Author: Motaded Limited Team | Last updated: June 2026 | Reading time: 10 minutes
Saudi Arabia's food sector is a strategic pillar of Vision 2030 and the National Food Security Program, with annual food spending exceeding SAR 250 billion. Every food factory, warehouse, or distribution center operating in the Kingdom is required to obtain prior licensing from the Saudi Food and Drug Authority (SFDA). Unlike some other sectors, fees for food establishment licensing are calculated using complex formulas that depend on area, duration, and factory category. This guide details everything you need to know precisely before starting any food investment.
Important note before starting: Simple food product registration with SFDA is free, but registration of special foods and dietary supplements costs SAR 5,000 per product. This is entirely separate from the establishment license itself.
Three Types of Food Establishment Licenses
SFDA classifies food establishments into three main categories, each with its own license carrying specific requirements and fees:
Type 1: Food Factory License
Covers all food production and packaging facilities, including bottled drinking water and ice. Fees are calculated according to factory category and license duration (1 to 5 years). The category depends on product type (meat, dairy, bakery, beverages, canned foods) and daily production capacity.
Type 2: Food Warehouse/Distribution Center License
For importers and distributors storing food without manufacturing. Fees are calculated using a unique formula combining area (in square meters) and license duration:
| License Duration | Fee Calculation Formula | Example (500 m² warehouse) |
| 1 year | (land m² × 60 halalas) + SAR 1,000 | SAR 1,300 |
| 2 years | (land m² × 120 halalas) + SAR 1,000 | SAR 1,600 |
| 3 years | (land m² × SAR 1.80) + SAR 1,000 | SAR 1,900 |
A halala = 0.01 Saudi riyal. Note that the calculation formula includes the entire land area, not just the actual storage space. Fees exclude VAT 15%.
Type 3: Animal Feed Factory License
For animal feed product manufacturing facilities. Advantage: there are no current financial fees for this license. However, it requires the same safety and quality requirements as other sectors.
Food Product Registration: Free for Simple Products, SAR 5,000 for Special Foods
The crucial distinction that many entrepreneurs confuse:
| Product Category | Examples | Registration Fee per Product |
| Simple foods | Bread, milk, rice, canned tuna, chocolate, natural juices | No fees |
| Special foods | Baby food, gluten-free foods, diabetic foods, keto products | SAR 5,000 |
| Dietary supplements | Vitamins, minerals, proteins, amino acids, herbal supplements | SAR 5,000 |
| Animal feed | Livestock, poultry, and fish feed | No fees |
Practical note: A company importing 50 simple food products pays SAR 0 for product registration, while a dietary supplements company importing 20 products pays SAR 100,000. This essential difference must be factored into the economic feasibility study of the project.
General Requirements for Licensing Any Food Establishment
Administrative Requirements
Your Commercial Registration extracted from the Saudi Business Center must contain a food activity accepted by SFDA, issued from the same administrative region as the establishment location. Selecting the wrong activity code means license rejection.
• Valid Commercial Registration with the correct activity.
• Valid municipal license from the Balady platform for the establishment location.
• Civil Defense license or permit from the relevant government authority for safety regulations.
• Industrial license from the Ministry of Industry and Mineral Resources (factories only).
• Lease contract or property deed for the location.
• Documented product transport and distribution contract.
Technical Requirements
• Qualified Saudi technical officer with experience in food sciences or related disciplines.
• Qualified Saudi quality manager (for factories).
• ISO 22000 food safety management system certificate or HACCP (Hazard Analysis and Critical Control Points).
• GMP certificate for factories producing sensitive foods like dairy and supplements.
• Contract with an accredited specialized pest control company.
• Safe waste disposal contracts (for factories producing waste requiring special handling).
Construction Requirements
• Approved architectural plan showing production/storage/packaging/lab sections, with separation between sections to avoid cross-contamination.
• Refrigeration and freezing rooms for perishable foods, with continuous temperature monitoring system.
• Sewage network dedicated to food establishments, separate from general drainage.
• Covered loading and unloading area to protect food from weather conditions.
• Staff changing room with industrial laundry and separation between staff and production zones.
Step-by-Step Process for Food Establishment Licensing
Step 1: Choose the Appropriate Location
Not every location is suitable for food licensing. It must be inside an industrial city affiliated with MODON or in a municipal area designated for food activities. Locations inside industrial cities benefit from an operating license from the Industrial Cities Authority instead of the traditional Civil Defense license.
Step 2: Establish the Legal Entity
Extract the Commercial Registration, obtain an investment license from the Ministry of Investment (MISA) for foreign companies, industrial license for manufacturers, and municipal license. These steps typically take 30-60 business days with good follow-up.
Step 3: Prepare the Establishment Technical File
Gather all technical requirements, construction documents, and administrative certificates. This is the most difficult part of the process, as any shortage leads to first-review rejection.
Step 4: Electronic Submission to the SFDA System
Submission is done through SFDA's E-Services Portal. All documents must be uploaded in PDF format, with the electronic form completed in detail covering: establishment activity, production line, proposed products, technical specifications of packaging and filling lines, and workforce numbers.
Step 5: Initial On-Site Inspection
SFDA's specialized inspectors visit the establishment site to verify actual compliance with declared standards. They inspect: drainage network, refrigeration rooms, ventilation systems, section separation, staff facility availability, actual pest control plan, presence of qualified and approved technical manager.
Step 6: Pay the Fees
After site acceptance, the system issues an invoice according to the appropriate formula (for factory by category, for warehouse by area and duration). Payment is via SADAD system using Biller Number 109 for SFDA. Details of the multiple payment systems are explained on the comprehensive SFDA platform.
Step 7: License Issuance
After payment and completion of any final clarifications, SFDA issues the license. For factories the license is renewable every five years, and for warehouses according to the chosen duration (1-3 years).
Special Cases in the Food Sector
Imported Foods and Their Clearance
Imported foods, in addition to warehouse licensing, require clearance of each shipment separately through the FASAH platform (faseh.sfda.gov.sa). Clearance requires: certificate of origin, health certificate from country of origin, commercial invoice, packing list, and GMP certificate for the foreign manufacturer.
Halal Foods
Foods carrying a halal claim require an additional halal certificate from the Saudi Halal Center (halal.gov.sa). This certificate does not replace establishment licensing but adds to it. Meat especially requires strict oversight to verify Sharia-compliant slaughter and complete tracking from abattoir to consumer.
Bottled Drinking Water
Bottled drinking water is subject to strict regulations including periodic water source testing, approved treatment system, monthly microbiological and chemical analyses, and quality monitoring from accredited laboratories. Water factory licensing takes relatively longer (90-150 days) due to rigorous technical inspection.
Meat and Poultry Products
Subject to the highest levels of oversight and require: additional veterinary license from the Ministry of Environment, Water and Agriculture, complete tracking system from source, refrigeration rooms at precisely specified temperatures, veterinary inspection of every batch before distribution, and strict adherence to expiry periods.
Common Challenges and Causes of Application Rejection
• Choosing an inappropriate location: attempting to license an establishment in a residential or commercial area where the municipality does not permit food activities.
• Inadequate section separation: no separating wall between raw materials zone and finished product zone.
• Expired HACCP certificate or one not issued by an internationally accredited body.
• Absence of product traceability system for sensitive foods like meat and dairy.
• Lack of qualified Saudi technical manager or having a non-SFDA-approved manager.
• Ineffective pest control system or contract with an unlicensed company.
• Refrigeration rooms without continuous temperature monitoring system generating a reviewable log.
• Sewage network mixed with general drainage of the site, instead of a dedicated system for food establishments.
Post-Licensing Obligations
• Periodic inspections: SFDA conducts periodic inspections (at least annually) to verify ongoing compliance. Any violation leads to warning, and repeated violations may result in license withdrawal.
• License renewal before expiration: factory every 5 years, warehouse according to chosen duration.
• Reporting any change in production line or addition of new product.
• Immediate response to any consumer reports regarding product quality.
• Participation in market withdrawals (Food Recall) when needed.
• Maintaining production and distribution records for at least 5 years.
How Motaded Helps with Food Establishment Licensing
Establishing and licensing a food establishment requires coordination between 6-8 government entities: SFDA, Saudi Business Center, Municipality, Civil Defense, Ministry of Industry, Ministry of Investment, Saudi Industrial Cities Authority, and Saudi Halal Center. We have helped license 281 establishments at SFDA across different sectors, and our food sector specialists manage the entire process: choosing the appropriate location, company establishment, extracting all parallel licenses, preparing the technical file and construction documents, securing ISO 22000 and HACCP certificates, coordinating with approved pest control companies, managing on-site inspection, payment, and follow-up renewal. Discover the complete package on the SFDA platform page or book a meeting with a food sector expert.
Conclusion
The Saudi food sector is rich with opportunities but also one of the most regulated and monitored sectors. The difference between executing licensing correctly and maintaining it without obstacles, versus falling into common mistakes and repeated rejection, is measured in months of delay and tens of thousands of riyals in wasted fees. Motaded Limited provides an integrated licensing service for food factories, warehouses, and distribution centers with a 96% success rate on the first attempt. Book your free meeting with a food sector expert to determine the appropriate license type and the complete feasibility study.
Question 1: What is the difference between a food factory license and a food warehouse license?
Answer: Factory license is for establishments that produce and package foods (manufacturing, production, packaging), and its fees are calculated according to factory category and duration with stringent industrial requirements. Warehouse license is for establishments that import, distribute, or store without manufacturing, with fees calculated by formula (land area × halala rate + SAR 1,000). Warehouse does not need industrial licensing but requires Saudi technical manager and tracking system.
Question 2: Can I have a factory and warehouse together under the same license?
Answer: No, each activity requires a separate license from SFDA. If you produce your products yourself and distribute them from the same location, you need two licenses: factory license for the production line and warehouse license for the storage and distribution area. This doubles fees and follow-up.
Question 3: How long does the complete process for obtaining a food establishment license take?
Answer: 90 to 180 business days in the normal case, including: company establishment (30-45 days), extracting parallel licenses (30-45 days), SFDA application and initial inspection (30-60 days), payment and license issuance (15 days). Motaded shortens this period by 30-40% thanks to parallel file processing.
Question 4: Is HACCP mandatory for all food establishments or only large factories?
Answer: HACCP is mandatory for all food establishments regardless of size, but implementation level varies. Large factories need a complete certificate from an internationally accredited body, while small warehouses may need a simplified HACCP plan or ISO 22000:2018 certified by a Saudi body.
Question 5: Can a foreign company license a food factory in Saudi Arabia at 100% ownership?
Answer: Yes, foreign companies can own a food factory at 100% after obtaining an investment license from MISA. Many global food companies have chosen this path in recent years, especially in dairy, bakery, and beverage sectors. Motaded provides an integrated service for foreign companies wishing to enter the Saudi food market.
Question 6: What is the relationship between SFDA licensing and Halal certification?
Answer: SFDA license proves product safety and suitability for consumption from a health perspective, while halal certification (from the Saudi Halal Center) confirms its compliance with Islamic Sharia. The two certificates are completely separate but complementary. A food product bearing the halal logo on its packaging without an approved halal certificate is considered non-compliant and subject to market withdrawal.