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Manufacturing Business Setup in Saudi Arabia

Explore the licensing requirements and setup procedures to launch your manufacturing business in the Kingdom's growing industrial landscape.

Launch Your Manufacturing Business in Saudi Arabia's Thriving Industrial Market

The Kingdom is transforming into a global manufacturing powerhouse, and international companies are seizing opportunities in this evolution. Foreign manufacturers setting up a business in Saudi Arabia can leverage strategic location, robust infrastructure, and government incentives to tap into the Kingdom's expanding industrial sector and contribute to its diversification.

Why is Saudi Arabia a Premier Manufacturing Destination?

36,000 Factories

Vision 2030 target by 2035, including 4,000 fully automated

SAR 895 billion ($239 billion)

Expected industrial sector GDP contribution by 2030

40% Local Content

Requirement for government contracts, creating supplier opportunities

60% increase

The number of industrial facilities in Saudi Arabia rose from 7,206 in 2016 to 11,549 in 2023

2.1 milli Jobs

Targeted job creation in the industrial sector by 2030

A Step-by-Step Guide to Business Setup

First Stage: Legal Entity Establishment (1 Month)

  1. Obtain a MISA Investor License (valid for one year)
  2. Reserve company name
  3. Draft & notarize Articles of Association (AoA)
  4. Secure Commercial Registration (CR) from the Ministry of Commerce
  5. Register with the Chamber of Commerce (CoC)

Second Stage: Authorization & Hiring (2–3 Months)

  1. Obtain the official company seal
  2. Register with the Ministry of Labor
  3. Enroll with GOSI for employee insurance
  4. Register the business National Address
  5. Issue a General Manager (GM) visa
  6. Register with ZATCA for VAT compliance

Third Stage: Residency & Banking (4–6 Months)

  1. Activate CoC account
  2. Obtain health insurance for GM
  3. Complete GM medical check-up
  4. Issue GM’s Iqama (residency permit)
  5. Register with Muqeem
  6. Register with Absher
  7. Register with Qiwa
  8. Register with Mudad
  9. Open a corporate bank account with a Saudi bank

Compliance After Company Registration

Tax Filing with ZATCA

File your annual tax returns through ZATCA (formerly GAZT) to remain compliant with Saudi tax regulations.

Business License Renewals

Be vigilant about renewing your Commercial Registration (CR), MISA license, and the GM’s Iqama, as well as any other required approvals.

Government Platform Management

Keep your accounts active and updated on Muqeem, Qiwa, and Mudad platforms to ensure smooth compliance and reporting

Payroll and HR Compliance

Regularly report payroll and social insurance obligations, keeping salary records and GOSI registrations current.

Saudization (Nitaqat) Requirements

You must meet local hiring (Saudization) targets based on your industry and company size. Failing to comply can lead to restrictions or operational penalties.

AstroLabs Advantage

AstroLabs Advantage
OfferingAstroLabsCorporate Services Companies offering PRO & GROLaw FirmsIn-House
40+ on-ground local team of experts
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Government portal management and compliance support
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Full management of your company licenses and certificates
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Management of registered employees across the employee journey, from hiring to ongoing management
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Full suite of support: PRO, GRO, HRs support and access to a pool of Saudi talent
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National Address Registration with varied coworking and private office locations
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Seamlessly manage GRO services online using a digital platform
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corporate bank account opening
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Access to a community of 700+ high-growth businesses in Saudi Arabia
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Extended media and exposure support through press releases, social media coverage and articles
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Opportunity-matchmaking with potential partners in governmental entities and corporates
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Access to global and regional events such as BIBAN, LEAP, Seamless, etc
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Frequently Asked Questions