Implementing Regulation of the Statute of the Integrated Logistics Special Zone

Article 1 - Definitions

  • The following words and terms - wherever they appear in this Regulation - shall have the meanings specified next to each, unless the context requires otherwise:

    • 1. Permit: The approval granted by the administration to any establishment to engage in any activity other than the activities of the area within the geographical boundaries of the area.

    • 2. Company: Has the meaning stated in the Companies Law.

    • 3. Companies Law: The Companies Regulation for the integrated logistics special area.

    • 4. Administration: Refers to the administration of the integrated logistics special area.

    • 5. Existing entities: Has the meaning stated in Article Five, Paragraph (3) of this Regulation.

    • 6. Competent authority: Refers to the General Authority of Civil Aviation.

    • 7. Comprehensive service center: Has the meaning stated in Article Seven of this Regulation.

    • 8. Regulation: The regulation for the establishment of the integrated logistics special area issued by Royal Order No. (A/17) dated 2/1/1440 AH.

    • 9. Limited liability company: Has the meaning stated in the Companies Law.

    • 10. Main land: The territory of the Kingdom of Saudi Arabia excluding the area.

    • 11. Parent company: Any company established in the main land whether inside or outside the Kingdom.

    • 12. Regulation: The implementing regulation for the organization of the integrated logistics special area.

    • 13. Aviation Law: Refers to the Civil Aviation Law issued by Royal Decree No. (M/44) dated 18/7/1426 AH, corresponding to 23/8/2005 AD.

    • 14. License: The permit or approval granted by the administration to existing entities to engage in one or more activities of the area within the area.

    • 15. Area: The integrated logistics special area.

    • 16. Activities of the area: The activities specified in Article Six of the regulation.

Article 2 - Establishment of the Integrated Special Logistics Zone Administration

  • 1. The competent authority shall establish an administration called the "Integrated Logistics Special Zone Administration" for the purpose of establishing the zone and managing its affairs.

  • 2. The administration has full authority to conclude all types of contracts.

  • 3. Nevertheless, the competent authority may, at any time, assign the management, development, and supervision of the zone, or some of these tasks, to the private sector.

Article 3 - Governance of the Integrated Logistics Special Zone Management

  • 1. The President of the competent authority shall appoint a Vice President for the administration.

  • 2. The Vice President for the administration shall be supervising and responsible for achieving the objectives of the region.

Article 4 - Responsibilities

  • 1. The administration shall take the necessary measures to manage, develop, and supervise the area, ensuring the successful operation of the area and achieving its objectives. Accordingly, the administration shall take the following steps:

    • A. Design, establish, and develop the necessary infrastructure to ensure the successful operation of the area and achieve its objectives.

    • B. Prepare, establish, and develop the executive regulations and guidelines necessary for the successful operation of the area and achieving its objectives.

Article 5 - Establishment and License

  • 1. The administration develops regulations, systems, and procedures to enable the establishment of companies in the region.

  • 2. The administration sets forth the regulations and work mechanisms that enable it to issue licenses.

  • 3. For the purposes of the provisions of the regulation, companies that are established and licensed under this Article Five are considered existing entities.

  • 4. Existing entities may take one of the following forms:

    • A. Limited Liability Company.

    • B. Branch of a parent company.

  • 5. The administration issues regulations and detailed guidelines to organize existing entities in the region.

  • 6. The administration maintains a public register of existing entities.

  • 7. The administration establishes regulations, systems, and work mechanisms that enable it to issue commercial licenses for companies established in the main land, allowing them to conduct activities other than those specified in the regulation.

  • 8. The administration sets forth regulations, systems, and work mechanisms that ensure the establishment of high-quality investments in the region in accordance with this Article Five, and that the activities conducted by existing entities contribute to achieving the region's objectives.

  • 9. The administration takes the necessary steps and measures to ensure that existing entities, or those conducting commercial activities within the region, comply with the applicable regulations.

  • 10. The administration coordinates with relevant authorities to ensure the protection and enforcement of intellectual property rights for existing entities or companies operating in the region.

Article 6 - Lease

  • The administration establishes regulations, systems, and work mechanisms for the following:

    • 1. Constructing and building facilities to lease them to existing entities and/or companies that have obtained a license.

    • 2. Leasing vacant lands within the area to enable existing entities and/or those who have obtained permits to build their own facilities.

Article 7 - Comprehensive Service Center

  • 1. The administration shall establish a "Comprehensive Service Center" in the region to serve as the unified office for providing various government services and others required by existing entities and those holding permits.

  • 2. The administration must coordinate with other government entities to ensure the effective operation of the Comprehensive Service Center.

Article 8 - Notation and Work Permits

  • 1. The administration establishes the regulations and work mechanisms that enable it to issue and organize the necessary work permits for employees of the existing entities.

  • 2. According to Article 14 of the regulation, the administration must obtain the necessary work permits for employees who will work within the area, on behalf of the existing entities and the companies that have obtained the permit, provided that these work permits are allocated in a manner that achieves the objectives of the area.

  • 3. The competent authority acts as the guarantor and arranges the issuance of work permits and residence permits for foreign workers and their dependents in the existing entities.

Article 9 - Waste Management and Environment

  • The administration shall take all necessary measures to design, establish, and develop an attractive investment environment to enable quality investments in recycling and waste management.

Article 10 - Security of the Area

  • In accordance with the provisions of both the Aviation System and the Regulation, the administration is responsible for designing, establishing, and developing all necessary measures and procedures to maintain the security of the area, ensuring its effective operation. To achieve this, the administration coordinates with the relevant security agencies in the Kingdom to ensure that all security measures and procedures are taken to meet the objectives of the area.

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