The industrial sector of Saudi Arabia is undergoing an incredible transformation, driven by the nation’s Vision 2030 initiative. The industrial sector of Saudi Arabia plays a tremendous role in the economic diversification effort of the Kingdom, thus offering a plethora of opportunities in the sector for foreigners as well. An industrial license Saudi Arabia plays an important role in the working of industrial operations and production of goods in the Kingdom. As the requirements and procedure to obtain an industrial license in Saudi Arabia may vary from industry to industry, a thorough knowledge about the industrial licensing requirements are essential before you delve into the process of setting up your industrial business in the country. This blog helps you discover all key facts about industrial license in Saudi Arabia. So let’s dive in !
Industrial Sector in Saudi Arabia - Key Facts
The major industrial sectors of Saudi Arabia include mining, petrochemicals, manufacturing, desalination, and energy. The Saudi Ministry of Industry and Mineral Resources (MIMR) regulates the industrial operation in the Kingdom and has developed a National Industrial Strategy to increase the potential of the industrial sector in the country. Below are some of the key facts about the industrial sector in Saudi Arabia.
- In accordance with Saudi Arabia’s ambitious Vision 2030, the Kingdom of Saudi Arabia aims to increase its industrial exports to a value of $149 billion by 2030.
- Also the Kingdom aims to foster its industrial landscape with the help of National Industrial Strategy which includes 136 initiatives and 800 investment opportunities worth $266.2 billion.
- The major aim of this comprehensive strategy is to attract investment and promote sustainable growth in the industrial sector.
- The key objective initiated in the National Industrial Strategy is to increase the number of factories in the country from 10640 to 36000 by 2035.
- The strategic location of Saudi Arabia has been advantageous as it give Saudi Arabia access to various regional market and position it as a hub of industrial operations
- Various Government initiatives like tax breaks, simplified procedure has been implemented to attract foreign investments
Significance Of Industrial Sector In Saudi Arabia
The industrial sector of Saudi Arabia offers significant opportunities, making it a promising land of opportunities. Below we list the significance of the industrial sector in Saudi Arabia, analysing the same will help you finalise why Saudi Arabia is a great choice for your next industrial project.
Major Player in the Saudi Economy
As the largest economy in the Middle East and North Africa (MENA) region, Saudi Arabia’s industrial sector holds well-developed infrastructure and is home to vast natural resources. The industrial sector contributes majorly to the economy of the country, consisting of both domestic and international trade.
Economic Diversification
The growing industrial sector of Saudi Arabia is contributing significantly to the GDP of the country thus helping the Kingdom to reduce its dependence on oil exports.
Advancement in Technology
With the growth of industrial growth, the country can explore innovation and adopt advanced technologies in manufacturing.
Growing Population
With the country’s young and growing population, the industrial sector provides a massive market for consumer goods, thus making the country an ideal location for foreign investments.
Strategic Location of the Kingdom
The strategic location of the country helps it to have access to international markets and contribute successfully to the global industrial sector, thus adding a boost to the industrial sector of the country.
Employment Opportunities
The development in the Industrial sector can contribute significantly to generate employment opportunities for both skilled and unskilled workers.
Industrial Licensing Requirements In Saudi Arabia
Industrial licenses are crucial to run and operate your industrial business in Saudi Arabia. Having been in the commercial field of Saudi Arabia for more than a decade, we are well versed with the requirements and process involved in obtaining an industrial license in the Kingdom.
Below are the list of required documents and rules to be followed to obtain an industrial license in this Arab Kingdom.
Documents Required
The following documents has to be submitted by the applicant:
- A copy of the shareholder’s commercial registration which is certified by the Embassy of Saudi Arabia
- If the partner is a national of one of the GCC countries, a copy of their National Identity card has to be submitted given that their information is not listed in ABSHAR system.
- A copy of the financial statement of the foreign company for the previous year which is certified by the Embassy of Saudi Arabia has also must be submitted.
- A detailed report of Project Proposal and feasibility study
- Documents stating environment assessment report
- Documents showcasing capital investment and financial capability
- Documents to prove the land ownership
- Personal documents and copy of Passport
- Industrial license application form
Rules and Restrictions
- While submitting electronic form, the details regarding the license procurement by any of the partners from the Ministry of Investment has to be included.
- But those applicants who are holding premium residency status are exempted from providing the documents mentioned above.
- While submitting an electronic application, details regarding the partner’s Saudi national identity or premium residency or residency data of the partner and the commercial registration data of the participating company has to be submitted.
- To secure an industrial license in Saudi Arabia, the applicant has to approach the Ministry of Industry and Mineral Resources.
- To obtain environmental approval the applicant has to consult the General Presidency of Meteorology and Environmental Protection.
- The applicant must have the minimum capital requirement based on the planned industrial activity
- The proposed company must be compliant to the local Saudization regulations
- Must obey the industry specific rules and guidelines
- Must adhere to environmental and safety regulations for operating industrial activities
- There are restrictions on the percentage of foreign ownership in certain industries.
Obtain Your Industrial License With the Help of Analytix
We at Analytix are well aware of the complex process involved in procuring an industrial license Saudi Arabia. Our experts have helped numerous of our clients with comprehensive guidance and support to obtain an industrial license in Saudi Arabia and establish their dream industrial business in this Arab kingdom. We will help you ensure that all your documents are perfect and are in alignment with the industrial rules and regulations in the country. By choosing us as your Business Consultant in KSA, leave your worries to us, this can help you concentrate on other parts of business. Contact us today and ease your process of obtaining an industrial license in Saudi Arabia.
Conclusion
Procurement of industrial licenses are an important part of establishing your industrial business in Saudi Arabia. Knowledge about the complex law and regulations are a must before you start the process. Hope this blog on industrial license Saudi Arabia provided you with a detailed overview about the industrial license the Kingdom and how to obtain the same. Are there any questions or doubts left unanswered even after reading this blog? Contact us and let our professionals work for you. Feel free to reach out to us and let us collaborate to make your vision a reality.
- FAQs
Frequently Asked Questions
If your question is not addressed here, please feel free to reach out to us. We value your inquiry.
How to get an industrial license in Saudi Arabia?
To get industrial license in KSA, one has to submit a lot of documents to various Ministries and get approval from them. You should also be ready to abide by certain rules and regulations in the country to obtain an industrial license. To ease the process, it is always advisable to consult professional Business Consultants in the country like Analytix. They with their professional expertise can simplify the process and speed up the entire process.
Industrial license Saudi Arabia validity?
The validity of an industrial license in Saudi Arabia is five years if the investor meets all the requirements.
