Saudi Arabia: 3 hours for parcel delivery and a mandatory verification code to enhance security
A new regulatory step to enhance the efficiency of logistics services
In a move aimed at transforming the postal and logistics sector in Saudi Arabia, the Public Transport Authority has proposed a draft of significant amendments to the executive regulations of the Postal System. These amendments, presented via the “Istilaa” platform, come in response to the rapid growth of e-commerce and aim to enhance the sector's efficiency, improve customer experience, and protect the rights of all stakeholders.
The most significant aspect of the new draft is the requirement for shipping and parcel delivery companies to specify a precise delivery timeframe not exceeding three hours. The amendments also grant the recipient (customer) greater flexibility by allowing them to choose a convenient time slot for receiving their shipment, whether morning or evening, thus ending the frustration of long waits and uncertainty that many previously faced.
Digital security and consumer rights protection
The amendments weren't limited to timekeeping; they also included enhanced security and reliability. The draft mandates the use of reliable electronic verification methods for shipment delivery, such as a QR code, electronic signature, or any code sent to the recipient's mobile phone. This measure aims to ensure that postal items reach their registered or agreed-upon national address with utmost accuracy and to verify the identity of the actual recipient, thus reducing incidents of incorrect delivery or loss.
The new regulations also emphasized the responsibilities of service providers and granted the authority broad powers to suspend or cancel licenses in specific cases, including the company’s bankruptcy, its cessation of activity for six consecutive months, or harm to national and security interests, thus ensuring the seriousness and commitment of companies operating in the market.
Background to the decision: To keep pace with Vision 2030 and the growth of e-commerce
These regulatory moves come within a broader context linked to the major economic transformations underway in the Kingdom. The explosive growth of e-commerce, which has accelerated significantly in recent years, has placed increased pressure on the logistics sector, particularly last-mile delivery. These amendments are part of the Kingdom's efforts to achieve the goals of Vision 2030, specifically the National Transport and Logistics Strategy, which aims to establish Saudi Arabia as a global logistics hub. A well-regulated and highly efficient local delivery sector is the cornerstone of realizing this ambitious vision.
Expected impact on the market and the future
These regulations are expected to have a multifaceted positive impact. Domestically, consumers will experience a direct improvement in service quality and increased confidence in online shopping. Shipping companies will be incentivized to adopt modern technologies to enhance their operations and efficiency, fostering a fair and competitive environment based on quality. Regionally and internationally, this move will enhance the attractiveness of the Saudi market to foreign investment and global companies, demonstrating the Kingdom's commitment to developing its regulatory infrastructure to meet the highest international standards.
