A distinctive regulatory model for Saudi Arabia at the level of the Middle East and Europe

The Saudi Arabian Public Transport Authority (PTA) has awarded Uber a “Certificate of alignment with Regulations and Standards”, for the company’s alignment with the conditions and procedural requirements issued to regulate the activity of the ride-sharing industry in the Kingdom. Specifically, with regulations allowing only Saudi nationals to use their private vehicles for commercial purposes, in addition to fulfilling technical requirements that are part by these regulations.

The certificate was signed by His Excellency Dr. Rumaih Bin Mohammad Al Rumaih, President of the Public Transport Authority, who confirmed the authority’s commitment to the regulation, and to provide as many opportunities as possible for Saudis to use the Uber technology, which has proven its popularity in the country.

This certificate comes in conjunction with the signing of a memorandum of understanding between the Ministry of Labor and Social Development and The Authority of Public Transport localize the activity of directing the vehicles. These efforts were to prohibit non-Saudis from working in this activity on their private vehicles as previously issued by the Authority.

His Excellency Dr. Al Rumaih asserted that the certificate reflects Uber’s commitment to the conditions and instructions set by the PTA and keenness to implement them.. His Excellency pointed out that the PTA, in collaboration with the Ministry of Labor and Social Development and the Ministry of Interior would closely monitor and expand inspection tours to ensure that the service is being provided according to the set regulations and will apply agreed sanctions and penalties on violators as stated by the law, if and when needed.

Zeid Hreish, General Manager of Uber KSA, said: “We are honored to be awarded this certificate, and appreciate the continuous cooperation we receive from the Authority of Public Transport in improving the presence of this growing sector, which is driven by their belief of the importance of using technology in all sectors to meet consumer demand and improve people's lives in cities. Uber continues to be at the forefront of aligning on all the regulations and conditions set by the PTA and working closely with all key stakeholders.”

“Since our launch in Saudi, millions of people installed the app, and have been using the technology to move around their cities easily, safely and cost effectively.  Uber is supporting the government’s focus on “Saudization” as part of its National Transformation Plan, by encouraging more Saudis to drive with Uber. We have set a goal to bring 100,000 Saudi driver-partners on the Uber app by the year 2020, and we have already onboarded more than 65,000 Saudi driver-partners on the app over the past year after Saudi Public Transport Authority passed the ride-sharing regulations, and we will continue to invite more to use the technology, and benefit from the opportunities digital economies could offer them.  We are excited on this occasion, and look forward to more partnerships with the PTA and other local government entities in the near future.”.

The Authority had previously approved some companies and specialized entities to operate in the ride-sharing sector under specific conditions, and granted a specified period for them to correct any violations, and make sure that all drivers using their private vehicles in this sector were Saudis only. It is worth mentioning that the number of Saudis willing to work in this sector covers the expected demand , and those already using the app have achieved high levels of ratings by riders.