Saudi Arabia issues new regulatory framework for urban and rural factories

Dubai: Saudi Arabia's Ministry of Municipal, Rural Affairs and Housing has unveiled a comprehensive set of regulatory requirements for factories operating both within and outside urban areas.

The move comes as part of the Kingdom’s efforts to streamline industrial investment and ensure compliance with urban development and safety standards.

The new framework, designed to enhance the industrial investment environment, applies to all factories, whether situated in urban zones, support service areas, or designated industrial districts.

To obtain an operating licence, businesses must now meet a stringent checklist: a valid commercial registration, an industrial licence from the Ministry of Industry and Mineral Resources, an environmental permit from the National Centre for Environmental Compliance, and approval from Civil Defence to confirm adherence to fire safety and building codes.

The regulations introduce precise spatial mandates, requiring factory sites to be located in areas zoned specifically for industrial or commercial use. Each facility must occupy a plot of no less than 300 square meters and no more than 600 square metres.

Additionally, the rules mandate designated parking for trucks and vehicles, as well as clearly marked loading and unloading zones to minimize congestion and improve logistics efficiency.

Engineering designs must now include detailed layouts for truck and pedestrian movement, entry and exit points, and security checkpoints.

The ministry has also reinforced the Saudi Building Code, requiring fire-resistant construction materials, proper ventilation, air conditioning, fire alarm systems, and accessible pathways for people with disabilities. Facade designs must align with urban aesthetics as per approved municipal guidelines.

Beyond structural requirements, the ministry has imposed strict operational standards. Factories must install surveillance cameras, implement internal signage, and provide electronic payment options if sales outlets are present. Operating beyond licensed boundaries or after permit expiration is now prohibited.

To enhance transparency, each licensed facility must display a unified QR code linked to its registration data, allowing authorities and the public to verify compliance easily. The regulations also enforce waste management protocols, hygiene maintenance, and the segregation of primary and secondary industrial activities to prevent operational overlaps.

Municipal authorities will conduct regular inspections to ensure adherence, with penalties imposed on violators. The measures aim to elevate the quality of industrial operations, boost investor confidence, and create a safer, more organised industrial ecosystem, key objectives under Saudi Vision 2030 economic diversification agenda.