The following words and phrases - wherever they appear in this governance - shall have the meanings indicated next to each, unless the context requires otherwise:

Governance: Governance of coordination between the Ministry of Industry and Mineral Resources and the competent authorities regarding procedures related to industrial establishments.

Ministry: Ministry of Industry and Mineral Resources.

Competent Authority: The government body concerned with issuing decisions - related to the industrial establishment - that may result in increased costs for the industrial establishment, or fining it, or closing it, or closing its production lines.

Industrial Establishment: The factory licensed with an industrial license issued by the Ministry; to practice an industrial activity.

Coordinating Committee: The bilateral coordinating committee formed between the Ministry and each of the competent authorities referred to in item (Fourth) of the governance.

Governance aims to enhance transparency and establish a mechanism to regulate the relationship between the Ministry and the competent authorities concerning the issuance of decisions that may result in increased costs for the industrial establishment, or its fining, closure, or the closure of its production lines; enabling the Ministry to review and analyze the regulatory procedures taken by the competent authority; in a manner that serves the development of the industry, the objectives of Saudi Arabia's Vision 2030, supports the industrial sector, and achieves the desired sustainability and development.

1- Mechanism for the competent authority to issue any decision that contributes to increasing costs on the industrial establishment:

This mechanism aims to enable the Ministry to measure the impact on the industrial establishment's ability to respond to decisions issued by the competent authority that may contribute to increasing costs (direct and indirect) on the industrial establishment, and the effect of that on the industrial sector, as follows:

- The competent authority shall provide the Ministry with the draft decision, specifying: the objective, justifications, direct and indirect costs on the industrial establishment, accompanied by supporting documents.

- The Ministry shall study the draft decision within a period not exceeding (10) working days from the date the competent authority provides the Ministry with the draft decision.

- The Ministry shall send its observations regarding the draft decision to be applied to the industrial establishment to the competent authority within the aforementioned period, clarifying an assessment of the effects that may result from its application on the industrial establishment.

2- Mechanism for fining the industrial establishment by the competent authority:

This mechanism aims to inform the Ministry of the data related to the fined industrial establishment and analyze its status in coordination with the competent authority; to ensure the industrial establishment's compliance with the relevant procedures and instructions, and to measure the impact resulting on it and on the industrial sector due to the fine imposed for the violation, as follows:

- After detecting the violation that requires fining and imposing the fine - according to the relevant regulatory procedures - the competent authority shall notify the Ministry of the name of the industrial establishment, the type of violation, and the corrective period granted to the industrial establishment, if legally applicable.

- The Ministry shall coordinate with the industrial establishment to correct the violation, according to the relevant regulatory procedures.

This paragraph does not apply to matters within the jurisdiction of the relevant administrative or quasi-judicial committees.

3- Mechanism for the competent authority to close production lines of the industrial establishment:

This mechanism aims to inform the Ministry of the data related to the violating industrial establishment and analyze its status and history in coordination with the competent authority; to ensure the industrial establishment's compliance with the relevant procedures and instructions, and to verify and measure the impact resulting on it and on the industrial sector due to the competent authority closing the production lines of the industrial establishment, as follows:

- In case a production line is stopped due to committing a violation that legally requires such action, the competent authority shall provide the Ministry with a detailed report on the reasons for the stoppage, attaching the related documents, within a period not exceeding (5) working days from the date of stopping the production line.

- The Ministry shall coordinate with the industrial establishment to correct the violation, according to the relevant regulatory procedures.

- The Ministry shall analyze the regulatory procedures taken by the competent authority regarding the closure of the industrial establishment's production line, measure its impact on the development of the industry and the targets of Saudi Arabia's Vision 2030, and provide the competent authority with these findings.

This paragraph does not apply to matters within the jurisdiction of the relevant administrative or quasi-judicial committees.

4- Mechanism for the competent authorities to close the industrial establishment:

This mechanism aims to inform the Ministry of the reasons that led to the closure of the industrial establishment, and to verify and measure the impact resulting on it and on the industrial sector due to the closure decision, as follows:

- After detecting the violation that requires closing the industrial establishment or the industrial establishment with a single production line - temporarily or permanently - according to the relevant regulatory procedures; the competent authority shall provide the Ministry with a report on the reasons for closing the industrial establishment or factory, and corrective procedures to stop the implementation of the closure - if any - attaching the related documents, within a period not exceeding (15) working days from the date of detecting the violation.

- The Ministry shall coordinate with the industrial establishment or the industrial establishment with a single production line to correct the violation, according to the relevant regulatory procedures.

- The Ministry shall analyze the regulatory procedures taken by the competent authority regarding the closure of the industrial establishment or the industrial establishment with a single production line, measure its impact on the development of the industry and the targets of Saudi Arabia's Vision 2030, and provide the competent authority with these findings.

This paragraph does not apply to matters within the jurisdiction of the relevant administrative or quasi-judicial committees.

1- Bilateral coordination committees shall be established between the Ministry and each of the following competent authorities, or their affiliated entities:

- Ministry of Energy.

- Ministry of Interior.

- Ministry of Environment, Water, and Agriculture.

- Ministry of Human Resources and Social Development.

- Ministry of Municipal and Rural Affairs and Housing.

- Ministry of Commerce.

- Saudi Food and Drug Authority.

- Zakat, Tax, and Customs Authority.

- Any other authority deemed competent by the Ministry.

The name of each coordination committee shall be: "The Coordination Committee between the Ministry of Industry and Mineral Resources and (Name of the Competent Authority)", and the Ministry shall provide all necessary support to assist the coordination committees in performing their tasks.

2- Tasks of the coordination committees:

- Coordinating efforts to implement the provisions contained in the governance.

- Identifying disputes related to violations that result in imposing fines on the industrial establishment, or its closure, or the closure of its production lines, and working to resolve them in accordance with the regulations.

- Establishing a mechanism for exchanging data related to procedures that result in imposing fines on the industrial establishment, or its closure, or the closure of its production lines.

- Proposing solutions to address challenges faced by the Ministry and competent authorities in implementing governance, and reporting what is necessary in this regard according to the law.

- Evaluating performance and raising compliance efficiency in applying governance; enabling and enhancing industrial investments.

In order to carry out their tasks, the coordination committees may undertake the following:

- Forming specialized working teams, as deemed appropriate.

- Requesting periodic and urgent information and data that assist in studying the subjects within their competence or referred to them, in coordination with the relevant authorities, each according to its jurisdiction.

- Consulting experts and specialists as deemed necessary to study the subjects within their tasks.

- Inviting any other relevant competent authority when the agenda requires it.

3- Mechanism of work of the coordination committees:

- The coordination committees shall hold their meetings - in person or virtually - whenever necessary, and the Ministry and competent authorities shall be represented in these committees by persons with expertise and specialization.

- The Ministry shall set the agenda for each meeting of the coordination committees.

- The coordination committees shall issue their recommendations by agreement between the Ministry and the relevant competent authority.

- Each coordination committee shall submit the results of its work, recommendations, needs, and any obstacles it may face to the Minister of Industry and Mineral Resources, and to the Minister or head of the competent authority.

This governance does not prejudice what is stipulated by the laws, royal orders, decrees, decisions, and related instructions.