Decree

Arabic

Issued by Royal Decree D/139

Article 1

The following words and phrases—wherever they occur in the law—have the meanings assigned to each of them, unless the context requires otherwise:

Law: The Law of Petroleum and Petrochemical Materials.

Regulations: The executive regulations of the law.

Ministry: The Ministry of Energy.

Minister: The Minister of Energy.

Person: Every natural or legal person.

Petroleum materials: Oils, bitumen, condensates, and products derived from them through refining, production, processing, and cracking operations, as well as petroleum materials resulting from distillation, manufacturing, maintenance, operation, or cleaning processes.  Petroleum materials include all types of liquid fuel, whether used or consumed.

Petroleum operations: The use, sale, purchase, transport, storage, import, export, filling, or processing of any petroleum material. Petroleum operations include building and operating a refinery, terminal, or distribution station.

Petrochemical materials: Chemical compounds that use a hydrocarbon, petroleum, or other petrochemical material as a basic feedstock in their production, through separation, blending, or chemical reaction processes.  Petrochemical materials are referred to as: Basic, intermediate, conversion, and specialty materials.

Petrochemical operations: The production, processing, sale, purchase, distribution, transport, storage, filling, packaging, import, or export of petrochemical materials.  Petrochemical operations include operating petrochemical facilities.

Feedstock: The use of one or more petroleum or petrochemical materials as an input in any production process, through refining, blending, or chemical reactions.

Refinery: A facility that refines crude oil or condensates to produce petroleum materials by separation and processing.

Terminal: A designated site in seaports for the export, import, or local distribution of petroleum materials.

Distribution station: A site for the local distribution of petroleum materials.

Processing: The process of improving, purifying, or making fit-for-purpose used petroleum or petrochemical materials, petroleum or petrochemical materials returned from refineries and facilities, wastes containing petroleum or petrochemical materials, spent catalysts, or oil residues.

Filling: The process of filling a type of petroleum material into containers designed for this, for the purpose of trading it.

License: A document granted by the ministry, authorising a licensee to practice petroleum or petrochemical operations.

Licensee: Every person who holds a license.

Priced petroleum products: Petroleum products whose domestic selling price has been set by the government.

Article 2

The law aims to:

1․ Regulate petroleum and petrochemical operations, in a manner that ensures the realisation of the public interest and the protection of the rights and interests of consumers and licensees.

2․ Develop the contribution of the private sector in the field of petroleum and petrochemical operations and create a competitive environment, in a manner that achieves economic growth, contributes to the gross domestic product, and raises energy-consumption efficiency levels.

3․ Promote the circular carbon economy and manage greenhouse gases.

4․ Develop ways of utilising petroleum and petrochemical materials, and maximizing the benefit of raw materials and transferring them to advanced stages of production.

5․ Ensuring compliance by the petroleum and petrochemical materials sector with national strategies and plans, as well as laws and regulations, environmental criteria and standards, and security and safety rules.

6․ Ensuring the security and reliability of petroleum and petrochemical material supplies.

7․ Monitoring and supervising petroleum and petrochemical operations to enhance compliance with the provisions of the law and prevent illegal practices.

Article 3

The provisions of the law apply to petroleum and petrochemical operations and matters relating to them. The activities subject to the Dry Gas and Liquefied Petroleum Gas Distribution Law for Residential and Commercial Purposes are not covered, nor are industrial applications that use petrochemical materials as a primary or additional component to produce fully manufactured or semi-manufactured consumer products, or to convert semi-manufactured products into fully manufactured products that are produced by forming, blending, assembling, composing, reforming, filling, or packaging, and where some or most of their production processes use machinery.

Article 4

The regulations must specify the following:

1․ Provisions on technical, operational, and procedural rules necessary for practising petroleum and petrochemical operations.

2․ Requirements for issuing licenses, including the scope of activity, the duration of the license, the requirements that the licensee must comply with, and the provisions for amending, renewing, and transferring them.

3․ Criteria for assessing compliance with the license and the consequences of non-compliance.

4․ Qualification and performance standards and requirements for petroleum and petrochemical operations.

5․ Standards for classifying materials containing petroleum materials.

6․ Rules and procedures that contribute to ensuring the security and reliability of petroleum and petrochemical materials supplies, and securing the needs of the local market.

Article 5

1․ A person shall not practice any petroleum or petrochemical operations except after obtaining a license.

2․ Prior approval from the ministry must be obtained before issuing any licenses or approvals necessary to establish any petrochemical facility.

Article 6

1․ A fee—which must be deposited into the public treasury of the state—must be collected to issue and renew licenses.

2․ A portion of the fee to the ministry must be deducted to be spent on developing the petroleum and petrochemical operations sector.

Article 7

The ministry may reject an application to issue or renew an export license for whoever has been found to have violated the provisions of the law and regulations by a decision of the committee stipulated in article 18 of the law, or who has been previously convicted of committing the crime of customs smuggling of petroleum or petrochemical materials or attempting to do so, unless a period of not less than (five) years has lapsed since the decision proving the violation or conviction. The competent entity shall provide the ministry with the names of those convicted of the crime of customs smuggling petroleum or petrochemical materials.

Article 8

A licensee shall notify the ministry upon the occurrence of any situation or incident that is expected to lead to the total or partial cessation, permanently or temporarily, of the licensed operations, as determined by the regulations.

Article 9

1․ ‏Without prejudice to the competence of the Saudi Standards, Metrology and Quality Organization, the ministry shall adopt the mandatory specifications and standards for petroleum and petrochemical materials, and shall adopt the methods of their testing.

2․ A licensee shall, when practicing petroleum or petrochemical operations, comply with the adopted specifications and standards.

Article 10

A licensee shall provide the ministry, upon its request, with any documents or papers related to his licensed business, and shall provide the ministry with periodic reports, in accordance with the provisions specified in the regulations.

Article 11

Petroleum material must be purchased and sold at the global price if it is to be used as feedstock in production.

Article 12

1‏. Inspectors—identified by a decision issued by the minister—jointly or individually shall carry out works of monitoring, inspection, and policing violations of the provisions of the law and regulations, as well as investigating them.

2․ Inspectors may enter facilities, storage, and sites used for the practice of petroleum and petrochemical operations, for the purposes of monitoring, inspection, and policing violations.  For this purpose, they may document by visual recordings; hear statements; take testimonies; view documents, records, paper and electronic data related to the violation and keep copies of them; and take samples of materials suspected of being petroleum or petrochemical materials if necessary.

3․ The inspectors may seize anything suspected of being used in violation of the provisions of the law, regulations, and license conditions, and this must be at the expense of the facility whenever the violation is proven, provided that a report is prepared explaining the obtained items and their descriptions during the seizure, along with a statement of the reason for the seizure and its duration, and it must be referred to the committee stipulated in article 18 of the law to decide whether to continue the seizure or cancel it, as specified by the regulations.

4․ ‏The ministry may coordinate with any public or private entity it sees fit to seek assistance from—when necessary—in order to carry out the tasks of monitoring, inspection, and policing.

Article 13

Any person who engages in or participates in, through agreement or assistance, carrying out any of the following acts is considered in violation of the provisions of the law:

1․ Providing the ministry or the public with false or misleading information or data related to petroleum or petrochemical operations or materials.

2․ Obstructing or hindering inspectors from performing their duties stipulated in the law and regulations.

3․ Carrying out or attempting any actions that lead to manipulating storage levels for the purpose of liquefying or selling it, or disrupting the security and reliability of petroleum and petrochemical supplies.

4․ Breaching any of the provisions of the law, regulations, or license conditions.

Article 14

1․ Without prejudice to the provisions of article 15 of the law or any punishment more severe stipulated by another law, whoever violates the provisions of the law, regulations, or license conditions must be punished with one or more of the following punishments:

(a) Suspension of the license for a period not exceeding ten years.

(b) Cancellation of the license.

(c) A fine not exceeding 30,000,000 (thirty million) Riyal or an amount not exceeding twice the value of the petroleum material subject of the violation at the global price at the time of its seizure, whichever is higher.

(d) A fine not exceeding 5,000 (five thousand) Riyal for each day the violation continues, provided that this fine is calculated starting from the date specified in the decision issued regarding the violation.

2‏. When imposing the fine referred to in this article, distinguishing between the principal and the accomplice, the completed violation and attempting it, the nature of the activity and the violation committed, its gravity, the amounts obtained from the violation, the damages resulting from it, and the aggravating and mitigating circumstances must be taken into account.

3․ It is permitted to include in the decision—issued to determine the punishment—a stipulation that a summary of it must be published at the expense of the violator in a local newspaper or in any other means determined by the committee stipulated in article 18 of the law, according to the type of violation committed, its gravity, and its impact, provided that the decision is published after it has acquired the status of finality.

Article 15

1․ ‏Without prejudice to any punishment stipulated in another law, whoever exports a priced petroleum material or a material containing a priced petroleum material outside the Kingdom without a license or attempts to do so, must be punished with one or more of the following punishments:

(a) Imprisonment for a period not exceeding five years.

(b) A fine not exceeding 30,000,000 (thirty million) Riyal or an amount not exceeding twice the value of the petroleum material subject of the crime at the global price at the time of its seizure, whichever is higher.

(c) Confiscation of the seized items subject of the crime.

2․ ‏When assessing the punishment, the circumstances of committing the crime and the price difference between the global price and the price of the material subject of the crime at the time of its seizure must be taken into account.

3․ The Public Prosecution—in accordance with its jurisdiction —shall carry out the investigation and prosecution before the competent entity in the crime referred to in paragraph 1 of this article.

Article 16

1․ Without prejudice to articles 13 and 14, the minister shall issue—by his decision—a schedule classifying violations subject to immediate punishments, provided that the fine for a single violation does not exceed 10,000 (ten thousand) Riyal.

2․ The schedule—referred to in paragraph 1 of this article—must specify the type of each violation accompanied by the punishment specified for it, and the ministry shall impose that punishment in accordance with the procedures stipulated in the regulations, provided that those procedures include the presence of a prior warning before imposing the punishment and specifies the correction periods.

Article 17

1‏. If the ministry finds that a person has violated any of the provisions of the law, regulations, or license conditions, the ministry may, in urgent and necessary cases—by a decision issued by the minister—take one or more of the following measures:

(a) Compelling him to stop continuing the violation.

(b) Compelling him to rectify the situation and take the necessary corrective measures under the supervision of the ministry to address the results of the violation. If he delays this, the ministry may do so at his expense.

(c) Suspending the licensed activity, partially or completely, for a period not exceeding six months.

(d) Destroying materials which are proven—pursuant to laboratory reports—to be harmful or unfit for use, and the violator shall bear the costs of the destruction process.

(e) Take the necessary measures to temporarily manage any of the licensed business for a specific period not exceeding six months renewable for one time, in a manner that ensures the continuity of that activity, in accordance with the rules and procedures specified in the regulations.

2․ The decision—referred to in paragraph 1 of this article—must be enforced from the date the violator is notified of it, provided that the ministry refers the violation within a period not exceeding ten business days to the committee stipulated in article 18 of the law to consider it.  The committee shall issue a decision in this regard within a period not exceeding twenty business days. If the committee does not decide within this period or if the party concerned does not accept its decision, he may object before the competent court in accordance with the legal procedures followed in this regard.

Article 18

1․ A committee—or more—must be formed by a decision by the minister from specialists where the number of its members must not be less than three, and in which chairman of the committee must be identified, provided that he is a law specialist, and its membership must include a specialist or expert in the activities subject to the law. The decision must stipulate one or more reserve members.  The committee must be reformed every three years, and it is permitted to renew its membership.

2․ The minister shall issue a decision specifying the rules and procedures of the work of the committee, and shall specify the remuneration of its members and its secretariat.

3․ Without prejudice to the provisions of article 15 and article 16(2) of the law, the committee referred to in paragraph 1 of this article shall consider violations of the provisions of the law, regulations, or license conditions and impose the punishments stipulated in article 14 of the law.

4․ The decisions of the committee must be issued by majority and must be reasoned, and a grievance may be filed against any of them before the competent court within thirty days from the date of knowledge of the decision.  Knowledge of the decision is achieved by notifying the party concerned of it by any means of judicial notification.

Article 19

The minister—or whoever he authorises—may grant—in accordance with the controls and conditions agreed upon with the Ministry of Finance—whoever helps in uncovering any violation of the provisions of the law, regulations, or license conditions a financial reward not exceeding 20% of the amount of the fine collected from the violation, provided that he is not an employee of the ministry or one of those whom assistance is sought from in accordance with article 12(4) of the law to police violations or perform monitoring or inspection tasks.

Article 20

The minister shall issue the regulations within ninety days from the date of publication of the law in the official gazette, and they enter into force from the date the law enters into force.

Article 21

The law replaces the Petroleum Products Trading Law issued by Royal Decree D/18 dated 28 Muharram 1439 [18 October 2017], and repeals all provisions conflicting with it.

Article 22

The law enters into force after ninety days from the date of its publication in the official gazette.

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Published in Umm Al-Qura 5066 issued on 24 January 2025.

Arabic Auto Translate

Issued by …

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Published in Umm Al-Qura 5065 issued on 17 January 2025.

Arabic

Issued by Board of Directors of the General Authority of Civil Aviation Decision 42/636 dated 8 January 2025

Chapter 1
Preliminary Provisions

Article 1
Terms and Definitions

For the purposes of implementing this regulation, the following words and phrases wherever they appear have the meanings assigned to each of them, unless the context requires otherwise:

1․ Kingdom:
The Kingdom of Saudi Arabia.

2․ Authority:
The General Authority of Civil Aviation in the Kingdom.

3․ Aircraft:
Any machine capable of sustaining itself in the air by the reaction of the air, other than those reflected from the surface of the earth.

4․ Airport:
A defined area on the surface of land or water, including any buildings, installations, and equipment, designated wholly or partially for the arrival, departure, and surface movement of aircraft.

5․ Airport complex:
Two or more airports grouped together serving the same city or region.

6․ Airport operator:
The entity that manages the infrastructure at the airport and coordinates and manages the activities of the various operators present at the airport, or the relevant airport complex, including:

(a) When any airport or airport complex is managed and operated by several separate entities, each of these entities is considered part of the airport operator for the purpose of implementing this regulation.

(b) When only one entity is established to manage and operate several airports or an airport complex, each of these airports or the airport complex is considered separate for the purpose of implementing this regulation.

7․ Airspace:
Part of the atmosphere of the earth in which the traffic and navigation of aircraft are controlled in accordance with the laws and regulations of the Kingdom.

8․ Airspace user:
The beneficiary of air navigation services, such as an aircraft operator. In case of inability to determine the aircraft operator, the aircraft owner is the beneficiary.

9․ Approved airspace user:
An aircraft operator licensed by the authority.

10․ Assessment period:
The time period specified by the authority for applying charges for multiple years.

11․ Air navigation services:
The services provided to ensure the safe and efficient management of air traffic in the airspace, including the following services as detailed in annex 4:

(a) Air traffic management services.

(b) Air navigation systems services.

(c) Search and rescue services in the field of air navigation.

(d) Meteorological services for air navigation.

(e) Aeronautical information management services.

(f) Flight procedure design services.

(g) Air inspection and assessment services.

(h) Aeronautical obstacle assessment services.

(i) Any other service determined by the authority.

12․ Service provider:
An entity that has been accredited by the authority and permitted to provide air navigation services in accordance with the provisions of this regulation.

13․ Charges:
The charges imposed on airspace users, which have been approved by the authority, in return for benefiting from air navigation services.

14․ Charge zone:
A specific geographical area or a specific volume of airspace in which specific charges are imposed on airspace users, and it is divided into two sections:

(a) En-route:
A defined area of airspace in which air navigation services are provided for the use of air routes in that area, under a uniform cost basis and a uniform charge.

(b) At the airport:
An airport or airport complex in which air navigation services are provided at the airport, under a uniform cost basis and a uniform price.

15․ Expected cost:
The cost of providing air navigation services expected to be incurred during a specific future time period.

16․ Actual costs:
The cost incurred in the Gregorian year preceding the provision of air navigation services, which is verified through audited accounts.

17․ Aircraft traffic:
Every takeoff or landing carried out by an aircraft, and is also known as “ATMs”.

18․ Service unit:
A standardized measure of the quantity of aircraft traffic, based on additional factors such as flight distance, aircraft size, and/or the level of usage within the airspace.

19․ Baseline value of expected costs:
The initial estimated cost, which is estimated based on the actual costs from the previous assessment period.

20․ Key performance indicators:
The quantitative and qualitative metrics established to evaluate the performance of a service provider, and is also known as “KPIs”.

21․ Committee for reviewing violations of the provisions of the Civil Aviation Law:
The committee that has the mandate to review all violations of the provisions of the Civil Aviation Law, which makes decisions regarding the appropriate penalties for these violations.

Article 2
General Provisions

1․ All service providers shall comply with the provisions of this regulation.

2․ Air navigation services are classified into the following:

First
Primary air navigation services, which cover:

(a) Air traffic management services.

(b) Air navigation systems services.

(c) Search and rescue services in the field of air navigation.

(d) Meteorological services for air navigation.

(e) Aeronautical information management services.

(f) Aeronautical obstacle assessment services.

Second
Secondary Air Navigation Services, which cover:

(a) Flight procedure design services.

(b) Air inspection and assessment services.

3․ Whoever wishes to provide secondary air navigation services in the Kingdom shall apply for an economic license from the authority.

4․ It is not required to obtain an economic licence to provide primary air navigation services in the Kingdom. These services must be provided on the basis of a decision issued by the authority.

5․ It is prohibited for an air navigation service provider to agree with others to perform any of the services it is permitted to provide without obtaining prior approval from the authority.

Article 3
Provisions for the Economic Licensing of Secondary Air Navigation Service Providers

1․ An economic license is the personal property of the licensee, and it is not permitted to transfer its ownership or assign it to others. A new license application must be submitted if this is intended.

2․ The authority shall issue an economic license to provide one or more air navigation services in the Kingdom to the applicant, and the license must include the following:

(a) Name of the service.

(b) Place where this service is provided.

3․ It is prohibited for a service provider to provide any air navigation service unless it is stipulated in its economic licence.

4․ A service provider shall notify the authority if it wishes to make significant changes to the volume or scope of its services.

5․ The period of economic licenses is five years from the date of their issuance, renewable.

6․ A service provider wishing to renew its economic license shall submit a renewal application to the authority at least 90 days before the expiry date of its license period.

7․ The authority may suspend an economic license in the event that the commercial registration of the service provider is suspended.

8․ An economic license expires in the event that any of the following cases are met:

(a) The expiry of the period specified for a license without renewal.

(b) The approval by the authority of a request by a service provider to suspend or cancel the licence.

(c) The expiry of the legal personality of a service provider.

(d) Suspension or cancellation of the standards and safety license issued by the authority.

(e) Cancellation of the commercial registration of a service provider.

Article 4
Requirements for the Economic License to Provide Secondary Air Navigation Services

The authority shall issue an economic license for secondary air navigation services mentioned in article 2(2) to the applicant, if the following requirements are met and the information of the application form is completed in accordance with annex 1:

1․ That it is an entity established in the Kingdom and proof of this is provided.

2․ Submitting a valid Saudi commercial registration.

3․ Providing proof of experience for a period of not less than three years, or the applicant demonstrating its ability to provide operational expertise for these services by appointing key employees with expertise in this field.

4․ Providing proof of financial solvency by submitting the financial statements for the last two financial years, or submitting any document proving its financial solvency if the applicant is new.

5․ Submitting an action plan for the first two years.

6․ Meeting all security and safety standards and requirements issued by the authority to provide such services.

7․ Providing proof of payment of the fee for the issuance of an economic licence.

Chapter 2
Obligations of a Primary Air Navigation Service Provider

Article 5
Obligation to Provide Information

A service provider shall provide the authority with information related to actual costs, the variance between actual costs and the expected costs contained in the charges proposal on an annual basis, and any other financial data requested by the authority.

A service provider shall provide the authority with information related to aircraft traffic and service units, the variance between actual traffic and the expected traffic in the charges proposal on an annual basis, and any other operational data requested by the authority.

Article Six Obligation to Consult Stakeholders

1․ A service provider shall, when preparing charges for the first time or when updating them, consult approved airspace users and airport operators regarding the determination of expected costs, service units, and expected charges, before the start of the assessment period, and shall submit the charges proposal to the authority.

2․ All airspace users and airport operators have the right to participate in the consultation, and the service provider shall consult them at least once a year to discuss the mechanism for implementing the provisions of this regulation.

3․ A service provider shall provide the authority with the outputs of any consultation within a period not exceeding 30 days from the date of conducting it.

Article 7
Obligation to Sign a Service Agreement with an Airport Operator

1․ All airport operators in the Kingdom shall sign an agreement with one or more air navigation service providers approved by the authority for services provided to the airport, in accordance with the provisions of this regulation.

2․ The service provision agreement between air navigation service providers and airport operators must include at least the following aspects, and it must be consistent with all the provisions of this regulation:

(a) Ownership of assets and operational structure.

(b) Scope and duration of the agreement, provided that it does not extend beyond the end of the assessment period.

(c) Rights and obligations of the parties to the agreement.

(d) Charges approved by the authority, and identifying the charge zones and the party responsible for collecting these charges from airspace users.

(e) Performance and quality of service requirements, including key performance indicators.

(f) Monitoring and supervision mechanisms.

(g) Rebalancing mechanisms.

3․ A service provider shall obtain the approval of the authority on the final draft of the agreement before signing it.

Article 8
Compliance with the Mechanism for Determining Charges for Air Navigation Services

First

The authority shall govern the mechanism for determining charges for air navigation services in the Kingdom.

Second

A service provider shall comply with the following principles when determining charges for air navigation services:

(a) That the charges are within the best internationally applicable practices and standards and within internationally competitive prices.

(b) That the charges incentivize airspace users to operate in the Kingdom and increase the capacity of airspace users and improve performance.

(c) That the charges contribute to the provision of air navigation services in a safe, efficient, and sustainable manner, with the aim of achieving the highest levels of safety and quality of performance.

(d) Adhering to the principle of cost-relatedness to cover the costs of operation, maintenance, and investments associated with air navigation services, with the possibility of achieving financial revenues exceeding direct and indirect operating costs, enabling a service provider to achieve reasonable returns on financial assets (before accounting for taxes and capital cost), with the aim of providing appropriate financing for investment in the development of infrastructure and the improvement of air navigation services.

(e) Determining the costs of providing air navigation services using the baseline value of expected costs of providing those services to airspace users.

(f) Determining the costs associated with each of the different air navigation services separately.

(g) Being transparent when determining the costs for calculating charges.

(h) Not discriminating between airspace users when applying charges.

(i) Not using revenues from certain services to cover the costs of other services among the different air navigation services without the approval of the authority, provided that there are clear and necessary justifications to ensure operational sustainability and to enhance the financial sustainability of service providers.

Third

The following procedures must be complied with when determining charges for air navigation services:

1․ The authority shall determine and publish the start and end dates of each assessment period.

2․ Service providers shall prepare the charges proposal for the specified assessment period, including the annual charges proposal for each year in the assessment period.

3․ The charges proposal must include all the data mentioned in clause Fourth of this article.

4․ A service provider shall consult stakeholders 30 days before the date of submitting the charges proposal to the authority.

5․ A service provider shall submit to the authority the charges proposal before the beginning of each assessment period within the period specified by the authority.

6․ The authority may decide to approve the charges proposal, reject it, or make an amendment to it.

7․ Service providers may set a different service unit charge for each year within a single assessment period, provided that the service unit charges do not change within a single year.

8․ A service provider shall—after the approval of the charges proposal by the authority—make an announcement to all airspace users at least 90 days before their application.

9․ The authority may adjust charges during the assessment period at the request of a service provider, if there are logical justifications or exceptional circumstances.

10․ A service provider shall submit a performance and compliance report to the authority at the end of each year of the assessment period, and a comprehensive report at the end of each assessment period.

11․ In the event of any discrepancies between the approved charges proposal for the previous assessment period and the actual performance of air navigation services mentioned in the end-of-assessment-period report, any discrepancies in air traffic data or costs must be corrected in the following assessment period.

Fourth

A service provider shall prepare a charges proposal before the start of the assessment period in accordance with the form and information provided in annex 1, and it must include the following charge determination requirements as a minimum:

1․ Determining the charge zones as outlined in article 9.

2․ Establishing the cost base for charges as outlined in article 10.

3․ Data of the major investments that are taken into account when calculating the expected costs.

4․ Air traffic forecasts as outlined in article 11.

5․ Determining the charges of the service units for each charge zone as outlined in article 12.

6․ The final report on the results of the stakeholder consultation, including points of agreement and objections, and the justification of the air navigation service provider for the final charges proposal.

Article 9
Mechanism for Determining Charge Zones for Air Navigation Services

1․ A service provider shall determine the charge zones within the airspace specified for it.

2․ The geographical boundaries of the charge zones must be clearly defined and consistent with the air navigation services that will be provided.

3․ A service provider may modify the charge zones during the assessment period, by submitting an application to the authority to approve the modification, and the application must include the following data:

(a) A clear and specific description of the costs before and after the requested modification of the zones.

(b) A clear and specific description of aircraft traffic before and after the requested modification of the zones.

(c) The outputs of stakeholder consultation on the requested modification of the zones.

(d) The updated charges proposal after the requested modification of the zones.

(e) The new geographical boundaries of the charge zones requested to be modified.

(f) The relevant data outlined in annex 2.

Article 10
Mechanism for Determining the Cost Base for Charges

1․ The cost base must include the actual costs and expected costs associated with the provision of air navigation services within the relevant charge zone, along with the identification of all assumptions made in the charges proposal.

2․ A service provider shall include the following actual and expected costs related to air navigation services in the cost base for charges.

(a) Operational costs.

(b) A reasonable margin on the operating expenses of air navigation charges.

(c) The weighted average capital cost, which is calculated as the result of multiplying the operating fixed assets for air navigation services as determined by the authority by the proposed fair rate of return on the asset base.

(d) Depreciation costs associated with fixed assets operating for air navigation services.

(e) Tax costs.

Article 11
Mechanism for Determining Air Traffic Forecasts

Air traffic forecasts, in terms of aircraft traffic and service units for each charge zone, are calculated as outlined in annex 2, in accordance with the following:

(a) Calculation of en-route service units: The service units in an en-route charge zone are calculated as the result of multiplying a distance factor by a weight factor for the relevant flight, and the total en-route service units must include the service units for aircraft traffic.

(b) Calculation of airport service units: The service units in an airport charge zone are calculated such that the airport service unit for a flight is equivalent to the weight factor of the aircraft concerned.

Article 12
Mechanism for Determining the Service Unit Fees for Each Charge Zone

1․ The total service unit charge is calculated by dividing the total cost base for charges by the total air traffic forecast.

2․ The fees charged to airspace users in each charge zone are calculated by dividing the total expected service unit charges for the relevant years by the total aircraft traffic forecast for each charge zone.

3․ Adjustments resulting from any variances in previous assessment periods must be included in the service unit charges.

4․ The charges for a single flight are calculated as the result of multiplying the total service unit charges determined for the charge zone by the service units for that flight.

5․ A single flight within an airport charge zone is calculated by considering both a landing and a takeoff as one flight, with only one service unit being calculated, either as an arriving flight or a departing flight.

Article 13
Flights Exempt from Air Navigation Service Charges

1․ The authority shall notify service providers of flights exempt from payment of charges for air navigation services.

2․ Exempt journeys are excluded when calculating service unit charges.

3․ The authority may agree with a service provider to determine the mechanism for refunding the costs of providing the service for exempted journeys.

Article 14
Mechanism for the Collection of Charges

1․ Service providers may collect charges from airspace users directly, or appoint a charge collection agent after the approval of the authority.

2․ Airspace users shall pay all air navigation charges approved by the authority.

3․ A service provider may determine effective and proportionate enforcement procedures to facilitate the collection of air navigation service charges, in a manner that does not conflict with the laws of the Kingdom, and the authority has the right to suspend any of these procedures if they are inappropriate.

4․ A service provider shall not refuse to provide services, interfere with operations, or seize aircraft or assets without fulfilling the legal requirements applicable in the Kingdom and obtaining the approval of the authority.

Article 15
Compliance with Key Performance Indicators

1․ Air navigation service providers shall comply with key performance indicators and performance monitoring indicators for air navigation services in each of the key performance areas specified by the authority and provided in annex 3.

2․ Airport operators may set additional key performance indicators and monitoring indicators in addition to those mentioned in paragraph 1, provided that they are included in the agreement with the air navigation service provider.

3․ The authority may impose fines or provide incentives relating to the compliance of air navigation service providers with key performance indicators.

Chapter 3
Final Provisions

Article 16
Procedures for Submitting Complaints and Reviewing Violations

1․ Any person may file a complaint with the competent department in the authority regarding any violation of the provisions of this regulation.

2․ The authority shall send the complaint notice to the relevant parties, and they shall submit a response to it within the time limit specified in the notice.

3․ The authority may, after receiving a response to the complaint, undertake one of the following procedures:

(a) Issuing a notice directing the violator to apply corrective measures.

(b) Issuing a reasoned decision rejecting the complaint.

(c) Referring it to the committee for reviewing violations of the Civil Aviation Law.

4․ In the event that the party concerned with the complaint does not respond within the time period specified in the notice, the authority shall issue its decision in accordance with the information available to it.

5․ The authority shall review violations of the provisions of this regulation and issue legal punishment decisions.

6․ It is permitted to file a grievance against the decisions issued before the competent court within the period specified in the Civil Aviation Law (60 days) from the date of informing the relevant parties of the decision.

Annexes

Annex 1
Supporting Information Required for Issuing an Economic License

An applicant shall demonstrate compliance with the requirements mentioned in article 4 above by completing the application form of the authority, and a clarification of the information required in each section of the application form is provided below:

(a) Nature of work: The applicant shall clarify the type of air navigation services to be provided.

(b) Operational experience: The number of years of experience and supporting evidence, and the number of years of relevant experience of key personnel.

(c) Annual accounts: Requires the submission of audited annual accounts for the last two financial years (if it is an existing company) or the provision of a certificate of financial solvency if the applicant is new.

(d) Action plan: Requires an action plan for the first two years of operation. The action plan must include the following details:

1․ A detailed description of the expected activities of the applicant, including details of any market research conducted and the basis for the sales figures expected in the plan.

2․ Profit and loss accounts and projected balance sheets (a projected opening balance sheet must also be submitted, if required).

3․ Projected monthly cash flow statements.

4․ Details of current and expected sources of financing.

5․ Including a detailed breakdown of all projected revenue/expenditures. The following is an example of the details expected to be obtained in relation to the projections:

Revenue:
Details of how revenue will be generated by contract (signed or expected).

Expenditures:
Salary costs, operational costs such as equipment, fuel, insurance, and the like, and office costs such as rented facilities and the like.

(e) Proof of payment of the fee for the economic licence of the authority.

Annex 2
Information Required for Charge Submission and the Mechanism for Calculating the Service Unit Fee

First: Reporting Schedules for Information Required for Charge Submission

Reporting Schedule
Charge Zone	Limited Costs—Assessment Period						Actual Costs—Assessment Period
Cost Breakdown	n-1	n-1	n+1	n+2	n+3	n+4	n	n+1	n+2	n+3	n+4
1 Details by type (in nominal value)
1․1 Staff costs1․2 Other operating costs 1․3 Depreciation 1․4 Capital cost 1․5 Tax cost 1․6 Total cost total percentage n-n-1
2 Supplementary information (in nominal value) average asset base
2․1 Total book value of fixed assets2․2 Total necessary current assets 2․3 Total asset base
Capital costs %
2․4 Return on equity2․5 Average interest on debt 2․6 Share of financing through equity 2․7 Capital cost rate
Costs of new and existing investments
2․8 Depreciation2․9 Capital cost
3․1 Total cost
Total percentage n/n-1%
Total percentage n/n-1%
3․2 Total service units
Total percentage n/n-1%
3․3 Unit rate
Total percentage n/n-1%
4 Inflation
4․1 Inflation percentage4․2 (1) Inflation index

Second
List of Information Required for Charge Submission

(a) The following list of information must be submitted before the start of the assessment period as part of the charges proposal, in addition to the reporting schedules mentioned in clause First above:

1․ Air traffic forecasts and service units on which the charge submission process is based.

2․ A summary of the stakeholder consultations conducted before submitting the charges, including points of agreement, disagreements, and justifications.

3․ A list of airports subject to the performance and charges system and the average annual air traffic.

4․ A description of the process followed in developing and approving the submission of charges.

5․ Expected costs of new and existing investments covering depreciation and capital costs for each year of the assessment period.

6․ A detailed description and justification of the major investments, including: (a) The total value of each major investment. (b) Assets acquired or developed. (c) Benefits to airspace users. (d) Details of investments for air traffic management systems: New systems, repairs, and replacements.

7․ An explanation of the methodology and assumptions used to determine the costs of air navigation services provided.

8․ Expected costs of services for each year.

9․ Forecasts of service units per year.

10․ Explanation of the criteria and methodology for allocating costs.

11․ Basic data for determining the fair rate of return on the asset base and a reasonable margin on the operating expenditures of air navigation charges.

12․ A description of the assumptions used in calculating the capital cost, including the composition of the asset base, the return on equity, the average interest on debt, and the ratio of financing through debt and equity.

13․ Justifying the return of service providers on equity, the ratio of indebtedness, and the asset base used to calculate capital costs.

14․ Economic assumptions, including pension cost assumptions, interest rate details, and inflation projections.

15․ Explanation of changes derived from the previous assessment period.

(b) The following list of additional information must be submitted annually before the beginning of each charge year, in addition to the reporting schedules mentioned in clause First above:

1․ A description of the actual costs reported and the difference from the expected costs for each year of the assessment period for each entity and for each cost item.

2․ A description of the actual service units reported and differences from the forecasts provided in the cost proposal for each year of the assessment period.

3․ Justifications for any differences between the expected and actual costs of each of the main new and existing investments of service providers, and any differences between the planned and actual operational start dates of the fixed assets financed by these investments, for each year of the assessment period.

Third
The Mechanism for Calculating the Service Unit Charge

1․ The charge of air navigation services units for aircraft when they transit on air routes in the territory of the Kingdom must be calculated in the following manner:

Cost = Route navigation services charge × distance factor (d) × weight factor (w), where:

– Route navigation services charge: The service unit charge.

– Distance factor (d): This represents the distance between the point of entry and the point of exit in kilometers divided by one hundred. The airports of the Kingdom are among the entry and exit points for domestic and international flights.

– Weight factor (w): This is calculated on the basis of the maximum take-off weight of the aircraft (MTOW) in tons, and fractions starting at 500 (five hundred) kilograms are rounded up in all weights, and fractions below this are not counted, and it must be calculated using the following equation:

(w) = √(MTOW / 50)

2․ The charge of air navigation services units for aircraft during the approach phase (at the airport) within a radius of 20 kilometers from the airport site in the territory of the Kingdom must be calculated in the following manner:

Cost = Airport navigation services charge × weight factor (w)

– Airport navigation services charge: The service unit charge.

– Weight factor (w): This is calculated on the basis of the maximum take-off weight of the aircraft (MTOW) in tons, and fractions starting at 500 (five hundred) kilograms are rounded up in all weights, and fractions below this are not counted. It must be calculated using the following equation:

(w) = √(MTOW / 50)

Annex 3
List of Key Performance Indicators in the Field of Air Navigation Services

The following list is used to identify key performance indicators for each of the key performance areas that can be included in an agreement with an air navigation service provider, and each stakeholder shall modify the indicators to suit the local environment and conditions:

1․ Capacity:

(a) The capacity of the airport control zone.

(b) En-route capacity.

(c) Minutes of delay in managing air traffic flow in the route for each flight.

(d) Compliance with the slots of the Instrument Flight Rules (IFR).

2․ Efficiency:

(a) Fuel efficiency.

(b) Journey times.

(c) Compliance with the specified time slots.

3․ Cost-effectiveness:

(a) The direct cost from gate to gate for each flight.

(b) Working hours of the air traffic controller for each full work duration.

(c) Direct operating costs by airspace user.

4․ Flexibility:

(a) Delay in air traffic flow control management from gate to gate (ATFCM).

(b) The capacity of air traffic control centers.

(c) Improving the workload of the air traffic controller.

(d) Flexibility in recovery time for unscheduled civil/military flights in case of late flight plan submission/request.

5․ Right to enter:

(a) Number of complaints from stakeholders.

(b) Equality in the allocation of airspace between relevant parties.

6․ International environmental operability:

(a) The rate of compliance with international air traffic management standards.

(b) Participation by the air traffic management community.

(c) Number of cooperative projects between air traffic management stakeholders.

7․ Participation by the air traffic management community:

(a) Number of cooperative projects between air traffic management stakeholders.

8․ Predictability:

(a) Variation in actual take-off/landing times versus scheduled times.

Annex 4
Scope of Air Navigation Services

	Service name	Scope of service
1	Air traffic management services	A set of services that includes the provision of aeronautical information service or alerting service, air traffic advisory service, or air traffic control and management service, and airspace management, in a manner that ensures safe, efficient, and orderly aircraft traffic, whether the movement is in the air or on the ground.
2	Air navigation systems services	Providing an integrated air navigation systems service in all phases of flight through a set of key systems and components to support the safety, regularity, and efficiency of air navigation, which includes navigation, communications, surveillance, infrastructure management, and technology systems.
3	Search and rescue services in the field of air navigation	Performing the tasks of following up on distress calls, conducting communications and coordination and search and rescue, and providing immediate medical assistance or medical evacuation, through the use of public and private resources, including cooperating aircraft and vessels, and other vehicles and facilities.
4	Meteorological services for air navigation	Providing meteorological information/data necessary for the safety, regularity, and efficiency of air navigation.
5	Aeronautical information management services	Collecting, managing, and disseminating aeronautical data and information within a specific coverage area to ensure the safety, regularity, and efficiency of air navigation.
6	Flight procedure design services	A specific service for the design, documentation, verification, maintenance, and periodic review of instrumental flight procedures necessary for the safety, regularity, and efficiency of air navigation.
7	Air inspection and assessment services	A series of flight tests and inspections conducted to determine the operational classification of radio navigation aids or to allow for a full operational assessment through the coverage of the specific flight surveillance system.
8	Aeronautical obstacle assessment services	A service for assessing, identifying, and analysing natural or other objects that affect airspace.

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Published in Umm Al-Qura 5084 issued on 2 May 2025.