Royal Decree No. (M/188) dated 24/08/1446 AH
By the grace of God Almighty
We Salman bin Abdulaziz Al Saud
King of the Kingdom of Saudi Arabia
Based onArticle (Seventy) of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH.
And based onArticle (Twenty) of the Council of Ministers Law, issued by Royal Order No. (A/13) dated 3/3/1414 AH.
And based onArticle (Eighteen) of the Shura Council Law, issued by Royal Order No. (A/91) dated 27/8/1412 AH.
After reviewing the Shura Council decisions No. (8/69) dated 9/4/1445 AH, No. (110/11) dated 1/6/1446 AH, and No. (18/183) dated 28/7/1446 AH.
After reviewing the Council of Ministers decision No. (614) dated 19/8/1446 AH.
We decree the following:
First: Approval of the Land Transport on Roads Law, in the attached form.
Second: The enforcement of the law - referred to in item (First) of this decree - shall not prejudice the provisions ofthe Concession Agreement between the Government of the Kingdom of Saudi Arabia and the Arabian Oil Company (Saudi Aramco), approved by Royal Decree No. (M/38) dated 6/4/1439 AH, regarding the right granted to the company to transport hydrocarbon materials.
Third: Land transport establishments on roads shall adjust their status within a period not exceeding (one) year from the effective date of the law - referred to in item (First) of this decree - in accordance with it, according to the mechanism set by the Transport General Authority. The Chairman of the Board of the Authority may extend that period - as he deems appropriate in this regard - for an additional period not exceeding (6) months.
Fourth: The Board of Directors of the Transport General Authority shall determine the transport fees for any rail transport activities it deems appropriate, and any maritime transport activities it deems appropriate, based on policies - it sets in this regard - clarifying the pricing principles, provided that it does not conflict with the Kingdom’s international obligations.
Fifth: Exception to the provisions of Article (Thirty-Four) of the law - referred to in item (First) of this decree - foreign trucks proven to be practicing transport inside the Kingdom of Saudi Arabia shall be violated and punished in accordance with the provisions of the law - referred to in item (First) of this decree - from the date of its publication, provided that the Chairman of the Transport General Authority completes the necessary procedures to enforce the provisions of this item concurrently with the date of publication of the law referred to in item (First) of this decree.
Sixth: It is incumbent upon His Highness the Prime Minister, the ministers, and the heads of the concerned independent bodies - each within his jurisdiction - to implement this decree.
Salman bin Abdulaziz Al Saud
Decision No. (614) dated 19/08/1446 AH
The Council of Ministers
After reviewing the correspondence received from the Royal Court No. 56299 dated 4/8/1446 AH, including the letter of the Transport General Authority No. 60 dated 10/1/1441 AH, regarding the draft Land Transport on Roads Law, and the letter of His Excellency the Minister of Transport and Logistic Services, Chairman of the Board of the Transport General Authority No. 2458 dated 1/6/1446 AH, regarding the phenomenon of foreign trucks practicing internal transport irregularly.
After reviewing the draft law referred to.
After reviewingthe Concession Agreement between the Government of the Kingdom of Saudi Arabia and the Arabian Oil Company (Saudi Aramco), approved by Royal Decree No. (M/38) dated 6/4/1439 AH.
After reviewingthe Transport General Authority Regulation, issued by Council of Ministers decision No. (323) dated 14/9/1434 AH.
After reviewing the minutes No. (30) dated 20/1/1444 AH, and memoranda No. (3303) dated 8/11/1444 AH, No. (319) dated 28/1/1445 AH, No. (2161) dated 15/6/1445 AH, No. (4009) dated 21/11/1445 AH, No. (140) dated 8/1/1446 AH, No. (2189) dated 18/6/1446 AH, No. (2461) dated 9/7/1446 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. (16-1/46/T) dated 26/1/1446 AH.
After considering the Shura Council decisions No. (8/69) dated 9/4/1445 AH, No. (110/11) dated 1/6/1446 AH, and No. (18/183) dated 28/7/1446 AH.
After reviewing the recommendation of the General Committee of the Council of Ministers No. (8350) dated 17/8/1446 AH.
It is decided as follows:
First: Approval of the Land Transport on Roads Law, in the attached form.
Second: The enforcement of the law - referred to in item (First) of this decision - shall not prejudice the provisions ofthe Concession Agreement between the Government of the Kingdom of Saudi Arabia and the Arabian Oil Company (Saudi Aramco), approved by Royal Decree No. (M/38) dated 6/4/1439 AH, regarding the right granted to the company to transport hydrocarbon materials.
Third: Land transport establishments on roads shall adjust their status within a period not exceeding (one) year from the effective date of the law - referred to in item (First) of this decision - in accordance with it, according to the mechanism set by the Transport General Authority. The Chairman of the Board of the Authority may extend that period - as he deems appropriate in this regard - for an additional period not exceeding (6) months.
Fourth: The Transport General Authority shall undertake the following:
1- Review its regulation - issued byCouncil of Ministers decision No. (323) dated 14/9/1434 AH- in light of the provisions contained in the law referred to in item (First) of this decision, propose what is necessary in this regard, and submit to complete the legal procedures.
2- Coordinate with the Ministries of: (Education, and Interior) - each according to its jurisdiction - regarding educational transport that falls under the regular transport activity, and with the Ministries of (Hajj and Umrah, and Interior), the Royal Commission for Makkah City and Holy Sites, and the Al Madinah Region Development Authority - each according to its jurisdiction - regarding the transport of pilgrims and Umrah performers that falls under the activities of regular and irregular transport, and with the Ministry of Industry and Mineral Resources regarding the transport of goods related to the industrial and mining sector, and with the Ministry of Energy regarding the transport of energy products, when preparing the executive regulations of the law - referred to in item (First) of this decision - related to these matters.
3- Coordinate with the General Authority of Civil Aviation and other relevant authorities it deems related to air transport, maritime transport, rail transport, and land transport, to prepare memoranda of understanding to regulate aspects related to licensing the activity of (multimodal freight transport brokerage) subject to the supervision of those authorities organizationally, in accordance with the provisions of the law referred to in item (First) of this decision and its executive regulations, and the relevant legal provisions, and define the role of each of them in this regard, taking into account the integration of their roles, provided that the preparation and signing of these memoranda are completed before the law comes into effect.
Fifth: The Board of Directors of the Transport General Authority shall exercise its powers contained in Article (Seventeen) of the law - referred to in item (First) of this decision - in agreement with the Ministry of Finance and the Non-Oil Revenues Development Center, until the issuance and implementation of the (Draft Regulation on the Practice of Public Authorities and Institutions and Equivalent Entities Imposing Fees for Services and Works Provided).
Sixth: The concerned authorities, when preparing study projects and detailed plans related to land transport activities on roads, shall coordinate with the Transport General Authority.
Seventh: The Chairman of the Transport General Authority shall issue the schedule stipulated in paragraph (1) of Article (Twenty-Three) of the law referred to in item (First) of this decision, within a period not exceeding (180) days from the date of publication of the law.
Eighth: The Board of Directors of the Transport General Authority shall determine the transport fees for any rail transport activities it deems appropriate, and any maritime transport activities it deems appropriate, based on policies - it sets in this regard - clarifying the pricing principles, provided that it does not conflict with the Kingdom’s international obligations.
Ninth: The Transport General Authority shall coordinate with the Ministry of Interior, the Ministry of Transport and Logistic Services, the General Authority of Civil Aviation, and the General Authority for Roads to establish the necessary arrangements related to security and regulatory support to enforce the provisions related to controlling violations of unlicensed land transport on roads, stipulated in the law referred to in item (First) of this decision.
Tenth: Exception to the provisions of Article (Thirty-Four) of the law - referred to in item (First) of this decision - foreign trucks proven to be practicing transport inside the Kingdom of Saudi Arabia shall be violated and punished in accordance with the provisions of the law - referred to in item (First) of this decision - from the date of its publication, provided that the Chairman of the Transport General Authority completes the necessary procedures to enforce the provisions of this item concurrently with the date of publication of the law referred to in item (First) of this decision.
A draft Royal Decree has been prepared for items (First), (Second), (Third), (Eighth), and (Tenth) of this decision, its text is attached hereto.
Prime Minister
Law of Land Transport on Roads
Article 1
For the application of this Law, the following terms shall have the meanings assigned thereto, unless the context requires otherwise:
1. Kingdom: Kingdom of Saudi Arabia.
2. Law: Road Transport Law.
3. Authority: Transport General Authority.
4. Regulations: Implementing Regulations of this Law.
5. Board: The Authority's Board of Directors.
6. President: The Authority’s President.
7. Road Transport: Transporting passengers and their belongings as well as goods on roads by means of a vehicle; this includes vehicle rental for transportation purposes and relating intermediation services.
8. Passenger: A natural person, other than the driver, who uses a vehicle for transportation purposes, whether on board such vehicle, embarking thereon, or disembarking therefrom.
9. Person: Any natural or legal person.
10. Driver: Any person who drives a vehicle.
11. Vehicle: A means of road transport intended for transporting passengers and their belongings and for transporting goods, whether propelled or pulled by a motor or by the physical power of the driver.
12. Bus: A motor vehicle intended for transporting more than eight passengers and their belongings, whether for a charge or free of charge; this includes buses intended for rent.
13. Private Automobile: A motor vehicle intended for private use and may, upon obtaining a license from the Authority, be used to transport passengers and their belongings for a charge, or to transport goods for commercial purposes; this includes automobiles intended for rent.
14. Taxi: A motor vehicle seating no more than eight passengers, intended for transporting passengers and their belongings for a charge.
15. Truck: A single-unit motor vehicle or one towing a trailer, or any other combination of units permitted to run on roads, intended for transporting goods for commercial or non-commercial purposes; this includes trucks intended for rent.
16. Bike: A motorized or human-powered vehicle, with one or more wheels, which is not designed as an automobile, and is intended for transporting passengers and their belongings for a charge or for transporting goods for commercial purposes; this includes bikes intended for rent.
17. Tractor: A vehicle to which a trailer is attached forming a single unit.
18. Trailer: A non-motorized vehicle that is towed by a motor vehicle.
19. Semi-trailer: A trailer a significant weight of which rests on a tractor.
20. Regular Transport: The transport of passengers and their belongings by buses, on designated routes, at specific fares, and with consistent service and published schedules.
21. Irregular Transport: On-demand transport of passengers and their belongings by bus, pursuant to a contract between a service provider and a beneficiary.
22. Private Transport: Transporting personnel or the like and their belongings using buses owned by their employer or rented for this purpose.
23. Intermediation: Arranging road transport activities and services among beneficiaries; this includes intermediation through applications.
24. License: An official document issued by the Authority authorizing a person to engage in any road transport activity in accordance with the provisions of this Law.
25. Service Provider: A person licensed to engage in one or more road transport activities.
26. Consignor: A person who contracts with a service provider for the road transport of goods to a consignee.
27. Consignee: A person to whom goods are consigned.
28. Goods: Materials, equipment, commodities, animals, foodstuffs, or other items transported by vehicles.
29. Facilities: Road transport facilities, including stations and points of departure and arrival, vehicle depots, parking lots, rest facilities, and land logistics centers in addition to freight terminals and freight distribution centers.
Article 2
This Law aims to regulate road transport activities, vehicles, and facilities; develop and promote relevant services; and encourage investment therein in coordination with the relevant authorities, in accordance with the Kingdom's socio-economic development goals, taking into consideration the environmental impact as well as security and safety requirements.
Article 3
Passengers and their belongings as well as goods shall be transported on roads using one of the following means:
1. Buses.
2. Private automobiles.
3. Taxis.
4. Trucks.
5. Bikes.
6. Tractors, trailers, or semi-trailers.
7. Any other road transport means that may be developed in the future and is classified as such by a Board decision.
Article 4
1. A person may not engage in any road transport activity without obtaining a license. The Regulations shall specify the procedures, conditions, and requirements necessary for license issuance and duration.
2. The prohibition provided for in paragraph (1) of this Article shall include acts that precede engaging in road transport activities, such as soliciting, calling, pestering, or intercepting passengers, or gathering or wandering in areas where passengers are present for the purpose of soliciting them.
Article 5
1. A license may not be assigned to another person without the Authority's approval. The Regulations shall specify the controls and procedures for obtaining such approval.
2. A vehicle may not be operated in other than the activity it is licensed for, except in cases so requiring and on a temporary basis, as specified in the Regulations.
Article 6
The Board may set a maximum number of licenses and vehicles for any specified activity, pursuant to controls and criteria to be approved thereby.
Article 7
The Authority shall issue the necessary documents for a service provider to engage in any road transport activity, in accordance with the conditions and requirements specified in the Regulations.
Article 8
Road transport activities shall be classified as follows:
1. Passenger transport activities.
2. Freight transport activities.
3. Vehicle rental activities.
4. Intermediation activities in passenger transport, freight transport, or vehicle rental.
5. Any other activity to be determined pursuant to a decision by the Board.
Article 9
Passenger transport activities shall be classified as follows:
1. Regular transport.
2. Irregular transport.
3. Private passenger transport.
4. Private automobile transport.
5. Taxi transport.
6. Intermediation in passenger transport.
7. Any other activity specified in the Regulations.
The Regulations shall specify the relevant sub-activities.