10 Things You Need to Know About Industrial License Saudi Arabia

Saudi Arabia, driven by its Vision 2030 initiative, is actively diversifying its economy beyond oil and investing heavily in industrialization. For anyone looking to set up a manufacturing or industrial facility, obtaining an industrial license in Saudi Arabia is a mandatory, strategic, and potentially lucrative step.

Here’s an in-depth guide to help you navigate everything about industrial licenses in the Kingdom.

1. What Is an Industrial License Saudi Arabia?

An industrial license in Saudi Arabia is an official permit required for foreign and local investors to establish and operate manufacturing activities. The license is granted by the Ministry of Industry and Mineral Resources (MIMR) and ensures compliance with Saudi laws for operating industrial units.

2. Categories of Industrial Licenses

There are three main types of industrial license Saudi Arabia:

Heavy Industry License: For capital-intensive, large-scale operations (e.g., metallurgy, energy, heavy machinery).

Light Industry License: For small and medium-scale manufacturing, with lower capital and simpler facilities (textiles, consumer goods).

Transformative Industry License: For converting raw materials into finished products through assembly, refinement, or packaging processes.

3. Who Can Apply for an Industrial License?

Both foreign and local investors can apply. Foreign companies must show proof of operations outside Saudi for over one year and provide relevant documents. 100% foreign ownership is allowed for industrial activities, unlike some other sectors.

4. The Application Requirements

You must prepare:

Certified commercial registration
Audited financial statements
Board resolution and Power of Attorney
Details of existing foreign company(ies) and partners
Identity proof (for all shareholders/managers; GCC identity if applicable)

5. The Application Process: Step-by-Step

Prepare Company Documents (commercial registration, memoranda, financials)

Apply for a MISA License (via Ministry of Investment; this is the foreign investment permission)

Submit License Application via the Ministry of Industry and Mineral Resources (MIMR) online portal

Feasibility Study & Blueprints: Submit details about the project, including production plans and factory design

Approval & Fees Payment: Receive approval and pay associated fees

Pick Your Location: Most projects require location in designated industrial zones.

6. Regulatory Oversight

The MIMR (Ministry of Industry and Mineral Resources) regulates industrial licensing and compliance.

The Ministry of Investment (MISA) approves foreign investments.

The National Center for Environmental Compliance is consulted for environmental considerations.

7. Documentation for Compliance

You will need:

Company incorporating documents
Partner identities/shareholder details
Saudi national/Premium Residency details for local partners
Business plans, projected financials, and detailed manufacturing process descriptions.

8. Preliminary vs. Final Industrial License

There are two phases:

Preliminary License: Given at the planning stage so you can start preparations and initial investments.

Final License: Granted after all approvals, factory readiness, and compliance with requirements (e.g., Saudization quotas, safety, etc.).

9. Incentives & Benefits

Holding an industrial license brings attractive incentives:

Customs exemptions (for raw materials, machinery)
Financial support and government grants
Logistics and infrastructure support
Access to clusters and industrial zones fostering networking and efficiency.

10. Strategic Sectors & Saudization

Saudi Arabia’s Vision 2030 prioritizes industries such as renewable energy, advanced manufacturing, chemicals, and pharmaceuticals. Licensing sometimes fast-tracks these strategic sectors. Compliance with Saudization (local workforce quotas) is required for all licensed manufacturers.

How to Get an Industrial License in Saudi Arabia

For those wondering how to get an industrial license in Saudi Arabia:

Apply online via the Ministry of Industry and Mineral Resources (MIMR) portal
Prepare and submit all required company documents and financials
Secure investment approval via MISA (if foreign ownership)
Choose a compliant industrial zone location
Obtain environmental and municipality approvals as required
Upon approval, pay the fees and commence business operations

Ready to Launch Your Industrial Venture?

Securing your industrial license in Saudi Arabia is the gateway to manufacturing success in the world’s fastest-growing industrial hub. For tailored, end-to-end support, consult DuVolks, your strategic partner in Saudi business setup and compliance. Start your journey with confidence and make your mark in Saudi’s dynamic industrial landscape.

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Author Bio

Salman Thorop is the Founder of DuVolks, with a deep-rooted presence in Saudi Arabia since 2009. His entrepreneurial journey began in 2014 when he established his business under the SAGIA (now MISA) license. A compliance expert by profession, Salman has developed extensive expertise in Saudi Arabia’s regulatory landscape and specializes in business setup and PRO services. He maintains a keen understanding of government initiatives and policy changes through active engagement with official Saudi government Twitter handles.