A strategic step towards a sustainable circular economy
In a decisive regulatory step aimed at enhancing environmental sustainability and governance in the industrial sector, the Saudi Ministry of Industry and Mineral Resources announced the launch of a new procedural guide that mandatorily links the issuance or renewal of industrial licenses for facilities operating in the environmental sector to prior approval from the National Center for Waste Management (Mawan). The Ministry emphasized that this requirement is non-negotiable, reinforcing Mawan's role as the sovereign regulatory and supervisory body for all waste management activities in the Kingdom.
In the context of Vision 2030 and green initiatives
This new regulation is an integral part of the strategic transformations underway in the Kingdom within the framework of Vision 2030, which places environmental sustainability and balanced economic development at the heart of its objectives. With the increasing pace of industrial and population growth, the need has become paramount for an integrated and effective waste management system that minimizes environmental impact and enhances resource efficiency. This decision aligns with the goals of the Saudi Green Initiative, which aims to achieve carbon neutrality and divert over 90% of waste from landfills. The establishment of Mawan in 2019 was a pivotal step towards regulating this sector, and this linkage with industrial licensing now completes this legislative framework.
Strict standards to ensure quality and effectiveness
The new procedural guide establishes precise criteria for classifying environmental industrial activities, emphasizing that processes must involve the physical or chemical transformation of waste to produce new materials, whether final or intermediate products. Accordingly, traditional collection and transportation activities are not considered industrial activities. The regulation also imposes a strict requirement on sorting facilities: the process must be fully automated and utilize advanced separation technologies, thus excluding manual sorting from the scope of industrial licensing. This mandatory linkage extends to all sub-activities, such as recycling plants, treatment stations, and automated sorting facilities, to ensure integrated roles and prevent any haphazard practices.
Expected impact at the local and international levels
Domestically, this decision is expected to raise the level of professionalism in the waste management sector and encourage quality investments in advanced technologies and clean treatment. It will also contribute to creating new job opportunities in the green economy, reducing reliance on landfills, and transforming waste into a valuable economic resource. Regionally and internationally, this regulation reinforces the Kingdom's position as a leader in adopting best environmental practices and aligns with the unified industrial regulation system of the Gulf Cooperation Council (GCC) countries, thus facilitating regional economic integration. Furthermore, it sends a positive message to international investors that the Kingdom provides a clear and regulated investment environment in the environmental industries sector, in line with global sustainability standards.
Clear requirements for investors
To ensure full compliance, the guide requires investors to accurately classify their products according to the National Standards for Economic Activities (ISIC) and link them to the Harmonized System (HS). Foreign investors must also submit a valid investment license. The final license will only be granted after all requirements are met, including environmental permits for construction and operation, civil defense safety licenses, and land allocation contracts, thus ensuring the establishment of facilities capable of achieving balanced industrial and environmental development.
