Saudi Arabia Draws More Global Manufacturers

Saudi Arabia is seeing growing interest from global manufacturers looking to establish local production, supported by a modernised investment framework and steady growth in industrial licensing. The changes make it easier for foreign companies to set up factories in the Kingdom.

At the core is the 2024 Investment Law, issued by Royal Decree M/19 and effective from February 2025. The law abolished the previous Foreign Investment License and replaced it with a unified Investor Registration handled by the وزارة الاستثمار (MISA) through its official electronic investment portal. Registration is mandatory for any foreign entity setting up a manufacturing presence.

Under the new system, foreign and domestic investors receive equal treatment, and manufacturing is largely open to 100% foreign ownership. Companies typically need to submit their parent company's commercial registration and business licence, articles of association, board or shareholder resolutions, a feasibility study for the Saudi project, shareholder and director data, signing authorisation, and proof of a Saudi contact address.

Setting up a new factory also requires an industrial licence, issued through the national industrial authority alongside MISA investor registration. Recent industrial data points to strong momentum: in March 2026, the Kingdom issued 188 new industrial licenses, with more than SAR 1.81 billion in investments linked to those licences. During the same period, 78 factories began production, backed by SAR 870 million invested in newly operational plants, and are expected to create more than 1,700 new jobs.

For residents and the wider community, this activity signals more industrial jobs, expanded local production, and a broader base of goods manufactured inside the Kingdom. It reflects continued efforts under رؤية السعودية 2030 to diversify the economy and strengthen the industrial sector.

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