The Public Transport Authority exempts licensees from land transport fines for one year

In a move aimed at enhancing the efficiency of the logistics sector and easing the financial burdens on investors and workers in this vital field, the Board of Directors of the Public Transport Authority an important decision to grant a temporary exemption from the requirement to pay the financial fines stipulated in the executive regulations of the land transport system on roads, for a period of one full year.

Details of the exemption decision and the beneficiary categories

This decision encompasses a wide range of beneficiaries, including current licensees in various land transport activities, as well as new applicants seeking to utilize the Authority's services. Under this decision, these individuals are exempt from the requirement to pay any outstanding fines or penalties as a prerequisite for completing their procedures. This allows them to rectify their legal status and complete the licensing and renewal processes without immediate financial obstacles during the exemption period.

Context of the decision and support for the national transport strategy

This decision cannot be read in isolation from the strategic directions of the Kingdom of Saudi Arabia, specifically the National Strategy for Transport and Logistics stemming from the Kingdom’s Vision 2030. The Kingdom seeks to consolidate its position as a global logistics hub linking the three continents, and to achieve this, the relevant authorities are working to overcome all obstacles facing the private sector.

The land transport sector is the backbone of this strategy, as supply chains and domestic and international trade depend on it. Hence the importance of such regulatory initiatives, which aim to incentivize compliance with regulations and laws in flexible ways, and encourage small and medium-sized enterprises and individuals working in the sector to continue and develop their activities rather than exiting the market due to accumulated fines.

Expected economic and regulatory impact

This decision is expected to contribute to a positive shift within the land transport market, as the temporary suspension of the fine payment requirement will lead to:

• Accelerating the pace of correcting situations: The decision will encourage violators or those in default to come forward to the authority to settle their legal status and obtain the necessary licenses.
• Ensuring business continuity: Relieving financial pressure gives businesses and individuals the opportunity to reschedule their financial priorities and focus on operations, maintenance, and improving service quality.
• Improving the investment environment: Sending reassuring messages to investors that the legislative environment in the Kingdom has the necessary flexibility to support partners in the private sector.

Extension and enforcement powers

To ensure that the decision achieves its desired objectives, the decision included authorizing the head of the General Authority for Transport to extend the exemption period for an additional period not exceeding one year, if the public interest so requires, which reflects the Authority’s flexibility in dealing with changes.

The authority indicated that this decision will be implemented from the date of its issuance and publication in the Official Gazette, in accordance with the approved regulatory procedures in the Kingdom, calling on all concerned parties to take advantage of this grace period to rectify their situations and comply with the regulatory bylaws to ensure the sustainability and safety of the transport sector.