A public institution is established under this law, called: the Public Institution for Railways, which enjoys legal personality and is affiliated with the Ministry of Transport.

The institution shall establish its headquarters in the city of Dammam, and it may create branches in the cities and villages through which its railway lines pass. The Council of Ministers may decide to transfer its headquarters to another city within the Kingdom.

This institution is responsible for the transfer by railway and the management of the Port of Dammam as a public service for the public, and contributing to all that may improve and develop this service. In order to achieve this, it has the authority to do the following:

• 1 - Supervise the implementation and management of railway projects and projects related to the railway transfer service.

• 2 - Collaborate with other entities, companies, or individuals in activities that fall within the purpose for which it was established, or assist in achieving it.

• 3 - Contract internal and external loans after obtaining the approval of the Council of Ministers, and it may accept donations and own real estate and movable property.

• 4 - Conduct all actions necessary to achieve the purposes for which it was established and mentioned in this law.

• 5 - Manage and operate the Port of Dammam due to its connection with the railway facility, and the Council of Ministers may decide to withdraw this management and operation whenever it deems that the public interest requires it.

The assets of the institution consist of:

• 1 - The tangible assets currently used in the management of railway facilities and their rights and obligations towards third parties.

• 2 - The revenues collected for the services provided to individuals and public and private entities.

• 3 - The funds contributed by the public treasury of the state.

• 4 - The fixed and movable property under its control.

• 5 - Donations and loans.

The Board of Directors of the institution is the highest authority of the institution, setting its general policy and overseeing its implementation without being bound by the administrative and financial regulations followed in government departments, except as specified in this law. In this regard, and without limiting its authority, it has the following powers:

• 1 - Issuing decisions and internal regulations governing the administrative, financial, and technical work of the institution.

• 2 - Proposing draft regulations related to the institution's employees, organizing the rules for their appointment, promotion, defining their positions, salaries, and wages, organizing the rules for their transfer, secondment, training, lending, leave regulations, discipline, and termination of their services. These regulations become effective by a decision from the Council of Ministers, and the Retirement Law for civil state employees remains applicable to the institution's employees, as well as the labor laws concerning its workers.

• 3 - Approving the draft budget of the institution and presenting it to the Ministry of Finance and National Economy for review in preparation for issuing a royal decree.

• 4 - Ratifying the draft final account by presenting it to the General Auditing Bureau along with the report mentioned in paragraph (6), in preparation for its approval by the Council of Ministers.

• 5 - Approving the tariffs related to the transportation of goods and passengers and other services provided by the institution.

• 6 - The Board of Directors submits an annual report on the institution's activities and financial position, profit and loss account, and the auditors' report to the Council of Ministers within four months from the end of the financial year.

• 7 - The Board of Directors has the right, in the event of a vacancy in the position of the General Manager, to appoint anyone it wishes to perform his duties, provided that this is done temporarily.

The Board of Directors meets at the invitation of its President at least once a month, and in exceptional cases, it must meet at the invitation of its President or at the request of five of its members or the Director of the institution. The legal quorum for the Council is achieved with the presence of two-thirds of the members, including the President or his representative, and decisions are made by a majority of the votes of those present. In the event of a tie, the side with the President is favored. Meetings of the Board of Directors are held at the headquarters of the institution, and in cases of necessity, the Council may convene at any other location within the Kingdom.

The institution shall have a General Director appointed by a Decision from the Council of Ministers based on a nomination from the Minister of Communications and the approval of the Board of Directors. The Decision shall specify the salary or compensation he receives. Without prejudice to the provisions of this Law, the Chairman of the Board of Directors of the institution shall be the highest reference for the General Director.

The General Director shall manage the institution and handle its affairs, exercising the following competencies:

• 1 - Preparing for the sessions and meetings of the Board of Directors.

• 2 - Implementing the decisions issued by the Board of Directors and supervising the workflow within the institution.

• 3 - Supervising the preparation of the annual Budget project for the institution and the annual final account project, and presenting them to the Board of Directors.

• 4 - Issuing disbursement orders for the institution's expenses within the limits of the budget.

• 5 - Issuing the necessary administrative decisions related to organizing the institution's departments, defining their competencies, and regulating work and its proper conduct within the framework of the institution's systems.

• 6 - Representing the institution before all entities, with the right to sign on its behalf in contracts, litigation, and other matters related to the institution's affairs, within the limits of the powers granted to him.

• 7 - Exercising the competencies granted to him by the decisions of the Board of Directors and the laws and regulations specific to the institution.

• 8 - Submitting periodic reports to the Board of Directors on the progress of work within the institution.

• 9 - The General Director may, with the approval of the Board of Directors, delegate others to exercise all or part of these powers.

The rights and obligations arising from the activities of the Railway Authority prior to that in its management of the railway and the Port of Dammam shall transfer to the institution as soon as it is established.

The capital of the institution is determined by the total value of fixed and movable property when present, and an independent budget for the institution is prepared in accordance with the rules followed in commercial projects, which is attached to the state budget. The institution may prepare a budget for new projects that exceed one year in duration, and its capital may be increased or decreased with the approval of the Council of Ministers.