1.1 The words and phrases mentioned below, wherever they appear in these regulations, shall have the meanings specified next to each of them:

• Regulation: Refers to the regulation of the integrated logistics special zone issued by Royal Order No. (A/17) dated 01/02/1440 AH.

• Authority: Refers to the General Authority of Civil Aviation.

• Council: Refers to the Board of Directors of the General Authority of Civil Aviation.

• License: Refers to the license issued by the Authority to the client to engage in activities within the zone.

• Objections Committee: The committee formed by the Board of Directors of the General Authority of Civil Aviation to consider objections submitted by any person subject to the regulation or these rules.

• Client: Refers to any person licensed to engage in one or more activities within the zone.

• Contractor: Refers to any private sector person contracted by the Authority to manage, develop, supervise the zone, or some of these tasks.

• Tenant: Refers to the client or service provider who leases one or more rental units.

• Rental Units: Refers to parts of the zone prepared for rent, whether they are ready units or land prepared for construction.

• Activities: Refers to the activities mentioned in Article Six of the regulation.

• Building Permit: Refers to the permit granted by the Authority to the tenant to build on a piece of land prepared for construction.

• Certificate of Completion: Refers to the certificate granted by the Authority to the tenant upon completion of construction work.

• Service Provider: Refers to any person engaged in one or more commercial activities other than those mentioned in Article Six of the regulation, after obtaining the necessary approvals.

• Person: Refers to any natural or legal person.

1.2 Unless otherwise stated above, the words and phrases contained in these regulations shall have the meanings clarified in the regulation unless the context of the text requires otherwise.

The purpose of these rules is to establish the general regulations governing the requirements and procedures for licenses stipulated in Article Six of the regulation, in a manner that ensures transparency and clarity for all, in an effort to attract quality investments to the region.

3.1 The provisions of these rules apply to clients, service providers, and contractors, in addition to any person referred to in these rules (unless a specific provision is stated in these rules).

3.2 The provisions of these rules apply to the area and to any other area established in accordance with the provisions of paragraph two of Article Three of the regulation.

4.1 A committee to consider objections, called the Objections Committee, shall be formed by a decision of the Council, consisting of three members, one of whom must be a legal advisor, to review the objections submitted by individuals subject to the regulation or these rules.

4.2 A member of the Objections Committee may not hold their position concurrently with any other position in the integrated logistics zone.

4.3 Objections to the decisions of the Authority shall be made by submitting an objection to the Objections Committee within a period not exceeding sixty days from the date the objector becomes aware of the decision through the channels designated for that purpose.

4.4 The Objections Committee shall consider the objection submitted to it and make a decision within a period not exceeding sixty days from the date of submission, and a summary of the decision shall be published on the Authority's website.

5.1 Taking into account what is stated in the regulations and what is mandated by the laws and legislations in the Kingdom, the Authority shall manage the area, supervise it, coordinate with the relevant entities, and grant the necessary licenses and approvals to clients, service providers, contractors, and those in a similar position, in accordance with the requirements and regulations.

5.2 The Authority grants usufruct rights on the lands and facilities located within the area.

5.3 Without prejudice to what has been explicitly stated in these rules and the guide to the conditions and regulations for work in the integrated logistics special area, all requests from investors shall be responded to within one working day only.

6.1 The Authority - after obtaining the approval of the Council - shall grant all types of guarantees and commitments necessary for the operations of the area, in accordance with the following conditions:

• 6.2 The purpose of issuing the guarantee or commitment must be to serve the objectives of the regulation.

• 6.3 The issuance of the guarantee or commitment must not conflict with the applicable regulations in the Kingdom.

• 6.4 The monetary guarantee or commitment must be issued in Saudi Riyals.

• 6.5 The guarantee or commitment must not include any act that transfers ownership of assets owned by the Authority.

• 6.6 Verification of the availability of necessary resources with the Authority to cover the guarantee or commitment.

• 6.7 The Saudi Judiciary shall have jurisdiction over any dispute arising from any guarantee or commitment issued in accordance with the provisions of the regulation and the provisions of these rules. Notwithstanding this, the Council may agree to settle disputes with the foreign investor through arbitration within the Kingdom at the Saudi Center for Commercial Arbitration or at one of the arbitration centers licensed by the Permanent Committee for Saudi Arbitration Centers after obtaining the necessary approvals in accordance with the applicable related regulations in the Kingdom.

The Council shall independently make the following decisions:

• 7.1 Make a decision regarding the assignment of the management, development, and supervision of the area, or some of these tasks, to the private sector in accordance with the procedures approved by the Authority's regulations and bylaws.

• 7.2 Make a decision regarding the conclusion of lease contracts that exceed a duration of ten years.

• 7.3 Make a decision regarding granting any type of guarantees and financial commitments.

• 7.4 Determine the rental prices of rental units in the area and the tariffs for infrastructure services.

• 7.5 Approve models for lease contracts in the area.

• 7.6 Issue a guide for the terms and conditions of work in the integrated logistics special area.

• 7.7 Issue a regulation for the rules of control, inspection, and security procedures in the integrated logistics special area.

• 7.8 Issue a guide for violations and penalties.

• 7.9 Issue terms and conditions for the localization of jobs and training.

• 7.10 Issue any other executive regulations pertaining to the area.

The development, operation, and supervision contracts must include the following terms:

• 8.1 The transfer of ownership of all assets and rights to the authority - if any - upon the expiration of the contract.

• 8.2 The jurisdiction of the Saudi judiciary to consider any dispute arising from the contract, with the exception that the council may agree to resolve disputes with the foreign investor through arbitration within the Kingdom at the Saudi Center for Commercial Arbitration or at one of the arbitration centers licensed by the Committee after obtaining the necessary approvals in accordance with the regulations in force in the Kingdom.