The following phrases and terms are intended to have the meanings specified next to them, unless the context requires otherwise:

• The Kingdom: The Kingdom of Saudi Arabia.

• The Ministry: Ministry of Transport.

• The Minister: Minister of Transport.

• The Authority: Railway Authority.

• The Council: Board of Directors of the Authority.

• The President: President of the Council.

• The Member: Member of the Council.

• The Governor: Governor of the Authority .

1- The Authority is linked to the Minister and enjoys legal personality as well as financial and administrative independence.

2- The main headquarters of the Authority is located in the city of Riyadh, and it may - by a decision of the Council - establish branches or offices in any location within the Kingdom.

The Authority aims to regulate the activity of railway transport and supervise the safety of its operation, and it undertakes its tasks and responsibilities in accordance with this regulation, and it has, in particular, the following:

• 1- Issuing licenses for railway transport service providers.

• 2- Monitoring and controlling unlawful competition in the field of railway transport services.

• 3- Establishing technical standards and conditions for the use of railway facilities.

• 4- Setting the conditions and regulations related to the entry and use of railways and their associated facilities.

• 5- Establishing safety standards for railway transport activities after consulting with the relevant ministries and government agencies and monitoring the implementation of those standards.

• 6- Conducting technical investigations into any incident or occurrence that leads to an accident, disruption, or damage to railway facilities.

• 7- Publishing reports related to railway accidents, as well as any recommendations regarding the safe operation of railway transport activities.

• 8- Providing statistical information about railway transport services to the ministry and other entities in an appropriate manner.

• 9- Seeking assistance from specialized agencies, scientific or technical institutions, or qualified consultants, as well as cooperating and coordinating with ministries, agencies, and government entities to accomplish the Authority's tasks efficiently and effectively.

• 10- Participating in the membership of relevant domestic or international technical bodies and organizations related to the regulation of railway transport activities in accordance with the regulations.

• 11- Working to protect the interests of users related to railway transport services and monitoring the performance of licensees in fulfilling their duties related to these services.

1- The authority shall have a Board of Directors chaired by the Minister, and composed of the following members:

• A- The Governor of the authority, who shall serve as the Vice Chairman of the Board.

• B- A representative from the Ministry of Transport.

• C- A representative from the Ministry of Commerce and Industry.

• D- A representative from the Ministry of Finance.

• E- Three members from the private sector, whose appointment shall be issued by a decision of the Council of Ministers based on a nomination from the Minister.

2- The term of membership for representatives of government entities and members from the private sector shall be three years, renewable once, and the ranks of the representatives from the ministries shall not be less than the fourteenth rank.

3- The attendance allowance for Board meetings shall be determined by a decision of the Council of Ministers.

The Council is the supreme authority of the body, overseeing its management and affairs, which includes the powers related to the tasks of the body as stipulated in Article (3) of this law, and it has the broadest powers for this purpose, particularly the following:

• 1- Establishing the policies that the body follows to achieve its objectives and approving the necessary programs for that and supervising their implementation.

• 2- Approving the organizational structure of the body and its internal, financial, and administrative regulations.

• 3- Determining the financial compensation that the body receives for the works and services it provides.

• 4- Approving the granting of licenses that fall within the jurisdiction of the body.

• 5- Approving the annual work plan and the operational plans of the body.

• 6- Approving the draft annual budget of the body, its final account, the auditor's report, and the annual report in preparation for submitting that in accordance with the applicable legal procedures.

• 7- Issuing the implementing regulation for this law.

• 8- Approving the purchase and sale of real estate for the benefit of the body in a manner that achieves its objectives.

• 9- Concluding agreements and contracts and what is necessary for the operation of the body and delegating in that.

• 10- Forming committees and granting them the necessary powers to accomplish the tasks assigned to them.

• 11- Reviewing the laws and instructions governing railway transport activities and providing what it deems necessary for their development and submitting that to the relevant authorities.

1- The meetings of the Council shall be held at the headquarters of the Authority, and may, when necessary, be held at any other location within the Kingdom.

2- The Council shall meet at least once every three months at the invitation of its President, or whenever necessary, or if requested by at least four of its members, and the invitation must be sent at least seven days prior to the meeting, including the agenda.

3- The validity of the meeting requires the presence of the majority of the members, including the President or his Deputy.

4- Each member of the Council shall have one vote, and decisions shall be made by a majority of the votes of the members present; if the votes are equal, the side that the President of the meeting voted for shall prevail.

5- No member may delegate another person to vote on their behalf in their absence.

6- The deliberations of the Council shall be recorded in minutes signed by the President of the meeting and the attending members, and a member who objects to any decision may record their objection with justification in the minutes. Decisions that affect service providers and users of railway transport services shall be published in the official gazette and in at least two daily newspapers, provided that this publication does not compromise the public interest or business secrets, and the Authority shall notify the relevant parties of these decisions directly and in an appropriate manner.

7- A member shall not disclose any secrets related to the work and activities of the Authority that they have learned due to their membership in the Council.

8- The Council may invite individuals whose information and expertise it deems beneficial to attend its sessions without granting them the right to vote.

9- The Council shall have a Secretary from among the Authority's staff, chosen by the President of the Council based on the nomination of the Governor of the Authority, who shall be responsible for the Council's secretariat, preparing for meetings, and recording the deliberations and decisions.

The Authority shall have a Governor at the excellent rank, appointed by a Royal Order based on the Minister's nomination. He is the executive responsible for managing the Authority, and his responsibilities are limited to what is stipulated in this regulation and what is decided by the Council. The Governor shall specifically exercise the following powers and duties:

• 1- Supervising the Authority's personnel and ensuring proper performance and the Authority's execution of its tasks and powers under this regulation.

• 2- Proposing the Authority's regulations, plans, and programs, and supervising their implementation after the Council's approval if required.

• 3- Preparing the Authority's budget draft, supervising the preparation of the Authority's annual report and accounts, and presenting them to the Council.

• 4- Following up on the implementation of the decisions issued by the Council.

• 5- Representing the Authority in its relations with other entities and before the Judiciary.

• 6- Delegating some of these powers or duties to the officials in the Authority.

1- The financial resources of the authority consist of the following sources:

• A- The appropriations allocated to it in the state budget.

• B- The financial fees for the licenses issued by the authority.

• C- The financial fees that the authority charges for the services and works it provides to service providers and others in accordance with this regulation.

• D- The proceeds of the fines imposed in accordance with the regulations.

2- The authority's funds are deposited in an account opened for it at the Saudi Arabian Monetary Authority, and it may open accounts in banks licensed to operate in the Kingdom. These funds are disbursed according to the approved budget of the authority, and any surplus funds not needed by the authority during the fiscal year shall be transferred to the public treasury of the state for the current account of the Ministry of Finance, after deducting all current and capital expenses and other expenditures required by the authority.

1- The financial year for the Authority is the financial year of the state. Exceptionally, the first financial year for the Authority begins from the date this regulation comes into effect and ends at the end of the financial year of the state.

2- Without prejudice to the right of the General Auditing Bureau to oversee the Authority's accounts, the Council appoints one or more external auditors from independent individuals or entities licensed to operate in the Kingdom to audit the Authority's accounts. Their fees are determined in advance, and if there are multiple auditors, they are jointly responsible for their work before the Authority. The auditors shall submit their report to the Council, along with a copy of the report to the General Auditing Bureau.

3- The Authority may import goods benefiting from the customs exemptions enjoyed by the imports of public institutions.

Except for the Governor of the Authority, the employees of the Authority are subject to the provisions established by the Royal Order No. (5464/M B) dated 20/4/1426 H.