Can I split my project into phases to stay in a lower category?

Short answer

No. NCEC may reject an EIA, or cancel an earlier approval, if a project was segmented into staged studies in a way that prevents NCEC from classifying it or verifying its impacts, even if some parts already hold a Permit to Establish. The regulation does not prohibit phased construction as such, but the EIA must cover cumulative impacts and, for Category 3, future similar activities. Each later expansion, modification or addition needs its own Permit to Establish, and making one without approval can cost 5,000 to 50,000 riyals depending on category.

Key terms used in this guide 15 terms

Addition of an activity: Adding an activity of a different type from the facility's main activity (translated from the Arabic guide). Arabic: إضافة نشاط (meaning “addition of an activity”) Permit guide, definitions
Category 1 activities: Activities expected to produce low environmental impact that does not exceed the perimeter of the activity's site. Arabic: أنشطة الفئة الأولى (meaning “activities of the first category”) Permits reg. Art. 4(4), First
Category 2 activities: Activities expected to produce moderate environmental impact throughout the different stages of the activity. The impact may be alleviated and controlled, and does not largely exceed the perimeter of the activity's site. Arabic: أنشطة الفئة الثانية (meaning “activities of the second category”) Permits reg. Art. 4(4), Second
Category 3 activities: Activities expected to produce significant environmental, social and economic impact, which may exceed the perimeter of the activity's site and adversely affect the sustainability of environmentally sensitive areas and receptors. Arabic: أنشطة الفئة الثالثة (meaning “activities of the third category”) Permits reg. Art. 4(4), Third
Closure of an activity: Complete closure or removal of an activity (translated from the Arabic guide). Arabic: إغلاق نشاط (meaning “closure of an activity”) Permit guide, definitions
Detailed environmental impact assessment study: A study explaining the environmental impacts resulting from the activity and including the basic elements of an EIA (translated from the Arabic guide). Activities within environmentally sensitive areas, or within 500 meters of them or of receptors, must conduct one. Arabic: دراسة مفصلة لتقييم الأثر البيئي (meaning “a detailed study for assessing the environmental impact”) Permits reg. Art. 6, Second (6) and Permit guide, definitions
Environmental classification form: A form submitted to the Center used to determine the category of the suggested activity in terms of environmental impact. Arabic: استمارة التصنيف البيئي (meaning “the environmental classification form”) Permits reg. Art. 1
Environmental impact assessment (EIA) study: Study aimed at determining, estimating and evaluating the environmental impact of any activity classified by the Center as category 2 or 3, with the objective of incorporating environmental considerations into the final design of the activity, along with economic, social and security considerations, and identifying the necessary alternatives and measures to protect the environment. Arabic: دراسة تقييم الأثر البيئي (meaning “study of the assessment of the environmental impact”) Permits reg. Art. 1
Environmental permit to establish: Document issued by the Center to a person granting him the permission to initiate the establishment of an activity following the completion of its classification and environmental impact assessment, and the prescription of environmental requirements and conditions to comply with during establishment. Arabic: التصريح البيئي للإنشاء (meaning “the environmental permit for construction (establishment)”) Permits reg. Art. 1
Environmental permit to operate: A document issued by the Center to a person granting him the permission to operate the activity. Arabic: التصريح البيئي للتشغيل (meaning “the environmental permit for operation”) Permits reg. Art. 1
Environmentally sensitive areas: Areas with environmental significance whose degradation has negative repercussions for the environment. They include protected areas, parks, forests, wetlands, significant bird habitat, mangroves, landscaped sites, watersheds, water catchment and run-off areas, beaches, waterways, aquifers or any other area identified or declared as environmentally sensitive by the State, the Ministry or the national environmental centers. Arabic: المناطق الحساسة بيئياً (meaning “areas sensitive environmentally”) Permits reg. Art. 1
Expansion: Any action that increases the size of the activity, such as adding a production line (translated from the Arabic guide). Arabic: توسعة (meaning “expansion (widening)”) Permit guide, definitions
Major change: Any expansion or change in the design, operation, or nature of any existing activity, which is likely to induce a negative impact on the environment. The Arabic text of the permits regulation is not among the sources, so no Arabic term is given. Permits reg. Art. 1
Modification of an activity: Any action that modifies the designs of the activity without changing the type of activity (translated from the Arabic guide). Arabic: تعديل نشاط (meaning “modification of an activity”) Permit guide, definitions
Scoping report: Report detailing the scope of work of the environmental impact assessment of category 3 activities. Arabic: تقرير نطاق دراسة تقييم الأثر البيئي (meaning “report of the scope of the environmental impact assessment study”) Permits reg. Art. 1

All 49 terms in the NCEC glossary

On this page

What does the segmentation rule say?
How does NCEC look at the whole project?
What phasing is allowed?
Do later expansions and modifications need their own permits?
What are the consequences of splitting or unapproved changes?
What can go wrong?
Checklist before you decide on phasing

What does the segmentation rule say?

NCEC may reject an EIA or cancel a previous approval if the applicant segmented the activity and submitted studies in multiple stages. The test is whether this prevents NCEC from classifying the activity properly or verifying its negative impact.^{Permits reg. Art. 9(2)}

This applies even if some parts of the activity have already obtained a Permit to Establish. The NCEC EIA guide repeats the rule in its introduction and technical controls.^{EIA guide, p. 5 and p. 12}

In practice, the rule looks at the effect of a split rather than its label. Staging that hides the true category or impacts is what it targets.

How does NCEC look at the whole project?

Several requirements push the assessment towards the full project:

The EIA must be considered in feasibility studies and preliminary designs.^{Permits reg. Art. 9(1)}
Classification criteria include impact characteristics such as cumulative impacts.^{Permits reg. Art. 4(2)(f)}
The classification form asks for the estimated duration of each stage, from detailed design to closure.^{Permits reg. Art. 5(1), Appendix 1, item 15}
Category 2 and 3 EIAs must assess cumulative and residual impacts across the project stages.^{Permits reg. Art. 7(2) and Art. 8 Second (1)}
A Category 3 scoping report must address future similar activities in the project's geographical scope.^{Permits reg. Art. 8 First (1), Appendix 3, item 5-4}
The EIA guide asks for the timeframe of each project phase.^{EIA guide, p. 20}

What phasing is allowed?

The regulation does not prohibit phased construction as such. It targets staging that prevents proper classification or impact verification.^{Permits reg. Art. 9(2)}

A Permit to Establish is valid for 3 years. NCEC may extend it by 2 years for large projects that need long-term design and funding, but the request must be included in the EIA.^{Permits reg. Art. 6 Second (8)}

One permit can cover the main activity and its support activities, provided they are on one site.^{Permit guide, section 5(b)}

Describe every phase up front

Assess the full build-out in one study and show the phasing inside it, rather than filing separate studies for each phase.

Do later expansions and modifications need their own permits?

Yes. A Permit to Establish is required before establishing or modifying any activity.^{Permits reg. Art. 6 Second (1)}

The permit guide defines three kinds of change:

Expansion: any action that increases the size of the activity, such as a new production line.^{Permit guide, definitions}
Addition: adding an activity of a different type from the main facility.^{Permit guide, definitions}
Modification: design changes that do not change the activity type.^{Permit guide, definitions}

Permits for an expansion, modification or addition are linked to the base establishment or operation permit. After the works, you must notify NCEC before operating.^{Permit guide, section 5(c) and (d)}

A new Permit to Operate is required before any change to the activity type or size.^{Permits reg. Art. 6 Third (2)}

What are the consequences of splitting or unapproved changes?

The sources set out these consequences:

Rejection of the EIA or cancellation of an earlier approval.^{Permits reg. Art. 9(2)}
A fine for a modification or addition without NCEC approval of 5,000 riyals for Category 1, 20,000 for Category 2 and 50,000 for Category 3.^{Permits reg. Art. 11, Table 2 (2024), item 5}
A fine at the same category amounts for starting construction without a valid Permit to Establish.^{Permits reg. Art. 11, Table 2 (2024), item 3}
Suspension of the permit if major changes are made after permitting, until the adjustments are made.^{Permits reg. Art. 9(6)}
Responsibility for any impact not stated in the studies.^{Permits reg. Art. 9(7)}

The 1446H ministerial amendment kept these amounts and classed every violation in the table as serious.^{Decision 15029124 (1446H)}

What can go wrong?

Phasing problems usually surface when a later phase is filed.

What can go wrong

Filing a small first phase to stay in a lower category, then adding phases, can lead NCEC to cancel approvals already given.^{Permits reg. Art. 9(2)}
Any part of the activity within 500 metres of a sensitive area or receptor needs a detailed EIA, whichever phase it belongs to.^{Permits reg. Art. 6 Second (6)}
Making future changes without telling NCEC breaches the undertaking in the classification form, which requires notice before any adjustment.^{Permits reg. Art. 5(1), Appendix 1, Undertaking}
Model permit conditions state that a permit is void if the activity is changed, expanded or added to without prior notice to NCEC.^{Permit guide, Appendix 1, item 10}
The 2-year extension for large projects must be requested inside the EIA. Raising it later is not provided for.^{Permits reg. Art. 6 Second (8)}
The main permit covers support activities only if they are on the same site. An off-site batch plant or camp falls outside it.^{Permit guide, section 5(b)}

Checklist before you decide on phasing

Work through these points with your consultant:

Define the full build-out and every planned phase.
Assess the cumulative impacts of all phases together.^{Permits reg. Art. 7(2) and Art. 8 Second (1)}
Request any permit extension inside the EIA.^{Permits reg. Art. 6 Second (8)}
Plan a linked Permit to Establish for each later expansion or addition.^{Permit guide, section 5(c)}

Planning a phased development?

Hills & Field structures one EIA around the full build-out and its phases, so later phases can be permitted without reopening earlier approvals.

Our service: Classification and permit to establish

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References

Each small number in this guide shows the article or section that point comes from. Hover over or tap a number to see it, or open the full list below.

Show all 23 references and the 4 regulation texts

Permits reg. Art. 9(2)
EIA guide, p. 5 and p. 12
Permits reg. Art. 9(1)
Permits reg. Art. 4(2)(f)
Permits reg. Art. 5(1), Appendix 1, item 15
Permits reg. Art. 7(2) and Art. 8 Second (1)
Permits reg. Art. 8 First (1), Appendix 3, item 5-4
EIA guide, p. 20
Permits reg. Art. 6 Second (8)
Permit guide, section 5(b)
Permits reg. Art. 6 Second (1)
Permit guide, definitions
Permit guide, section 5(c) and (d)
Permits reg. Art. 6 Third (2)
Permits reg. Art. 11, Table 2 (2024), item 5
Permits reg. Art. 11, Table 2 (2024), item 3
Permits reg. Art. 9(6)
Permits reg. Art. 9(7)
Decision 15029124 (1446H)
Permits reg. Art. 6 Second (6)
Permits reg. Art. 5(1), Appendix 1, Undertaking
Permit guide, Appendix 1, item 10
Permit guide, section 5(c)

How to read these references 3 texts cited

Permits reg.: Executive Regulations for Environmental Permits to Establish and Operate Activities
EIA guide: Environmental Guidelines for Procedures in Preparing Environmental Impact Assessment Studies (NCEC, EP-M-43)
Permit guide: A guide to issuing and renewing environmental permits for the construction and operation of activities (NCEC, LO-1-M-005)

Art. 7(4)(b) means Article 7, paragraph 4, item (b).
First, Second and Third are the numbered parts some articles are divided into. The Arabic texts write them أولاً، ثانياً، ثالثاً (meaning first, second, third).
Decision followed by a number is a ministerial or Council of Ministers decision. Most of the 1446H decisions replaced a regulation's penalty table.
H after a year marks the Hijri (Islamic calendar) year. 1446H ran from July 2024 to June 2025.

Every text we cite is listed on our regulations page.

Regulation texts this guide is written from

Executive Regulations for Environmental Permits to Establish and Operate Activities
Environmental Guidelines for Procedures in Preparing Environmental Impact Assessment Studies (NCEC, EP-M-43)
A guide to issuing and renewing environmental permits for the construction and operation of activities (NCEC, LO-1-M-005)
Ministerial Decision 15029124 (1446H) amending Table 2 of the permits regulation

This guide is general information written from the regulation texts listed above. It is not legal advice. Regulations change, and the official text always prevails. Spotted something out of date? Request a change.