Saudi Arabia has taken a major step in reshaping its industrial sector by introducing a new set of regulations for all factories operating in the Kingdom. The announcement came from the Ministry of Municipal, Rural Affairs and Housing, which explained that the rules are part of a wider plan to make the sector safer, better organised, and more attractive to investors. The move supports the country’s Vision 2030 goal to diversify its economy beyond oil and develop stronger industrial capabilities.
The new rules apply to factories located in cities, rural areas, and special industrial districts. Whether a facility is part of a large-scale manufacturing hub or a smaller operation on the outskirts of a town, it will need to meet the same safety, environmental, and zoning requirements. This marks a significant shift toward a unified framework that treats all manufacturers equally, regardless of their size or location.
Clear Licensing Process for All Factories
Under the updated system, factories will need to secure an operating licence by meeting a detailed checklist of requirements. Every factory must have a valid commercial registration to confirm its legal status. It must also hold an industrial licence from the Ministry of Industry and Mineral Resources, which ensures that the facility is officially recognised as a manufacturing site. In addition, an environmental permit from the National Centre for Environmental Compliance is now mandatory, helping to protect the environment from industrial impacts.
Another key requirement is obtaining approval from the Civil Defence, which verifies that the facility complies with fire safety regulations and building standards. By combining these approvals into one unified process, the government aims to create a clear path for investors and business owners to follow, avoiding confusion and ensuring that all factories operate within the law.
Location and Space Restrictions
The new regulations also include strict rules on where factories can be built and how much land they can occupy. All facilities must be located in areas officially zoned for industrial or commercial use, which prevents them from being set up too close to residential neighbourhoods or in areas unsuitable for heavy operations.
The land area for each factory must be at least 300 square metres but not more than 600 square metres. These limits are designed to make sure that factories have enough space for safe operations without overcrowding the area. This approach also ensures that there is adequate room for transport vehicles, workers, and equipment to move around without causing congestion or safety hazards.
Improving Logistics and Accessibility
One of the most noticeable updates in the regulations is the requirement for better site planning. All factories must now include designated parking spaces for trucks and other vehicles to avoid traffic issues around the site. They must also have clearly marked loading and unloading zones so that goods can be moved in and out efficiently.
Factory designs must detail how trucks and pedestrians will move around the site. This includes proper entry and exit points, as well as security checkpoints where necessary. By planning these aspects carefully, the Ministry hopes to reduce the risk of accidents and improve the overall flow of operations within industrial areas.
Higher Building Safety Standards
The new rules also tighten construction requirements under the Saudi Building Code. Factories must now be built using fire-resistant materials to reduce the risk of damage in case of an emergency. Proper ventilation and air conditioning systems are mandatory to ensure a safe and comfortable working environment for employees.
Fire alarm systems must be installed in all facilities, and pathways must be accessible for people with disabilities. These changes show the government’s focus on not only improving safety but also making industrial spaces inclusive and functional for all workers. On top of that, building facades must follow municipal design guidelines, which means factories will need to maintain a certain standard of appearance that aligns with local urban planning goals.
Integrating Security and Digital Solutions
Security is another major focus of the new regulations. Factories will need to install surveillance cameras to monitor key operational areas. Internal signage will also be required to guide workers and visitors safely through the premises.
If a factory has a sales outlet on-site, it must provide electronic payment options. This aligns with Saudi Arabia’s broader move toward digital transformation and cashless transactions. Operating outside of approved boundaries or continuing to run a facility after its licence has expired will now be strictly prohibited, with penalties for non-compliance.
Using QR Codes for Transparency
To make it easier for both the public and authorities to confirm whether a factory is following the rules, each licensed facility will be given a unified QR code. Scanning the code will show the factory’s registration and compliance details. This approach improves transparency, encourages accountability, and builds trust between businesses, the public, and regulators.
Strict Waste Management Rules
The new framework also includes detailed environmental requirements. Factories will have to follow waste management protocols that involve sorting, storing, and disposing of waste properly. Maintaining cleanliness and hygiene across all areas of the facility is essential, both for worker safety and for protecting the surrounding environment.
The regulations also require factories to separate primary industrial activities from secondary ones, which helps prevent overcrowding and keeps operations running smoothly.
Regular Inspections and Stronger Enforcement
To make sure these rules are followed, municipal authorities will conduct regular inspections. These checks will be used to spot issues before they become major problems. Factories that fail to meet the standards could face penalties ranging from fines to temporary suspension or even permanent closure in severe cases.
By enforcing these rules consistently, the Ministry aims to create a safer and more efficient industrial sector that can attract long-term investment.
Supporting Saudi Vision 2030 Goals
The introduction of these new factory regulations fits closely with Saudi Arabia’s Vision 2030 plan, which seeks to diversify the economy and build stronger non-oil industries. By setting high safety, environmental, and operational standards, the government hopes to make the country a more appealing destination for both local and foreign investors.
Improving workplace safety, raising product quality, and protecting the environment are also key priorities under this strategy. The result is expected to be a stronger manufacturing base that supports economic growth and creates more job opportunities for Saudi citizens.
Positive Response From Industry Leaders
Early feedback from business owners and industry leaders suggests that most support the changes. Many believe that having clear, consistent rules will make the industrial sector more trustworthy and efficient. While some older factories may need to invest in upgrades to meet the new requirements, many agree that these changes will bring long-term benefits, including reduced operational risks and stronger consumer confidence.
A Safer, More Organised Future for Manufacturing
By combining safety regulations, environmental protection measures, and digital innovations, Saudi Arabia is setting the stage for a modern and well-regulated manufacturing sector. These changes promise to make factories safer for workers, more reliable for investors, and more responsible in their environmental practices.
As these rules take effect, factories across the Kingdom will need to adapt quickly. Those that meet the standards will be better positioned to succeed in a competitive and fast-changing industrial market. With these steps, Saudi Arabia is not only protecting its workforce and environment but also strengthening its position as a growing industrial hub in the region.
