His Excellency the Minister of Industry and Mineral Resources, Mr. Bandar bin Ibrahim Al-Khuraif, announced on the sidelines of the International Technical Conference LEAP 24, the launch of the updated version of the industrial license, whereby the Ministry issues the license in accordance with the provisions of the Unified Industrial Regulation Law (Regulation) of the Gulf Cooperation Council (GCC) countries, and permits work on the industrial project in three phases (establishment, construction, and production).
The updated version of the industrial license
The Ministry’s official spokesperson, Jarah Al-Jarrah, explained that the updated version of the industrial license coincides with the issuance of the Cabinet’s decision on 4/7/1445 AH, which addresses the status of factories located outside the land designated for industrial activities in the Kingdom’s regions, as the Ministry has become responsible for approving applications related to industrial activities prior to their licensing by other government agencies. The Ministry addresses this by modifying the industrial licensing process to include three stages reflecting the progress of the industrial project (establishment, construction, production). The importance of obtaining the necessary licenses and permits for each stage from the competent authorities is taken into account.
The first stage of industrial licensing
He explained that the first stage of industrial licensing is when the facility is in the “establishment” phase, which authorizes the factory owner to submit applications for: allocation of energy, allocation of a site for the project, an environmental permit for construction from the relevant authorities, and other applications. The validity period is: one year, renewable, and does not authorize the owner to begin actual production or carry out operations until the industrial project is completed and regulatory requirements from the competent authorities are met.
The “construction” phase; is the second stage of the industrial project, which enables the factory owner to apply for customs exemptions for machinery, equipment, and spare parts, as well as any other benefits or exemptions approved by the Ministry or agreed upon within the framework of the Gulf Cooperation Council, in accordance with regulatory requirements, and the validity period is one year, renewable.
The final stage of the industrial license
The “Production” status is the final status of the industrial license, which authorizes the factory owner to commence operations and actual production, and to apply for customs exemptions on production inputs and any benefits, or other exemptions approved by the Ministry or agreed upon within the framework of the Gulf Cooperation Council, in accordance with regulatory requirements. Furthermore, the industrial project can issue and amend the industrial license status, perform all services, and update data via the Sanai platform.
The launch of the upgraded version of the industrial license comes as part of efforts to achieve the objectives of the National Industrial Strategy, which aims to create an investment-attractive industrial economy that contributes to diversifying the economic base, and the growth of GDP and non-oil exports, in line with the objectives of the Kingdom’s Vision 2030.
