Saudi Arabia introduces upgraded industrial license at LEAP 24

Bandar Alkhorayef, the Minister of Industry and Mineral Resources, unveiled an enhanced version of the industrial license at the LEAP 24 event. This unveiling marks a pivotal moment in Saudi Arabia’s industrial landscape, demonstrating the nation’s commitment to fostering a conducive environment for industrial growth and investment.

The newly introduced industrial license, governed by the Unified Industrial Regulatory Law of the Gulf Cooperation Council (GCC), delineates a comprehensive three-stage process for industrial projects: establishment, construction, and production. This structured approach aims to streamline industrial activities within the Kingdom and ensure adherence to regulatory frameworks.

Jarrah Al-Jarrah, the official spokesperson for the Ministry of Industry and Mineral Resources, underscored that this initiative aligns with a recent Cabinet decision aimed at regularizing factories located outside designated industrial zones. The upgraded licensing process mirrors the natural progression of industrial projects, starting with the establishment phase, wherein factory owners secure necessary permits and allocations. Notably, this phase, valid for one year with an option for renewal, lays the groundwork for subsequent stages but does not permit the commencement of production.

The construction stage of the licensing process presents additional incentives, including customs exemptions on machinery and equipment under GCC agreements, with the provision for a one-year renewal. Finally, the production phase grants full operational and production rights, accompanied by customs exemptions on production inputs. This phased approach aims to facilitate the seamless transition of industrial projects from inception to full-scale operation.

Crucially, all stages of the licensing process, along with status updates and amendments, can be efficiently managed through the industrial platform. This digital infrastructure represents a significant step forward in enhancing transparency, efficiency, and accessibility within Saudi Arabia’s industrial sector.

This strategic initiative forms an integral part of Saudi Arabia’s National Industrial Strategy, which is aligned with the overarching goals of Vision 2030. By bolstering investment, diversifying the economy, and enhancing non-oil exports, the Kingdom aims to solidify its position as a regional industrial powerhouse and a global player in the years to come.