Transport License in Saudi Arabia - Al Taasis

Instant Business
License

Button 1
Button 2

Fast Company
Setup

Button 1
Button 2

Easy Bank Account
Opening

Button 1
Button 2

Structured
Workflow

Button 1
Button 2

Transportation License
in Saudi Arabia

The major modes of transportation in Saudi Arabia include road, air, sea, and rail. The transportation sector plays a significant role in the country’s logistics and supply chain management. The industry is expected to grow, focusing on developing smart transport systems and promoting sustainability.

The General Authority of Civil Aviation (GACA) has established an integrated logistics zone in Riyadh, next to Riyadh International Airport, to boost the Kingdom’s position as prominent transportation and logistics hub and offer a favourable business environment.

The government is actively promoting private sector participation in the transport sector through various initiatives such as the Public-Private Partnership Program.

Transport Sector
in Saudi Arabia at a Glance

  • Regulatory authorities: General Authority of Civil Aviation (GACA), the Saudi Ports Authority (SPA) and the Public Transport Authority.
  • The government plans to invest over SR500 billion ($133.3 billion) in the development of ports, airports, railways, and other related infrastructure until 2030.
  • The market size of Saudi Arabia’s logistics industry is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.7 % from 2020 to 2025.
  • The transport and logistics sector will contribute 10 % of Saudi GDP by 2030.
  • The freight network in Saudi Arabia, with an estimated 40,000 trucks, covers a vast area across eight countries in the Middle East and Central Asia.
  • It is considered the largest logistics market in the GCC, with transportation and infrastructure projects.

The Significance of the Transport Sector in Saudi Arabia

Economic Growth

The transport sector plays a key role in supporting economic growth in the country by providing efficient and reliable transportation services, linking businesses and consumers, and facilitating trade and commerce.

Strategic Location

Saudi Arabia is located at the crossroads of major trade routes and is a gateway to several regional markets, making it an important centre for transportation and logistics.

Government Support

The government of Saudi Arabia recognizes the importance of the transport sector and has been making significant investments to upgrade and modernize the transportation infrastructure, including roads, airports, ports, and rail networks.

Tourism Industry

The transport sector is also crucial for developing the tourism industry, as tourists require convenient and efficient transportation options to travel within the country and visit its attractions.

Transport Licensing Requirements in Saudi Arabia

International companies that wish to provide public land transport services can get this license. There are various investment options in public transport services, namely:

License to practice bus public transportation within cities
View Requirements

License to Practice Bus Public Transportation within Cities

This license permits international companies to operate public bus transportation services in cities within the Kingdom of Saudi Arabia.

Required Documents

  1. The Company’s Board of Directors’ resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders’ shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
  2. A copy of the business entity’s commercial registry from its country of origin, with authentication from the Saudi Embassy.
  3. Evidence demonstrating adherence to contract completion timelines in the previous five years.
  4. Documentation showing financial capability aligned with the project’s capital requirements, shareholder contribution, consistency with the project’s implementation plan, and in accordance with the financial restrictions established for the type of activity.

Rules and Restrictions

  1. Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
  2. The foreign company’s average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
  3. The foreign company must hold licenses in at least two countries and have a minimum of 10,000 employees.
  4. The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment’s standards for service sector companies (500,000 SAR).
  5. In the case of a Saudi shareholder, a copy of the Department of Transportation/Public Transportation Authority license for bus transportation activities is required.
  6. Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
  7. The establishment’s record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
  8. There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
  9. Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
  10. Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
  11. The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
  12. The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application.
Contact us to obtain your Transport License fast.
License to practice metro public transportation within cities
View Requirements

License to Practice Land Public Transport by Metros within Cities

This license allows international companies to offer public land transportation services by metro in cities within the Kingdom of Saudi Arabia.

Required Documents

  1. The Company's Board of Directors' resolution indicating their plan to invest in the Kingdom of Saudi Arabia, listing the names of shareholders, capital amount, shareholders' shares, business activity, location, and the appointment of General Manager and his powers, authenticated by the Saudi Embassy.
  2. A copy of the business entity's commercial registry from its country of origin, with authentication from the Saudi Embassy.
  3. Evidence demonstrating adherence to contract completion timelines in the previous five years.
  4. Documentation showing financial capability aligned with the project's capital requirements, shareholder contribution, consistency with the project's implementation plan, and in accordance with the financial restrictions established for the type of activity.

Rules and Restrictions

  1. Alignment of the Saudi shareholder(s) percentage and capital with the financial restrictions outlined for the type of activity.
  2. The foreign company's average revenue over the past three years prior to the license grant must be at least 3 billion Saudi riyals, with a minimum asset value of 1.5 billion Saudi riyals.
  3. The foreign company must hold licenses in at least two countries and have a minimum of 15,000 employees.
  4. The minimum capital requirement for bus procurement, operation, and maintenance must meet the Ministry of Investment's standards for service sector companies (500,000 SAR).
  5. Compliance with the nationalization quotas set by the Ministry of Labor and Social Development for transportation services, as amended.
  6. The establishment's record requesting the license must not include any previous license revocations, either inside or outside of Saudi Arabia, within the ten years prior to the license request.
  7. There should be no record of fines or penalties related to traffic safety, either inside or outside of Saudi Arabia, in the ten years prior to the license request.
  8. Approval from the relevant authorities in Saudi Arabia for the use of public transportation during emergencies, crises, and wars.
  9. Technical specifications and production processes must adhere to Saudi, Gulf, or international standards.
  10. The applicant must submit annual plans for improving security levels to the Public Transport Ministry for review.
  11. The applicant must provide data of the Saudi national identity, premium residency, residency, or commercial registration data for any participating Saudi companies when submitting the electronic application
Contact us to obtain your Transport License fast.
License to practice other transport
View Requirements

-License to Practice Other Transport

This license is for international companies that are 100% owned and wish to offer public land transportation services in 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

Required Documents

  1. 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).
  2. The last three years of financial statements for the applicant company, certified by the Saudi Embassy.
  3. A business plan outlining the proposed locations and branches of the company, as per the results of an economic feasibility study.

Rules and Restrictions

  1. Evidence of operations in at least three international markets for the same intended activity.
  2. Evidence of operations in at least three international markets for the same intended activity.
  3. Capital of not less than 10 million Saudi Riyals as per the minimum requirements specified for the type of activity.
  4. Obligation 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.
  5. Companies that provide services through technical channels are exempt from these requirements.
  6. If 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.
Contact us to obtain your Transport License fast.
Contact us to obtain your Transport License fast.