Executive Regulations of the Unified Industrial Regulation System: Full Details

In a strategic move to enhance the attractiveness of the investment environment in Saudi Arabia and the Gulf Cooperation Council (GCC) countries, the Ministry of Industry and Mineral Resources has approved the executive regulations for the Unified Industrial Regulation System . This step culminates efforts toward Gulf economic integration and aligns with the objectives of the Kingdom's Vision 2030, which aims to transform the industrial sector into a cornerstone of the national economy.

Context of the decision and its strategic importance

The adoption of this regulation is part of a long-term process to harmonize economic policies among the Gulf Cooperation Council (GCC) countries. The unified system aims to create a coherent legislative environment that removes obstacles for both Gulf and international investors. Domestically, this regulation supports the national industrial strategy by providing a clear and transparent legal framework that guarantees investors' rights and precisely defines their obligations, thereby contributing to an increased contribution of the industrial sector to the gross domestic product (GDP).

The importance of this event lies in its direct impact on the stability of the industrial environment; the existence of a unified regulation means reducing the variation in procedures between member states, which facilitates the movement of capital, enhances opportunities for regional industrial integration, and gives investors the ability to plan for the long term with less regulatory risk.

Scope of application and exceptions

The regulations clearly define the areas to which the system applies, with the exception of specific activities due to their special nature, which are subject to separate legislation. These exceptions include:

• Projects operating in the field of oil exploration and extraction.
• Projects that are limited to extracting mineral ores without carrying out processing operations that change their form or content.

Industrial licensing procedures: clear and specific steps

The regulations include a detailed section outlining the licensing process, emphasizing the necessity of obtaining preliminary approval before commencing any preparations. The procedures are characterized by clarity and speed, requiring the relevant authority to decide on preliminary approval applications within 30 days of the date of submission, provided all requirements are met.

The data required for initial approval includes:

• The project's trade name and the owner's details (name, nationality).
• The legal form of the establishment and the nature of the activity.
• Expected production capacity and invested capital.
• A detailed statement about industrial products.

If the request is rejected, the regulations stipulate that the decision must be justified to ensure transparency, while failure to respond within 60 days is considered an implicit rejection.

Industrial Register: Post-Production Obligations

The regulations did not stop at the establishment stage, but also addressed the operational stage through the provisions of the Industrial Registry. The project owner is required to submit a registration application to the Industrial Registry within 60 days of the commencement of actual production. The application must include accurate data on the actual production capacity, production costs, and the size of the national and foreign workforce.

The regulations also stressed the need to renew the registration certificate annually and to update the data in the event of any substantial change to the project, thus ensuring the existence of an accurate and up-to-date industrial database that supports decision-makers and investors alike.

Transparency and digital transformation

In line with modern trends, the regulations stipulate the use of electronic forms and systems at all stages of application and follow-up. They also mandate that relevant authorities issue periodic publications containing statistics and data on registered industrial projects, thus enhancing transparency and providing investors with access to reliable information about the state and trends of the industrial market.