrial and Manufacturing Company in Saudi Arabia
Pre-licensing Steps
- Choose a business activity: An industrial activity you want to take up and obtain a license may be chosen from the list of approved activities from the Ministry of Investment Saudi Arabia.
- Check the requirements for the business activity: The specific requirements for your chosen activity, such as equipment, machinery, and personnel, may be verified.
- Select a business location: A suitable location for your industrial facility may be chosen, ensuring compliance with Saudi Arabia’s zoning regulations.
Steps to be Taken for a Saudi Arabia Industrial License are the following:
- Legalizing documents at the Saudi Embassy
- Registering with MISA
- Name Reservation
- Drafting article of association
- Obtaining commercial registration from the Ministry of Commerce and Investment
- Securing a land contract and building permits.
- Obtain the final industrial license from the Ministry of Industry and Mineral Resources and acquire environmental permits.
- Seek approval from the General Presidency of Meteorology and Environmental Protection for environmental compliance.
- Additional registrations with government departments.
- Open a company bank account.
Required documents
- Provide a certified copy of your partner’s commercial registration. It needs to be stamped by the Saudi Embassy to confirm their legal and business credentials.
- If the partner is a GCC national and their details aren’t listed in the ABSHAR system, give a clear copy of their national identity card; this ensures proper verification of their identity and nationality.
- You will also have to submit your foreign company’s financial statements from the last year and ensure they are certified by the Saudi Embassy. These documents are essential because they show how financially healthy your business is.
Essential Conditions for Saudi Manufacturing License
- Saudi Arabia allows non-Saudi nationals 100% ownership of manufacturing licenses, 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.
Rules and Restrictions for Acquiring Industrial License in KSA
- If you previously obtained a permit from MISA, then 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 the following:
- 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 get a Saudi Arabia industrial license and seek approval from the General Presidency of Meteorology and Environmental Protection for environmental compliance.
Applicability of Saudization 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.
How Helpline Group in Saudi Arabia can help?
Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in company formation in Saudi Arabia, offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency.
With a tailored approach, coupled with precision and professionalism, we ensure that you obtain an industrial license in Saudi Arabia for your business setup.
