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Transportation License in Saudi Arabia

The major modes of transportation in Saudi Arabia include road, air, sea, and rail. The transportation sector plays a significant role in the country’s logistics and supply chain management. The industry is expected to grow, focusing on developing smart transport systems and promoting sustainability.

The General Authority of Civil Aviation (GACA) has established an integrated logistics zone in Riyadh, next to Riyadh International Airport, to boost the Kingdom’s position as prominent transportation and logistics hub and offer a favourable business environment.

The government is actively promoting private sector participation in the transport sector through various initiatives such as the Public-Private Partnership Program.

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Saudi Arabia’s Transport and Logistics Sector:Key Highlights

  • Regulatory Oversight:
    • Governed by major authorities including:
    • General Authority Of Civil Aviation (GACA)
    • Saudi Ports Authority (SPA)
    • Public Transport Authority
  • Strategic Government Investment:
    • Over SAR 500 billion (USD 133.3 billion) allocated for infrastructure development through 2030
    • Focus on modernizing ports, airports, railways, and related facilities
  • Market Growth Outlook:
    • Logistics industry projected to grow at a CAGR of 6.7% from 2020 to 2025
  • Economic Contribution:
    • Transport and logistics expected to contribute 10% to Saudi Arabia’s GDP by 2030
  • Freight Network:
    • An estimated 40,000 trucks operate within the Kingdom
    • Network spans eight countries across the Middle East and Central Asia
  • Regional Leadership:
    • Saudi Arabia is the largest logistics market in the GCC
    • Backed by ambitious transportation and infrastructure projects
The Significance of the Transport Sector in Saudi Arabia
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Economic Growth

  • The transport sector is a vital driver of economic development, enabling efficient movement of goods and people.
  • It supports commerce and trade by connecting businesses with markets and consumers across the country and beyond.

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Strategic Location

  • Situated at the intersection of key global trade routes, Saudi Arabia serves as a strategic logistics hub.
  • Its location positions the Kingdom as a gateway to regional markets in the Middle East, Africa, and Asia.

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Government Support

  • The Saudi government is actively investing in the modernization of the country’s transportation infrastructure.
  • Major upgrades include expansions of road networks, airports, seaports, and railway systems as part of Vision 2030.

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Tourism Development

  • A robust transport system is essential for the growth of Saudi Arabia’s tourism sector.
  • Reliable and accessible transportation enhances visitor experiences and supports the Kingdom’s goal of becoming a leading global tourism destination.

Transport Licensing Requirements in Saudi Arabia Opportunities for International Companies in the Public Land Transport Sector

International companies seeking to operate in Saudi Arabia's thriving public land transport sector can obtain a specialized license that enables full participation in a variety of transportation services. The Kingdom offers diverse investment opportunities under this license, including:

License to practice bus public transportation within cities

View Requirements

License to practice metro public transportation within cities

View Requirements

License to practice other transport

View Requirements
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      License to Operate Public Bus Transportation Within Cities – Saudi Arabia

      International companies can apply for a license to operate public bus transportation services in cities across the Kingdom of Saudi Arabia. This license opens doors to participate in the Kingdom’s rapidly growing transportation infrastructure under Vision 2030.

      Required Documents

      To apply, the following documents must be submitted:

      • A Board Resolution from the company indicating its investment plans in Saudi Arabia, including:
        • Shareholders' names, ownership percentages, and capital
        • Business activity and location
        • Appointment and authority of the General Manager
        • Document must be authenticated by the Saudi Embassy
      • Commercial Registration from the company’s country of origin, authenticated by the Saudi Embassy
      • Performance Evidence of compliance with project timelines over the past 5 years
      • Financial Documentation proving:
        • Capability to fund the project in alignment with capital requirements
        • Shareholder contributions and consistency with the implementation plan
        • Compliance with financial thresholds for the activity

      Rules and Restrictions

      Applicants must meet the following criteria:

      • Saudi Shareholder Participation:
        • Shareholding percentage and capital must comply with activity-specific financial restrictions
      • Financial Strength of the Foreign Company:
        • Average annual revenue of at least SAR 3 billion over the last 3 years
        • Minimum total assets of SAR 1.5 billion
      • Operational Experience:
        • Licensed in at least two other countries
        • Employ a minimum of 10,000 employees globally
      • Capital Requirements:
        • Minimum capital of SAR 500,000 for bus procurement, operations, and maintenance (in line with Ministry of Investment standards for service sector companies)
      • Additional Conditions (if applicable):
        • Saudi shareholders must provide a copy of their license from the Ministry of Transport or Public Transport Authority
      • Nationalization (Nitaqat) Compliance:
        • Adherence to Saudization quotas set by the Ministry of Human Resources and Social Development
      • Clean Record Requirements:
        • No license revocations in Saudi Arabia or abroad in the last 10 years
        • No record of traffic safety violations in the last 10 years
      • Emergency Operations:
        • Must obtain official approval to operate during emergencies, crises, and wartime
      • Standards Compliance:
        • Technical specifications must conform to Saudi, Gulf, or international standards
      • Security Planning:
        • Submit annual plans for improving safety and security to the Public Transport Ministry
      • Identification and Registration:
        • Must provide Saudi national identity, premium residency, or commercial registration data for all participating Saudi entities during application

      Need Assistance?

      Contact us today to streamline the process and obtain your Public Transportation License quickly and efficiently.

      Contact us to obtain your Industrial License fast.
      Regional Headquarters (RHQ) Licensing in Saudi Arabia

      Requirements, Compliance & Application Support

      Establishing a Regional Headquarters (RHQ) in Saudi Arabia offers multinational companies a strategic base for managing operations across the Middle East and beyond. To facilitate this, the Kingdom has outlined specific requirements and compliance standards for obtaining an RHQ license.

      Required Documents

      Applicants must provide the following documents, duly attested by the Saudi Embassy in the issuing country:

      • A copy of the company’s Commercial Registration or Business License
      • Copies of two commercial registrations or licenses from countries other than Saudi Arabia and the home country of the multinational group's headquarters
      • Audited consolidated financial statements<strong for the most recent fiscal year

      Rules and Compliance Requirements

      To qualify for an RHQ license in Saudi Arabia, the following criteria must be met:

      • The multinational group must operate in at least two countries outside of its home country and the Kingdom of Saudi Arabia
      • The RHQ must be registered in Saudi Arabia as a separate legal entity (either a standalone company or a foreign branch)
      • RHQ license holders may only conduct activities directly related to RHQ operations; other revenue-generating commercial activities are not permitted
      • Mandatory RHQ activities must begin within six months of license issuance
      • At least three optional RHQ activities must be initiated within one year of obtaining the license
      • RHQ staff must include at least three senior-level professionals (e.g., Executive Director or Vice President) with relevant expertise developed within the group
      • A minimum of 15 full-time employees engaged in RHQ operations is required within *one year* of license issuance

      Non-Compliance Triggers

      The RHQ license may be subject to penalties or revocation in cases of:

      • Failure to begin mandatory or optional RHQ activities within the designated timeframes
      • Insufficient staffing or lack of senior leadership
      • Violation of RHQ license terms by the RHQ entity or the multinational group
      • Breach of regulations set forth by the Ministry of Investment (MISA)

      Understanding the RHQ Licensing Process

      The process of securing an RHQ license in Saudi Arabia can be complex and time-intensive, often taking several months. Requirements may vary depending on the company’s size, structure, and industry.

      Get Your RHQ License with Neotecniq

      Neotecniq simplifies the process of establishing your Regional Headquarters in Saudi Arabia. Our experienced team ensures full regulatory compliance, handles documentation, and supports you from application to approval—helping you launch your RHQ operations smoothly and efficiently.

      Contact us today* to expedite your RHQ license application and start your expansion in the Kingdom with confidence.

      Contact us to obtain your Regional Headquarters (RHQ) fast.
      License to Practice Other Transport Activities in Saudi Arabia

      For 100% Foreign-Owned International Companies

      This license allows fully foreign-owned companies to operate a wide range of public land transportation services in the Kingdom of Saudi Arabia. Approved activities include:

      The following transport services are included:

      • Taxi services (public and private)
      • Transportation for schools, tourism, airports, and materials
      • Transport of pilgrims and visitors, both domestically and internationally
      • Cross-border bus services
      • Ride-hailing and taxi dispatch platforms
      • Vehicle leasing and brokerage services, including:
        • Car rental
        • Truck and bus rental
        • Car hire brokers
        • Freight brokers

      Required Documents

      To apply for this license, the following documentation is required:

      • A copy of the Commercial Registration of the foreign partner, certified by the Saudi Embassy
      • A copy of the national ID for any GCC partners not already registered in the ABSHAR system
      • Audited financial statements for the past three fiscal years, certified by the Saudi Embassy
      • A detailed business plan, including proposed branch locations, supported by an economic feasibility study

      Rules and Compliance Requirements

      Applicants must meet the following conditions:

      • Proven international presence:
        • Demonstrated operations in at least three international markets offering the same type of services
      • Capital requirements:
        • Minimum capital investment of SAR 10 million, aligned with regulatory standards for the chosen activity
      • Regulatory compliance:
        • Full adherence to Saudization (Nitaqat) quotas and employment regulations
        • Implementation of a compliance mechanism to ensure ongoing alignment with Ministry of Human Resources and Social Development standards

      Exemptions

      The following activities are exempt from the above compliance requirements:

      • Companies that operate entirely through digital or technical platforms
      • Enterprises offering vehicle leasing without drivers, including:
        • Car, truck, and bus rentals
        • Car hire brokerage
        • Freight brokerage

      Start Your Transport Business in Saudi Arabia with Neotecniq

      Neotecniq specializes in guiding international companies through the licensing process for transportation services in Saudi Arabia. Our team ensures regulatory compliance, accelerates approval, and simplifies every step of your market entry.

      Contact us today* to fast-track your Transport Services License and begin operations in one of the region’s most dynamic markets.

      Contact us to obtain your Industrial License fast.