Saudi Arabia Business Opportunities: F&B, Manufacturing, Mining & Healthcare Sectors

Why Three Sectors Are Attracting Foreign Investment in the Kingdom

Saudi Arabia's Vision 2030 has created investment opportunities across sectors that were previously closed or restricted to foreign investors. The Kingdom issued 1,346 new industrial licenses in 2024 alone, attracting over SAR 50 billion (USD 13.3 billion) in new investments. Mining exploration investment has grown fivefold since 2020, reaching SAR 1.05 billion in 2024. The food and beverage market is projected to reach USD 61.77 billion by 2032, while healthcare privatization targets 290 hospitals and 2,300 primary health centers by 2030.

This guide covers three high-growth sectors where foreign investors can establish 100% owned businesses in the Kingdom of Saudi Arabia: food and beverage (restaurants, food production, and food export), industrial manufacturing and mining, and healthcare services and equipment. Each sector has distinct licensing requirements and regulatory bodies beyond the standard MISA license.

Food & Beverage: Restaurants, Production, and Export

Saudi Arabia's full-service restaurant sector was valued at USD 16.15 billion in 2025 and is expected to grow to USD 24.12 billion by 2030 (CAGR of 8.35%). The F&B sector overall is projected to grow rapidly, driven by tourism expansion, rising incomes, and urbanization. Quick-service restaurants, casual dining, and specialty coffee outlets are the primary growth drivers.

Restaurant and Coffee Shop Setup

Opening a restaurant or coffee shop in Saudi Arabia requires multiple licenses beyond the standard MISA and Commercial Registration. The process typically takes 6 to 10 weeks with complete documentation.

Required Licenses: Commercial Registration from the Ministry of Commerce (activity code must match your concept: restaurant, cafe, bakery, juice bar, or catering). Municipal License (Baladiya) defining location and design standards. Civil Defense approval for building safety. SFDA food establishment permit. Health certificates for all staff from SFDA-accredited training courses.

ZATCA Registration: Register with the Zakat, Tax and Customs Authority for your tax identification number, VAT obligations (15% standard rate), and corporate income tax (20% for foreign-owned entities).

Special Permits: Shisha service requires additional ventilation permits. Food trucks require vehicle specification approvals. Cloud kitchens have separate requirements from dine-in establishments.

Location Approval: Before leasing, verify the location passes the Ministry of Municipal checklist via the Balady Platform. Retrofitting non-compliant spaces reduces margins and delays opening. Work with approved architects and local engineers to ensure the layout meets inspection standards from day one.

Staffing Requirements: All food handling staff must complete SFDA-accredited food safety training courses covering hygiene, sanitation, and proper food handling. Plan visa quotas and accommodation early under the Nitaqat (Saudization) program.

Food Production in Saudi Arabia

Foreign investors can establish food manufacturing operations with 100% ownership under an Industrial MISA license. The standard minimum capital of SAR 500,000 applies. Food production facilities require SFDA licensing in addition to standard business registrations.

SFDA Manufacturing License: Required for any facility producing, processing, or packaging food products. Submit detailed product specifications, production processes, laboratory analyses proving compliance with health standards, and quality and safety certifications. The license is granted for a specific duration and requires regular evaluation for renewal.

Halal Compliance: All food products must meet halal standards. Products containing meat, meat products, animal fats, gelatin, collagen, animal-derived rennet, or enzymes of animal origin require halal certification from bodies recognized by the SFDA Halal Center. This extends to composite products like dairy analogues, pastries, confectioneries, and ice cream.

Exporting Food to Saudi Arabia

Importing food into Saudi Arabia requires registration with SFDA and compliance with customs protocols. The Saudi Food and Drug Authority oversees all imported food products.

Basic Import Requirements: Importers must create an SFDA account and register food items before import. The Commercial Register must include food trade activities. Products must meet all technical regulations and standards applied in KSA, including GSO (Gulf Standards Organization) standards.

Required Documentation: Certificate of origin (copy). Original halal certificate for applicable products. Original certificate of slaughtering for meat and poultry. Certified invoice from the competent authority in the country of origin. SFDA product registration. Arabic labeling compliant with GSO 9:2013 standards.

Halal Certificate Requirements: Since November 2020, all meat and poultry shipments require both a halal certificate for the manufacturer and a halal shipment certificate for each consignment. These must be issued by halal certification bodies recognized by the SFDA Halal Center.

Products requiring halal certification include: meat and meat products, poultry, animal fats, gelatin, products with animal-derived rennet, and any product bearing a halal logo.

Prohibited Imports: Saudi Arabia bans imports of alcoholic beverages, live swine, pork, and food ingredients or additives containing pork products (including pork fat, rennet, and gelatin). Genetically modified animals, birds, fish, and their products are also prohibited under GSO 2141:2011.

Labeling Requirements: All prepackaged food must be labeled in Arabic or include Arabic translation. Labels must include: product name, ingredients in descending order of weight, net weight (metric), production and expiration dates, manufacturer name and address, country of origin, storage instructions, and allergen declarations. Products with halal claims must include a statement that the product was slaughtered according to Islamic principles.

Shelf Life Requirements: Saudi Arabia has strict requirements for remaining shelf life upon import. Coordinate expiration dates with your Saudi buyer before shipping. Underestimating this requirement is a common cause of shipment rejection.

Meat and Poultry: Imports are only permitted from SFDA-approved establishments in approved countries. The SFDA maintains an Approved Establishment Directory. Foreign establishments must be nominated by their country's competent authority and approved by SFDA before exporting. Note: Saudi Arabia bans poultry stunning for religious purposes, which has created trade barriers with some exporting countries.

Industrial Manufacturing and Mining

The National Industrial Development and Logistics Program (NIDLP) aims to increase the industrial sector's contribution to GDP to 20% by 2030 and attract USD 426 billion in foreign and local investment. Saudi Arabia issued 1,346 industrial licenses in 2024, and 1,075 factories began production with investments exceeding SAR 48 billion.

Industrial Manufacturing Setup

Foreign investors can establish manufacturing operations with 100% ownership under an Industrial MISA license. The standard minimum capital is SAR 500,000, which can be used as working capital. Unlike trading licenses (which require SAR 30 million), industrial licenses have accessible capital thresholds.

Priority Sectors: The Kingdom is actively attracting investment in food processing, rubber and plastics, non-metallic minerals, petrochemicals, consumer goods, defense localization, and Industry 4.0 technologies (robotics, AI, digital manufacturing). Companies in these sectors benefit from faster authorization, state incentives, and access to government partnerships.

Industrial Cities and Zones: Private sector investments in industrial cities and zones totaled SAR 1.9 trillion in 2024. These zones offer modern infrastructure, streamlined customs processes, and proximity to ports and logistics hubs. Major industrial activity is concentrated in Riyadh, the Eastern Province, and Makkah regions.

Chemical Permits: Manufacturing involving chemicals requires clearance through the Ministry of Industry and Mineral Resources via the Sanaei digital platform. The ministry processed over 1,000 chemical permit requests in November 2024 alone, including approvals for both restricted and non-restricted chemicals.

Saudization: Industrial facilities must meet Saudization quotas. The licensed workforce in industrial cities reached 1.09 million with a 36% Saudization rate in 2024. Plan your hiring to meet sector-specific requirements from day one.

Mining Sector Opportunities

Saudi Arabia's mining sector is estimated at USD 2.5 trillion in mineral wealth, primarily in the Arabian Shield covering 600,000 square kilometers of western Saudi Arabia. The Kingdom aims to attract USD 100 billion in mineral processing investment by 2035 and position mining as the third pillar of the national economy.

Exploration Licenses: The number of mining licenses from the Kingdom have increased from 1,985 in 2016 to 2,401 by the end of 2024. In 2024, competitive licensing began for larger mineralized belt areas, including nearly 5,000 square kilometers across the Jabal Sayid and Al-Hajjar sites.

Key Minerals: Gold (current production 495,000 ounces in 2024, newly identified reserves exceeding 10 million ounces), copper, phosphate (concentrated in the Northern Borders Region), bauxite supporting aluminum production, and emerging lithium prospects for energy transition applications.

Government Support: The Saudi government established a USD 182 million mineral exploration incentive program with funding for up to 75% of development costs through the Saudi Fund for Development. Ma'aden, the national mining company (65% owned by the Public Investment Fund), serves as the operational cornerstone and partnership opportunity for foreign investors.

Investment Structures: Foreign mining companies can enter through joint ventures with Saudi partners (Barrick Gold's 50-50 structure for the Jabal Sayid copper mine is a model), direct exploration licenses, or supply chain participation through mining technology and services.

Healthcare: Clinics, Services, and Equipment

Healthcare is one of the key focus of Vision 2030, as the Kingdom prioritizes providing world-class healthcare for Saudi Nationals. The Kingdom is pursuing USD 65 billion privatization of healthcare infrastructure across 21 insurance-centered health clusters. The 2019 Private Health Institutions Law permits foreign investors to own, operate, and manage hospitals and health centers.

Private Clinic and Hospital Setup

Foreign investors can own 100% of general polyclinics, hospitals, and telemedicine centers. Single specialty clinics and pharmacies have foreign ownership restrictions. The licensing process involves the Ministry of Health (via the Seha platform), MISA, and municipal authorities.

Medical Clinic License Process: Register on the Seha platform and select the type, specialty, and location of the health institution. Submit: Commercial Registration number, MISA license (for foreign investors), site approval from the Ministry of Municipal and Rural Affairs, and applications for health professional endorsements. After completing all medical and administrative equipment, apply for the final license with municipal permits and registration numbers for all health professionals from the Saudi Commission for Health Specialties.

Medical Complex Requirements: General medical complexes require at least three medical specialties, with one being a core specialty (General Surgery, Internal Medicine, Obstetrics and Gynecology, Pediatrics, or Family Medicine), plus an emergency department. Specialized complexes require three clinics for each specialty. A valid agreement with a hospital for emergency case transfers is required.

Hospital Requirements: Hospital applications require: title deed or lease agreement valid for at least 15 years, preliminary engineering plans approved by a certified engineering office and the Ministry of Health's General Directorate of Engineering Services, and construction completion inspection. License deposits range from SAR 100,000 to SAR 300,000 depending on hospital category.

Staff Requirements: All health professionals must hold registration and classification from the Saudi Commission for Health Specialties. Saudization quotas apply, which can be challenging for specialized fields with limited local expertise. The 2019 Law requires non-Saudi medical practitioners to have their licenses renewed in accordance with professional registration terms.

Accreditation: The Saudi Central Board for Accreditation of Healthcare Institutions (CBAHI) ensures hospitals meet quality requirements through regular inspections. Facilities must comply with health, safety, and building codes and undergo regular inspections to maintain standards.

Medical Device and Equipment Sales

Saudi Arabia's medical device market was USD 2.11 billion in 2023, growing at 6.01% CAGR through 2032. All medical devices require Medical Device Marketing Authorization (MDMA) from the SFDA before sale or distribution.

Authorized Representative Requirement: Foreign manufacturers without a Saudi entity must appoint a Local Authorized Representative (LAR). The LAR obtains an Authorized Representative License (renewable annually), submits all MDMA applications, manages SFDA communications, and maintains post-market compliance including adverse event reporting.

Device Classification: SFDA classifies devices into Class A (low risk), B, C, and D (high risk) based on EU MDR alignment. Classification determines documentation requirements and scrutiny level. Prior approval in a reference market (Australia, Canada, Europe, Japan, or USA) is a prerequisite for MDMA, though CE marking alone does not substitute for SFDA requirements.

Technical File Requirements: Submit through the GHAD electronic portal: device description and specifications, intended use and patient populations, labeling and Instructions for Use (Arabic required for home-use devices, English acceptable for professional-use devices), quality management system certification (ISO 13485:2016 from SFDA-accredited or IAF-accredited bodies), clinical evidence, and risk management documentation.

Unique Device Identification (UDI): SFDA has implemented UDI requirements for all devices. Manufacturers must establish tracking systems to record all information related to supply and distribution of medical devices.

MDMA Timeline and Validity: The SFDA registration process averages 35 days. MDMA certificates are typically valid for one year and renewable. The SFDA reserves the right to request technical documentation even after MDMA issuance, with manufacturers required to provide documents within 10 days of request.

Post-Market Obligations: Manufacturers, authorized representatives, and healthcare providers must report adverse events to the National Centre for Medical Devices Reporting (NCMDR). Field Safety Corrective Actions affecting devices must be notified to KSA authorities.

How We Support Saudi Market Entry

Our team guides investors through the complete Saudi Arabia market entry process across all three sectors. For F&B operations, we coordinate MISA licensing with SFDA permits, municipal approvals, and food establishment certifications. For manufacturing and mining, we advise on industrial zone selection, chemical permits, and partnership structures with Saudi entities. For healthcare, we manage the multi-agency licensing process through the Ministry of Health, SFDA medical device registration, and CBAHI accreditation preparation.

Companies often combine Saudi Arabia expansion with existing UAE operations. We advise on cross-border structures that position your business for both markets, including UAE holding companies that own Saudi operating subsidiaries.

Contact Gravity Power Management Consultancies to discuss your Saudi Arabia expansion across food and beverage, manufacturing, mining, or healthcare sectors.

Article Written By:

Martin Kocher,

Investment Structuring Expert

Dubai, United Arab Emirates

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Disclaimer: Thank you for reading our article! This content is for informational purposes only and does not constitute legal, tax, or investment advice. Please consult qualified professionals for guidance specific to your situation.