License Saudi Arabia Unveils Enhanced Industrial in LEAP 24

License Saudi Arabia Unveils Enhanced Industrial in LEAP 24

Bandar Alkhorayef, Minister of Industry and Mineral Resources, has ushered in a new era for industrial licensing during LEAP 24, introducing a comprehensive and streamlined approach to propel industrial projects within the Kingdom.

The Unified Industrial Regulatory Law: A Three-Stage Process

Setting the Stage for Progress

The upgraded industrial license, guided by the Unified Industrial Regulatory Law of the Gulf Cooperation Council (GCC), introduces a meticulous three-stage process for industrial projects. This structured framework encompasses the establishment, construction, and production phases, aiming to provide clarity and efficiency in managing industrial activities across Saudi Arabia.

Cabinet Decision Spurs Licensing Reform

Addressing Factories Beyond Designated Zones

Jarrah Al-Jarrah, the official spokesperson for the Ministry of Industry and Mineral Resources, emphasized that this transformative move aligns with a crucial Cabinet decision. The decision seeks to regularize factories situated outside designated industrial zones, marking a strategic step towards creating a more adaptive and inclusive industrial landscape.

Phases of Progress: A Detailed Overview

From Establishment to Production

The revamped licensing process mirrors the natural progression of an industrial project. In the establishment phase, factory owners secure essential permits and allocations, paving the way for the project’s initiation. This phase, valid for one year with an option for renewal, focuses on the foundational aspects but does not authorize the commencement of production.

The construction stage, which follows, introduces customs exemptions on machinery and equipment under GCC agreements. With a one-year renewal option, this phase signifies a critical juncture where the project takes tangible form. Finally, the production phase heralds full operational and production rights, accompanied by customs exemptions on production inputs.

Digitalization: Managing Licenses through the Industrial Platform

A Technological Leap for Industrial Governance

All phases of the licensing process, along with status updates and amendments, can now be efficiently managed through the industrial platform. This digital initiative represents a significant stride towards a more transparent, accessible, and technologically-driven approach to industrial governance.

Vision 2030 Goals: Aligning with National Industrial Strategy

Bolstering Investment and Economic Diversification

This groundbreaking initiative is an integral component of Saudi Arabia’s National Industrial Strategy, a strategic roadmap aligned with the ambitious goals of Vision 2030. By facilitating a more efficient licensing process, the Kingdom aims to boost investment, diversify the economy, and amplify non-oil exports, contributing to the overarching vision of a transformed and sustainable future.

Conclusion: Shaping the Future of Saudi Industry

From Policy to Progress

As Saudi Arabia introduces this upgraded industrial license framework at LEAP 24, it marks not only a shift in policy but a tangible leap towards progress. The meticulous three-stage approach, the alignment with national strategies, and the integration of digital platforms showcase a commitment to fostering an environment where industrial projects can thrive, contributing significantly to the Kingdom’s economic diversification and growth. With Bandar Alkhorayef’s visionary leadership, the Kingdom embarks on a journey to redefine its industrial landscape for a prosperous and sustainable future.

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