Food Truck Investment Guide 2025: Everything You Need to Know About Mobile Food Carts in Saudi Arabia From Licensing to Profits

Introduction: Food Trucks - A Golden Investment Opportunity for Saudi Youth

On the streets of Riyadh, Jeddah, and Dammam, in parks, waterfronts, and events, mobile food carts or "food trucks" have become a familiar and beloved sight. These colorful carts emanating aromas of shawarma, burgers, coffee, and desserts are no longer just a passing phenomenon but have transformed into a growing economic sector providing real investment opportunities for Saudi youth.

The food truck business combines several features that make it attractive to beginner entrepreneurs: significantly lower startup costs than traditional restaurants, flexibility to move between locations and events, streamlined licensing procedures through the Balady electronic platform, and government support within the Kingdom's Vision 2030 to encourage entrepreneurship.

In this comprehensive guide, we'll take you on a detailed journey from A to Z: from understanding the nature of this business and licensing requirements, through costs and technical specifications, to calculating expected returns and profits. Our goal is for you to finish reading this article with a clear and complete picture that enables you to make an informed investment decision.

First: What is a Food Truck and What Are Its Types?

A food truck is a mobile cart or vehicle equipped with a complete kitchen for preparing and selling food and beverages in public places. It differs from traditional street vendors by being organized, licensed, and complying with specific health and technical standards.

Types of Food Trucks

Mobile food carts vary according to their size and type of food offered. There are small trailers pulled by a car, which are the least expensive and most common. There are also large trucks fully equipped that suit diverse menus and large events.

In terms of specialization, we find burger and sandwich carts which are the most common, shawarma and traditional food carts, coffee and beverage carts, ice cream and dessert carts, fresh juice carts, and even carts serving international cuisine from Asian and Mexican kitchens.

Why a Food Truck Instead of a Traditional Restaurant?

The comparison between the two options clarifies the advantages. Food truck startup costs range between 50,000 and 150,000 SAR, while a small restaurant needs at least 300,000 SAR. A food truck doesn't bear fixed monthly location rent, while a restaurant might pay 50,000 SAR annually or more. The flexibility to move allows the food truck owner to follow gatherings and events, while a restaurant is confined to its location. The capital recovery period for a food truck ranges from 8 to 12 months, while it may extend to two years or more for a restaurant.

Second: Who is Eligible for a Food Truck License?

The Ministry of Municipal, Rural Affairs and Housing has set clear conditions for those wishing to obtain a mobile food cart license. These conditions aim to ensure the seriousness of applicants and their compliance with regulations.

License Owner Requirements

The first and primary requirement is that the applicant must be a Saudi citizen, male or female. No license is granted to non-Saudis under any circumstances. The applicant must be at least 18 years old and not be employed in a government agency. It is also required that their name not be listed in the suspended persons list at municipalities.

Another important condition is that the applicant should not have a valid mobile cart license, as only one license is allowed across the Kingdom. It is also required that they do not possess a sales outlet license or commercial license in the same activity.

Personal Work Commitment

A crucial point that many overlook: the license holder is required to work personally in the cart. This means you cannot obtain the license and then hire someone else to operate the cart entirely. The license is personal and linked to its owner.

Third: Steps to Obtain a License Through Balady Platform

Obtaining a mobile food cart license has become entirely electronic through the Balady platform, without the need to personally visit government agencies. The process is clear and straightforward if all documents are ready.

Required Documents

Before starting the application, ensure you have the following documents: valid national ID, health certificate for the applicant and any workers, clear photos of the cart from inside and outside showing the equipment, vehicle registration if the cart is registered as a vehicle, and proof of cart ownership.

Application Steps

The first step is to access the Balady platform at balady.gov.sa and log in with your National Access account. The second step is to select the mobile cart license issuance service from the services menu. The third step is to fill in the application data and select the activity type from allowed activities. The fourth step is to upload the required documents in clear formats. The fifth step is to specify the route or location where you want to work. The sixth step is to pay the required fees electronically. The seventh and final step is to print the license after approval.

Important Advantage: No Commercial Registration Required

One of the major advantages of food truck licensing is that it doesn't require a commercial registration. You can issue a mobile cart license directly from Balady platform as an individual, and after issuing the license, a freelance work certificate is issued proactively. This greatly facilitates young people who want to start their small businesses.

Fourth: Licensing Fees and Startup Costs

One of the most important questions asked by those interested in the business: How much does it cost to start? We'll explain all costs transparently here.

Annual Licensing Fees

The fees for issuing a mobile cart license for one year total approximately 720 SAR, distributed as follows: 200 SAR cart operation fees, 200 SAR inspection fees, 320 SAR advertising sign fees. These fees may vary slightly from one municipality to another, so it's recommended to use the fee calculator available on the Balady platform to get the exact amount for your area.

Cart Purchase Cost

This is the largest item in costs. Food truck prices vary significantly depending on size and equipment. Small used or simple carts start from 13,000 SAR, medium new carts range between 30,000 and 60,000 SAR, and large fully-equipped carts may reach 100,000 SAR or more. Some young people import their carts from China to save costs, but you must ensure they comply with Saudi specifications.

Equipment and Tools Costs

In addition to the cart price, you need kitchen and cooking equipment. These include cooking appliances like griddles, fryers, and grills costing between 5,000 and 15,000 SAR, refrigerators and cooling equipment costing 3,000 to 8,000 SAR, electric generator costing 3,000 to 10,000 SAR depending on capacity, serving tools, packaging, and initial consumables costing 2,000 to 5,000 SAR, and point-of-sale and electronic invoicing system costing 1,000 to 3,000 SAR.

Total Startup Cost

By adding all costs, the total cost of starting a medium-sized food truck project can be estimated between 50,000 and 150,000 SAR. The Social Development Bank provides loans up to 250,000 SAR for such projects, making financing easier for young people.

Fifth: Required Technical Specifications for the Cart

The relevant authorities have set strict technical specifications that must be available in the food cart to obtain a license. Compliance with these specifications is necessary to avoid application rejection or later violations.

Allowed Dimensions

The cart length must be between 2.30 meters and a maximum of 10 meters. Cart width must not exceed 2.60 meters. Cart height including the advertising sign must not exceed 4.50 meters from ground level. These dimensions ensure ease of movement and not obstructing traffic.

Safety Requirements

The cart must be technically and operationally sound and not dilapidated. Mandatory requirements include providing fire extinguishers appropriate for the cart size and activity type, having an effective ventilation system that prevents smoke and odor accumulation, installing a silencer for the electric generator to reduce noise, and safely insulated electrical wiring.

Health Requirements

Since the cart deals with food, there are strict health requirements. All internal surfaces must be made of cleanable and sterilizable materials. A hand wash sink and clean water must be provided. There must be an appropriate drainage system that doesn't cause pollution. The cart must be tightly sealed to prevent insects and dust entry. Refrigerators must be provided to store food at appropriate temperatures.

Tracking Device

In some technically-equipped municipalities, the cart is required to be equipped with a GPS tracking device according to specifications determined by the municipality. This helps monitor the cart's compliance with licensed locations.

Commercial Sign

There are special conditions for the cart's advertising sign. The external sign must be made of raised letters only. It must include the activity name and license number. It must be in clear and readable font. Signs that violate public morals or regulations are prohibited.

Sixth: Where is Parking and Working Allowed?

One of the most important success factors for a food truck business is choosing the right location. But the matter is not left to your personal choice; there are strict regulations for allowed and prohibited parking places.

Prohibited Places

Food carts are strictly prohibited from parking in front of schools, houses, and mosques. Roaming inside residential neighborhoods is prohibited. Parking near garbage containers, sewage sites, and sources of bad odors is prohibited. Parking in places that obstruct traffic such as traffic lights, intersections, entrances, and exits is prohibited. Parking on high-traffic-density roads is prohibited.

Designated Locations

To organize the work of food carts, municipalities have designated specific locations that can be reserved. The Truckat platform is the official platform in cooperation with Riyadh Municipality for reserving food cart locations. Different categories of locations are available based on location quality and visitor density.

Category One includes premium locations in parks and developed sidewalks with high density at a monthly cost of 4,025 SAR. Category Two includes medium locations at lower cost. Category Three includes lower density locations at low cost. The Free Category includes locations available free to help cart owners at the beginning.

Events and Occasions

One of the best opportunities for food carts is participating in events and festivals. This participation usually requires a special permit from the event organizer and the relevant authority. Major events like Riyadh Season, Jeddah, and seasonal festivals provide golden opportunities to achieve high sales.

Seventh: New Requirements for 1447H (2025)

The Ministry of Municipal, Rural Affairs and Housing has issued updated requirements to regulate the work of mobile food carts for 1447H, aiming to raise safety and quality standards and enhance customer experience.

Operation and Organization Requirements

Activity is prohibited after 12 AM without obtaining a 24-hour work permit. Use of loudspeakers and external speakers is prohibited except in licensed events. Obtaining the municipal license and location permit before starting operation is mandatory.

Health and Safety Requirements

Food preparation outside the cart is strictly prohibited; all preparation operations must be done inside the equipped cart. Smoking inside the cart or trailer is prohibited. If using charcoal or wood for grilling, it must be in a separate independent cart from the food preparation and serving cart.

Labor Requirements

One of the strict requirements is that no non-Saudi person is allowed to work in direct sales and operation of the cart. This activity is restricted to Saudis only. All workers must hold valid health certificates proving they are free from infectious diseases. Personal hygiene must be maintained, and appropriate attire and gloves must be worn when handling food.

Eighth: Financial Feasibility Study

The most important question: Is the food truck business really profitable? Let's analyze the numbers realistically.

Monthly Operating Costs

Costs vary depending on cart size and food type, but can be estimated as follows: Food materials and consumables from 8,000 to 14,000 SAR monthly. Fuel and maintenance for cart and generator from 1,500 to 2,000 SAR. Location rent if any from zero to 4,000 SAR. Digital marketing and social media management from 1,000 to 3,000 SAR. Miscellaneous expenses like water, bags, and napkins from 500 to 800 SAR. Workers' salaries if any from 6,000 to 9,000 SAR.

Total monthly costs range between 17,000 and 33,000 SAR approximately.

Expected Revenues

Revenues depend significantly on location, food type and quality, and marketing. Generally, daily revenues for a medium cart in a good location range between 500 and 1,500 SAR. This means monthly revenues ranging between 15,000 and 45,000 SAR. The realistic average for successful projects falls between 20,000 and 30,000 SAR monthly.

Profit Margin

After deducting operating costs from revenues, net monthly profit usually ranges between 5,000 and 15,000 SAR for well-managed projects. A healthy profit margin ranges between 15% and 25% of sales.

Capital Recovery Period

If we assume a startup cost of 100,000 SAR and monthly net profit of 10,000 SAR, the capital recovery period would be approximately 10 months. Generally, capital can be recovered within 8 to 12 months if the project is executed efficiently.

Ninth: Violations and Penalties

Working without a license or violating requirements exposes you to penalties that can be harsh. Understanding these penalties is important to avoid them.

Types of Violations

Common violations include: working without a valid municipal license, parking in unauthorized locations, not complying with health requirements, employing non-Saudi workers in sales, violating specified working hours, not having health certificates, and using loudspeakers without permission.

Possible Penalties

Penalties are graduated according to the type of violation and its repetition. They start from warning and notice for minor violations, then financial fines that may reach thousands of riyals, then temporary suspension of activity, and in serious or repeated cases, the license may be permanently canceled and the cart confiscated.

How to Avoid Violations?

Prevention is better than cure. Make sure to renew the license and health certificates before they expire. Commit only to designated and licensed locations. Keep all documents in the cart for presentation when requested. Perform regular maintenance on the cart and equipment. Train yourself and your team on food safety standards.

Tenth: Success Factors for Food Truck Business

Not every food truck project is successful. There are factors that differentiate the successful from the failed.

Choosing the Right Specialization

Don't blindly copy others. Study the market in your area and discover what's missing. If the area is full of burger carts, think of something different like healthy food, international cuisine, or innovative desserts. Distinction and specialization are keys to success.

Quality and Consistency

A customer who tries your food once and likes it will return, but only if they find the same quality every time. Consistency in taste, quantity, and presentation builds your reputation and creates permanent customers.

Strategic Location

Location is half the battle. Choose locations with good flow of target customers. Watch your competitors and choose locations that complement them rather than directly compete. Don't cling to a failing location; try and move until you find the optimal location.

Smart Marketing

Social media is your strongest weapon. Post appetizing photos of your dishes, share your location daily, interact with your followers, create a distinctive visual identity for your cart. Many successful food carts have built their audience through Instagram and Twitter.

Customer Service

A smile, welcome, and fast service make a big difference. The customer isn't just buying food; they're buying an experience. Make their experience positive and they'll become an ambassador for your brand.

Frequently Asked Questions

Does a food truck need commercial registration?

No, you can issue a mobile cart license directly from the Balady platform without needing commercial registration. After issuance, a freelance work certificate is automatically issued. Commercial registration is only required if you have more than one cart or want to expand as an establishment.

Can non-Saudis work in food trucks?

No, mobile food cart activity is restricted to Saudis only in direct operation and sales. Non-Saudi workers are not allowed in this activity.

How much are food truck licensing fees annually?

Total fees are approximately 720 SAR annually, including operation, inspection, and advertising sign fees. May vary slightly by municipality.

Where can I buy a food truck?

Food trucks are available from local manufacturers in Saudi Arabia, and you can search for them on sites like Haraj. Some young people import from China to save costs. Make sure the cart complies with Saudi specifications before purchasing.

Can I work anywhere I want?

No, you must commit to locations designated and licensed by the municipality or through the Truckat platform. Parking in unauthorized places exposes you to violations.

What are the allowed working hours?

According to the new requirements, working after 12 AM is prohibited without special permission. To work around the clock, you need a 24-hour permit from the relevant authority.

How much are food truck profits monthly?

It varies depending on location, food type, and management quality. The average for successful projects ranges between 5,000 and 15,000 SAR net monthly profit.

Do I need Civil Defense approval?

Yes, you must obtain approval from Civil Defense certifying that safety requirements are met in the cart, especially regarding firefighting equipment and safety of electrical and gas connections.

Conclusion

The food truck business is a real investment opportunity for ambitious Saudi youth. With a reasonable startup cost ranging between 50,000 and 150,000 SAR, streamlined licensing procedures through the Balady platform, and the possibility of recovering capital in less than a year, this business is an attractive option for those who have a passion for food and an entrepreneurial spirit.

But success is not guaranteed. It requires good market study, choosing an appropriate specialization, strict commitment to quality and requirements, smart marketing, and patience at the beginning until you build your customer base.

If you're seriously thinking about this business, start by visiting the Balady platform and browsing the requirements yourself, then take a field tour of food carts in your city to see the reality up close. Talk to cart owners if possible and benefit from their experiences. Finally, don't hesitate to start if you find the enthusiasm and readiness in yourself, as the opportunity is available and Vision 2030 supports entrepreneurs.