Article 4 of the Saudi Tourism Law
المادة 4 من نظام السياحة
A licensee must provide financial guarantees for tourism activities that require them, and the Regulations, in agreement with the Ministry of Finance, set those activities and the guarantees' amount and conditions.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم المرخص له بتقديم الضمانات المالية للأنشطة السياحية التي تتطلب ذلك. وتحدد اللائحة تلك الأنشطة والأحكام ذات الصلة بالضمانات، ومقدارها، وشروطها، وكيفية استيفاء الغرامات والحقوق المالية للغير منها، وذلك بالاتفاق مع وزارة المالية.
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 4 explained in plain English
This article adds a financial obligation for some licensees: providing financial guarantees, but not for all activities, only for tourism activities that require it.
The Law itself does not set the details; it refers them to the Regulations, to be done in agreement with the Ministry of Finance. The Regulations set:
- The activities for which a financial guarantee is required.
- The provisions on guarantees.
- The amount of the guarantee and its conditions.
- How fines are collected from the guarantee.
- How the financial rights of third parties are satisfied from it.
The text implies that the guarantee serves two functions: it is a source for collecting fines owed, and it protects other people's financial rights against the licensee. So the amount of the guarantee and how it is provided are known not from the Law but from the Regulations.
This obligation comes alongside the general obligations in Article 3. Anyone who needs to assess their financial obligations before being licensed can consult a lawyer who specializes in commercial cases.
Practical example
A company in Dammam has applied for a license for a tourism activity for which the Regulations require a financial guarantee. The company must provide the guarantee in the amount and on the conditions set by the Regulations, and fines or third parties' financial rights may be collected from it under the Regulations.
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 4 of the Saudi Tourism Law
Do all tourism activities need a financial guarantee?
No. The licensee must provide financial guarantees only for the tourism activities that require them, which the Regulations specify.
How much is the financial guarantee for a tourism activity?
The Law does not set it. The Regulations set its amount and conditions, in agreement with the Ministry of Finance.
Can fines be collected from the financial guarantee?
Yes. The Regulations set how fines and third parties' financial rights are collected from the guarantees.
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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.