Investing in the industrial cities of the Saudi Authority for Industrial Cities and Technology Zones (MODON) involves a chain of procedures managed electronically through the MODON portal. Understanding this journey from the start saves investors months of delay. This guide sets out the stages as they appear in MODON's official services, along with what the investor needs at each stage.
The Legal Framework
The Authority's work is governed by the organisational statute of the Saudi Authority for Industrial Cities and Technology Zones, published by the Bureau of Experts at the Council of Ministers. It defines an "investor" as a natural or legal person bound to the Authority by a contract or approval to invest in a specific industrial city, and a "license" as the document the Authority issues to practise an activity or provide a service within the industrial city.
Stage One: Contracting for MODON Products (Allocation)
Among its e-services on the national platform, the Authority lists a contracting for MODON products service, which lets the beneficiary apply for the Authority's products, such as industrial land or ready-built factories. This is usually preceded by obtaining an industrial license from the competent authority, depending on the activity.
Stage Two: Design and Drawing Approval
MODON offers a drawing approval service that allows engineering offices to have drawings approved for contracts under the Authority. The technical reference here is the building standards and requirements guides for industrial cities published by MODON, alongside the Saudi Building Code. MODON's guide library includes building requirement guides, operational guides, health, safety and environment guides, energy efficiency requirements for factories, and a guide to compressed gas cylinder requirements. Read: Building requirements in industrial cities.
Stage Three: The Building Permit
MODON's building permits service lets the investor apply online for a building permit for the factory. Read: Documents and drawings required for an industrial building permit and Building permit duration at MODON.
Stage Four: Construction and Monthly Monitoring
MODON offers a monthly construction monitoring service that lets the investor track construction progress. This makes regular engineering supervision and periodic reports an essential part of the relationship with the Authority. Read: Supervising factory construction.
Stage Five: The Building Completion and Occupancy Certificate
According to MODON's "operating licenses and building completion" service page:
- The certificate is issued for new facilities only once, and is valid for one year.
- It requires installing firefighting systems with a maintenance contract, and completing all construction works according to the approved drawings.
- The building completion and occupancy certificate serves as an operating license for new factories that have finished construction and meet the requirements.
Stage Six: The Operating License and Its Renewal
The service terms state that the license means permission to operate the facility, that the licensee is the actual operator according to its legal entity, licenses and records, and that it may not assign the operation, the license or any part of it to others. The application goes through two stages: submitting it from the investor's MODON account with the attachments, then an inspection visit to verify safety standards. Read: The factory operating license and Renewing operating licenses.
The Journey at a Glance
| Stage | MODON service | The engineering office's role |
|---|---|---|
| Allocation | Contracting for MODON products | Assessing the land's suitability for the activity |
| Design | Drawing approval | Designing to MODON's guides and the code, and getting approval |
| Licensing | Building permits | Preparing the file and following up comments |
| Construction | Monthly construction monitoring | Supervision and periodic reports |
| Completion | Building completion and occupancy certificate | Safety drawings, tests and certificates |
| Operation | Operating license and renewal | Preparing attachments and addressing inspection findings |
Frequently Asked Questions
Are all MODON services electronic?
The Authority offers its main services electronically through its portal and lists them on the national unified platform.
What is the difference between a building permit and an operating license?
The building permit allows the facility to be built according to the approved drawings, while the operating license is permission to operate it after meeting the requirements and passing inspection.
Can the operating license be assigned?
No, MODON's terms state that the licensee may not assign the operation, the license or any part of it to others.
How long is the building completion and occupancy certificate valid?
One year, and it is issued for new facilities only once.
Where can I find the building requirements?
In the building standards and requirements guides published on MODON's website.
How Abak Engineering Consultancy Helps
Abak is an accredited engineering office in Riyadh offering integrated services, from design and licensing to supervision and surveying. Learn about our factory building permit service, or Details of how we can help are on our Operating Licence Issuance & Renewal service page. contact us to review your case.
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.
