The following terms and phrases - wherever they appear in this Statute - shall have the meanings indicated opposite each of them, unless the context requires otherwise:

Statute: Statute of the Saudi Red Sea Authority.

Authority: Saudi Red Sea Authority.

Council: Board of Directors of the Authority.

President: Chairman of the Board.

Marine Vessel: Any floating vessel designed to operate on or under water surfaces used for tourism or recreational purposes. The necessary accessories of the marine vessel for its exploitation are considered part of it.

Navigational Activities: Marine navigational activities of the marine vessel used for tourism and recreational purposes or those activities practiced on it within the geographic scope.

Marine Activities: Marine tourism and recreational activities and activities practiced in a non-competitive manner within the geographic scope.

Tourism Navigational Agent: The corporate personality licensed by the Authority to provide services to the marine vessel to practice navigational activities within the geographic scope.

Tourism Marine Anchorage: The area used for stopping or mooring the marine vessel within the geographic scope.

Geographic Scope: The territorial sea of the Kingdom in the Red Sea where navigational and marine activities are practiced, and the part of the land associated with practicing those activities; excluding military, security, and other such areas therein, according to a map prepared by the Authority - in coordination with the relevant authorities - in preparation for submission to the Council of Economic and Development Affairs for approval, and then to the President of the Council of Ministers for ratification.

The Authority shall have legal personality and financial and administrative independence, and it shall be organizationally linked to the President of the Council of Ministers. Its main headquarters shall be in the city of Riyadh. It may establish branches or offices within the Kingdom as needed.

The Authority aims to regulate navigation and maritime activities within the geographical scope, without prejudice to the jurisdictions of other agencies and in a manner that ensures optimal and sustainable use of such activities and enhances their efficiency.

The Authority may take any measures necessary to achieve its objectives, including the following:

• 1. Setting the policies, strategies, plans, programs, and initiatives necessary to regulate navigation and maritime activities and tourist marinas within the geographical scope as well as supervising such activities, ensuring the development and sustainability thereof, and submitting any matter that requires further action.

• 2. Issuing the licenses and permits necessary to regulate navigation and maritime activities and related works within the geographical scope, in accordance with requirements and conditions set by the Board.

• 3. Reviewing the functions and duties of the agencies operating within the geographical scope and proposing any necessary amendments thereto in coordination with such agencies.

• 4. Monitoring the requirements, conditions, and procedures of relevant agencies tasked with the regulation of navigation and maritime activities, and proposing necessary recommendations.

• 5. Making necessary recommendations regarding the functions and duties within the geographical scope that are not assigned to a particular agency, if any, without prejudice to aspects related to the environment, natural resources, and maritime security and safety requirements, and submitting any matter that requires further action.

• 6. Determining, developing, and updating navigation sites and routes for navigation and maritime activities within the geographical scope, in coordination with relevant agencies.

• 7. Identifying current and future needs for the development of the infrastructure for navigation and maritime activities within the geographical scope, and coordinating with relevant agencies to take any necessary action in this regard.

• 8. Setting controls, rules, and standards for the provision of services relating to navigation and maritime activities, in coordination with relevant agencies, and overseeing the application thereof.

• 9. Setting controls, rules, and standards for the development, management, operation, and oversight of tourist marinas.

• 10. Setting a mechanism, in coordination with relevant agencies, that ensures the protection of the marine environment in sites where navigation and maritime activities are carried out within the geographical scope, provided that such mechanism determines the Authority’s role in monitoring its implementation as well as the measures that must be promptly taken in case of a breach thereof.

• 11. Taking the measures necessary to promote and attract investment in navigation and maritime activities, in coordination with relevant agencies.

• 12. Providing administrative, technical, and advisory support to investors in navigation and maritime activities, including small and medium enterprises, in coordination with relevant agencies.

• 13. Establishing databases relating to the Authority’s functions and duties.

• 14. Benefiting from relevant international practices for the development of navigation and maritime activities and taking any necessary action in this regard.

• 15. Cooperating and exchanging expertise with regional and international bodies and organizations within the limits of the Authority's functions, subject to applicable legal procedures.

• 16. Encouraging engagement in navigation and maritime activities and taking the measures necessary to facilitate the engagement of individuals in such activities.

• 17. Marketing navigation and maritime activities to attract targeted practitioners to such activities.

• 18. Holding and organizing symposia, conferences, forums, and exhibitions relating to the Authority’s functions inside the Kingdom and abroad and participating therein, in accordance with relevant legal provisions.

• 19. Holding and promoting training courses in areas relating to the Authority’s functions.

• 20. Developing vocational training programs and designating entities that grant training certificates in areas related to the Authority’s functions, in accordance with legal procedures.

• 21. Assigning some of its tasks to government agencies, in agreement with such agencies, or to the private sector or the non-profit sector, in accordance with controls approved by the Board.

The Authority shall have a Board of Directors whose President is appointed by an order from the President of the Council of Ministers, and whose membership includes:

1- Minister of Sports.

2- Minister of Culture.

3- Minister of Tourism.

4- Undersecretary of the Ministry of Interior.

5- A representative from the Ministry of Interior (General Directorate of Border Guard).

6- A representative from the Ministry of Environment, Water, and Agriculture.

7- A representative from the Ministry of Municipal and Rural Affairs and Housing.

8- A representative from the Ministry of Tourism.

9- A representative from the Saudi Ports Authority.

10- A representative from the Transport General Authority.

11- A representative from the Saudi Tourism Authority.

12- A representative from the Public Investment Fund.

13- Governor of Jeddah.

14- CEO of NEOM Company.

15- CEO of the Red Sea International Company.

16- President of the Water Sports Association.

17- Specialists and experts numbering no less than three and no more than five in fields related to the work of the Authority, nominated by the President, and their appointment is issued by an order from the President of the Council of Ministers. Their membership term shall be three years, renewable once.

The rank of representatives of government entities shall not be less than fifteenth grade or its equivalent.

The Board shall oversee the Authority’s activities and the conduct of its affairs, and shall take the decisions necessary to achieve its objectives within the limits of this Statute. The Board shall, in particular, undertake the following:

• 1. Approving the policies, strategies, plans, programs, and initiatives necessary for navigation and maritime activities, including any related tasks assigned to the Authority in accordance with its functions, without prejudice to the functions of relevant agencies.

• 2. Approving the requirements and conditions of licenses and permits issued by the Authority.

• 3. Approving the navigation sites, routes, and charts necessary for carrying out navigation and maritime activities within the geographical scope, without prejudice to the functions of other agencies.

• 4. Approving the controls, rules, and standards for licensees and tourist shipping agents.

• 5. Approving the controls, rules, and standards necessary for the development, management, operation, and oversight of tourist marinas.

• 6. Proposing draft laws relating to the Authority’s objectives and functions, and proposing amendments to applicable laws, in preparation for submission for completion of legal procedures.

• 7. Approving the controls for assigning some of the Authority’s tasks to government agencies, the private sector, or the non-profit sector, provided that the assignment of a task to a government agency is made in agreement with such agency.

• 8. Approving the verification mechanism for the protection of the marine environment in sites where navigation and maritime activities are carried out within the geographical scope.

• 9. Approving plans for qualifying and training Saudi nationals in fields related to the Authority's duties and functions.

• 10. Approving the Authority’s financial and administrative regulations as well as other internal and technical regulations necessary for the conduct of its affairs, provided that the administrative regulations are approved in agreement with the Ministry of Human Resources and Social Development and that the financial regulations and the provisions that have a financial impact in the administrative regulations are approved in agreement with the Ministry of Finance.

• 11. Approving the Authority’s organizational structure.

• 12. Approving the annual operational plans.

• 13. Determining the fees for services and works provided by the Authority which are related to its objectives and functions.

• 14. Appointing an external auditor, or more, and a comptroller.

• 15. Approving the Authority's draft annual budget, final accounts, and annual report as well as the auditor's report, in preparation for submission in accordance with applicable legal procedures.

• 16. Reviewing periodic reports on the Authority’s work progress.

• 17. Approving the conclusion of agreements, protocols, and contracts, in accordance with applicable legal procedures.

• 18. Approving the acceptance of gifts, donations, grants, bequests, and endowments in accordance with applicable provisions.

• 19. Approving the establishment of Authority branches or offices within the Kingdom.

• 20. Approving the establishment of unified service offices where the services of all relevant agencies are provided.

The Board may form standing or ad hoc committees from among its members or others to be entrusted with certain tasks. The formation decision of each committee shall designate its chairman and members, and determine its functions. The Board may seek the assistance of non-members to perform some of its tasks.

The Board may, as necessary, delegate some of its powers to the Chairman or to any of its members or Authority employees.

1. Board meetings shall be held at the Authority’s headquarters and shall be chaired by the Chairman or his designee from among the Board members provided for in Article 4(1 to 12). Such meetings may, if necessary, be held at another location within the Kingdom.

2. The Board shall convene upon a call by its Chairman once every three months, and as needed at the Chairman’s discretion. The Chairman shall call for a Board meeting if requested by at least one-third of its members. The call for a meeting shall be made in writing at least seven days prior to the date set for the meeting, and it shall include the meeting agenda.

3. Board meetings shall not be deemed valid unless attended by at least the majority of Board members, including the Chairman or his designee from among Board members.

4. Board decisions shall be passed by the majority vote of attending members. In case of a tie, the meeting chairman shall have the casting vote.

5. Board meetings may be held remotely using means of technology. Board decisions may be passed by circulation; in such case, the decision shall be signed by all members indicating that they have viewed it. Decisions issued by circulation shall not be deemed valid unless voted on by all Board members and approved by at least two-thirds of the members. Such decisions shall be presented to the Board at the first subsequent meeting to be entered into the minutes of the meeting.

6. Board deliberations and decisions shall be entered into minutes signed by the meeting chairman and attending members. A dissenting member may record his objection and the reasons therefor in the minutes of the meeting.

7. A Board member may not abstain from voting nor vote by proxy.

8. The Board may seek the assistance of specialists and advisors within the Kingdom and abroad by inviting them to attend its meetings in a non-voting capacity .

9. The Board shall have a secretary from among the Authority’s employees to be appointed pursuant to a Board decision upon a nomination by the Chief Executive Officer of the Authority. The secretary shall be in charge of preparing for Board meetings, notifying Board members of meeting dates, and preparing meeting minutes and drafting its decisions, and shall carry out any tasks assigned thereto by the Board or the Chairman.

The Authority shall have a chief executive officer who shall be nominated by the Chairman. The appointment and dismissal of the chief executive officer shall be pursuant to a Board decision; the appointment decision shall determine his remuneration and other financial benefits. The Chief Executive Officer shall be in charge of the Authority’s affairs, and his responsibilities shall be within the limits of this Statute and pursuant to Board decisions. He shall assume the following functions:

• 1. Proposing the policies, strategies, plans, programs, and initiatives necessary for navigation and maritime activities, including any related tasks assigned to the Authority in accordance with its functions.

• 2. Proposing and developing sites and routes for navigation and maritime activities as well as interactive maps in preparation for submission to the Board.

• 3. Proposing current and future needs necessary for preparing the infrastructure for navigation and maritime activities within the geographical scope, and coordinating with the relevant agencies to take any necessary action in this regard.

• 4. Proposing controls, rules, and standards for the provision of services relating to navigation and maritime activities and overseeing their application, in preparation for submission to the Board.

• 5. Proposing controls, rules, and standards for the development, management, and operation of tourist marinas, in preparation for submission to the Board.

• 6. Proposing controls for assigning some of the Authority’s tasks to the government, private, or nonprofit sectors, in preparation for submission to the Board.

• 7. Proposing a verification mechanism for the protection of the marine environment in sites where navigation and maritime activities are carried out within the geographical scope, in preparation for submission to the Board.

• 8. Proposing plans for qualifying and training Saudi nationals in fields related to the Authority's duties and functions, in preparation for submission to the Board.

• 9. Overseeing the Authority's work progress in accordance with applicable laws and regulations and approved plans and programs.

• 10. Overseeing the preparation of the financial and administrative regulations as well as the internal regulations necessary for the conduct of the Authority's affairs, in preparation for submission to the Board.

• 11. Proposing the organizational structure of the Authority, in preparation for submission to the Board.

• 12. Overseeing the preparation of the Authority's annual report, draft budget, and final accounts, in preparation for submission to the Board.

• 13. Preparing reports on the implementation of the Authority's plans and programs, and presenting such reports to the Board.

• 14. Signing agreements, protocols, and contracts following the Board's approval, in accordance with applicable legal procedures.

• 15. Representing the Authority before judicial and administrative bodies and other bodies within the Kingdom and abroad; the Chief Executive Officer may delegate such power.

• 16. Disbursing from the Authority's budget and carrying out all financial transactions in accordance with applicable laws and the regulations approved by the Board and within the limits of the powers delegated to him by the Board.

• 17. Proposing the establishment of branches and offices for the Authority within the Kingdom, in preparation for submission to the Board.

• 18. Contracting for the performance of works, services, and the like, in accordance with the law and the powers delegated to him by the Board.

• 19. Issuing the decisions necessary to implement the provisions of this Statute and its regulations, in accordance with his powers.

• 20. Appointing Authority employees in accordance with the regulations and supervising their performance.

• 21. Submitting to the Board proposals on matters falling within the Authority’s functions.

• 22. Any other function assigned to him by the Board. The Chief Executive Officer may assign some of his functions to any of the Authority’s employees.

1. The Authority shall establish an electronic platform to connect entities represented on the Board and any relevant agencies the Authority deems fit to coordinate between them for the purpose of facilitating the services provided by the Authority.

2. The Authority may, as necessary, establish unified service offices where the services of all relevant agencies are provided, in agreement with such agencies.

1. The Authority's financial resources shall consist of the following:

• a) Allocations in the State budget.

• b) Fees received for services and works provided by the Authority.

• c) Gifts, donations, grants, bequests, and proceeds from endowments accepted by the Board.

• d) Any other resource approved by the Board not inconsistent with laws and instructions.

2. All Authority revenues shall be deposited in the current account of the Ministry of Finance at the Saudi Central Bank.

3. The Authority shall open an account with the Saudi Central Bank, and may open other accounts with any bank licensed to operate in the Kingdom. Disbursement from such accounts shall be made in accordance with the Authority's budget.