Introduction:
Saudi Arabia has a diverse network of transport means and communication. These include land, air, and sea transport. It has one of the most advanced road networks in the Middle East. In terms of land transport, Saudi Arabia has a huge network of highways linking the Gulf in the east through the capital Riyadh to the Red Sea in the west and from the north on the Jordanian border to Jizan in the south.
The Transport General Authority (TGA) seeks to increase the quality of passenger and good transportation services. It is raising operational efficiency to meet the highest safety standards and requirements across the Kingdom. TGA also endeavors to create a favorable investment environment in line with Saudi Vision 2030’s economic and social development objectives. This Guide aims to set the basic requirements for land transport licenses in Saudi Arabia.
Land Transport Activities in Saudi Arabia
The Kingdom provides foreign investors wishing to provide land transport services and obtain a transport license in the Kingdom with several areas in which they can invest:
- Public transport activities by buses within cities (school and tourist).
- Taxi activities (Taxi brokerage _ Taxi delivery)
- Goods Transporting, Freight Brokers, and Leasing Trucks
- Car rental activities and rental brokers.
- Freight broker activities.
Land Transport License Requirements in Saudi Arabia
What are the documents investors need for a land transport license?
- Copy of the company’s commercial registration certified by the Saudi Embassy.
- Copy of the partner’s national ID if they are from GCC countries.
- Financial statements for the last three financial years, certified by the Saudi Embassy.
- Submit a work plan for the company’s branches and locations according to the economic feasibility study.
Land Transport License Conditions:
- The company must have three subsidiaries with the same transport activity in Saudi Arabia.
- The company must have completed 10 years of operating the same activity in its home country.
- The minimum capital required for the supply, operation, and maintenance of transport vehicles, according to the Ministry of Investment and the Transport General Authority is 10 million Saudi Riyals.
- Commitment to applying all regulatory obligations, including the Saudization rate for transport services following Ministry of Human Resources and Social Development laws, and any amendments.
Process of Land Transport Activities Licensing:
The land transport license in Saudi Arabia is obtained through the Transport General Authority’s (TGA) online portal.
The procedures differ depending on the exact type of activity to be carried out, for example, the process for car rental is different from those for specialized transport or bus directing. Generally, the procedures include the following steps:. Other steps may be involved according to the specific activity.
1. The applicant must apply for the license via the Naql e-portal.
2. The enterprise must have a commercial registration that includes the operating activity.
3. Obtain a valid certificate from GOSI to ensure civil responsibility towards others.
4. The enterprise must get a valid clearance certificate from ZATCA
5. The enterprise must have the minimum number of vehicles necessary to practice the activity.
6. Subjecting all transport and freight vehicles to periodic technical inspection.
7. Linking to the electronic platform of the Transport General Authority or any other platform specified by the Authority.
Operation Card:
TGA issued a document authorizing the transport vehicle to operate under the activity licenses. The enterprise must issue an Operation Card for each transport vehicle.
Buses must be new and not previously registered inside or outside the Kingdom of Saudi Arabia, and their operational life must be less than ten years from the year of manufacture.
Term of Operation Card: 1 year
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