Before discussing the details of freight transport and truck rental licensing in Saudi Arabia, let’s shed light on the shipping and logistics market in the Kingdom. Saudi Arabia has a diverse network of transportation and logistics means, including land, air, and sea. The kingdom has one of the most developed road networks in the Middle East.
In terms of land transport, Saudi Arabia has a vast network of highways connecting the Gulf in the east, passing through the capital Riyadh to the Red Sea in the west, and from the north on the Jordanian border to Jazan in the south.
Investing in this active and attractive market is an ideal strategic option for foreign investment in Saudi Arabia, given the booming economy and the increasing demand for freight transportation services. Therefore, if you are interested in obtaining a freight transport and truck rental license in Saudi Arabia, here is a comprehensive guide to the aspects of cargo transportation services in Saudi Arabia.
In this article, Business Link experts outline the basic requirements for obtaining a freight transport, truck rental, and freight forwarder license in Saudi Arabia. In addition, it introduces the conditions required to use the online portal (Naql) provided by the Transport General Authority. Continue reading.
Freight Transport and Truck Rental Activity on Land Roads
Freight transportation activity refers to any activity that involves using a logistics service provider to transport goods (raw materials, finished goods, intermediates, or fully manufactured goods, including solids and liquids) from origin to destination within the country or across borders.
Truck rental activity, on the other hand, represents the operation of renting vehicles without a driver for an agreed-upon fee in a rental contract.
The size of the shipping and logistics market in Saudi Arabia is estimated at US$25.33 billion in 2024 and is expected to reach US$32.88 billion by 2029, with a CAGR of 5.36% during the forecast period (2024–2029).
Freight Transport License Requirements in Saudi Arabia
The cargo transportation and truck rental license on land roads in Saudi Arabia includes three types of licenses. The license period for each establishment is three years. The types of licenses for establishments are:
- Freight transportation license
- Truck rental license
- Private cargo transportation license
- Courier parcel transportation license
For a facility to obtain a license to engage in freight transport activity, it must meet the following requirements:
- Submit a request from the facility to the Transport General Authority.
- Obtaining a commercial registration for the facility, including the activity of freight transport.
- Valid social insurance certificate.
- A valid Zakat and income certificate (if the commercial register is more than one year old).
- Obtain insurance for all trucks and units to cover civil liability towards third parties by one of the insurance companies licensed to operate in the Kingdom.
- Providing a suitable center in the city in place of the license, following technical specifications and municipal requirements.
- Linking to the authority’s electronic platform and any electronic platform specified by the authority.
- Not prejudice the operational age of the vehicles.
Truck Operational Age:
The operational age requirement is mandatory for trucks in freight transport and truck rental activities. It must not exceed 20 years from the date of manufacturing. When the truck enters the activity of transporting goods, it must not have been in operation for more than 5 years from the date of manufacture. It is also required to issue an operating card for each vehicle individually for one year.
The freight transport and truck rental licensing process
1. Register on the online Naql Portal
2. Commercial registration issuance.
3. Adding the vehicles owned by the establishment.
4. Completing the requirements related to government agencies. Let us help you with that.
5. Obtaining the operating cards for vehicles and paying the fees.
6. License issuance.
Business Link: Your trusted partner for business set-up in Saudi Arabia
The logistics and freight transport sector in Saudi Arabia is growing, providing numerous opportunities for entrepreneurs and businesses. If you are planning to set up a land transport company in Saudi Arabia, Business Link is the ideal choice for support and guidance.
Why choose Business Link?
Expertise in the Saudi market: Our team is experienced in the requirements, licensing procedures, and laws related to the transport sector in Saudi Arabia.
Customized solutions: We provide customized guidance and personalized support to ensure your business needs are fully met.
Cost-effective services: We offer competitive pricing for our services, ensuring you get the best value for your investment.
Don’t let the complexities of setting up a freight transport company in Saudi Arabia deter you from achieving your goals. Get in touch with Business Link today and let us help you turn your aspirations into reality.
