Factory Establishment and Operating Requirements in Saudi Arabia
Establishing and operating a factory in Saudi Arabia requires meeting a set of regulatory and technical requirements that vary depending on the nature of the activity and the products being manufactured. Factory readiness does not stop at obtaining the industrial license; it extends to registering the establishment, meeting requirements related to the activity and products, verifying applicable technical regulations and standards, and completing conformity procedures for products subject to mandatory requirements.
With the expansion of the industrial sector in the Kingdom and the growing opportunities available to local factories, regulatory compliance and readiness have become essential for companies seeking to enter markets, deal with major entities, and participate in tenders and procurement.
In this article on the Eda2at website, we review the key points companies need to know about factory registration in Saudi Arabia, industrial licensing, product classification, and SABER platform requirements.
First: What Does Factory Registration in Saudi Arabia Mean?
Factory registration is part of the regulatory system governing the practice of industrial activity in the Kingdom. A factory's journey usually begins with establishing the entity and practicing the activity in accordance with the relevant licenses and requirements.
Procedures vary depending on the nature of the activity, the location of the establishment, and the relevant authorities. For this reason, investors must accurately define the industrial activity from the outset and confirm its specific requirements. Guidelines from the Saudi Authority for Industrial Cities and Technology Zones (MODON) indicate a link between establishment data, the commercial registration, and the industrial license across a number of services related to industrial facilities.
Why Is the Industrial License Important?
The industrial license is one of the fundamental elements in regulating industrial activity, and the establishment's data and activity must match its actual nature. The factory should also review its data periodically and ensure that licenses and establishment-related information are kept up to date, especially when adding new activities or products.
Second: What Is the Difference Between Factory Registration and Product Registration?
Factory registration or the industrial license relates to the establishment and its industrial activity. Product registration, on the other hand, relates to the product itself and the requirements for its entry and circulation in the market, according to its classification and the applicable technical regulations.
This means that a company obtaining an industrial license does not automatically mean that all its products meet all conformity requirements. Companies therefore need to look at both tracks separately:
Third: Which Products Are Subject to Technical Regulations?
The Saudi Standards, Metrology and Quality Organization (SASO) sets technical regulations for a large number of products and sectors, including construction, electrical, mechanical, chemical, and other fields. The technical regulation for each product defines the requirements that must be met, which may include specifications, test methods, conformity assessment procedures, and required documentation.
Examples of products subject to technical regulations in the Kingdom include textile products, leather products, personal protective equipment and clothing, footwear, and others. Therefore, there is no single "list" that applies to all factories; the product must first be identified and its relevant technical regulation determined.
Fourth: How Do You Know If a Product Is Subject to Technical Requirements?
One of the most important steps a factory should take is accurately determining the product's classification. The SABER platform allows checking a product's status by searching using the HS Code or keywords, to determine whether the product is subject to technical regulations or not.
This step is very important, because an error in product classification may result in applying inappropriate requirements or failing to meet the required ones. It is therefore best to carry out classification and requirement verification at an early stage, before starting supply procedures or launching the product in the market.
Fifth: What Is the Role of the SABER Platform in Product Registration?
The SABER platform is one of the essential tools in the Kingdom's product conformity system. According to the Saudi Standards, Metrology and Quality Organization, products subject to technical regulations require registering a Product Certificate of Conformity through the platform, followed by completing the Shipment Certificate procedures depending on the case and requirements.
How Does Eda2at Help You Prepare Your Factory?
Eda2at Business Development helps factories and industrial companies in Saudi Arabia assess their readiness and activity requirements, organize their corporate file, and review related qualification, accreditation, and registration requirements — helping them prepare to deal with clients, entities, and target projects.
Whether you are establishing a new factory, expanding your industrial activity, preparing to launch new products, or looking to qualify your factory to work with major companies and tenders, the right starting point is understanding the requirements and gaps before beginning procedures. Request a consultation now.