Details of the executive regulations for public transportation and fines for violators
The development of the transport sector and the issuance of the executive regulations for public transport
The Public Transport Authority in Saudi Arabia has announced a new schedule for classifying violations and penalties related to ride-hailing services. executive regulations for public transport a crucial step in regulating the sector and protecting passenger rights. These regulations include hefty fines of up to five million Saudi riyals, as well as penalties such as vehicle impoundment for up to 60 days and the closure of offending applications.
Historically, the transportation sector in Saudi Arabia has undergone radical transformations in line with the goals of Saudi Vision 2030, which aims to digitize services and improve the quality of life for citizens and residents. In previous years, the market relied heavily on traditional modes of transportation, but with the technological boom, smart transportation applications emerged, completely changing the concept of mobility. With this rapid expansion and increasing reliance on these applications, the need arose for precise legislation to regulate the relationship between service providers and users, prompting relevant authorities to continuously update regulations to address any regulatory gaps that could affect passenger safety and security.
The economic and social impact of implementing the new regulations
The implementation of these stringent regulations is of paramount importance and will have a far-reaching impact. Locally, these measures will contribute to creating a fair and competitive environment among companies operating in the sector and will enhance reliability and safety for users. Regionally and internationally, this meticulous regulation will strengthen the Kingdom's position as an attractive environment for foreign investment in the smart transportation and logistics sector. Investors consistently prefer markets that offer legal transparency and clear protection of the rights of all parties, aligning with best practices and global standards followed in developed countries.
Immediate fines and escalating penalties for violators
The authority clarified that the regulations grant inspectors broad powers, including issuing warnings and imposing immediate fines not exceeding ten thousand riyals, in addition to vehicle impoundment. Conversely, the Committee for Reviewing Grievances and Violations of the Land Transport System is responsible for imposing harsher penalties exceeding this amount, including the complete or partial suspension of licenses, or the detention of drivers and vehicles for up to one year.
The regulations outline a graduated system of penalties, starting with a minimum fine that gradually increases if the same violation is committed within one year, reaching up to five times its original value. The authority warned that a sixth offense empowers the committee to impose the maximum fine stipulated by law, which is five million riyals, or to apply the fifth multiplier according to specific criteria. The regulations also stipulate the possibility of imposing additional daily fines not exceeding 10% of the maximum fine if the violation continues.
Non-financial deterrent penalties and classification of establishments
The authority added a package of deterrent non-financial penalties, including the immediate deportation of non-Saudi violators, blocking of establishments' applications or websites, closure of offending shops, publication of a summary of the violation at the violator's expense in local newspapers, and, on the fifth offense, confiscation of the vehicle. The regulations stipulate that the warning principle applies exclusively to "non-serious" violations for the first offense, with a limited grace period of a few days granted for rectification. This principle does not apply to repeat offenses.
The authority emphasized that "serious" violations affecting the operational processes of the business or the rights of passengers are not subject to warnings and are met with immediate penalties. To determine the size of fines, the authority categorized establishments operating in the sector into four tiers: micro-enterprises with one to five vehicles, small and medium-sized establishments, and large establishments operating 250 vehicles or more. Operating without a license, or facilitating such activity by soliciting passengers, topped the list of serious violations, carrying a fine of up to 38,400 riyals for large and medium-sized establishments, and decreasing for individuals and small businesses. Vehicles are also impounded for sixty days upon the fourth offense.
Protecting passenger rights and ensuring service quality
The authority confirmed that operating with an expired or canceled driver's license, permit, or card, or operating a vehicle while the permit is suspended, constitutes a serious violation that warrants severe financial penalties and a suspension of activity for up to nine months for the establishment and two months for the driver. It also noted that those who fail to provide basic safety equipment and requirements, such as a fire extinguisher, first aid kit, and reflective triangle, or who make unauthorized modifications to the vehicle, will be penalized with escalating fines and immediate corrective action requirements.
Regarding service quality and passenger rights, the authority warned against service providers refusing to offer trips except in specified circumstances, drivers failing to adhere to public etiquette, neglecting personal hygiene and the vehicle's exterior and interior appearance, or smoking by themselves or passengers. Immediate fines will be imposed for each violation. Furthermore, collecting fares when the vehicle breaks down, failing to collect fares according to the approved procedures, or refueling during a trip will subject the establishment to hefty fines and varying periods of suspension.
The authority concluded its regulations by obligating establishments to provide effective communication channels for receiving complaints and lost items and handing them over to security centers, to update their communication methods and national address, and to link their licenses to the unified electronic code. It emphasized that refusing to allow inspectors access, delaying notification of changes to the legal entity and location of the center, delaying license renewals, and failing to provide the authority with urgent data within six hours are all clear violations warranting the application of the maximum penalties and suspension of service.
