New Factories Licensed in MODON Industrial Cities

Several new manufacturing facilities have been licensed across the Kingdom's industrial cities managed by MODON, opening fresh opportunities for local and foreign investors looking to set up production lines in Saudi Arabia. MODON oversees more than 36 industrial cities and technology zones nationwide, with major clusters in Riyadh, Jeddah, Dammam, Al-Qassim and other regions.

All land allocation and ready-factory services are handled through the Shareek e-platform at partner.modon.gov.sa. Investors can also reach the MODON call center on 8002499944 or by email at info@modon.gov.sa.

How to set up a factory

The setup path begins by classifying the manufacturing activity under the Saudi Standard Industrial Classification (SSIC). Foreign investors must first obtain an investment licence from the وزارة الاستثمار, with a minimum capital usually around SAR 500,000 for a foreign-owned manufacturing LLC, or higher in capital-intensive sectors. Companies then obtain their Commercial Registration, register on Shareek, and apply for industrial land or a ready factory in their chosen city.

An industrial licence is issued through the Sinaei platform of the Ministry of Industry and Mineral Resources — a preliminary licence for planning, followed by a final licence for production. Businesses must also secure MODON building approvals, Civil Defence fire-safety clearance, environmental and municipal permits, plus ZATCA tax registration, Chamber of Commerce membership and e-invoicing (FATOORAH) setup.

Costs to expect in 2026

MODON's official guidance places industrial land lease at roughly SAR 1–4 per sqm per year — around SAR 4 in major cities like Riyadh, Jeddah and Dammam, and about SAR 1 in remote or promising cities. Ready factories rent for about SAR 90,000–150,000 a year. Land allocation fees are charged monthly at around SAR 0.5–1 while preliminary industrial licences run about SAR 2,000–5,000. The move supports the industrial goals of رؤية السعودية 2030.

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