Saudi Arabia: Scooter rental companies required to have an official operating license

The Public Transport Authority in Saudi Arabia has announced the start of a crucial regulatory phase for the light transport sector, officially prohibiting the rental of regular bicycles and electric scooters unless the vehicle possesses a valid operating permit. This decision comes as part of the Authority's efforts to regulate the quality of services provided and enhance safety standards in this growing sector.

Decision details and technical specifications

The Acting President of the Public Transport Authority, Dr. Rumaih Al-Rumaih, issued a decision approving the technical guide for mandatory specifications and equipment for bicycles and scooters used in rental activities. According to the updated executive regulations, specifically Article Fourteen, obtaining a separate operating card for each bicycle or scooter is now a mandatory requirement for offering the service to the public. This measure aims to prevent the use of worn-out or substandard equipment, thus ensuring a safe and reliable user experience.

Light transport context and Vision 2030

This regulatory move cannot be separated from the broader context of the Kingdom's efforts to develop its transportation system. The "light transport" or individual mobility sector is a key modern pillar supported by the Kingdom's Vision 2030 within the Quality of Life Program. In recent years, Saudi cities have witnessed a significant surge in the use of smart transportation methods such as scooters and bicycles, not only as a form of recreation but also as a practical solution for short-distance travel (the "last mile"), alleviating traffic congestion and reducing carbon emissions.

The importance of organization and its expected impact

This decision is of paramount importance on several levels. From a safety perspective, adherence to technical specifications will contribute to reducing the number of accidents and injuries resulting from the use of unsafe vehicles. From a regulatory and urban planning perspective, the presence of operating licenses and strict monitoring will help curb the phenomenon of "visual pollution" caused by the haphazard distribution and abandonment of these vehicles in public spaces. Furthermore, standardizing regulations creates a fair and competitive investment environment, protecting compliant investors and driving out unlicensed entrants from the market.

Immediate compliance and the role of chambers of commerce

In response to the decision, the Eastern Province Chamber of Commerce, based on a letter from the Federation of Saudi Chambers, circulated the new instructions to all investors and members, emphasizing the need for immediate compliance with the requirements to avoid legal repercussions. The Chamber urged those interested in investing in this promising market to expedite the submission of license applications and the issuance of operating permits through the dedicated online portal, affirming that these steps are in everyone's best interest and will lay the foundation for a sustainable and advanced transportation sector.