Transport License
in Saudi Arabia
Saudi Arabia heavily depends on a diversified transportation system that includes road, air, sea, and rail. This sector plays a pivotal role in the nation’s logistics and supply chain operations. As there’s a growing focus on incorporating intelligent transportation solutions and emphasizing sustainability, the industry is anticipated to witness notable growth and expansion.
The General Authority of Civil Aviation (GACA) has spearheaded the development of an integrated logistics zone near the Riyadh International Airport. This endeavor seeks to elevate KSA’s stature as a premier transportation and logistics nexus, fostering a favorable business environment in the process.
In a8u bid to further promote this sector, the government is actively advocating for private sector engagement, prominently through the Public-Private Partnership Program.
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Saudi Arabia’s
Transportation Landscape
- Regulatory Bodies: General Authority of Civil Aviation (GACA), the Saudi Ports Authority (SPA) and the Public Transport Authority.
- By 2030, the government is slated to channel over SR500 billion ($133.3 billion) towards the development of ports, airports, railways, and other related projects.
- Projections indicate that the logistics industry of Saudi Arabia will grow at a Compound Annual Growth Rate (CAGR) of 6.7 % from 2020 to 2025.
- By 2030, the transport and logistics sector will contribute 10 % of Saudi Arabi’s GDP.
- Saudi Arabia’s cargo network, boasting around 40,000 trucks, spans an expansive region, reaching eight nations in the Middle East and Central Asia.
- Representing the largest logistics market in the GCC, Saudi Arabia’s transport sector includes numerous transportation and infrastructure initiatives.
The Importance of the
Transport Industry in Saudi Arabia
Economic Development
The transportation industry is pivotal in strengthening the nation’s economic development by offering dependable and effective transit solutions, connecting enterprises with consumers, and promoting trade activities.
Strategic Location
Positioned at the intersection of vital trade corridors, Saudi Arabia serves as an entry point to various regional markets, solidifying its role as a crucial hub for transportation and logistics.
Government Initiatives
Saudi Arabia’s government acknowledges the critical nature of the transport sector, dedicating substantial resources to enhance and contemporise its transport infrastructure, spanning roads, airports, seaports, and railways.
Tourism Industry
The transportation industry plays an indispensable role in nurturing the tourism sector, as visitors seek streamlined and effective travel means to explore the nation and its landmarks.
Transportation License Guidelines in Saudi Arabia
International companies interested in offering public land transportation services can acquire this license. The public transport service investment opportunities include:
1. License to practice bus public transportation within cities.
2. License to practice metro public transportation within cities.
3. License to practice other transport.
This license authorizes international corporations to manage public bus transit services in cities within Saudi Arabian.
A resolution from the Company’s Board of Directors, stating the intent to invest in Saudi Arabia, detailing the names of shareholders, allocated capital, distribution of shares, nature of the business, its location, and the appointment of a General Manager with defined powers, verified by the Saudi Embassy.
2An authenticated copy of the company’s commercial registry from its originating country, validated by the Saudi Embassy.
3Proof confirming compliance with contractual completion schedules over the past five years.
4Documentation indicating the financial ability in line with the project’s capital needs, the shareholder’s input, alignment with the project’s execution blueprint, and in accordance with the fiscal guidelines set for the given activity.
Proportion and capital of Saudi shareholders should be consistent with the financial limitations outlined for the type of activity.
2The foreign company’s average revenue for the three years preceding the licensing should be a minimum of 3 billion Saudi riyals, with assets not less than 1.5 billion Saudi riyals.
3The foreign company should possess licenses in no fewer than two countries and employ at least 10,000 individuals.
4Capital prerequisites for bus acquisition, operations, and upkeep must align with the Ministry of Investment’s benchmarks for service-oriented enterprises (500,000 SAR).
5For Saudi shareholders, a certified copy of the Transportation/Public Transportation Authority’s license for bus transit endeavors is necessary.
6Adherence to national workforce quotas, as set and updated by the Ministry of Labor and Social Development, is essential for transport services.
7The establishment applying for the license should not have a history of prior license cancellations either within or outside Saudi Arabia, within the ten years prior to the license request.
8The last ten years leading up to the license application should be devoid of any traffic safety-related fines or penalties, whether domestically or internationally.
9from relevant Saudi authorities is required to utilize public transit during emergencies, conflicts, and wartime situations.
10Technical attributes and manufacturing methods must comply with Saudi, Gulf, or international standards.
11Annual blueprints focused on enhancing safety measures must be submitted to the Public Transport Ministry for evaluation.
12During the electronic application process, the applicant should incorporate details such as the Saudi national ID, premium residence, general residence, or commercial registration particulars of any involved Saudi corporations.
This license allows global companies to provide metro-based public land transportation within cities across the Kingdom of Saudi Arabia.
A declaration from the Company’s Board of Directors detailing their intention to invest in the Kingdom, listing the names of shareholders, allocated capital, division of shares, nature of operation, site specifics, and the nomination of a General Manager with outlined responsibilities. This must be validated by the Saudi Embassy.
2An attested copy of the company’s original commercial registry from its country of origin, with authentication from the Saudi Embassy.
3Proof highlighting a consistent record of meeting contract completion schedules over the past five years.
4Documentation showing financial capability in line with project capital necessities, shareholder inputs, congruence with the project’s developmental strategy, and compliance with the fiscal guidelines specified for the activity in question.
The proportion and capital commitment of Saudi shareholders should be in aligned with the financial guidelines prescribed for the specific activity.
2Over the three years preceding the license application, the foreign company’s average revenue should not be less than 3 billion Saudi riyals, with assets amounting to a minimum of 1.5 billion Saudi riyals.
3The foreign company must should possess valid licenses from a minimum of two nations and employ no fewer than 15,000 personnel.
4For bus procurement, operation, and maintenance, the capital prerequisites should align with the benchmarks set by the Ministry of Investment for entities in the service sector (500,000 SAR).
5Adherence to the workforce nationalization percentages, as updated by the Ministry of Labor and Social Development, is essential.
6The company’s archival record pertaining to licensing should be devoid of any cancellations from inside or outside Saudi Arabia, within the ten years prior to the license request.
7A clear record with no penalties or fines associated with traffic safety is mandatory, both domestically and internationally, in the ten years prior to the license request.
8Necessary approvals from relevant Saudi institutions are required for public transportation utilization during emergencies, conflicts, or wartime scenarios.
9Technical attributes and manufacturing standards must comply with Saudi, regional Gulf, or international standards.
10Proposals focusing on annual safety enhancements must be presented to the Public Transport Ministry for evaluation.
11When submitting their electronic request, the applicant should incorporate particulars such as the Saudi national ID, premium residence status, general residency, or commercial registration details of any collaborating Saudi establishments.
This license is designated for wholly-owned international firms aspiring to offer public land transportation services within the Kingdom of Saudi Arabia, including:
- Taxi services (public and private)
- School, tourism, airport, and materials transfer
- Transportation of pilgrims and visitors both within and outside of the Kingdom
- Bus transportation outside of the Kingdom
- Directing taxis
- Car rental, truck rental, bus rental, car hire brokers, and freight brokers
A copy of the commercial registration of the shareholding partner, certified by the Saudi Embassy, and a copy of the national ID of any GCC national partners (if not already registered in ABSHAR system).
2The last three years of financial statements for the applicant company, certified by the Saudi Embassy.
3A business plan outlining the proposed locations and branches of the company, as per the results of an economic feasibility study.
Proof of operations in at least three international markets for the same intended activity.
2A track record of providing the same activity for over 10 years in the company’s home country, with the establishment being recognized as a provider of high-quality road transport services based on evaluation by the Public Transport Authority.
3Capital of not less than 10 million Saudi Riyals as per the minimum requirements specified for the type of activity.
4Obligation to adhere to all the organized commitments of the activity, including the Saudization standards and percentages set by the Ministry of Human Resources and Social Development and implementing a mechanism to ensure compliance.
5Companies that provide services through technical channels are exempt from these requirements.
6If the enterprise engages in leasing vehicles (such as cars, trucks, buses, car rental brokers, and freight brokers) without drivers, it is exempt from adhering to the above requirements.
Get Your Transport License with Creative Zone Saudi Arabia
When executed properly, a transport enterprise can rank among the top profitable ventures in the KSA. Let our business specialists guide you in selecting the ideal activity, obtaining your license, and fulfilling the necessary prerequisites to launch your business.
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