For the purpose of applying the provisions of this law (the system), and unless the context requires a different meaning, the following words and phrases shall have the meanings indicated next to each of them:
1-Minister:Minister of Industry or the competent minister.
2-Ministry:Ministry of Industry or the ministry or authority to which industrial affairs are assigned.
3-Administration:The administration responsible for industrial affairs within the ministry.
4-Committee:The committee or technical committees formed in accordance with Article Four.
5-Industrial Project (Industrial Establishment):Any establishment whose primary purpose is to convert raw materials into fully manufactured or semi-manufactured products, or to convert semi-manufactured products into fully manufactured products, including mixing, separation, shaping, assembly, packing, and packaging operations, provided that all or most of these operations are performed mechanically, as well as knowledge-based and environmental industries, and other industries specified by the implementing regulation.
6-Industrial Register:A register in which existing industrial establishments are recorded.
7-Expansion of the Industrial Project:Increasing the size of one or more production elements, with the aim of increasing the existing production capacity or establishing production lines for other goods.
8-Development of the Industrial Project:Introducing improvements, modifications, or additions to one or more production elements, with the aim of increasing production, reducing its cost, or improving its quality.
9-Industrial Product:The fully manufactured or semi-manufactured material or materials produced by the industrial project.
10-Owner of the Industrial Project:Any natural or legal person who has the right to manage the affairs of the industrial project, and when the management or disposition of the industrial project’s affairs is assigned to a director, managing board member, or authorized agent, such director, managing board member, or authorized agent shall be considered the owner of the project for the purposes of this law (the system).

The provisions of this law (the system) apply to every industrial project except for the following:
1- Projects specified by the Implementing Regulation.
2- Projects regulated by treaties, agreements, or special laws, or projects implemented by the state or one of its institutions without private sector participation if deemed appropriate, provided that the exception of these projects is as stipulated in the laws or agreements establishing them.

The following shall be taken into account when applying this law (the system):
1- The contribution of the industrial sector to increasing national income, expanding the economic interconnection base in the Council countries, and strengthening its activities.
2- The policy of the Council countries towards industrialization and the requirements of economic plans and economic development programs.
3- Cooperation, integration, and coordination among the GCC countries.
4- The economic needs of the country and the capabilities of local consumption and export.
5- The availability and use of inputs that can be relied upon in manufacturing within the Council countries.
6- Importing appropriate advanced technology and localizing it in the country.
7- Employing and training the national workforce.
8- Preserving public security, public health, and environmental safety from pollution.
9- Public order, customs, and traditions prevailing in the Council countries.
10- Compliance with the regulations, standards, and mechanisms approved by the World Trade Organization Agreement concerning trade exchange processes and increasing export volumes.

A committee or technical committees shall be established by a decision of the Minister or the competent authority to regulate, develop, and promote the industry, including representatives from the entities concerned with the industry.

The committee is competent to provide opinions to the Minister or his delegate on all matters related to the industry, and the committee may seek assistance from experts or specialists it deems appropriate.

The Implementing Regulation shall specify its tasks, competencies, formation procedures, and working methods.

An industrial project may not be established, expanded, developed, altered in its production, merged with another industrial project, divided into more than one project, relocated, or partially or fully disposed of, except with a license issued by the Minister or by someone authorized by him.