Egypt nets new IMF loan but pound plunges in value by 40%

RIYADH: Investors in Saudi Arabia will benefit from a new license aimed at reducing the bureaucracy involved in getting construction projects off the ground.

According to a statement, the Ministry of Industry and Mineral Resources inaugurated the new service, which provides documents in accordance with the Unified Industrial Organization Law of the Gulf Cooperation Council countries. 

This will enable the initiation of an industrial project, following specific stages and mechanisms overseen by the ministry.

This is in line with the body’s endeavors to actively pursue opportunities to protect the mining sector and maximize its value in accordance with the Kingdom’s Vision 2030 goals and the National Industry Development and Logistics Program.    

For the establishment process, the requirements include a valid commercial register for industrial activity, an application for the industrial license issuance service on the Senaei Platform, and an immediate release for activities not restricted by the ministry. 

Moreover, the ministry explained that this phase has advantages, such as registering the products intended for production in the industrial license and requesting site allocation from the entities responsible for this activity. 

Other benefits include the ability to apply for an industrial loan, the option of applying for energy allocation, and a one-year renewable license validity period. 

As for the construction phase, the requirements entail a valid commercial register that includes industrial activity, energy allocation from the Ministry of Energy as well as a valid spatial license or contract from the entities designated for the sites. 

Additionally, applicants must provide an environmental permit for construction and submit a status upgrade request on the Senaei Platform. 

The returns linked to this stage include labor support for the construction phase, customs exemption on machinery and equipment and exemption on spare parts, chemical clearing, and a one-year license validity period that is also renewable. 

For the final stage and production, the obligations are a valid commercial register that includes industrial activity, safety and environment for operation from the competent authorities, as well as an application for an upgrade on the industrial platform, and licenses and requirements for activities from other competent authorities, including military, food, and medicine activities. 

This stage will offer labor support for the production stage, along with similar benefits to those of the construction phase. 

Growing the industrial sector is a key ambition for Saudi Arabia as the Kingdom works to diversify its economy in order to meet the objectives of Vision 2030.   

Saudi Arabia is on track to transform mining into the third pillar of the national industry and is working to exploit the mineral resources in the Kingdom spread across more than 5,300 sites and valued at about SR5 trillion ($1.33 trillion).