Article 2 of the Saudi Precious Metals and Gemstones Law
المادة 2 من نظام المعادن الثمينة والأحجار الكريمة
The article prohibits manufacturing precious metals and gemstones without a license from the Ministry of Industry and Mineral Resources, and refers to the regulations the setting of the fees for licenses and services.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
1- مع مراعاة ما تقضي به الأنظمة الأخرى، لا تجوز مزاولة صناعة المعادن الثمينة والأحجار الكريمة إلا بعد الحصول على ترخيص بذلك من وزارة الصناعة والثروة المعدنية، وفقاً لما تحدده اللوائح من ضوابط وشروط.
2- تحدد اللوائح المقابل المالي للتراخيص والخدمات المقدمة وفقاً لأحكام هذا النظام.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article sets the licensing requirement for the activity of manufacturing precious metals and gemstones:
- Paragraph 1: carrying on the manufacture of precious metals and gemstones is not permitted except after obtaining a license from the Ministry of Industry and Mineral Resources, in accordance with the controls and conditions the regulations specify, subject to what other laws provide; that is, this license does not replace what other laws may require.
- Paragraph 2: the regulations specify the fees for licenses and services provided under the Law. The Law itself does not set particular amounts.
History of the text: the article was amended by Royal Decree No. M/13 dated 25/1/1443 AH to make the license for carrying on manufacturing come from the Ministry of Commerce, then amended by Royal Decree No. M/87 dated 3/4/1446 AH so that the license comes from the Ministry of Industry and Mineral Resources, adding the paragraph on fees. This amendment takes effect from 8/4/1447 AH.
This is consistent with Article 1, which gives supervision of manufacturing to the Ministry of Industry and Mineral Resources and supervision of trade to the Ministry of Commerce. Article 3 moves on to the provisions on sale: it prohibits selling, displaying or possessing for sale items that are plated or that fall below the minimum legal karat standards, except in accordance with instructions issued by decision of the Minister of Commerce. Anyone who wants to open a factory or workshop may consult a lawyer specializing in commercial cases and companies.
Practical example
A startup in Jeddah wants to open a workshop to make gold rings set with gemstones. Before starting production it must obtain a license from the Ministry of Industry and Mineral Resources in accordance with the controls and conditions the regulations specify, and pay the fees the regulations set.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Precious Metals and Gemstones Law
Do I need a license to manufacture gold and jewelry?
Yes. Carrying on the manufacture of precious metals and gemstones is not permitted except after obtaining a license from the Ministry of Industry and Mineral Resources.
How much is the fee for a gold manufacturing license?
The Law does not set an amount; it refers to the regulations the setting of the fees for licenses and services.
Was the license previously issued by the Ministry of Commerce?
Yes. After the 1443 AH amendment the text made the license come from the Ministry of Commerce, then it became the Ministry of Industry and Mineral Resources under the 1446 AH amendment, effective from 8/4/1447 AH.
Amendment history
Royal Decree No. M/13 — 25/1/1443 AH
Official amendment text (Arabic)
- عُدلت هذه المادة وذلك بموجب المرسوم الملكي رقم (م/13) وتاريخ 1443/1/25هـ، لتكون بالنص الآتي: " مع مراعاة ما تقضي به الأنظمة الأخرى لا تجوز مزاولة صناعة المعادن الثمينة والأحجار الكريمة إلا بعد الحصول على ترخيص بذلك من وزارة التجارة".
Royal Decree No. M/87 — 3/4/1446 AH
Official amendment text (Arabic)
- صدر المرسوم الملكي رقم (م/87) بتاريخ 1446/4/3هـ بتعديل هذه المادة، ويعمل بالتعديل من تاريخ 1447/4/8هـ، لتصبح بالنص الآتي:
"1- مع مراعاة ما تقضي به الأنظمة الأخرى، لا تجوز مزاولة صناعة المعادن الثمينة والأحجار الكريمة إلا بعد الحصول على ترخيص بذلك من وزارة الصناعة والثروة المعدنية، وفقاً لما تحدده اللوائح من ضوابط وشروط.
2- تحدد اللوائح المقابل المالي للتراخيص والخدمات المقدمة وفقاً لأحكام هذا النظام".
Original text before the amendments (Arabic)
مع مراعاة ما تقضي به الأنظمة الأخرى لا تجوز مزاولة تجارة أو صناعة المعادن الثمينة والأحجار الكريمة إلا بعد الحصول على ترخيص بذلك من وزارة التجارة .
More articles on Licensing Gold and Jewelry Trade and Manufacture
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.