Factory or production line
Licence required
Manufacturing, processing, assembly or packaging of products, whether in an industrial city or, where permitted, outside one. This is the core case for the MIM licence.
Industrial license in Saudi Arabia: how a foreign investor gets one
An industrial license in Saudi Arabia is issued by the Ministry of Industry and Mineral Resources (MIM) to any project whose main purpose is manufacturing. A foreign investor applies on the ministry's Sanaei platform after registering with MISA and obtaining a commercial registration. Here is who needs one, the three stages of the licence, the documents, the site question, realistic timelines and what it really costs.
- Stages of the licence (MIM, since March 2024)
- Establishment, construction, production3
- MIM processing time (service card)
- 30 to 90 days1
- Expat levy in licensed industrial establishments
- Cancelled (Cabinet, 17 Dec 2025)2
Information verified in October 2026 · Notes and sources
In brief
- The industrial license in Saudi Arabia is issued by the Ministry of Industry and Mineral Resources (MIM) through its Sanaei platform (industry.sa); any project whose main purpose is manufacturing needs one before it starts, expands or relocates.
- A foreign investor follows a fixed order: registration with the Ministry of Investment (MISA), then commercial registration (CR) with the Ministry of Commerce showing an industrial activity, then the MIM licence.
- Since March 2024 the licence moves through three stages: establishment (site, energy and environmental requests, no production), construction (customs exemption on machinery) and production (start of manufacturing, exemption on inputs).
- MIM's service card gives 30 to 90 days to process an application, and the establishment-stage licence is valid for one year; the ministry publishes no fee schedule for it, so confirm any amount on Sanaei when you apply.
- On 17 December 2025 the Council of Ministers cancelled the expat levy on foreign workers in licensed industrial establishments, which elsewhere costs SAR 700 to 800 per worker per month.
What is an industrial license in Saudi Arabia?
The industrial license is the authorisation the Ministry of Industry and Mineral Resources (MIM) grants to an industrial project. It is issued under the GCC Unified Industrial Regulation Law, which defines an industrial project as any economic activity whose main purpose is the full or partial manufacture of products.
The law requires a licence to set up an industrial project, and also to expand it, change what it produces or move it. Everything happens online on Sanaei (industry.sa), the ministry's single platform for industrial investors, which also connects to MODON for land and to the Saudi Industrial Development Fund (SIDF) for loans.
The industrial license does not replace company formation. It comes on top of it: for a foreign investor, it is the third authorisation after MISA registration and the commercial registration.
Who needs an industrial license: workshop or factory?
The test is the activity, not the size of the building. Check your activity code (ISIC 4) before choosing a structure.
Small manufacturing workshop
Usually required
A workshop that makes products (furniture, metal parts, cosmetics, food) is an industrial project in law, even with a few machines. The implementing regulations can exclude some projects, so confirm with your activity code.
Repair, maintenance, installation
Usually not MIM
Services that do not manufacture a product are licensed like other commercial premises, with a municipal licence on Balady. They follow the normal company formation route.
Importing and selling goods
Trading, not industry
Distribution without manufacturing is a trading activity, with its own MISA conditions (SAR 30 million in capital for a fully foreign-owned trading company). See trading company.
The three stages of the MIM industrial license
MIM launched this version of the licence in March 2024. The project's status moves from one stage to the next as it progresses, and each stage opens new requests.
Table 1
| Stage | What it allows | Validity | Production allowed? |
|---|---|---|---|
| Establishment (التأسيس) | Apply for energy allocation, a site and the environmental permit for construction | 1 year, renewable | No |
| Construction (الإنشاء) | Apply for customs exemption on machinery, equipment and spare parts | 1 year, renewable | No |
| Production (الإنتاج) | Start manufacturing; apply for customs exemption on production inputs | Renewed on Sanaei | Yes |
How to get an industrial license in Saudi Arabia as a foreigner
The order matters: each authority checks the previous approval before it acts.
- 1
Check the activity and the structure
Confirm that the activity is manufacturing, find its ISIC 4 code and check it is open to foreign investors. Choose the legal form, usually a limited liability company (LLC).
- Qui
- You, with our support
- Durée
- 1 to 3 days
- 2
Register the investment with MISA
The Ministry of Investment registers the foreign investor and issues the investment registration certificate. The fee is set on approval; see MISA registration.
- Qui
- Authority: MISA
- Durée
- 10 working days (official)
- 3
Obtain the commercial registration
Incorporation on the Saudi Business Center, with an industrial activity in the CR. For an LLC: SAR 1,200 plus SAR 500 publication, plus 15% VAT.
- Qui
- Authority: Ministry of Commerce
- Durée
- 72 hours (service time)
- 4
Apply for the industrial license on Sanaei
Log in to industry.sa with the company's national access, describe the products, process, capacity and site, then upload the documents. The licence starts at the establishment stage.
- Qui
- Authority: MIM
- Durée
- 30 to 90 days (service card)
- 5
Secure the site and the permits
Land or a ready-built factory in a MODON industrial city, or a site outside one where permitted, then building permit, Civil Defense approval and environmental permit.
- Qui
- MODON or municipality, Civil Defense, environment
- Durée
- Depends on the project
- 6
Move to construction, then production
Upgrade the licence on Sanaei as each stage is completed. Production is only allowed once the licence reaches the production stage.
- Qui
- Authority: MIM
- Durée
- Depends on the project
Industrial license requirements: which documents?
The exact list depends on the activity and appears in the application on Sanaei. These are the items a foreign-owned project should prepare. The company formation documents are in our document checklist.
Company
- Investment registration certificate from MISA
- Commercial registration (CR) of the Saudi company, with an industrial activity
- National access (Nafath) for the person who will act on Sanaei
Project
- Description of the products, manufacturing process and machinery
- Planned capacity, investment amount and workforce
- Technical and economic feasibility study, often asked for larger projects or financing
Site
- Lease or allocation contract in a MODON industrial city, or title or lease for a permitted site
- Building permit and Civil Defense approval at the relevant stage
- Environmental permit, depending on emissions, waste and chemicals
Where can you set up a factory: MODON or outside?
Most manufacturing projects go to an industrial city run by MODON, the Saudi Authority for Industrial Cities and Technology Zones. You can ask for land or a ready-built factory directly from Sanaei, and the site already has roads, power and water.
Outside industrial land, the rules are stricter. A Cabinet decision of early 2024 (4/7/1445 AH) dealt with factories located outside land set aside for industry, and MIM now approves the industrial side of any request before other authorities license it.
A small workshop in a city is not automatically allowed. The municipality decides on zoning and issues its licence on Balady, so check the address before signing a lease. For tax-advantaged zones, see special economic zones.
How much does an industrial license cost in Saudi Arabia?
Public fees only, before your own costs (site, construction, machinery, advisers). Amounts checked in October 2026.
Table 2
| Item | Amount | Comment |
|---|---|---|
| MISA investment registration | Set on approval | Advisory firms report anything from zero to about SAR 62,000 a year depending on the activity; confirm at filing |
| Incorporation and CR (LLC) | SAR 1,200 + 500 | Plus 15% VAT, about SAR 1,955 in total (Ministry of Commerce) |
| Trade name | SAR 200 or 500 | Arabic name or foreign-language name |
| MIM industrial license | No published schedule | Reported as free at the establishment stage; any fee for later stages shows in the Sanaei application, confirm when you apply |
| Expat levy, licensed industrial establishment | SAR 0 | Cancelled by the Cabinet on 17 December 2025; elsewhere SAR 700 to 800 per worker per month |
What changed in 2024 and 2025: the advantages of a licensed factory
The most common mistakes
Frequently asked questions
Who issues the industrial license in Saudi Arabia?
The Ministry of Industry and Mineral Resources (MIM) issues it on its Sanaei platform (industry.sa). For a foreign investor, MISA registration and a commercial registration from the Ministry of Commerce come first.
Can a foreigner get an industrial license in Saudi Arabia without a Saudi partner?
Manufacturing is generally open to foreign investors, and the licence is issued to the Saudi company they own. Check your exact activity code against MISA's list of excluded activities and its conditions before you apply.
How long does it take to get an industrial license?
MIM's service card gives 30 to 90 days to process an application. Count about 10 working days for MISA registration and 72 hours of service time for the commercial registration beforehand.
How much is the industrial license fee in Saudi Arabia?
MIM publishes no fee schedule for the licence, and service providers report the establishment stage as free. The public costs you can budget are MISA registration (set on approval) and incorporation (SAR 1,200 plus SAR 500 for an LLC, plus VAT).
What is the difference between a preliminary and a final industrial license?
Those are the old names. Since March 2024 the licence has three stages: establishment and construction, which do not allow production, then production, which does.
Do I need an industrial license for a small workshop?
Yes if it manufactures products, because the law looks at the activity, not the size. A repair or maintenance workshop is a service and is licensed by the municipality on Balady instead.
Are industrial companies exempt from the expat levy?
Yes. On 17 December 2025 the Council of Ministers cancelled the expat levy on foreign workers in licensed industrial establishments; Saudization quotas still apply.
Notes and sources
- 1.Ministry of Industry and Mineral Resources: Issuance of Industrial License (service card)
- 2.Saudi Press Agency: Cabinet cancels the expat levy in licensed industrial establishments (17 Dec 2025)
- 3.Al Eqtisadiah, SPA dispatch: three-stage industrial license launched (6 March 2024, Arabic)
- 4.Sanaei, the MIM industrial investment platform
- 5.GCC Unified Industrial Regulation Law (Bureau of Experts, Arabic)
- 6.MISA: Investor Guide, 13th edition (02-2026)
- 7.Ministry of Commerce: Establishing a Company Under an Investment License
Information verified in October 2026. Amounts and timelines are observed ranges provided for information only. Government fees are set by Saudi authorities and may change: they are confirmed in writing in the quote before you commit to anything.
See also
Does your project need an industrial license?
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