Once construction is complete and production lines are installed, an investor may think the factory is ready to operate. But a factory only starts work with an operating licence, the stage where many stumble because of a missing certificate, an untested fire system, or construction that differs from the drawings. MODON's conditions state that this licence means permission to operate the facility, that the licensee is the actual operator according to its legal entity, licences and records, and that it may not assign the operation or licence to others. This guide explains the application and inspection stages, the relationship between the completion certificate and the licence, facilities with special requirements, and where investors get stuck.
Stage One: Applying From Your MODON Account
According to MODON's factory operating licence conditions page, the attachments include:
- A safety drawing approved by MODON.
- An insulation works completion certificate.
- A safety systems test form and quantity survey for the fire-fighting and alarm system.
- An electrical connections and wiring safety certificate.
- A maintenance contract for fire-fighting and alarm systems from a contractor accredited by civil defense.
- An environmental operating certificate.
- An industrial licence for the industrial site.
For a detailed checklist with the issuer of each certificate: Certificates required before factory operation.
Stage Two: The Inspection Visit
To issue the building completion and occupancy certificate, or renew the operating licence, safety standards are verified on site. So the actual facility must match the approved drawings and the safety drawing. Read: Inspection points for industrial projects.
The Completion and Occupancy Certificate = The First Operating Licence
MODON states that the building completion and occupancy certificate is issued to facilities with no outstanding observations where all safety systems and standards have been applied, and is considered an operating licence, issued once for one year for new factories. It requires fire-fighting systems to be installed with a maintenance contract, and all construction works completed according to the approved drawings.
The Factory's Path From Construction to Operation
| Stage | Output |
|---|---|
| Drawing approval and building permit | A building permit. Read: Industrial building permit documents |
| Construction and supervision | A building matching the approved set. Read: Supervising factory construction |
| Preparing certificates and testing systems | A complete attachments file |
| The inspection visit | Completion and occupancy certificate (first operating licence) |
| After one year | Renewing the operating licence |
Facilities Needing Extra Attention
- Manufacturing or storing flammable compressed gases such as oxygen, LPG and acetylene.
- Smelting and high-temperature activities.
- Industrial boilers running on gas or diesel.
Where Do Investors Get Stuck?
- Construction that differs from the approved drawings.
- Fire systems installed without documented testing, or without a maintenance contract from a civil defense-accredited contractor. Read: Failing the final test of safety systems.
- A delayed environmental certificate.
- The contractor handing over documents late. Read: The factory handover checklist.
Also read: Renewing operating licences.
Frequently Asked Questions
Is the operating licence the completion certificate?
For new factories, the building completion and occupancy certificate is considered an operating licence issued once for one year, after which the licence is renewed.
Who issues the fire systems maintenance contract?
A contractor accredited by civil defense, according to MODON's conditions.
Can the factory operate before the inspection visit?
The licence is issued after safety standards are verified.
Can the licence be transferred to another operator?
MODON's conditions state that the licensee is the actual operator and may not assign the operation or licence to others.
What if the production line changes after licensing?
It may require amending the licences. Read: Production line changes and licences.
How Abak Engineering Consultancy Helps
Abak is an accredited engineering office that prepares the factory operating licence file in MODON: the safety drawing, insulation certificate, systems testing, and preparation for the inspection visit until issue. See our operating licences service, or contact us.
Regulatory information is based on the Balady platform and the Ministry of Municipalities and Housing, and procedures may be updated by the competent authority. Last reviewed: October 2026.
