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Factory Setup Services in Saudi Arabia
Arab Dreams specializes in factory setup services in Saudi Arabia, offering comprehensive support to businesses looking to establish a manufacturing presence in the Kingdom. Our expert team guides you through every step of the process, from securing necessary permits and licenses to selecting optimal locations and ensuring compliance with local regulations. With a deep understanding of the industrial landscape, we provide tailored solutions that streamline operations and minimize delays. Partner with Arab Dreams to leverage the opportunities within Saudi Arabia’s growing manufacturing sector and turn your vision into reality with confidence.
Top Reasons to Establish Your Factory in
Saudi Arabia
Strategic Location
Saudi Arabia's geographical position provides easy access to key markets in the Middle East, Europe, and Asia, facilitating efficient logistics.
Government Incentives
The Saudi government offers financial support, tax exemptions, and simplified licensing processes to attract local and foreign investors.
Skilled Workforce
The Kingdom has a young, dynamic workforce, with an increasing number of professionals trained in technical fields essential for manufacturing.
Infrastructure Development
Significant investments in transportation, utilities, and industrial zones enhance operational efficiency for manufacturing businesses.
Market Demand
With a growing population and expanding economy, there is a consistent demand for locally produced goods, offering manufacturers a robust market.
Access to Resources
With abundant natural resources and initiatives to enhance local supply chains, the Kingdom ensures a steady supply of essential raw materials for manufacturing.
Requirements for Factory Setup in Saudi Arabia
Business License
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Commercial Registration (CR)
Obtain CR from the Ministry of Commerce (MoC) to legally establish your business and define the nature of activities. -
Investment License
Required for foreign investors from the Ministry of Investment (MISA) to operate and invest in the Kingdom.
Location Approval
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Land Lease Agreement
Secure land through a lease or purchase agreement from industrial zones like MODON or Royal Commission areas. -
Environmental Approval
Obtain an Environmental Impact Assessment (EIA) report and approval from the National Center for Environmental Compliance (NCEC). -
Municipal Approvals
Secure construction and operational permits from the local municipality for factory development. -
Civil Defense Approval
Ensure the factory design meets safety and fire protection standards required by the Saudi Civil Defense.
Sector-Specific Approvals
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Saudi Food and Drug Authority (SFDA) Approval
Mandatory for factories manufacturing food, pharmaceuticals, or medical devices, ensuring product safety -
Ministry of Health Approval
Required for factories involved in medical or healthcare-related production -
Saudi Standards, Metrology, and Quality Organization (SASO) Certification
Compliance with SASO standards is necessary to ensure the factory meets quality and safety benchmarks.
MODON Lease Agreement
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MODON Lease Agreement
If setting up in a MODON-operated industrial city, you must secure a lease agreement outlining land use and operational guidelines.
Top Industrial Cities in Saudi Arabia
Riyadh Industrial City
A hub for manufacturing and logistics, offering proximity to the capital’s business infrastructure and skilled labor.
Yanbu Industrial City
Known for its oil refining, petrochemicals, and logistics industries, benefiting from its strategic location on the Red Sea.
Dammam Industrial City
A key center for diverse industries, including manufacturing, packaging, and logistics, with access to major ports.
Jeddah Industrial City
A hub for manufacturing and logistics, offering proximity to the capital’s business infrastructure and skilled labor.
Al-Kharj Industrial City
Known for food processing and agricultural-based industries, providing ample opportunities for agribusiness.
King Abdullah Economic City (KAEC)
A rapidly growing industrial and logistics hub, strategically located along the Red Sea coast, focused on diverse industries.
Ras Al Khair Industrial City
Specializes in mining and mineral industries, home to large-scale aluminum and phosphate production.
Jubail Industrial City
One of the largest industrial zones in the world, focused on petrochemicals, refining, and heavy industries
How Arab Dreams Can Assist with Factory Setup in
Saudi Arabia
Setting up a factory in Saudi Arabia involves multiple regulatory steps, permits, and approvals. Arab Dreams offers expert consultancy services to ensure a seamless setup process, minimizing challenges and delays.
Business and Industrial License Application
We handle the entire process of securing business licenses from the Ministry of Commerce and industrial licenses from the Ministry of Industry and Mineral Resources, ensuring compliance with all legal requirements.
Location Selection and Facility Setup
Our experts help identify strategic locations—whether in industrial zones or free zones—aligned with your business goals, while ensuring compliance with zoning regulations.
Environmental Permits and Compliance
We manage the approval process with the National Center for Environmental Compliance (NCEC) to meet environmental standards, minimizing operational risks.
Government Approvals and Documentation
From municipal and Civil Defense permits to sector-specific approvals, we take care of all necessary documentation to obtain the required licenses for smooth operations.
Labor and Saudization Compliance
Our team facilitates visa processing, workforce recruitment, and ensures compliance with Saudization requirements, supporting you in meeting labor quotas efficiently.
Quality and Industry Certifications
We assist with obtaining key certifications, including SASO (Saudi Standards, Metrology and Quality Organization), SFDA (Saudi Food and Drug Authority), SABER Certification (Saudi Product Safety Program), Ministry of Health (MoH) Approval, and other sector-specific approvals based on your business needs.
Post-Setup Support and Growth Advisory
Beyond setup, we provide ongoing advisory services, including tax planning, financial management, and expansion strategies to support your factory’s growth and sustainability in the Saudi market.
Steps for Setting Up a Factory in
Saudi Arabia
Setting up a factory in Saudi Arabia involves multiple steps to meet regulatory, environmental, and operational requirements.
Below is a step-by-step guide:
Develop a Business Plan and Feasibility Study
Prepare a detailed feasibility study covering project scope, investment, market demand, and profitability.
Submit the plan to relevant authorities, such as the Saudi Industrial Development Fund (SIDF), for financing options.
Submit the plan to relevant authorities, such as the Saudi Industrial Development Fund (SIDF), for financing options.
Obtain Necessary Licenses
Business License: Issued by the Ministry of Commerce (MoC) to establish your legal entity.
Industrial License: Secured from the Ministry of Industry and Mineral Resources (MIM) for manufacturing operations.
Investment License: Required for foreign investors, issued by the Ministry of Investment (MISA).
Industrial License: Secured from the Ministry of Industry and Mineral Resources (MIM) for manufacturing operations.
Investment License: Required for foreign investors, issued by the Ministry of Investment (MISA).
Complete Post-Incorporation Registration
Register your company with key government portals, including Ministry of Labor (MoL), MHRSD, Muqeem, Qiwa, and Mudad for labor compliance, payroll, and employee management.
Select a Suitable Location
Choose an appropriate location in industrial zones (like MODON cities) or free zones aligned with your business needs.
Ensure compliance with zoning regulations for smooth operations.
Ensure compliance with zoning regulations for smooth operations.
Secure Environmental and Safety Approvals
Obtain environmental permits from the National Center for Environmental Compliance (NCEC).
Ensure factory safety through Civil Defense approvals for fire protection and emergency readiness.
Ensure factory safety through Civil Defense approvals for fire protection and emergency readiness.
Acquire Sector-Specific Approvals
SABER Certification: Guarantees product safety compliance.
SFDA, SASO, and MoH Approvals: Required for industries like food production, pharmaceuticals, and medical equipment.
SFDA, SASO, and MoH Approvals: Required for industries like food production, pharmaceuticals, and medical equipment.
Lease Land and Set Up Utilities
Finalize the land lease agreement with MODON or other industrial parks.
Coordinate with local authorities for the provision of essential utilities such as electricity, water, and waste management.
Coordinate with local authorities for the provision of essential utilities such as electricity, water, and waste management.
Hire Workforce and Ensure Saudization Compliance
Recruit local and foreign employees following Saudi labor laws.
Ensure compliance with Saudization quotas by hiring the required percentage of Saudi nationals.
Ensure compliance with Saudization quotas by hiring the required percentage of Saudi nationals.
Complete Facility Construction and Equipment Setup
Finalize the land lease agreement with MODON or other industrial parks.
Coordinate with local authorities for the provision of essential utilities such as electricity, water, and waste management.
Coordinate with local authorities for the provision of essential utilities such as electricity, water, and waste management.
Final Approvals and Operational Readiness
Submit all necessary documentation to secure operational permits.
Conduct a final inspection with relevant authorities to ensure full compliance with safety, environmental, and operational regulations.
Conduct a final inspection with relevant authorities to ensure full compliance with safety, environmental, and operational regulations.
Our services are available all over Saudi Arabia
Arab Dreams proudly provides extensive service coverage throughout Saudi Arabia, focusing on major industrial hubs such as Dammam, Riyadh, and Jeddah. No matter where your business is located, you can count on us for reliable support in establishing your factory, with teams strategically positioned in these key cities to deliver tailored solutions.
Factory Setup in Jeddah
As your trusted partner in Jeddah, Arab Dreams delivers tailored factory setup services that meet your business objectives. We handle everything from market research and site selection to securing permits and licenses. Our integrated solutions ensure compliance with local regulations, positioning you to leverage Jeddah’s logistical advantages for operational success
Factory Setup in Riyadh
Arab Dreams streamlines the factory setup process in Riyadh, a vibrant economic hub. We offer affordable solutions that empower you to operate smoothly, including feasibility studies, business registration, and project management. With our local insights and strong regulatory relationships, you can easily navigate the setup process and focus on growing your business.
Factory Setup in Dammam
In Dammam, we are recognized as a leading provider of factory setup services, guiding you through every step—from obtaining necessary licenses to site selection and construction management. Our expertise in local regulations ensures efficient and compliant solutions, allowing you to confidently establish your operations in one of the Kingdom's most strategic industrial centers.
Start your manufacturing journey in Saudi Arabia with confidence
Arab Dreams is here to simplify your factory setup from planning to production
FAQ
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What services does Arab Dreams provide for factory setup?
We offer end-to-end support, including site selection, facility design, government approvals, MISA licensing, and operational setup to streamline your factory establishment.
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How long does it take to set up a factory in Saudi Arabia?
The timeline varies based on the sector, facility size, and regulatory approvals but typically takes between 3-6 months. Our team ensures the process is as efficient as possible.
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Do you help with land acquisition for factories?
Yes, we assist in identifying suitable industrial zones and securing land through public or private channels aligned with your business needs.
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What licenses are required for setting up a factory?
A commercial registration (CR), MISA investment license, environmental clearance, and sector-specific permits are usually needed. We handle the entire licensing process for you.
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Does Arab Dreams provide support for hiring employees?
Yes, we assist with obtaining work visas, GRO/PRO services, and ensuring compliance with labor laws to facilitate smooth hiring.
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Can you assist with utility connections and infrastructure setup?
Absolutely. We coordinate with relevant authorities to ensure your factory has uninterrupted access to electricity, water, and other essential utilities.
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Do you offer ongoing support after factory operations begin?
Yes, we provide continuous support through accounting, taxation, legal compliance, and operational consultancy to ensure sustainable growth.
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What is the minimum capital required for a factory setup?
The capital depends on the industry, facility size, and scope of operations. Contact us for a customized estimate based on your project.
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Can a foreign investor own a factory fully?
Yes, 100% foreign ownership is allowed in many industrial sectors under Vision 2030, subject to MISA approval.
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Is environmental clearance mandatory?
Yes, environmental clearance is required, especially for manufacturing industries. We assist in obtaining all necessary approvals.
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How do you ensure compliance with Saudi laws during setup?
We manage registrations with key portals like Qiwa, GOSI, and Mudad, ensuring your factory complies with Saudi regulations.
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Are there sector-specific requirements for factories?
Yes, certain industries have specialized requirements. Our team will ensure all regulations are met according to your business type.
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How do I get started with factory setup through Arab Dreams?
Contact us to schedule a consultation. We’ll assess your needs and guide you through each step of the setup process.