MOMAH OKs new rules for factories inside, outside urban zones

Logo of Ministry of Municipalities and Housing (MOMAH)

The Ministry of Municipalities and Housing (MOMAH) approved new regulatory requirements for factories both inside and outside urban areas, as part of efforts to improve the industrial investment environment, enhance compliance, and provide safe, well-planned locations in line with urban development strategies across the Kingdom.

The ministry stated that the requirements apply to all types of factories—whether within urban boundaries, in service support areas, or in approved industrial-use zones.

To obtain a license, factories must hold a valid commercial registration, an industrial license from the Ministry of Industry and Mineral Resources, an environmental permit from the National Center for Environmental Compliance (NCEC), and Civil Defense approval in line with fire safety and building regulations.

According to the ministry, as reported by the Saudi Press Agency (SPA), the requirements set out specific location criteria.

Sites must be within designated industrial or commercial areas, range in size from 300 to 600 square meters, comply with regulatory setbacks, and provide parking for trucks and vehicles, as well as designated loading and unloading areas.

An approved engineering design showing truck and pedestrian movement, entrances, exits, and inspection points must also be submitted.

Technical and architectural requirements oblige investors to comply with the Saudi Building Code, use fire-resistant materials in finishes, and install ventilation, air-conditioning, fire alarm, and firefighting systems.

Facilities must also include accessible pathways for people with disabilities, and façades must meet the urban code or approved design guidelines.

Operational requirements include installing security cameras, placing internal signage, offering electronic payment options for retail outlets, refraining from operating outside licensed premises or after license expiry, and displaying a unified QR code linked to licensing data for transparency and verification.

The regulations also require separation between primary and secondary activities, the implementation of waste management systems, and adherence to cleanliness and regular maintenance standards.

The ministry confirmed that municipal authorities will conduct on-site inspections and enforce the municipal penalties regulation for violations, aiming to improve the quality of industrial activities, strengthen compliance, and create a safe, organized environment that supports Saudi Vision 2030 objectives.

In June, the Ministry of Industry and Mineral Resources issued requirements for conducting industrial activities outside designated zones. This followed the work of a central committee—formed by Cabinet decision in January 2024 and chaired by the ministry with the participation of seven government entities, including MOMAH—tasked with addressing the status of factories located outside approved industrial lands. It aims at regulating industrial activities, encouraging investment, and promoting sustainable industrial development in the Kingdom.