Transportation License Requirements in Saudi Arabia

Service Description

This service is provided for international companies that wish to provide public land transport services. The Kingdom of
Saudi Arabia provides manyareas for investment in public transport services, namely:

1. Service for issuing license to practice bus publictransportation within cities, under the service no. (03.08.01) of
this manual.

2. Service for issuing license to practice metro publictransportation within cities, under the service no. (03.08.02)
of this manual.

3. Service for issuing license to practice other transport, under the service no. (03.08.03) of this manual

Service for issuing license to practice buses land public transport within cities

Service Description

This service is provided for international companies that wish to provide public land transport services by buses in cities in
the kingdom of Saudi Arabia.

Service Documentations

1. Decision of the Company’s Board of Directors expressing their intent to invest in the Kingdom of Saudi Arabia,
indicating the shareholders’ names, capital, shareholders’ shares, activity, location and appointment of the General
Manager and his powers, duly authenticated by the Saudi Embassy.
2. A Copy of the Commercial Register of the entity in the country of incorporation, duly authenticated by the Saudi
Embassy.
3. Provide a proof of commitment to periods of the execution of contracts in the past five years.
4. A proof of the financial capability consistent with project’s capital, the share of each shareholder, consistency with the
executive action plan for the project and according to the financial limits set forth for the type of activity in Section No.
(11.03) of this manual

Service Rules and Restrictions

1. Consistency between the total percentage of the Saudi (shareholder / shareholders) and the capital according to the
financial limits set forth for the type of activity in Section No. (11.03) of this manual.

2. The foreign company’s average revenue (partner), for the previous three years prior to granting the license, shall be
equal or more than 3 billion Saudi riyals. Company’s assets value shall be 1.5 billion Saudi riyals at least.

3. The Foreign company (partner) shall be licensed in two countries at least, and at least 10 thousand employees.

4. The minimum capital required for the supply, operation and maintenance of the buses shall comply with Ministry of
Investment practices for the services sector companies (500,000) SR.

5. In case of a Saudi shareholder, a copy of Department of Transportation / Public Transportation Authority License to
exercise bus transportation activity is needed.

6. Applying the nationalization percentages stipulated in the transportation services of the Ministry of Labor and Social
Development, as amended.

7. The record of establishments requesting license shall not contain decisions to revoke their licenses, inside or outside
KSA, for the ten years preceding the request for license.

8. The record of establishments requesting license shall not contain any notes or penalties, issued inside or outside KSA,
regarding traffic safetyfor the ten years preceding the request for license.

9. Approving the use of public transportation – in the event of disasters, crises and wars – as issued by the concerned
authorities in the Saudi Arabia.

10. Technical specification and production method of the product shall conform to the Saudi, Gulf or international
standards.

11. Submission of annual security levels improvement plans to the Public Transport Ministry for review.

12. The applicant must enter the data of the Saudi national identity / Premium residence / residence if one of the partners
holds any of them, or the commercial registration data for the participating Saudi companies during the electronic
application submission.

Service for issuing license to practice land public transport by metros within cities

Service Description

This service is provided for international companies that wish to provide public land transport services by metros in cities
in the kingdom of Saudi Arabia.

Service Documentation

1. Decision of the Company’s Board of Directors expressing their intent to invest in the Kingdom of Saudi Arabia,
indicating the shareholders’ names, capital, shareholders’ shares, activity, location and appointment of the General
Manager and his powers, duly authenticated by the Saudi Embassy.
2. A Copy of the Commercial Register of the entity in the country of incorporation, duly authenticated by the Saudi
Embassy.
3. Provide a proof of commitment to periods of the execution of contracts in the past five years.
4. A proof of the financial capability consistent with project’s capital, the share of each shareholder, consistency with the
executive action plan for the project and according to the financial limits set forth for the type of activity in Section No.
(11.03) of this manual

Service Rules and Restrictions

1. Consistency between the total percentage of the Saudi (shareholder / shareholders) and the capital according to the
financial limits set forth for the type of activity in Section No. (11.03) of this manual.

2. The foreign company’s average revenue (partner), for the previous three years prior to granting the license, shall be
equal or more than 3 billion Saudi riyals. Company’s assets value shall be 1.5 billion Saudi riyals at least.

3. The Foreign company (partner) shall be licensed in two countries at least, and at least 15 thousand employees.

4. The minimum capital required for the supply, operation and maintenance of the buses shall comply with Ministry of
Investment practices for the services sector companies (500,000) SR.

5. Applying the nationalization percentages stipulated in the transportation services of the Ministry of Labor and Social
Development, as amended.

6. The record of establishments requesting license shall not contain decisions to revoke their licenses, inside or outside
KSA, for the ten years preceding the request for license.

7. The record of establishments requesting license shall not contain any notes or penalties, issued inside or outside KSA,
regarding traffic safety for the ten years preceding the request for license.

8. Approving the use of public transportation – in the event of disasters, crises and wars – as issued by the concerned
authorities in the Saudi Arabia.

9. Technical specification and production method of the product shall conform to the Saudi, Gulf or international standards.

10. Submission of annual security levels improvement plans to the Public Transport Ministry for review.

11. The applicant must enter the data of the Saudi national identity / Premium residence / residence if one of the partners
holds any of them, or the commercial registration data for the participating Saudi companies during the electronic
application submission.

Service for issuing license to practice other transport

Service Description

This service is provided for international companies 100% that wish to provide public land transport services in the
kingdom of Saudi Arabia through the activities below:

– Taxi (public / private)
– Transfer “school – tourism – parameters -materials”
– Transfer of pilgrims and visitors from inside and outside the Kingdom
– Carriage of passengers by buses outside the Kingdom
– Directing taxis
– Car Rental -Trucks – Buses – Car Hire Brokers -Freight Brokers

Service Documentation

1. A copy of the commercial registration of the shareholding partner certified by the Saudi Embassy and a copy of the
national identity, if one of the partners is a natural person holding the nationality of one of the GCC countries (in case
his data is not registered in the ABSHAR system).

2. Financial statements of the last 3 financial year of the applicant company and certified by the Saudi Embassy.

3. Presenting a business plan for opening the company’s branches and locations mentioned in the economic feasibility
study

Service Rules and Restrictions

1. Presenting in 3 international markets for the same activity planning to practice.

2. Practicing for the same activity for more than 10 years in his country of origin, and the establishment shall be one of
the establishments that provide a distinctive quality service in the field of road transport after evaluation by the public
transport authority.

3. The capital shall not be less than 10 million riyals according to the minimum limits specified by the type of activity in
Section No. (11.03) of this Services Manual.

4. Commitment to the implementation of all the organized commitments of the activity, including the standards and
percentages of Saudization approved by the Ministry of Human Resource and Social Development and the
establishment of a mechanism for that.

5. An entity, which relies on the provision of the service through technical channels, shall be excluded from the
application of the above requirements.

6. In the event that the leasing activity “Cars -Trucks – Buses – Car Rental Brokers – Freight Brokers” without driver, the
enterprise is excluded from applying the above requirements.