Article 3 of the Saudi Road Transport Law
المادة 3 من نظام النقل العام على الطرق
The article governs granting the public collective transport concession by Royal Decree for no more than 15 years, renewable, and authorizes the Minister of Transport to choose among applicants and issue the concession's conditions.
Official text (Arabic)
This article has not been amended since the law was issued.
يتم منح التزام النقل العام الجماعي للركاب بمرسوم ملكي ، ويحدد المرسوم مدة الالتزام على أن لا تزيد على خمسة عشر عاما، ويجوز تجديدها أو تمديدها لمدة مماثلة بقرار من مجلس الوزراء بناء على اقتراح وزير المواصلات ، وذلك مع مراعاة النظم النافذة عند التجديد أو التمديد. ويفوض وزير المواصلات في اختيار أنسب الإجراءات والوسائل للمفاضلة بين المتقدمين وفي إصدار قائمة شروط عقد الالتزام، على أن ينص فيها على الجزاءات التي توقع عند مخالفة أي حكم من أحكامها، وتحديد التأمين الذي يؤديه الملتزم ويبقى محتفظا به حتى نهاية التزام.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 3 explained in plain English
This article sets the basic framework for granting the public collective passenger transport concession referred to in Article 2, and it contains several provisions:
- Means of granting: the concession is granted by Royal Decree.
- Period: the Decree sets the concession's period, which may not exceed fifteen years.
- Renewal or extension: it may be done for a similar period by decision of the Council of Ministers on the proposal of the Minister of Transport, taking into account the laws in force at the time of renewal or extension.
- Choosing among applicants: the Minister of Transport is authorized to choose the most suitable procedures and means for choosing among them.
- List of conditions of the concession contract: the Minister of Transport issues it, and it must provide for the penalties imposed for violating any of its provisions, and for setting the security deposit the concessionaire pays and which is kept until the end of the concession.
The text does not set the amount of the deposit or the type of penalties, but leaves that to the list of conditions the Minister issues. An applicant for the concession must also meet what Article 4 requires of the concessionaire: to be a Saudi or a Saudi company in which Saudis' share of capital is not less than 51% throughout the concession.
For dealing with the application procedures or the contract conditions, a lawyer who specializes in administrative cases and transport laws can be consulted.
Practical example
A Saudi company obtained a concession to operate public buses in a city by a Royal Decree that set the period at twelve years. Before the period ends it may be renewed or extended for a similar period, but this is by decision of the Council of Ministers on the proposal of the Minister of Transport, and the security deposit the company paid stays held until the end of the concession.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 3 of the Saudi Road Transport Law
What is the maximum period of a public transport concession?
The period the Royal Decree sets may not exceed fifteen years.
Can a public transport concession be renewed?
Yes. It may be renewed or extended for a similar period by decision of the Council of Ministers on the proposal of the Minister of Transport, taking into account the laws in force at the time of renewal.
Who issues the conditions of the concession contract?
The Minister of Transport, and they include the penalties for violation and setting the security deposit the concessionaire pays.
More articles on The Public Transport Concession and Concessionaire Conditions
- Article 2
The article provides that public collective passenger transport by bus within cities and between neighboring cities is by concession for a limited period, unless the government decides to manage it itself.
يكون النقل العام الجماعي للركاب بالحافلات على شبكة الطرق العامة داخل المدن أو ما بين المدن المتجاورة بطريق الالتزام ولمدة محدودة، ما لم ترى الحكومة أن تتولى إدا
- Article 4
The article requires the concessionaire to be a Saudi or a Saudi company with Saudis holding at least 51% of capital throughout the concession, and allows the State to take a share in public transport companies.
يشترط في الملتزم أن يكون سعوديا أو شركة سعودية مشتركا في تأسيسها على ألا تقل حصة السعوديين في رأس مالها عن (51%) طوال مدة الالتزام. ويجوز للدولة - بناء على اقتر
- Article 5
The article allows the Minister of Transport to operate transport lines by license before the concession is granted, during its procedures, or when it cannot continue, for no more than a year, renewable.
يجوز لوزير المواصلات في المدة السابقة على منح الالتزام أو أثناء السير في إجراءات منحه؛ أن يجعل استغلال النقل العام في ذلك الخط بطريق الترخيص ، كما يجوز له إذا م
- Article 11
The article requires the concession holder to build the terminals at the start and end of lines and the intermediate waiting stations to Ministry of Transport specifications, with ownership passing to the State when the concession ends without renewal.
يتولى الحائز على الالتزام إنشاء محطات بداية ونهاية الخطوط ومحطات الانتظار المتوسطة بالطرق، طبقا للمواصفات التي تحددها وزارة المواصلات ، وعند انتهاء مدة الالتزام
- Article 15
The article allows a concession to carry goods and equipment for a fee in one or more zones to be granted to a natural or legal person, following the procedures and rules in Chapter One of the Law.
يجوز منح التزام نقل البضائع والمهمات نظير أجر في المنطقة أو المناطق لأحد الأشخاص الطبيعيين أو الاعتباريين، وتتبع في هذه الحالة الإجراءات والقواعد المنصوص عليها
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.