Saudi Arabia’s Ministry of Industry and Mineral Resources has increased the term of industrial licenses from three years to five years.
As per the statement, the longer duration will come into effect when investors apply for new industrial licenses or renew their existing ones, after fulfilling necessary requirements.
“The move is aimed to draw new and more qualitative investments in various industrial activities, especially those that require medium to long periods of time. It will also support to sustain factories and reduce review periods by investors in the sector,” said ministry spokesman Mr. Jarrah Al-Jarrah.
Furthermore, the enterprises that are located within the Saudi Authority for Industrial Cities and Technology Zones (MODON), the Royal Commission for Jubail and Yanbu (RCJY), and the Economic Cities and Special Zones Authority (ECZA) will get a one-year license, once they obtain the land allocation agreement. When the new facility becomes operational, the industrial license will be renewed for five years.
Saudi Arabia, the world’s largest oil exporter, is rapidly modernizing its economy in order to reduce its reliance on oil revenues. The kingdom has taken a number of efforts, including easing administrative procedures and introducing investor-friendly policies to attract investors.
Earlier this year, Saudi Crown Prince Mohammed bin Salman has stated at the World Economic Forum that the kingdom will offer $6 trillion in big prospects to investors over the next decade. The opportunities “include $3 trillion in investments in new projects within the framework of the opportunities provided by the kingdom’s Vision 2030” and promising growth sectors, according to the reports.