Transport
The Kingdom of Saudi Arabia has an exponentially growing transport and logistics infrastructure, which is backed by substantial state expenditure. Private investment is increasing as a result of privatization and public-private partnerships.
Sustainability is a key component of Vision 2030, the Kingdom's overarching vision for economic diversification, and the Kingdom is attempting to leverage its transport industry to further strengthen its reputation as a modern, sophisticated economy and as an attractive investment destination.
The simplification of governmental systems is also making processes more efficient for investors seeking to enter the Saudi transport business.
Transport General Authority (“TGA”):
TGA is the regulatory and legislative body for the transport sector in the kingdom, it is the governing authority for the land, railway, and maritime sector.
TGA's land transport sector strives to organize and expand transport services such as auto rental, coach, bus, taxi, and freight haulage by truck, as well as their support activities, whilst ensuring high level of economic and social efficacy. The sector licenses and permits vehicles, operators, and transportation facilities and oversees their activities. The industry also sets executive regulations and assures their compliance, applying contemporary technology in monitoring the sector, ensuring fair competition among service providers, and protecting users' interests. The land transport services provided are critical to the Kingdom's economic and social growth.
TGA's railway transport sector monitors the safety, quality, and effectiveness of railway services throughout the kingdom. The railway service providers, which include high-speed intercity passenger operations, heavy-haul freight, metros, tramways, and autonomous people mover systems, are licensed by this sector. It establishes the technical standards and controls required for the design, construction, commissioning, operation, and maintenance of railway infrastructure, vehicles, and systems. It oversees railway privatization in collaboration with the private sector both internationally and domestically. It creates and issues regulations to carry out the obligations of the law, such as licensing and protecting passenger rights. It conducts technical investigations into railway incidents as needed to improve safety. It directs the processes for planning and developing services for national – and future international – routes on the railway network in accordance with the National Transport Strategy to meet the Kingdom's Vision 2030 goals.
The maritime transport sector aims to develop and improve the merchant fleet and passenger vessels operating under the Saudi flag, as well as to ensure that the seafarers on board these vessels are qualified, in accordance with the International Maritime Organization's (IMO) international conventions for safety, marine environment protection, and maritime security. Furthermore, the maritime industry aspires to grow maritime transportation activities and services on a long-term basis to meet the goals of the Kingdom's Vision 2030.
Mawani oversees the Saudi ports system, which is regarded as one of the most developed ports not only in the region, but also on a global scale, as it holds a leading position in the list of ports in the region, particularly because it is located on a strategic corridor connecting Asia, Europe, and Africa, making Saudi ports a vital artery for international trade. And a significant player in the maritime navigation movement. The Ministry of Transport launched the National Strategy for Transport and Logistics Services (NTLS) in June 2021, with the generous support of His Royal Highness Prince Mohammed bin Salman, Crown Prince, with the goal of transforming the Kingdom of Saudi Arabia into a global center for transport and logistics services. Mawani designed its maritime transport strategy to meet the objectives of the National Strategy for Transport and Logistics Services within the framework of Saudi Vision 2030. Mawani’s new plan intends to solidify the Kingdom's position as a worldwide logistics center by enhancing the logistic services performance index and expanding the capacity of containers handled in ports.
The standard incorporation roadmap set by the Ministry of Investment is applicable with minor differences for the transport sector. Typically, the roadmap below is followed in chronological order:
Obtain the Ministry of Investment’s (“MISA”) License.
Issue the commercial registry of the company.
a) List all relevant to the company’s ISEC list activities.
Obtain relevant TGA/ Mawani licenses based on the activities listed in the commercial registry.
a) Fulfill the key requirements to obtain temporary license.
b) Fulfill the secondary requirements “municipality license”.
c) File an application to obtain the final license attaching the secondary requirement.
Marine Business License.
Freight Brokerage License.
Logistics Service Activity License.
The Carriage of Goods by Road Using Light Vehicles License.
The Activities of Directing Goods Transport Vehicles License.
The Activities of Vehicle Transport and Towing License.
Shipping Agent License.
Ship Chandelling License.
