The deadline for adjusting the status of transport facilities in Saudi Arabia has been extended until 2026
The Board of Directors of the Public Transport Authority in the Kingdom of Saudi Arabia approved a package of significant regulatory amendments, including extending the deadline for transport facilities to adjust their operations for light and heavy freight transport activities. This crucial decision encompasses both commercial and non-commercial purposes, with the new deadline set for August 27, 2026. This measure aims to enable companies and institutions to fulfill all compliance requirements according to the approved executive regulations, thus ensuring business continuity without disruption.
The strategic context for developing the land transport sector in Saudi Arabia
This step comes as part of Saudi Arabia's ongoing efforts to achieve the goals of Vision 2030, which aims to transform the Kingdom into a global logistics hub connecting three continents. Historically, the land transport sector in Saudi Arabia has witnessed rapid growth, necessitating regulatory intervention to ensure service quality and road safety. Over the past few years, the Public Transport Authority has worked to issue stringent regulations aimed at eliminating commercial concealment, raising safety standards, and improving the quality of the transport fleet. Granting an additional grace period reflects the relevant authorities' understanding of the operational challenges facing companies during the transition to the new system.
Details of the decision to extend the deadline for adjusting the status of transport facilities
The recent regulatory decision included extending the deadline for changing the registration type of heavy transport activities from private to public, based on the provisions of the executive regulations. This extension grants companies sufficient additional time to rectify their regulatory status and comply with the new requirements governing the sector. The authority also confirmed that the extension includes the deadline stipulated in the mechanism for adjusting the status of light freight transport establishments, thus enhancing the integration of regulatory efforts across various land transport activities and providing all establishments operating in the sector with a unified opportunity to easily and smoothly adjust their status.
Passing the professional competency test for drivers
The decision also included amending the mechanism for implementing professional competency requirements for drivers. It was decided that drivers with valid licenses will be required to pass the professional competency test starting from the date their licenses expire, after the launch of professional qualification programs for heavy transport drivers or those transporting hazardous materials. Conversely, the requirement for drivers without licenses, or with expired licenses, will begin from the date these programs are launched. This approach directly contributes to raising the efficiency of human resources and enhancing road safety levels in the transport sector.
Economic and regulatory impact at the local and regional levels
This decision is of paramount importance and will have a wide-ranging positive impact. Domestically, it will stabilize supply chains and prevent any shortage of operational trucks, thus protecting the market from fluctuations in transport prices. Regionally and internationally, regulating and improving the efficiency of the sector will enhance the Kingdom's competitiveness in the Logistics Performance Index (LPI). Companies that comply with the regulations will be better positioned to provide reliable cross-border transport services, supporting trade between Saudi Arabia and its neighbors and attracting more foreign investment to the logistics sector.
App flexibility and investor support
The decision clearly stipulates the possibility of submitting a request for an additional extension of the specified deadline if urgently needed, in accordance with the provisions of Royal Decree No. (M/188) dated 24/8/1446 AH. This clause ensures high flexibility in implementation without compromising the main regulatory objectives. The Public Transport Authority clarified that these amendments will take effect from the date of their issuance and will be published in the Official Gazette, in order to enhance transparency and enable all relevant parties and investors to review the precise details and comply with them in a timely manner.
