Saudi: Car rental companies’ vehicles are allowed to use for delivery of orders

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RIYADH — Minister of Transport and Logistics Eng. Saleh Al-Jasser recently approved granting establishments that have long-term vehicle rental contracts from licensees in the car rental activity an exemption to use them for delivery of orders.

The rules regulating the activity of light vehicles using to transport goods on the roads stipulated that "the ownership of these vehicles shall be for the licensee directly or through a financial lease and that he shall be the actual user of the vehicle." According to the ministerial order, these rules will not be applicable to such vehicles in the case of delivery of orders.

Okaz/Saudi Gazette has learnt that the Transport General Authority (TGA) issued a circular in which it instructed those establishments that are licensed to transport goods and possessed vehicles that work under the operational leasing system to provide the authority with data about these vehicles and a copy of their rental contracts, so that the authority can issue operating cards for these vehicles. The authority said that they have to fulfill a condition that duration of the operational cards does not exceed the expiration date of the rental contracts.

These establishments were given a 30-day grace period to provide the TGA with the data, and the lists submitted after the expiry date will not be considered.

This decision comes as an exemption to the application of the provisions of paragraph (a) of Article 13 of the regulations governing the activity of light transport of goods on roads approved by an earlier decision by the Minister of Transport and Logistics. This is until the expiry date of those contracts, which stipulated that “the licensee must issue an operating card for each vehicle operating in the activity, with a duration of one year and not exceeding the operational life of the vehicle or the license validity date for establishments, and that the vehicles are owned by the licensee directly, or by financial lease, provided that he is the actual user.”