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    DuVolks

    Sector guide / Saudi Arabia

    How to Set Up a Factory
    in Saudi Arabia

    Confirm what you’ll make and check the factory location before you sign a lease. Use the initial industrial licence to set up the project. Start making goods once the licence reaches the production stage and the required approvals are in place.

    Find your licensing routePlan my setup

    01 / Choose your activity

    Which licence do I need?

    Industrial or commercial licensing depends on what your business does. Record each activity you plan to carry out on your commercial registration (CR).

    Make locally

    Making furniture in Saudi Arabia? Follow the industrial licensing route with the Ministry of Industry and Mineral Resources (MIM).

    Import and sell

    Reselling imported furniture? Register the trading activity, check Balady premises licensing where required, register on Fasah and check product rules before shipping.

    Do both

    Making tables locally and importing chairs for resale? Check that your CR and any required investment registration cover both activities, and confirm the approvals for each.

    Check your activity codes

    02 / Set up the factory

    Steps to open a factory

    Confirm the order with MIM and the authority responsible for your factory location. Some approvals are needed before construction or fit-out.

    1. 01

      Define the activity and owners

      List what you’ll make, how you’ll make it and who will own the company.

      Compare ownership routes
    2. 02

      Check investment registration

      Complete MISA registration where required. Saudi or GCC-only owners follow the formation route that applies to them.

      MISA registration guide
    3. 03

      Register the company

      File the company documents and get a CR with the planned activities through the Saudi Business Center.

      Company registration guide
    4. 04

      Get the factory premises ready

      Check the initial industrial licence, then arrange the required premises and environmental approvals before work starts.

      Check premises approvals
    5. 05

      Get cleared to produce

      Meet the operating requirements and confirm the production stage of your industrial licence with MIM.

      Check industrial licensing

    03 / Operating checks

    Check the factory location and hiring rules

    Before the lease or fit-out

    Factory location & layout

    Ask the authority for your chosen location whether you can manufacture there.

    • Production flow and machinery
    • Power, water and utility capacity
    • Materials, storage and vehicle access
    • Waste, emissions and safety needs
    Find out who approves the premises

    Planning your operation

    Nitaqat (Saudization)

    Use your Qiwa activity and headcount to check Nitaqat. Check Saudization rules for each job separately, including engineering and technical roles.

    Your team & Saudization

    Nitaqat: your entity’s workforce

    Nitaqat assesses the entity’s workforce using its registered economic activity and employee figures. A broad sector name alone does not determine the required percentage. Use the Nitaqat planner with your Qiwa activity and workforce.

    Profession-specific Saudization

    Profession-specific Saudization is a separate check. The applicable decision may depend on the occupation, covered workforce, workplace and effective date. Meeting a Nitaqat band does not replace this check.

    Roles to check: engineering, technical, procurement, warehouse and administrative roles. These are prompts for your hiring plan, not a statement that every listed role has the same quota.

    Calculate my Nitaqat planCheck profession Saudization

    Use the tool’s scope, effective date and source notes. These links do not transfer or infer your activity, headcount or job codes.

    HRSD — Nitaqat calculator ↗HRSD — decisions and regulations ↗

    Is your factory in an industrial zone?

    Use Balady to check the requirements for municipal premises. For an industrial zone, ask the zone operator which premises approvals apply.

    Your premises & municipality requirements
    Check the activity in Balady ↗Find my ISIC activity code

    In Balady, choose ISIC search, enter the activity code and open the detailed requirements.

    04 / Licences and permits

    Approvals before production

    Use the process, location and product to confirm which approvals apply.

    Industrial licence in Saudi Arabia

    Check the establishment, construction and production stages for your project. Confirm the licence status before making goods.

    Ministry of Industry and Mineral Resources (MIM)Industrial licence service ↗

    Factory location and premises

    Before leasing or fitting out, confirm permitted use and the applicable building and operating approvals.

    Municipality, MODON or the authority for your locationMODON services guide (PDF) ↗

    Environmental permits

    Check the permits needed before construction and before operation. Studies and evidence depend on the project category.

    National Center for Environmental Compliance (NCEC)Construction permit example (Arabic) ↗

    Safety approval

    Plan fire protection and safe storage during design. Complete the required inspections before opening.

    Civil Defense or the authority for your locationCivil Defense safety services ↗

    05 / Your next step

    What to prepare

    Bring these details when discussing the factory location or budget. Checklist ticks stay on this page.

    0 of 4 prompts reviewed

    DuVolks / Practical support

    Plan your factory setup

    Tell us what you’ll make and where. We can help identify the approvals and prepare the setup plan.

    Discuss my manufacturing plan

    06 / Official references

    Sources & scope

    Official sources & scope9 official references · review scope

    Base sector guidance: 5 October 2026.
    Targeted authority review: 14 October 2026.

    Licensing comparison checked 9 November 2026.

    Planning overview, not a complete technical, environmental or legal audit. Confirm current requirements with the competent authority for your project.

    Discuss Your Structure