Ice factory feasibility study
Latest regulatory change: 2025 · reviewed 2026-11-05
A factory producing bagged ice and ice blocks for shops, restaurants, events and fishing.
- 2014Oversight of ice factories transferred to the SFDA[2]
- 300-600 m²Factory site area under the municipal requirements[4]
Latest regulatory and market changes
- 2011The Council of Ministers decided that the Saudi Food and Drug Authority (SFDA) should regulate water and ice factories, issue their technical licences and oversee them.[1]
- 2014Regulatory and supervisory responsibility for bottled water and ice factories passed to the SFDA from 1 Rabi al-Akhir 1436 AH, with the site licence remaining with the municipality.[2]
- 2019The SFDA closed an ice factory in Tabuk for operating without a licence and lacking good manufacturing practices, and destroyed about half a tonne of ice.[3]
- 2025The Ministry of Municipalities and Housing (MoMAH) adopted regulatory requirements for factories inside and outside urban boundaries covering all types of factory.[4]
Why now
The idea and business model
A factory producing ice in bags or blocks from treated water and distributing it under refrigeration. Income comes from sales to shops, restaurants, petrol stations, fishermen and events, and from supply contracts.
Model: Production and sales
Project economics
Revenue formula
Sales channels
- Shops and petrol stations
- Restaurants and events
- Fishermen and supply contracts
Largest cost items
- Electricity
- Water and water treatment
- Packing and refrigerated distribution
- Salaries and maintenance
Decisive indicators we measure
- Production cost per tonne
- Capacity utilisation in summer and winter
- Share of supply contracts
- Distribution cost per tonne
Relevant authorities
- Saudi Food and Drug Authority (SFDA): technical licence and oversight of ice factories
- Ministry of Municipalities and Housing (MoMAH): site licence and municipal requirements for factories
- Ministry of Industry and Mineral Resources: industrial licence
- National Center for Environmental Compliance (NCEC): environmental permit
- Civil Defence: approval before the licence is issued
What needs your attention
- Demand is seasonal: it rises in summer and falls in winter.
- Electricity and water are the largest variable costs.
- Water quality and manufacturing practices are regulatory conditions; violations can mean closure and destruction of stock.
What a Ice factory study calculates for you
- Production capacity in tonnes per day
- Electricity and water consumption per tonne
- Effect of seasonality on monthly revenue
- Cost of a refrigerated distribution fleet
- Tonnes needed to break even
Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.
Sources
Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.
- SFDA Will Undertake The responsibility of Licensing & Control of Water & Ice Factoriesالهيئة العامة للغذاء والدواء · 2011-03
- الغذاء والدواء تتولى المهمات التنظيمية والرقابية على مصانع المياه المعبأة والثلجالهيئة العامة للغذاء والدواء · 2014-12
- الغذاء والدواء تغلق مصنع ثلج مخالفاً في تبوكعاجل · 2019-04
- السعودية تعتمد اشتراطات تنظيمية للمصانع داخل وخارج النطاق العمرانيالاقتصادية · 2025-08
- MOMAH OKs new rules for factories inside, outside urban zonesأرقام · 2025-08
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.