The Regulation aims to organize the activity of freight forwarding (logistics services) to include shipping through all means of transport and logistics services, with the goal of raising the level of services provided and enhancing the competitiveness of the sector to offer the best services to beneficiaries, as well as organizing the rights and responsibilities in the activity.

Without prejudice to the provisions of international agreements to which the Kingdom of Saudi Arabia is a party:

1- The provisions of this Regulation apply to the activities of the licensed entities within the territories of the Kingdom of Saudi Arabia or from the Kingdom of Saudi Arabia to other countries.

2- The provisions of this Regulation do not apply in the following cases:

• A- When contracting for the transfer of devices, equipment, medical and food products, and other goods and materials in cases of relief, emergencies, and natural disasters.

• B- When contracting for the transfer of goods using transportation means owned by military entities.

The activity is conducted by establishments only after obtaining the license.

It is required for the establishment to obtain the License as follows:

1- Fulfillment of the following requirements:

• A - A request submitted by the establishment through the approved channels of the Authority.

• B - A valid Commercial Register for the establishment that includes the activity.

• C - A valid Social Insurance Certificate.

• D - A valid Zakat and Income Certificate (if more than one year has passed since the Commercial Register was issued).

2 - Providing a center to conduct the activity in the city of the License according to the technical specifications and municipal requirements, or according to the technical specifications and requirements issued by the relevant competent authorities, for locations not subject to municipalities.

3 - Connecting to any electronic systems specified by the Authority.

4 - Payment of financial fines (if any).

The conditions of the License stated in Article (4) are essential for its validity. In the event of a breach of any of these conditions, the License shall be suspended, and the activity shall not be practiced until the condition is fulfilled. If the condition is not fulfilled within a maximum period of (90) ninety days from the date of the License suspension, the License shall be considered revoked. Without prejudice to the authority's right to impose the prescribed financial Fine for that condition.

1 - The establishment fulfills all conditions and requirements for issuing the License within a period of (90 days) - at most - from the date of submitting the Claim; otherwise, the Claim shall be considered canceled.

2 - The License is issued according to the approved form by the authority after payment of the financial fee (if any), and the License shall be in the name of the establishment and valid for a period of three years.

1 - Subject to the conditions stated in Article (4), the License shall be renewed after the payment of the financial fee and any financial penalties (if applicable) for a similar duration according to the following regulations:

• A - The renewal application must be submitted and all License conditions stated in this Regulation must be fulfilled within (180) one hundred and eighty days before the expiration of the License validity period; otherwise, the application shall be considered canceled.

• B - A valid Saudization certificate must be provided.

2 - The establishment is not allowed to engage in the activity after the License expiration date.