Saudi Arabia does not have one generic transport license. Every transport business needs a TGA license that matches exactly what it does — and the requirements differ depending on the activity, the vehicles and the customers being served. Choosing the wrong category at the start means restructuring later.
The Transport General Authority (TGA) is the regulatory and legislative authority for land, maritime and rail transport in the Kingdom, based on the Road Transport Law (Royal Decree No. M/188, 2025).
This blog covers the main TGA land-transport activities relevant to businesses and investors. Whether you are a Saudi national, a GCC national or a non-GCC foreign investor — and whether you are planning goods transport, taxi operations, car rental, delivery or bus services — the starting point is always the same: identify the correct activity first.
1. Which TGA Activity Applies?
The following are the principal business models and regulated transport activities commonly relevant to foreign investors entering Saudi Arabia's transport sector. These are not interchangeable licenses.
Goods Transport, Truck Rental & Freight Brokerage
These are three separate regulated activities with different fleet and financial requirements:
- Light goods transport (vans, smaller vehicles) — fleet requirement depends on the applicable activity and operator category.
- Heavy goods transport (trucks, tractors) — minimum 10 single trucks and/or tractors.
- Truck rental (renting trucks to others, not transporting goods yourself) — minimum 25 single trucks and/or tractors.
- Freight brokerage (connecting shippers to carriers, no vehicles required) — SAR 250,000 financial guarantee applies.
Vehicles can be owned or finance-leased, subject to applicable TGA conditions.
Own-account transport — A company transporting its own goods as part of its business may fall under a different TGA framework from a company providing commercial goods-transport services to customers. The applicable route should be confirmed before licensing.
Motorcycle goods transport — A new TGA regulation issued in August 2026 separately covers commercial goods delivery by motorcycle (food delivery, quick commerce). Motorcycles must be owned by the operator. Confirm the specific fleet requirement from the current regulation.
2026 Update: Certain adjustment deadlines for heavy- and light-goods transport operators have been extended to 27 February 2027. This covers specific transitional obligations, not all licensing requirements.
Taxi, Taxi Brokerage & E-Hailing
Again, these are separate regulated activities.
Taxi: Operating vehicles that transport passengers for a fare. There are several sub-categories — General Taxi, Private Taxi, Family Taxi, Airport Taxi — each with its own requirements.
Private Taxi has a 20-vehicle minimum under the applicable framework, while other taxi categories have different requirements and certain city-specific or contractual conditions.
An April 2026 TGA decision specifically amended the adjustment framework for taxi operators in Riyadh, Makkah, Jeddah, Madinah and Greater Dammam.
Taxi Brokerage: Connecting passengers to taxis without operating vehicles directly. A platform that dispatches local taxis is an example. This is a distinct regulated activity from operating taxis.
E-Hailing: Operating an app that connects passengers with drivers — completely separate from a standard taxi licence, with its own requirements for platform integration, trip data, electronic systems and operational controls.
Car Rental, Luxury Vehicle Rental & Chauffeur Services
Private Car Rental: Renting vehicles without a driver. Regulated separately from passenger transport.
Luxury and Fancy Vehicle Rental: TGA's published car-rental guidance identifies a luxury and fancy vehicle category with a minimum of 20 cars, where rental may be by the hour and a driver may be provided. The car-rental framework was amended in June 2026 — the 20-car minimum applies under the pre-amendment guidance; the amendment may affect specific conditions.
Chauffeur and Premium Transfer Services: The classification depends on the actual operating model: whether a vehicle is rented with or without a driver, who contracts with the passenger, how the fare is structured and whether the service is mediated through an electronic platform. Confirm the applicable TGA activity before incorporating.
Order Delivery, Parcel & Courier Services
Separately regulated from conventional goods transport. The applicable activity depends on the service being provided — order delivery, parcel delivery and courier services each have their own requirements.
From 1 January 2026, parcel delivery operators must refuse any shipment that does not include the customer's National Address.
A last-mile delivery model serving platforms such as Noon or Amazon will typically fall under the regulated order-delivery framework, rather than conventional goods transport. The correct classification must be confirmed before application.
School & Educational Transport
Educational transport is a separately regulated TGA activity. Drivers must meet specific age and professional qualification requirements. Vehicles must meet TGA's specifications for this category. It is not the same as a regular taxi or bus license.
Car Transport & Vehicle Towing
Transporting vehicles and towing or recovery services are separately regulated by TGA and should not automatically be classified as ordinary goods transport. Businesses operating vehicle transporters, recovery vehicles or towing services should identify the applicable TGA activity and vehicle requirements before applying.
Dangerous & Hazardous Goods Transport
Transporting hazardous materials is subject to additional TGA licensing, driver and vehicle requirements beyond standard goods transport. The applicable requirements must be confirmed before the activity is undertaken.
Hajj & Umrah Transport
This is one of the most misunderstood categories. Hajj and Umrah transport is regulated differently from standard passenger transport in two ways:
A business planning to operate Hajj or Umrah transport needs to understand both frameworks — not just the TGA license.
Passenger & Bus Transport
Passenger transport covers more than taxis and e-hailing. The Road Transport Law separately regulates regular and on-demand bus transport, specialised passenger transport and bus rental. Bus rental is also a distinct activity from bus operations.
A business planning to run scheduled bus routes, charter buses, intercity coaches or other passenger services should identify the correct sub-activity before applying — the route type, vehicle, passenger type and contractual model all affect which framework applies.
2. How Does the Setup Process Work?
- Business Model & TGA Activity Classification ↓
- MISA Investment Registration (for non-GCC foreign investors) ↓
- Saudi Company Incorporation & Commercial Registration (CR) ↓
- Government Registrations & National Address ↓
- Company Bank Account & Financial Setup ↓
- Office/Premises & Activity-Specific Requirements ↓
- TGA Activity Licence ↓
- Vehicle Compliance, MVPI Inspection & Operating Cards, where applicable ↓
- Driver / Professional Cards, where applicable ↓
- Work Visas, Work Permits & Iqama, where applicable ↓
- Insurance, Systems & Other Operational Compliance ↓
- Commencement of Operations
Typical planning timeframe: approximately 4–8 weeks for a straightforward case, subject to the selected activity, documentation, premises, fleet, regulatory approvals and immigration requirements. This is a practical planning estimate, not a government processing-time commitment.
Important: Obtaining the TGA activity licence — Step 7 — does not mean the business is ready to operate. Vehicle, driver, premises, insurance, systems and workforce requirements may still need to be completed depending on the activity before commercial operations can begin.
Penalty: Operating a regulated transport activity without the required licence is a violation under the Road Transport Law. Penalties can include a fine of up to SAR 5 million, as well as licence suspension or cancellation and vehicle-related sanctions, depending on the violation.
3. Setting Up the Entity: Saudi, GCC or Foreign Investor?
The starting point depends on who is setting up the business.
Saudi nationals form the entity directly through the Ministry of Commerce (Saudi Business Centre). No additional investment registration is required. The same TGA licensing requirements apply once the company is formed.
GCC nationals and GCC-owned companies: Citizens of the UAE, Bahrain, Kuwait, Oman and Qatar are treated as Saudi nationals for investment purposes in eligible sectors under the GCC Economic Agreement. This means:
- No MISA Investment Registration is required.
- Company formation goes directly through the Ministry of Commerce.
- 100% ownership is available in eligible transport activities.
- The same TGA license and operational requirements apply as for any other Saudi entity.
For a GCC national, the investment registration step is therefore handled through the Ministry of Commerce rather than MISA.
Non-GCC foreign investors: Investors from outside the GCC must first complete MISA Investment Registration before the Saudi company can be incorporated. For the standard foreign-company route, documentation can include the foreign company's commercial registration and financial statements for the last completed fiscal year, subject to the applicable registration type and activity. Requirements are set out in the MISA Investor Guide (13th Edition 02-2026).
4. What TGA Licence Is Not Included in This Blog
This blog covers land transport only.
- Maritime transport (sea freight, port operations) — regulated separately.
- Air transport and cargo — regulated by the General Authority of Civil Aviation (GACA).
- Rail transport — regulated by TGA under a separate framework.
Frequently Asked Questions?
01. What is the difference between a TGA activity licence and a vehicle operating card?
The activity licence authorises the company to operate in a particular transport category. The vehicle operating card authorises a specific vehicle to work under that licence. Where vehicles are used under a regulated activity, the vehicle operating card is required for each applicable vehicle. The activity licence and the operating card are obtained at separate stages.
02. What documents are typically required for a TGA transport licence?
Depending on the activity, TGA's published requirements may include: the company's Commercial Registration certified by the Saudi Embassy, evidence of GOSI and ZATCA compliance, where this applies, and evidence of the minimum vehicle fleet for the relevant activity. The exact checklist depends on the activity.
03. What types of driver cards does TGA issue?
TGA provides different driver-card categories depending on the activity and operating model, including temporary, seasonal, annual and restricted cards. Certain activities — such as heavy goods and hazardous-materials transport — are also subject to professional-driver or hazardous-materials-driver card requirements under the applicable framework. Driver cards are separate from vehicle operating cards and are obtained through TGA's driver-card service.
04. Does every transport licence require a minimum number of vehicles?
No. Minimum fleet requirements are activity-specific and do not apply uniformly across TGA-regulated activities. Freight brokerage, for example, does not require vehicles, while certain goods-transport, truck-rental, taxi and vehicle-rental activities have their own fleet requirements. The applicable threshold should be confirmed for the exact activity and vehicle category. Where vehicles are required, they can generally be owned or finance-leased under the applicable TGA conditions.
05. What if my business involves more than one transport activity?
If your business model covers more than one regulated activity — for example, goods transport combined with truck rental or delivery services — do not assume one TGA licence covers everything. Each activity should be assessed separately, with its own licensing requirements and operational conditions confirmed before launch. Getting this right at the start avoids restructuring and additional cost later.
Getting the activity classification right at the start — before incorporating, before buying vehicles and before applying — is what determines whether a transport business can actually operate in Saudi Arabia, not just whether it holds a TGA licence.
info@nikkiadvisory.com | UAE · Saudi Arabia · Bahrain
This blog covers land transport activities in Saudi Arabia as at September 2026, based on the current TGA regulatory framework. Requirements may be updated by the relevant authorities. Specific requirements for your activity should be confirmed before proceeding.