Issuing a license for public land transportation by buses within cities
A definition of the service for issuing a public bus transport license within cities
The service of issuing a public bus transport license within cities is a regulatory service provided by the Public Transport Authority in the Kingdom of Saudi Arabia. It aims to enable licensed Saudi companies or foreign investors to operate public bus transport activities within cities, within specific controls and standards that ensure service quality and passenger safety. This license is an essential condition for practicing the activity and allows the operating entities to enter one of the most important service sectors in the Kingdom, which is supported by Saudi Vision 2030, a vision that seeks to develop and enhance the efficiency and quality of the transport sector.
Through the license, the company is committed to operating public transport buses within a network of organized and approved routes, providing transport services to passengers while adhering to safety requirements, operational discipline, the use of smart tracking systems, the provision of accredited maintenance centers, and adherence to precise operational schedules. The goal is to promote reliance on mass transit and reduce reliance on private cars within cities.
The importance of the service for issuing a public bus transport license within cities
Regulating and operating the public transport sector within cities in a formal and effective manner.
Developing the infrastructure of transportation services and supporting the achievement of Vision 2030 targets.
Providing safe and reliable alternatives for daily commuting for citizens and residents.
Reducing traffic congestion and carbon emissions by reducing reliance on private vehicles.
Creating new job opportunities for Saudis in the fields of drivers, technicians, and administrators.
Ensuring a higher quality of service provided through modern buses equipped with technological systems.
Difficulties related to completing or issuing a public bus transport license within cities:
The significant increase in capital requirements due to the need to purchase or equip a fleet of buses.
The strictness of the technical standards imposed on buses and operational facilities, such as maintenance centers and stops.
The need to provide an accurate and approved operational plan before obtaining the license.
The challenges of complying with Saudization requirements by hiring a large number of Saudi drivers and technicians.
The field review and inspection procedures that may delay the issuance of the license until safety standards are met.
The possibility of withdrawing or suspending the license in the event of violations or shortcomings in the level of service.
The high operational costs of managing the public transport service within cities.
Target Sector
Trader
Affiliated Authority
Ministry of Investment
Estimated Duration2 days
Gov Approval Window5 working days
Service Pricing12000
Government Fee12000
Mandatory Conditions
✓The total percentage of the Saudi partner/partners and the capital corresponds to the minimum limits specified by the type of activity.
✓The average revenues of the foreign partner company for the three years preceding the granting of the license must be equal to or more than 3 billion SAR, and the size of its assets must not be less than 1.5 billion SAR.
✓The foreign partner company must be licensed in at least two countries, and the number of its employees must not be less than 10,000 workers.
✓The minimum capital required to supply, operate and maintain buses according to what is followed by the Ministry of Investment for service sector companies to be 500,000 Saudi Riyals.
✓In case of the presence of a Saudi partner, a copy of Department of Transportation / Public Transportation Authority License to exercise bus transportation activity is needed.
✓Applying the nationalization percentages stipulated in the transportation services of the Ministry of Human Resources and Social Development, as amended.
✓The record of establishments requesting license shall not contain decisions to revoke their licenses, inside or outside KSA, for the ten years preceding the request for license.
✓The register of establishments requesting a license is free of any notices or penalties issued - inside or outside the Kingdom - related to traffic safety for the ten years preceding the request to grant a license.
✓Approving the use of public transportation -in the case of disasters, crises or wars - as issued by the concerned authorities in Saudi Arabia.
✓Technical specification and production method of the product shall conform to the Saudi, the Gulf or the international standards.
✓Submission of annual security levels improvement plans to Transport General Authority for review.
✓Proof of the financial ability to invest in proportion to the project capital and the share of each partner, along with the business plan submitted for the project according to the type of activity.
✓Payment of fees within 15 days.
✓For the capital not to be less than 500,000 Saudi Riyals and for the Saudi percentage not to be less than 30%.
✓Required Data: (Email - Absher Phone Number - Phone Number in the Company's Country - Public Transportation Activities - Partners IDs - City in which the License is Requested).
Required Documents
✓The presence of a decision from the company’s board of directors stating their desire to invest in Saudi Arabia, stating the names of the partners, the capital, the percentage of each partner, the activity, the location, the appointment of the general manager and determining his powers, certified by the Saudi embassy.
✓A copy of the establishment’s commercial register, certified by Saudi Embassy.
✓Providing proof of compliance with contract implementation periods in the past five years.
✓The financial statements for the last financial year of the foreign company requesting a license certified by the Saudi Embassy.
✓Entity's Articles of Association certified by the Saudi Embassy.
✓A copy of the national IDs for partners and managers (Either Saudis or residents).