Ministry of Industry: Environmental licenses are linked to the approval of "Mawan"
The Ministry of Industry and Mineral Resources announced the implementation of a new and decisive regulation linking the issuance of industrial licenses for establishments operating in the environmental sector to the mandatory approval of the National Center for Waste Management (Mawan). This measure is part of a comprehensive procedural guide aimed at governing the waste management and recycling sector, in accordance with the unified industrial regulation system of the Gulf Cooperation Council (GCC) countries. The Ministry emphasized that there are no exceptions to this requirement.
The context of the transition towards sustainability and Vision 2030
This decision cannot be viewed in isolation from the broader national context of Saudi Arabia's Vision 2030, particularly the "Green Saudi Arabia" initiative. The Kingdom is actively pursuing a shift from the traditional waste management model, based on landfill disposal, to a "circular economy" model that emphasizes resource recovery and waste reduction. Regulating the relationship between industrial licenses and environmental oversight bodies is a fundamental step to ensure that recycling projects offer genuine added value and are not merely rudimentary collection operations. This supports the Kingdom's international commitments to reducing carbon emissions and protecting the environment.
Strict technical standards: no room for manual sorting
In detailing the new regulations, the Ministry established strict criteria for classifying facilities, emphasizing that "sorting" projects will only be classified as industrial activities if they rely on full mechanization and advanced separation technologies. The Ministry affirmed that traditional manual sorting processes do not qualify a facility for an industrial license, ensuring operational efficiency and output quality. Furthermore, the guidelines require investors to conduct physical or chemical transformations of waste to produce new or intermediate materials, thus excluding simple transportation and collection activities from industrial classification.
Expected economic and regulatory impact
This procedural linkage is expected to have a broad positive impact at both the local and regional levels. Locally, it will "filter" the market of haphazard and unregulated practices, paving the way for quality investments that bring advanced technology to the Kingdom. Regionally, compliance with the unified industrial regulatory framework of the Gulf Cooperation Council (GCC) will facilitate the export of recycled products and enhance economic integration among GCC countries. This integration of roles between the Ministry and the Ministry of Industry and Minerals (Mwani) ensures the absence of conflicts of interest and a unified regulatory framework.
Investment requirements and accurate classification
The procedures also included specific requirements for investors, including foreign investors, who are now required to submit a valid investment license that includes a specific activity in the environmental industries before commencing the process. The Ministry also mandated that products be classified according to the National Standards for Economic Activities (ISIC) and linked to the HS code to facilitate tracking and monitoring. The new guidelines grant the Ministry the flexibility to amend the requirements in the future, reflecting the sector's dynamism and the country's commitment to keeping pace with the latest global standards in the environmental industry.
