Industrial investment route
Industrial Company Setup for Foreign Investors in Saudi Arabia and the Sinaei Platform
Set up a 100% foreign-owned factory in Saudi Arabia, with customs exemptions, government financing and developed industrial land.
Industrial activities
Manufacturing
Food and beverages
Chemicals and plastics
Pharmaceuticals and medical supplies
Metals and building materials
Engineering, electrical and assembly lines
Conditions and stages
- Ownership: 100% foreign.
- First steps: investment registration with the Ministry of Investment, then Commercial Registration through the Saudi Business Center.
- Industrial licence: issued on the Sinaei platform; the project moves through three statuses: Applicant, Under construction, then Producing (details and timelines below).
Fees and timeline
Under the previous system, the investment licence cost SAR 2,000 as a basic licence fee plus a SAR 10,000 Investor Services subscription in the first year, rising to SAR 60,000 in the following years. Under the current Investment Law: the process has become registration in the National Investor Register, collection of the former high annual subscriptions (SAR 10,000 and SAR 60,000) has been suspended, and the registration fee is set officially by the Ministry of Investment in the payment notice issued when the application is approved, according to the activity classification.
Commercial Registration for an LLC: SAR 1,200 a year + SAR 500 to publish the articles of association + 15% VAT, through the Saudi Business Center. Under the new Commercial Registration Law, branch registrations and the traditional expiry date were abolished and replaced by an annual data confirmation.
An industrial project moves through three statuses on the Ministry of Industry and Mineral Resources’ Sinaei platform: (1. Applicant, 2. Under construction, 3. Producing). Issuing and renewing the industrial licence document online through Sinaei carries no direct fee from the Ministry of Industry (fees due to other bodies, such as Commercial Registration, the Chamber of Commerce, industrial land rent and the environmental permit, still apply). The initial industrial licence is issued online within 2 to 5 working days once requirements are met, while industrial land allocation and environmental and municipal permits take 30 to 90 days depending on the factory’s environmental impact category.
Government financing
The Saudi Industrial Development Fund (SIDF) finances industrial projects for up to 50% of eligible project cost in the main cities, rising to 75% in promising (less developed) regions and cities or specified strategic industries, with repayment periods of up to 15 years (and up to 20 years in promising regions).
Exemptions and government incentives
- Industrial customs exemption: companies holding an industrial licence on Sinaei can be exempted from customs duties on imported machinery, equipment, spare parts, raw materials, semi-finished materials and packaging needed for production.
- Financing: The Saudi Industrial Development Fund (SIDF) finances industrial projects for up to 50% of eligible project cost in the main cities, rising to 75% in promising (less developed) regions and cities or specified strategic industries, with repayment periods of up to 15 years (and up to 20 years in promising regions).
- Industrial land: developed plots from the Saudi Authority for Industrial Cities and Technology Zones (MODON) at preferential rents starting from SAR 1 per square metre a year in some industrial cities, varying by city.
- Local content: price preference for national products in government procurement under the Local Content and Government Procurement Authority’s rules.
Sources: Ministry of Investment Investor Guide (13th edition, 2026), the Commercial Registration Law, the Saudi Business Center, the Ministry of Industry and Mineral Resources and the Saudi Industrial Development Fund. Last checked: 3 November 2026.
Frequently asked questions
Is the industrial licence free?
Issuing and renewing the industrial licence document online through Sinaei carries no direct fee from the Ministry of Industry, while fees due to other bodies, such as Commercial Registration, the Chamber of Commerce, industrial land rent and the environmental permit, still apply.
How much does SIDF finance?
The Saudi Industrial Development Fund (SIDF) finances industrial projects for up to 50% of eligible project cost in the main cities, rising to 75% in promising (less developed) regions and cities or specified strategic industries, with repayment periods of up to 15 years (and up to 20 years in promising regions).
How long does the industrial licence take?
The initial industrial licence is issued online within 2 to 5 working days once requirements are met, while industrial land allocation and environmental and municipal permits take 30 to 90 days depending on the factory’s environmental impact category.
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