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Sector Outline of Transportation and Logistics in KSA

Saudi Arabia’s National Logistics Plan aims to expand its trade network across 100 million square meters with 59 logistics centers, prioritizing operational efficiency and e-commerce. Saudi Arabia’s regulatory authorities include GACA, SPA, and the Public Transport Authority. With billions in infrastructure investment by 2030, the sector is projected to contribute 10% to GDP, supported by vast number of trucks and Saudi Arabia’s strategic location and government investments in transportation sector fueling economic growth and boosting tourism.

Transformative Strategy for Saudi Development

The strategy aims to boost infrastructure, create diverse logistics platforms, and enhance operating systems. It stresses effective public-private partnerships to achieve:

• Elevating Saudi Arabia’s global logistics status
• Improving urban living standards
• Balancing the budget
• Enhancing government efficiency

Saudi Arabia aims to achieve the success of its strategy by prioritizing key sectors, including:

• Aviation
• Maritime shipping
• Railway transportation lines
• Roads and inland transportation

Companies looking to provide public land transportation services internationally can obtain the necessary license for authorization.

Public transportation services offer a range of investment opportunities:

1. License to operate public bus transportation services within city limits.

Rules and Restrictions

• Align Saudi shareholder percentage and capital.
• Meet foreign company criteria: 3-year revenue, licenses in 2 countries.
• Fulfill regulatory asset and employee requirements, consider nationalization quotas.
• Meet minimum capital per Ministry of Investment standards.
• Submit Transportation/Public Transportation Authority license.
• No past license issues or penalties related to traffic safety in the last decade.
• Adhere to standards for technical specs and manufacturing processes.
• Provide annual security improvement plans.
• Share Saudi national identity, premium residency, residency, or commercial registration data.

2. License for the provision of metro transit services within city limits. 

Rules and Restrictions

• Align with 3-year average revenue for minimum value.
• Meet specified minimum asset value.
• Hold licenses in two countries.
• Meet mandated minimum employee count.
• Satisfy capital requirements for bus operations.
• Comply with transportation nationalization quotas.
• No license revocations in the last ten years.
• No traffic safety fines in the last ten years.
• Obtain approval for emergency transportation.
• Adhere to technical standards.
• Submit annual security plans to the Public Transport Ministry.
• Provide required data in electronic applications.

License to engage in alternative transportation services.

This license is tailored for wholly-owned global enterprises seeking public land transportation services within Saudi Arabia. The services encompass a wide range, such as:

• Public and private taxi services.
• School, tourism, airport, and material transportation.
• Pilgrim and visitor conveyance, domestic and international.
• Cross-border bus transportation services.
• Taxi management and coordination.
• Rental services for cars, trucks, and buses, including car and freight brokers.

Rules and Restrictions

• Operate in at least three international markets for the same activity.
• Meet minimum capital requirements.
• Comply with all regulatory commitments, including Saudization standards.
• Exemption for companies providing services through technical channels.
• Exemption for enterprises involved in vehicle leasing without drivers.

Start your Transportation and Logistics business with the most trusted partner – Helpline Group

If you are looking to register your company in Saudi Arabia, it can be effortless by partnering with us. Helpline Group, a prominent business consultant in Saudi Arabia, specializes in offering expert guidance in obtaining licenses for transport and logistics companies in the country. With 25 years of experience, our team of over 300 experts is dedicated to providing effective solutions for Transport and logistics companies in KSA and beyond.