Industrial facility license in cities in the absence of an existing building

  • Commercial Registration: The investor must have a valid commercial registration, and the registered business activity must align with the industrial activity to be conducted at the facility.
  • Land Allocation Contract: The investor must obtain a land allocation contract in one of the industrial cities under the Saudi Authority for Industrial Cities and Technology Zones "MODON" or any other authority supervising industrial sites.
  • Project Business Plan: A comprehensive technical and economic feasibility study must be submitted, including information about the product type, production stages, machinery and equipment, as well as the marketing and financial plan.
  • Engineering Plans: Detailed engineering plans for the intended building must be submitted. These plans should comply with the regulations and standards approved by MODON and other relevant authorities.
  • Production Capacity: Specify the production capacity of the project, which should be compatible with the facility size and allocated space.
  • Project Requirements: Provide details about project needs, including workforce, water, electricity, fuel, and all other infrastructure requirements.
  • Safety Certificate: Obtain a safety certificate from Civil Defense or an accredited engineering consultancy office confirming compliance with safety and fire prevention standards.
  • Investor Nationality: The investor must be Saudi (individual or corporate), a GCC national according to applicable regulations, or hold a valid foreign investment license issued by the Saudi Ministry of Investment.
  • Industrial Feasibility: The proposed industry must have technical and economic feasibility and align with the Kingdom's industrial objectives.
  • Financial Capacity: The investor must have sufficient financial resources to fund the project and provide evidence of this capability.
Therefore, the steps will be mentioned in order to obtain the required license.
This is the investor's actual starting point. In this step, the investor submits an electronic application through the "Sanaii" platform of the Ministry of Industry and Mineral Resources. The application must include basic information about the project, such as the type of product, the expected production capacity, and the economic and technical feasibility of the project.

If the investor is not a Saudi national, they must obtain a foreign investment license from the Saudi Ministry of Investment (MISA). This license is a prerequisite for all other procedures, as it grants the foreign investor the right to engage in commercial and industrial activities in the Kingdom.

After initial approval, the investor must register their establishment as a legal entity with the Ministry of Commerce. The commercial register serves as the establishment's official identity and is necessary for all official transactions with government and financial agencies.

The investor selects a suitable location for his project, usually in one of the industrial cities affiliated with the Saudi Industrial Property Authority (MODON). A land allocation contract is concluded specifying the land area, location, and terms of use, ensuring the land plot on which the facility will be built is secured.

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

The investor must contract with an accredited engineering firm. This firm will prepare all necessary engineering plans for the building and facility, including architectural and structural designs that comply with local building regulations.

This step is one of the most important environmental stages. The investor submits an environmental impact assessment study for the project to the National Center for Environmental Compliance (NCEC). This study identifies the potential impacts of the project on the environment, and its environmental category (A, B, or C) is determined based on the level of potential risk.

After reviewing the environmental impact assessment study, the National Center for Environmental Compliance issues the environmental approval for construction. This approval is a prerequisite for submitting a building permit application.

The investor submits the completed engineering plans to the relevant authorities, such as the municipality or municipality. These plans are reviewed to ensure they comply with the building regulations and bylaws in the industrial zone.

After the engineering plans are approved, the competent authorities issue a building permit. This permit allows the investor to begin construction work on the designated land.

The investor must update the status of their industrial license on the "Sanaii" platform from "Under Establishment" to "Under Construction." This change reflects the actual 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 necessary documents and approvals to support their financial position.

After a significant portion of the construction work is completed, the investor applies for water and electricity connections. This step ensures the necessary infrastructure is in place for the actual operation of the plant.

The investor must complete registration 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 entities related to the activity.

The investor submits an application for visa approval for the foreign workers required for employment, 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 recruit the required workers.

After completing the installation of waste treatment systems and other environmental systems, the investor contracts with an environmental consulting firm to issue a technical report on environmental measurements. This report proves the facility's compliance with environmental standards.

The municipality or municipality issues 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.

The National Center for Environmental Compliance conducts a field visit to the facility to ensure that all environmental systems are operating efficiently. After review and verification, the center issues the final environmental 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.