Where the study fits
For a new manufacturing project the official investor guidance sets out a sequence: obtain the commercial registration (and, for a foreign investor, the Ministry of Investment licence first), request an industrial licence for establishment status from the Ministry of Industry and Mineral Resources, register the establishment, and secure industrial land, typically in a MODON industrial city.
A feasibility study runs alongside these steps. The national investor guide describes it as the point at which you can also apply for the support packages and incentives available to the project, and says the study should include an environmental impact assessment as well as financial analysis of revenues, operating and capital cost, EBITDA margin, cost of capital and expected returns.
One study, three readers
| Who reads it | What they look for |
|---|---|
| Ministry of Industry and Mineral Resources | Products, production capacity, technology, raw materials, jobs and Saudisation |
| MODON or the land authority | Land and utility needs, building plan, investment size and timeline |
| SIDF or a bank | Market evidence, project cost, cash flow and the ability to repay |
SIDF's own process makes the link explicit. To register a loan application it asks for a valid lease from the industrial city where the project will be located, or, on private land, a building permit and permission to operate on that site. Land and licence come before the loan, so it pays to write the study once, to the standard of the most demanding reader.
What we prepare
- Product mix and installed capacity, with the basis for each figure
- Process description, machinery list and supplier quotations
- Raw material sourcing and local content
- Land, building, power, water and gas requirements
- Manpower and Saudisation plan by role and year
- Environmental considerations for the environmental assessment
- Market study for local, GCC and export sales
- Capital and operating cost, Excel model, returns and sensitivity
Foreign investors
Most manufacturing activities are open to full foreign ownership. A foreign manufacturer typically needs the Ministry of Investment licence first, then commercial registration, then the industrial licence. The study has to be Saudi-specific: costs, wages, utility tariffs and demand from home or from another Gulf market will be questioned.
Questions we're asked
Is a feasibility study needed for the industrial licence itself?
The investor guidance places the feasibility study alongside the licence and land steps, and MODON and SIDF both expect one. Even where a form asks for less, a full study is what the later steps will need.
Can the study support incentive applications?
Yes. The official guidance suggests applying for support packages while the feasibility study is being prepared, and the study is the natural evidence for them.
Do you handle the licence application?
No. We prepare the feasibility study, model and technical content. Licensing applications are made by your company or your licensing agent, and we work alongside them.
We are a foreign manufacturer. Where do we start?
With a market-entry study to confirm the case, then the Ministry of Investment licence. See our page on market entry for international companies.