In a new regulatory step aimed at improving the quality of the transportation sector and enhancing compliance with regulations, the Public Transport Authority in Saudi Arabia has proposed draft amendments to the schedule of violations and penalties for taxi and transportation brokerage activities. These amendments directly target irregular practices, most notably the phenomenon of unlicensed taxi services, including a new fine of 2,600 riyals for anyone engaging in "preparatory work" for transporting passengers in their private vehicle without obtaining the necessary licenses.
Historical background and organizational context
These measures come within the framework of broader efforts by the Kingdom to modernize and regulate various economic and service sectors, in line with the goals of Saudi Vision 2030. For decades, unlicensed taxi services, known as "Kaddada," have been part of the informal landscape in Saudi cities, particularly around airports and public transport hubs. With the introduction of licensed ride-hailing apps like Uber and Careem, and the increasing investment in the formal transport sector, it has become essential to put an end to unfair competition and haphazard practices that negatively impact passenger safety and service quality.
Details of the new sanctions and their impact
The amendments were not limited to financial penalties alone, but also included a package of deterrent measures to ensure maximum compliance. Among the most prominent of these measures are:
- Deportation of non-Saudi drivers: The amendments stipulate the deportation of any non-Saudi driver who is found to be involved in violating the provisions of the system and regulations, which aims to restrict work in this vital sector to those authorized by the system and to support localization efforts.
- The penalty of defamation: The draft approved the penalty of defaming violators by publishing a summary of the judicial ruling at their expense when the violation is repeated, in order to enhance general deterrence and consolidate the principle of transparency.
- Extensive powers: The regulations granted the competent authorities broad powers, including suspending the license completely or partially for a period of up to one full year, with the possibility of stopping the driver or impounding the vehicle for the same period to ensure full compliance.
Importance and expected impact at the national level
These amendments are of paramount importance on both the economic and social levels. Locally, they are expected to contribute to creating a fair and competitive environment for licensed investors and drivers, encouraging further investment and service development. They also enhance passenger safety and security by ensuring that all service providers are officially registered and traceable. Internationally, regulating the transportation sector at airports and in key areas reflects positively on the Kingdom and strengthens its position as a global tourist and business destination, as organized and safe transportation is the first impression visitors get upon arrival.
