Regulations for the Purchase and Leasing of Vehicles by Government Entities

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  • Decision No. (545) dated 28/07/1446 AH

  • The Council of Ministers

  • After reviewing the correspondence received from the Royal Court No. 10442 dated 13/02/1445 AH, regarding the draft regulations for the purchase and leasing of vehicles by government entities.

  • After reviewing the aforementioned draft regulations.

  • After reviewing memoranda No. (3391) dated 09/11/1444 AH, No. (3766) dated 06/12/1444 AH, No. (1561) dated 06/05/1445 AH, No. (2822) dated 05/08/1445 AH, No. (4010) dated 21/11/1445 AH, and No. (412) dated 29/01/1446 AH, prepared by the Bureau of Experts at the Council of Ministers.

  • After reviewing the recommendation of the Council of Economic and Development Affairs No. (1/46/T M) dated 25/02/1446 AH.

  • After reviewing the recommendation of the General Committee of the Council of Ministers No. (6216) dated 17/06/1446 AH.

  • It is decided as follows:

    • First: Approval of the regulations for the purchase and leasing of vehicles by government entities, in the attached form.
    • Second: The application of the regulations referred to in paragraph (First) of this decision shall be limited to vehicles of a civilian nature, secret security vehicles that do not contain special security or military equipment, and civilian vehicles that do not require armoring for their intended use.
    • Third: Exempted from the application of the regulations referred to in paragraph (First) of this decision are vehicles insured for ministers and those of equivalent rank, employees of the excellent rank, employees of rank (fifteen), employees of other government entities who receive vehicles by virtue of their job ranks, and government vehicles outside the Kingdom, including embassies, attachés, and representations abroad.
    • Fourth: The Ministry of Finance shall, within (one) year from the effective date of the regulations referred to in paragraph (First) of this decision, in cooperation with the Ministry of Human Resources and Social Development, the Ministry of Interior, the Presidency of State Security, the Expenditure and Projects Efficiency Authority, the Transport General Authority, the Local Content and Government Procurement Authority, the Saudi Standards, Metrology and Quality Organization, the Saudi Energy Efficiency Center, and any other relevant entities deemed necessary by the Ministry of Finance, review the technical specifications included in the tables attached to the regulations, and issue instead a binding guiding manual for the procedures and technical specifications of government vehicles, which shall be updated periodically according to changes in the technical specifications of vehicles.
    • Fifth: The Ministry of Finance, in coordination with any government entities it deems appropriate, shall review the costs and appropriations allocated in the budgets of entities for the purpose of acquiring vehicles as a result of applying the regulations referred to in paragraph (First) of this decision.
    • Sixth: The Saudi Data and AI Authority, in cooperation with the Ministry of Finance, the Expenditure and Projects Efficiency Authority, the Transport General Authority, the Digital Government Authority, and the National Center for Government Resource Systems, shall develop a government electronic platform owned by the National Center for Government Resource Systems and supervised by the Digital Government Authority, enabling government entities to register, manage, and monitor their vehicle data and routes in real-time and historically, monitor periodic maintenance, and the refueling process.
    • Seventh: The regulations referred to in paragraph (First) of this decision shall be reviewed within (three) years from its date by a committee formed at the Ministry of Finance, including members from the Ministry of Human Resources and Social Development, the Ministry of Interior, the Expenditure and Projects Efficiency Authority, the Saudi Data and AI Authority, the Transport General Authority, the National Center for Government Resource Systems, the Local Content and Government Procurement Authority, and the Saudi Energy Efficiency Center, and the committee shall report its findings if necessary.
  • Prime Minister

First: Definitions

Second: General Provisions

  • When procuring vehicles, government agencies shall consider the following:

    • 1. Prioritizing vehicles procured through industry localization and knowledge transfer agreements signed with investors to motivate them to transfer industries and knowledge to the Kingdom in exchange for incentives that reach up to the guarantee of the purchase of their vehicles by government agencies, provided that the agreement on the percentage and duration of the warranty is based on a feasibility study that takes into account the return on investment in exchange for the government commitment to purchase.

    • 2. Conducting a study of capacity and demand to plan the need for vehicles when requesting the draft budget, provided that such study specifies the purposes of using the vehicles and the technical specifications for each type of vehicle.

    • 3. The technical requirements and specifications of the vehicles shall be detailed and clear.

    • 4. Observing approved standards or international specifications where there are no approved national specifications, and ensuring that such standards do not include a reference to a specific type or class, or the identification of a specific trademark or trade name, or the setting of specifications that apply only to certain producers or suppliers, without prejudice to the provisions of paragraph (1) of this Clause.

    • 5. Avoiding over-specification of the technical requirements of the vehicles and not exceeding the needs and requirements of the government agency and the financial allocations.

    • 6. The requirements and needs of persons with disabilities if there are eligible users. The government agency can seek the help of persons with expertise and competence when setting the technical specifications.

Third: Types and Specifications of Vehicles

Fourth: Purchase or Lease of Vehicles

Fifth: Operation and Maintenance of Vehicles

  • The transportation department, or its equivalent in government agencies, shall undertake the following:

    • 1. Receive the vehicles according to the followed procedures and conduct a technical inspection.

    • 2. Keep all vehicle information in separate files, including the original vehicle registration card or a copy thereof in case of lease, classifying such vehicles according to purpose of use, periodic maintenance disclosure, copies of maintenance documents, spare parts, and other important information.

    • 3. Regulate the use of vehicles allocated to the agency according to work needs and tasks assigned thereto, implement the mechanism of the shared fleet to allow vehicle use by more than one employee, and adhere to periodic maintenance schedules for vehicles in specialized workshops, as well as maintain safety and cleanliness thereof in a consistent manner.

    • 4. Monitor the maintenance of leased government vehicles in accordance with the contract signed with the contractor, which includes periodic maintenance and spare parts.

    • 5. Provide fuel for vehicles through fuel supply companies with which the Government Expenditure and Projects Efficiency Authority has signed framework agreements to serve government agencies with fuel supply.

    • 6. Notwithstanding paragraph (5) of this Clause, government agencies, upon the approval of the Government Expenditure and Projects Efficiency Authority, may secure fuel by linking the vehicle to modern technology services, for example: (NFC smart card system, RFID chip system, or equivalents thereof), and limit the use of traditional means and cash advances.

    • 7. Provide the internal audit department at the government agency with the vehicle's data, the departments using it, and the information of its users.

Sixth: Conditions for Delivery of the Vehicle

  • 1. Vehicle handover shall be limited to the driver and the field employee, in accordance with the established handover and return procedures. The necessary measures shall be taken to ensure that the vehicle is returned to the transportation department at the end of each workday, unless urgent work requires it to remain with the employee.

  • 2. The vehicle shall be linked to the employee’s name in the agency’s system upon handover, and the violation-monitoring system of the General Directorate of Traffic shall be applied, while accommodating the vehicle’s shared-use mechanism that allows more than one employee to use it.

Seventh: Duties of the Employee Using the Vehicle

Eighth: Combining Two Allowances

  • Without prejudice to relevant laws and regulations, and taking into account the provisions of Clause (Sixth)(1) of these Controls, a government employee may combine two allowances (monthly transportation allowance and in-kind transportation allowance) when obtaining a government vehicle for work purposes, if said employee returns the vehicle to the transportation department at the end of each day, or if work requires such vehicle to remain with him to perform security tasks outside official working hours.

Ninth: Procedures for Accidents within Cities

  • In the event of a traffic accident involving a vehicle within the city, the employee must call the unified number of the General Directorate of Traffic or the companies concerned with traffic accidents and wait for their arrival to map the accident and receive a copy of the official accident report. The employee may not waive the rights of the government agency against the other party in the accident in any case.

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