Riyadh, March 06, 2024, Minister of Industry and Mineral Resources, Bandar Ibrahim Alkhorayef, revealed the introduction of an enhanced iteration of the industrial license during the Leap 24 International Technical Conference sidelines.
Under the provisions of the Gulf Cooperation Council (GCC) system's Unified Industrial Regulatory Law, the ministry will issue this upgraded license, facilitating industrial project operations across three distinct stages: establishment, construction, and production.
According to Jarrah Al-Jarrah, the ministry's official spokesperson, the issuance of this updated industrial license aligns with a Cabinet decision dating back to 4/7/1445 AH, aimed at addressing the status of factories situated outside designated industrial zones in the Kingdom. Henceforth, the ministry will oversee the approval process for applications related to industrial activities.
The industrial licensing journey is now streamlined into three phases, each reflecting the progression of the industrial project. The establishment stage, the initial phase, allows factory owners to request energy allocation, secure project sites, obtain environmental construction permits from relevant authorities, and pursue other necessary permits. While this phase grants the facility the "establishment" status for one year, renewable upon review, it does not authorize actual production until regulatory requirements are met.
Advancing to the construction stage, factory owners can apply for customs exemptions for machinery, equipment, spare parts, and other benefits within the GCC framework. This phase's validity period, also one year and renewable, facilitates preparatory activities for production.
Finally, the "production" phase signifies the commencement of operational activities. Factory owners can further apply for customs exemptions on production inputs and other benefits endorsed by the ministry or agreed upon within GCC regulations.
To facilitate these processes, the industrial platform enables industrial projects to issue and modify licensing statuses, access services, and update data seamlessly.
The rollout of this upgraded industrial license aligns with the National Industrial Strategy's objectives, geared towards fostering an industrial economy conducive to investment, economic diversification, and the development of domestic products and non-oil exports. This strategic move corresponds with the Kingdom's Vision 2030 goals.
For further details, interested parties can visit the ministry’s official website via the following link: [Ministry's Official Website](https://mim.gov.sa/services/31393/)
