Industrial license for an industrial facility in industrial cities

  • Commercial Registration: The investor must have a valid commercial registration that includes the industrial activity they wish to license.
  • Business Plan: Submit a comprehensive technical and financial feasibility study for the project. The plan should include details about the type of products, production stages, machinery and equipment used, as well as the project’s marketing and financial plan.
  • Engineering Plans: If no existing building is available, detailed engineering plans for the proposed facility must be submitted. These plans should comply with the engineering standards and regulations of "MODON" (Saudi Industrial Property Authority).
  • Environmental Approvals: Obtain an environmental permit from the National Center for Environmental Compliance (NCEC). This permit is essential to ensure the facility complies with the Kingdom’s environmental standards.
  • Safety Certificate: Obtain a certificate from the Civil Defense or an accredited office proving that the facility complies with fire safety and prevention standards.
  • Land Lease Agreement: A valid land lease agreement in one of the industrial cities governed by "MODON" must be provided.
Therefore, the steps will be mentioned in order to obtain the required license.

This is the first step that the investor must take. The application is submitted through the "Sanaii" platform of the Ministry of Industry and Mineral Resources. The application must include a preliminary project plan, including the type of product, expected production capacity, and the economic and technical feasibility. This step serves as a declaration of the investor's intention to establish an industrial facility.

After obtaining preliminary approval for the project, the investor must register their establishment as an independent legal entity with the Ministry of Commerce. The commercial register serves as the establishment's legal identity and is used in all official dealings with government and financial agencies.

The investor must identify a suitable location for the project in one of the industrial cities affiliated with the Saudi Authority for Industrial Cities and Technology Zones (MODON). A land allocation contract is signed, specifying the land area, location, contract duration, and other terms. This step is necessary to secure the plot of land on which the facility will be built.

The Ministry of Industry and Mineral Resources issues the initial industrial license for the facility. This license is an official document that allows the investor to begin the establishment process and serves as approval of the concept from an industrial perspective.

The investor must contract with an engineering office accredited in the Kingdom. The engineering office will prepare all engineering, architectural, and structural plans and designs for the building and facility.

This step is one of the most important stages in the licensing process, as it assesses the potential environmental impact of the project. This study is submitted to the National Center for Environmental Compliance (NCEC). NCEC determines the project's category (A, B, or C) based on the level of potential environmental risk.

After reviewing the environmental impact assessment study by the National Center for Environmental Compliance (NCEC), the center issues an environmental approval for construction. This approval is a prerequisite for obtaining a building permit.

After obtaining environmental approval, the investor submits the engineering plans to the relevant authorities in (MODON) to obtain a building permit. This permit allows the investor to commence construction work on the designated land.

The investor must update the status of the industrial license from "Under Establishment" to "Under Construction" on the "Sanaii" platform to reflect the current stage of the project.
At this stage, investors can apply for financing loans from banks or the Saudi Industrial Development Fund, provided they have all the official documents and approvals that support their financial position.

The investor must register with a number of other government agencies, such as: the General Organization for Social Insurance (GOSI) for employee registration, the Zakat, Tax and Customs Authority (ZATCA), and other agencies depending on the nature of the activity.


The investor must submit applications for approval of the number of visas required for the foreign labor required for the project, which is done through the Ministry of Industry and Mineral Resources.

After obtaining visa approval, the investor can obtain visas from the Ministry of Human Resources and Social Development to bring in the required foreign personnel.

After a significant portion of the construction work is completed, the investor must submit water and electricity connection requests to the relevant authorities to ensure the availability of the necessary infrastructure for operation.

The competent authorities in (MODON) issue an occupancy certificate after verifying that the building is complete and complies with the approved engineering plans. This certificate is necessary to verify the building's readiness for operation.

After the facility is completed, an application is submitted for environmental approval for operation. The National Center for Environmental Compliance Control conducts a site visit to ensure the necessary environmental systems are installed, then issues the final approval for operation.

The investor must update the status of the industrial license to "Product" on the "Sanaii" platform. This step indicates that the factory is ready to begin production operations.

After obtaining all necessary approvals and licenses, the investor can officially begin practicing industrial activity and actual production.