The Kingdom of Saudi Arabia is experiencing rapid growth in several major business sectors. Facility management (FM) is one of them, as the government has taken several initiatives to empower the FM sector. The growth in the facility management sector is part of Vision 2030, under which the KSA government has planned many mega projects, such as NEOM, as well as massive industrial and residential expansions.
Starting or expanding a facility management business in Saudi Arabia will allow you to leverage a fast-growing economy and dedicated government support. However, companies must complete extensive paperwork to ensure regulatory compliance for opening a facility management business in KSA. Several government bodies are involved in issuing facility management licenses, including the Ministry of Municipal and Rural Affairs (MOMRA) and the Real Estate General Authority (REGA).
This guide outlines the step-by-step process for obtaining your Facility Management license in KSA.
Phase 1: Structure and Commercial Registration
Before applying for the industry-specific license, a business must establish a legal entity in the Kingdom of Saudi Arabia.
- Foreign Investment License (For Non-Saudis): If you are a foreign investor, you must first apply for a foreign investment license. You can apply by submitting the required documents to the Ministry of Investment.
- Key Requirement: Proof of financial solvency and audited financial statements from the entity in your home country are required as part of the application process.
- Ownership: 100% foreign ownership is permitted in the facility management sector.
- Commercial Registration (CR): After acquiring the foreign investment license (or if you are a GCC/Saudi national), you must apply for your Commercial Registration through the Ministry of Commerce (MoC).
- Crucial Step: The most critical part of the process is to choose the correct ISIC activity code. Typically, the primary for facility management is 811005 (Maintenance and operation management of buildings and their facilities). Selecting the wrong code can result in rejection of the regulatory licenses later.
Phase 2: The Specific Industry License (FAL)
This is another essential part of the Facility Management License Acquisition Process. The Real Estate General Authority (REGA) in the KSA oversees the facility management activities under its “FAL” licensing system. To legally operate as a facility manager, it is essential to obtain the specific Industry license from REGA.
The FAL Facility Management License
With an FAL Facility Management License, an establishment can manage the technical affairs of a property, including plumbing, HVAC, and electrical systems, on behalf of the owner.
Prerequisites:
- Commercial registration with the accurate FM activity code.
- Completion of the qualification or training offered by the Saudi Real Estate Institute (SERI) to ensure your core team comprehends the local laws.
Application Process:
- Log in to the E-Brokerage Services on the REGA website.
- Select “FAL License for Facility Management.”
- Upload your commercial registration and proof of qualification.
- Duration: The process is completed within 1–2 working days if all requirements are met.
Phase 3: Operational Licenses & Classification
After completing all of the above, an enterprise can operate as a FM company. To achieve full operational status for large projects, however, additional approvals will be required.
- Municipality License (Balady): The license for the physical office space is issued by the Balady platform. The regulatory authority thoroughly investigates a business space and confirms its compliance with the municipal safety and zoning standards.
- Civil Defense Permit: Safety is issued by the General Directorate of Civil Defense to prove your office and operations are compliant with the fire safety protocols.
- MOMRA Contractor Classification (For Government Tenders) For businesses that plan to bid on government contracts, they must get an exclusive contractor classification from the Ministry of Municipal and Rural Affairs (MOMRA).
Summary of the Workflow
- MISA: Obtain Investment License (Foreigners only).
- MoC: Issue Commercial Registration (Activity Code 811005).
- SERI: Complete mandatory Facility Management training.
- REGA: Apply for the FAL Facility Management License.
- Balady: Obtain the office Municipality License and Contractor Classification.
Why Professional Assistance Matters?
The Saudi government has digitized key operations involved in issuing specific types of licenses, including the FM license. However, if you do not have any prior local experience, things can get complicated, and even a small mistake can lead to regulatory rejections. Such a situation can be easily avoided by acquiring professional assistance from a company such as Carltrix. With extensive experience in the Saudi market, Carltrix can streamline and expedite the license acquisition process.
At Carltrix, we specialize in streamlining corporate setup in the Kingdom. From securing your MISA license to navigating the specific requirements of REGA and MOMRA, we handle the compliance so you can focus on operations.
