Decree

Arabic

Issued by Ministry of Investment Decision 1086

Chapter 1
General Provisions

Article 1
Definitions

1․ The same meanings assigned in the law for the terms and phrases stipulated in article 1 of it apply to the regulation wherever they appear.

2․ The following terms and phrases—wherever they appear in this regulation—have the meanings assigned to each of them, unless the context requires otherwise:

(a) Law:
The Investment Law issued by Royal Decree D/19 dated 16 Muharram 1446 [22 July 2024].

(b) Ministry:
The Ministry of Investment.

(c) Regulation:
The executive regulation of the law.

(d) Comprehensive service center:
A center that includes liaison offices comprising representatives from government entities related to investment, and it provides its services to investors.

(e) Committee:
The committee for considering violations and imposing punishments stipulated in the law.

(f) Prohibited activities:
Activities in which a foreign investor is prohibited from investing—as a general rule—in accordance with the list issued by the screening committee.

(g) Restricted activities:
Activities that a foreign investor is allowed to practice in the Kingdom upon fulfilling the conditions and requirements related to practicing the activity.

(h) Screening committee:
The Standing Ministerial Committee for the Screening of Foreign Investments formed by virtue of Council of Ministers Decision 83 dated 30 Muharram 1443 [8 September 2021].

(i) Investor guide:
A guide issued by the ministry that includes the rules, procedures, and instructions related to the application of the law and the regulation, as well as the services provided by the ministry.

(j) Violation policing procedures:
The procedures governing the work of violation policing officers.

Article 2
Capital

The following assets—without limitation—are considered capital of value for the purposes of applying the law and its regulation:

(a) Cash and its equivalent, shares, stocks, and other forms of contribution to the capital of companies.

(b) Contractual rights, including construction contracts, concessions, and contracts where the consideration is—primarily—linked to the production rates, profits, or revenues of an establishment, as well as the right arising from contracts for the delivery or receipt of property or the execution of works of value under contractual agreements.

(c) Immovable and movable assets, and any other ownership rights related to them, including real estate mortgages.

(d) Intellectual property rights in accordance with the relevant laws in the Kingdom, including patents, industrial designs, trademarks, and trade secrets.

Chapter 2
Investor Rights

Article 3
Equal Treatment Between Local and Foreign Investors

1․ Without prejudice to the provisions of related laws and international agreements to which the Kingdom is a party, an investor enjoys equal treatment with other investors, and equal treatment between local and foreign investors, in similar circumstances.

2․ For the purposes of paragraph 1 of this article, the following factors must be taken into account to determine if the circumstances of investors are similar:

(a) Goods or services produced or consumed by an investor as part of his production inputs.

(b) The relevant sector.

(c) The volume of investment.

(d) The impact of the investment on the local economy or the environment.

3․ The provisions of paragraph 1 of this article do not prejudice the right of the ministry to regulate in accordance with local laws and regulations as required by the public interest, including, but not limited to, the protection of national security, public safety, and public order.

Article 4
Fair and Equitable Treatment

The following cases—without limitation—are considered a violation of the obligation to provide fair and equitable treatment:

1․ Denial of justice in criminal, civil, commercial, or administrative procedures.

2․ Material breach of due legal process, including a fundamental breach of the transparency of judicial and administrative procedures.

3․ Any apparent arbitrariness, and arbitrary treatment such as harassment and coercion.

4․ Unjustified targeted discrimination based on apparent illegitimate grounds.

Article 5
Indirect Expropriation

1․ A measure or series of measures is considered indirect expropriation if it has an effect equivalent to direct expropriation, such that it leads to the deprivation of the fundamental ownership rights of an investor in his investment without the formal transfer of ownership or direct expropriation.

The following factors must be taken into account to verify the occurrence of indirect expropriation:

(a) The economic impact of a measure or series of measures. It is not permitted to rely only on the negative impact on the economic value of an investment when determining if expropriation has occurred.

(b) The duration of the negative impact of the measure or series of measures.

(c) The nature and objective of the measure or series of measures.

2․ Non-discriminatory regulatory measures applied to protect legitimate public interests—including measures relating to public health, safety, and the environment—are not deemed indirect expropriation.

Article 6
Free Transfer of Funds

1․ Without prejudice to any applicable laws, regulations, and instructions, an investor has the right to freely transfer funds related to his investments to and from the Kingdom without delay, and these transfers include, but are not limited to:

(a) Initial capital and additional amounts for maintaining or increasing the volume of investments.

(b) All profits, capital gains, dividends, royalties, fees, and other current income and revenues.

(c) Payments made under a contract, including installments of loans related to the investments.

(d) Revenues generated from the liquidation or sale of the investment, in whole or in part.

(e) Earnings and salaries of employees engaged from abroad who perform works related to the investments.

2․ Notwithstanding the provisions of paragraph 1 of this article, it is permitted to delay or refuse the transfer in the implementation of applicable equitable and non-discriminatory legislation and in good faith, which relate to the following:

(a) Cases of bankruptcy, insolvency, or protection of the rights of creditors.

(b) Issuing, trading, or dealing in securities.

(c) Criminal offenses or penalties.

(d) Complying with orders or judgments issued in lawsuits.

3․ The provisions of paragraphs 1 and 2 do not apply to measures taken by the competent entities regarding financial services for reasonable and justified reasons, including measures to protect investors, depositors, insurance policyholders, or creditors of a commercial establishment providing financial services, or to ensure the stability and integrity of the financial system.

Chapter 3
Statistical Data and Information

Article 7
Providing Statistical Information and Data

1․ An investor has the right to request available information and statistical data from the ministry through its electronic website, unless the statistical information or data cannot be shared for reasons related to the application of the laws and decisions in force in the Kingdom.

2․ The ministry shall provide an investor with the statistical information or data available to it within a period not exceeding 30 working days from the date of submitting the request.

3․ The ministry may publish this statistical information and data in line with its objectives.

Chapter 4
Investment Incentives

Article 8
Eligibility Criteria for Investment Incentives

1․ The competent entity shall—in coordination with the relevant entities—grant investment incentives according to the classification it adopts for this purpose and in accordance with its laws, taking into account that the eligibility criteria for the incentives must be consistent with the objectives of the Investment Law and the rights granted to the investor by virtue of it.

2․ The competent entity shall publish the eligibility criteria for the incentives in the channels it designates for this purpose, in a manner that ensures easy access to them for the investor.

Chapter 5
National Register of Investors

Article 9
Establishing the National Register of Investors

1․ The ministry shall establish a comprehensive national register of information and data related to investments of investors, and shall supervise its management and development in order to achieve its purpose.

2․ The competent entity shall provide the ministry with any data or information for the purpose of completing or updating the register, and this includes the integration of digital platforms with the competent entity.

3․ The ministry may, in cooperation with the competent entity, hold periodic meetings for the purpose of establishing, updating, and developing the operations of the national register of investors and ensuring the achievement of its benefits, and for this purpose, it may sign joint agreements and enable dedicated work teams for this.

4․ The ministry may require the provision of its services, or part of them, to an investor based on the updating of his data in the register, and the investor guide must clarify the mechanism for this.

Article 10
Protection and Utilization of Information

1․ The ministry shall ensure the protection and guarantee the security and confidentiality of the information and data available in the national register of investors by establishing appropriate and effective procedures for this purpose.

2․ The ministry and the competent entity may utilize the information and data available in the register as a source for studies and research aimed at developing the investment environment.

Chapter 6
Registration

Article 11
Registration Application

1․ If an applicant is a natural person, he shall submit the following data upon registration:

(a) Applicant name.

(b) Applicant place of residence and nationality.

(c) Economic activity that he will practice.

(d) Capital.

(e) Amount of the expected contribution to the registered capital of the investment subject of the application.

(f) Any other information and documents specified by the ministry in the investor guide.

2․ If an applicant is a legal person, it shall submit the following data upon registration:

(a) Establishment name, place of incorporation, and place of residence if different from place of incorporation.

(b) Scope of business of the applicant and the investment activity, including the economic activities that it will practice.

(c) Registered capital.

(d) Amount of the contribution to the registered capital of the investment subject of the application.

(e) Details of the owner, shareholders, or those who control the foreign investor and the beneficial owner of the foreign investor, as the case may be.

(f) Any other information and documents specified by the ministry in the investor guide.

3․ The registration applicant shall acknowledge the undertakings prepared by the ministry, which include an undertaking of the accuracy of all information and documents he submits, and this is considered a prerequisite for the acceptance of the application.

4․ The ministry may request any additional information or documents it deems necessary in the event that it determines that the information stipulated in paragraphs 1 and 2 of this article to be insufficient or incorrect.

Article 12
Notice of Registration

1․ The ministry shall notify a registration applicant of the available activities within a maximum period of ten working days from the date of his fulfillment of all registration requirements.

2․ The ministry shall notify a registration applicant in the event that the registration application is incomplete or if he is required to provide additional information. The applicant shall provide the necessary information within a period specified by the ministry, which must not be less than 15 working days. The registration application is considered cancelled after the expiry of the mentioned period without the submission of the information or documents mentioned in the notification of the ministry.

Article 13
Annual Update

1․ A registered investor shall submit an annual update to the ministry regarding the undertakings acknowledged upon registration, and any new undertakings approved by the ministry. This includes any changes, information, or data recorded in the national register of investors. The ministry shall notify the registered investor of the outcome of the submitted update within five working days of its submission.

2․ A registered investor may submit an annual update within the 60 working days preceding the date of the annual update.

3․ The ministry shall notify an investor registered with it 30 working days prior to the date of the annual update date of the need to submit it.

4․ The ministry shall notify an investor registered with it upon the date of the annual update by giving him a grace period not exceeding 30 working days to submit the update.

5․ An investor registered with the ministry may apply to reactivate his registration within a period not exceeding three years from the end of the grace period referred to in paragraph 4 of this article.

6․ An investor registered with the ministry shall reregister himself in accordance with the procedures specified in the investor guide if he exceeds the period specified in paragraph 5 of this article.

Article 14
Deregistration

1․ An investor registered with the ministry may apply for deregistration based on his desire, provided that he submits all the documents and information specified by the ministry in the investor guide.

2․ The ministry shall notify the investor registered with it if it becomes apparent that the application is incomplete or has not been submitted in accordance with the mechanism adopted in the investor guide. The investor shall rectify the deficiencies within 15 working days from the notification, otherwise the application is considered cancelled.

3․ The ministry shall deregister an investor registered with it in the following cases:

(a) Termination of all registered investments by virtue of a final decision or a final court judgment, in accordance with the laws in force in the Kingdom.

(b) Issuance of a decision to suspend a foreign investment for reasons relating to the protection of national security in accordance with chapter 9 of the regulation.

(c) Issuance of a decision that includes a deregistration punishment by the committee.

4․ The ministry shall notify an investor registered with it of the deregistration decision within five working days from the date of receiving the complete deregistration application or from the date it carries out deregistration, according to paragraph 3 of this article.

5․ A deregistered investor is prohibited from practicing any investment activities in the Kingdom after the issuance of the deregistration decision, unless he submits a new registration application to the ministry in accordance with the procedures stipulated in the regulation.

6․ The deregistration stipulated in this article is not deemed to forfeit the rights claimed by a third party.

Chapter 7
Excluded Activities

Article 15
List of Excluded Activities

The screening committee shall issue a list of excluded activities, specifying the prohibited or restricted activities and any updates to them, and the ministry shall publish this list in the investor guide.

Article 16
Application for Approval to Invest in Excluded Activities

1․ A foreign investor wishing to practice an excluded activity shall submit an approval application to the ministry, which shall refer it to the screening committee. The ministry and the screening committee shall establish the appropriate procedures for registering this application, and shall publish them in the investor guide.

2․ The screening committee may request—through the ministry—any additional information or documents it deems necessary to decide on the approval application submitted under this article.

Article 17
Notification of Receipt of Application

1․ The ministry shall notify a foreign investor through the means adopted by it upon receipt of the application for approval to practice an excluded activity.

2․ The ministry shall notify a foreign investor in the event of an incomplete application for approval to invest in excluded activities or when it is not submitted in accordance with the approved procedures. The foreign investor shall rectify the deficiencies within a period not exceeding 15 working days from the notification, otherwise the application is considered cancelled.

Article 18
Notifying a Foreign Investor of the Decision of the Screening Committee

The ministry shall notify a foreign investor of the decision of the screening committee on the practice of an excluded activity within five working days from the date of receiving the decision.

Article 19
Conditions for Resubmission of the Application

A foreign investor may, in the event that his application to invest in excluded activities is rejected, resubmit his application, provided that it includes the following:

(a) Reference number of the first application.

(b) Any information or documents that have not been previously submitted that require reconsideration of the application.

Article 20
Changes to Restricted Activities

1․ A foreign investor shall submit an application to the ministry for approval of any change in the ownership of his investment in a restricted activity, and shall comply with the specified procedures for submitting the change application stipulated in the investor guide.

2․ The screening committee shall review the submitted change application—after it is referred to it from the ministry—in accordance with its established procedures. The provisions stipulated in articles 15 to 18 of this chapter apply to the submitted application.

Chapter 8
Comprehensive Service Center

Article 21
Objectives of the Comprehensive Service Center

1․ The comprehensive service center of the ministry shall facilitate communication between an investor and the ministry regarding procedures related to the implementation of the regulation, including the following:

(a) Registering, updating, and deregistering.

(b) Submitting an approval application for investment in excluded activities.

(c) Applications to obtain information or documents, and any communication related to the procedures taken in accordance with the regulation.

2․ The comprehensive service center, in coordination with the competent entity, shall facilitate for an investor to obtain the necessary legal approvals to practice the activities in accordance with the laws in force. The investor guide shall specify any services provided by the center regarding these approvals, taking into account the mandates granted to the competent entity.

Chapter 9
Protection of National Security

Article 22
Procedures for Suspending Foreign Investments

1․ The ministry may coordinate with the competent entity—including the screening committee regarding foreign investments that threaten national security—before commencing the procedures mentioned in this chapter, during those procedures, and after their completion.

2․ The ministry may request any information or documents that it deems—as determined by it—to be important for examining the impact of foreign investment on the national security of the Kingdom. The ministry shall set the necessary measures to maintain the security and confidentiality of the information or documents submitted to it.

3․ The ministry may hold discussions with a foreign investor before the issuance of a suspension decision to evaluate alternative measures if it finds—as determined by it—that such measures are sufficient to avert risks that threaten national security.

Article 23
Notifying a Foreign Investor of a Suspension Decision

The ministry shall notify a foreign investor of the suspension decision, and he may file a grievance against it according to the laws in force in the Kingdom.

Chapter 10
Addressing Investor Complaints

Article 24
Receiving Complaints

1․ The ministry shall establish a system for receiving investor complaints, and its mechanism must be determined in coordination with the competent entity, regarding complaints about decisions and measures that affect his investment activities, including:

(a) Measures taken or decisions issued in violation of investor rights specified in the relevant laws in force in the Kingdom, or specified in international investment agreements or contracts signed between the investor and any other party.

(b) Challenges of an illegal nature facing the investor.

2․ An investor complaint submitted to the ministry is not considered a judicial procedure and does not affect the right of an investor to commence a lawsuit before the judicial entities or competent committees, or to resort to one of the agreed-upon alternative dispute resolution methods.

3․ The ministry shall seek to address complaints in full transparency with the investor and without discrimination.

Article 25
Complaints Procedure

1․ An investor shall submit his complaint to the ministry, accompanied by all relevant documents and information related to the subject matter of the complaint, including the following:

(a) Summary of the facts and events relevant to the complaint.

(b) Information about the investment project relevant to the complaint.

(c) Grounds supporting his complaint and its legal basis.

(d) Identifying the parties to the complaint.

(e) Statement of the measures taken by the investor to resolve the complaint.

(f) Estimated value of the damage sustained.

(g) Proposed solution to deal with the subject matter of the complaint.

(h) Any other information or documents requested by the ministry.

2․ The ministry shall notify an investor within ten working days from the date of receiving the complaint of its acceptance or rejection. The ministry shall undertake the procedures for considering the complaint if accepted.

3․ The ministry shall—in order to consider and address investor complaints—undertake the following:

(a) Obtaining clarification from the investor about the facts relevant to the complaint.

(b) Coordinating with the relevant competent entities.

(c) Studying the challenges facing the investor and exerting the necessary efforts to address them.

(d) Submitting recommendations and proposals in line with investor rights provided in the laws in force in the Kingdom and the international agreements to which the Kingdom is a party.

Article 26
Decisions Regarding Complaints

1․ The ministry shall submit its recommendations regarding a complaint to the parties to the complaint within 30 working days from the date of accepting the complaint, and shall inform the investor of this.

2․ The ministry shall notify an investor of the decision issued in regard to the complaint and its result.

Chapter 11
Violations

Article 27
Detecting and Policing Violations

1․ The minister or whoever he authorises shall—for the purpose of implementing violation policing procedures—issue a decision naming whoever he deems appropriate to carry out policing works in accordance with a guide issued by the ministry for this purpose.

2․ The ministry has the authority to police violations of the provisions mentioned in the law and the regulation, and it shall coordinate with the competent entity, according to the laws in force in the Kingdom, on the mechanism for verifying the occurrence of these violations. This authority includes:

(a) Obtaining records, documents, information, or any other requirements specified by the enforcement officer relating to the violation.

(b) Analyzing reports and data issued by an investor.

(c) Monitoring complaints from individuals and relevant entities.

(d) Procedures for verifying contracts and transactions with suppliers and customers.

(e) Communicating with the competent entity licensing the investor to provide data according to the nature of the investment activities he practices.

3․ An enforcement officer shall draw up a report on the violation detected and refer the violation to the committee.

Article 28
Removal of Non-Grievous Violation

A violator shall remove a non-grievous violation within the period specified by the ministry, provided that this period is not less than 30 working days from the date of being notified to remove the violation. The violator may submit a request to extend the period, along with clarifying the reasons requiring the extension, and the ministry may accept or reject the extension request.

Article 29
Non-Grievous Violations

The ministry shall prepare and publish a list of non-grievous violations in the investor guide.

Article 30
Grievous Violations

Practicing any of the following is deemed a grievous violation of the provisions of the law and the regulation:

(a) Practicing an investment without registering it.

(b) Practicing an investment for excluded activities without obtaining approval, after their expiry or cancellation, or in violation of the conditions relating to their practice.

(c) Changing ownership of restricted activities without obtaining prior approval.

(d) An investor provides misleading or false information to the ministry or the competent entity.

(e) An investor preventing or obstructing an enforcement officer from carrying out his mandate under the regulation.

Article 31
Formation of the Committee

1․ The minister shall issue a decision specifying the names of the committee members, its chairman, and their remuneration. The minister may also appoint a secretary for the committee—who reports to its chairman—and the term of membership in the committee must be three years, renewable once by a decision of the minister.

2․ The following conditions must be met for those nominated as members of the committee:

(a) They must not have spent two consecutive terms in the membership of the committee or part of it without interruption for a full term.

(b) They must be of good conduct and behavior and must not have been previously convicted—by a final judgment—of a hadd sentence or a crime prejudicing honor and integrity, unless they have been rehabilitated.

Article 32
Work of the Committee

1․ The committee shall hold its sessions at its designated headquarters in the ministry, and it may hold its sessions elsewhere when necessary. It may also hold sessions and make decisions through electronic means.

2․ Sessions must be confidential except if approved otherwise by the committee with prior notification to its secretariat.

3․ A session is not convened except with the attendance of a majority of its members, provided that the chairman of the committee or his deputy is among them.

4․ The committee shall hold its sessions whenever necessary to consider the violations registered with it or as determined by the chairman of the committee.

5․ The proceedings and decisions of the session must be recorded in minutes prepared for this purpose, which must include the date and time of convening the session and the attendees.

6․ The committee may—at its discretion—summon any of the parties involved in the violation to appear before it.

7․ It is permitted to submit memorandums and documents through the electronic means specified by the committee.

8․ The chairman of the committee or his delegate may address whomever they deem appropriate regarding the violations presented to the committee and request the necessary documents or clarifications regarding them. The confidentiality of the submitted documents must be maintained.

9․ A member of the committee shall not participate in the consideration of the violation or the complaint before the committee if he has an interest of any kind, an existing dispute with the violator, or one of the parties to the complaint. In this case, the member shall inform the committee of the case of conflict of interest to exclude him from participating in its consideration.

Article 33
Representation Before the Committee

Representation before the committee must be in accordance with the provisions provided in the Advocacy Law and its executive regulation.

Article 34
Determining a Punishment

1․ The committee shall determine the punishment within 30 working days from the date of referral of the violation report to it, and it may extend this for another similar period.

2․ The committee shall determine the punishment by majority. A member who makes a reservation may record his reservation in minutes prepared for this purpose.

3․ The minister or whoever he authorises shall issue the punishment decision within a period not exceeding 30 working days from the date of the minutes of the committee determining the punishment.

Article 35
Notification of a Punishment Decision

The ministry shall notify an investor of the punishment decision in accordance with the means it adopts for this purpose.

Chapter 12
Final Provisions

Article 36
Investor Guide

1․ The minister may—by a decision from him—or whoever he authorises, issue the investor guide. The investor guide and any update to it must be published on the official website of the ministry.

2․ The ministry shall prepare a list of the services it provides to investors, and the investor guide must clarify the nature, classification, and method of providing these services, as well as the resulting advantages, facilities, and their fees.

3․ The ministry shall coordinate with the competent entity to take the necessary measures to ensure the continuity of licensing procedures related to specific economic activities under the laws and relevant decisions, including the Saudi Program to Attract Regional Headquarters of International Companies and special economic zones.

Article 37
Entry Into Force of the Regulation

The regulation must be published in the official gazette, and comes into force from the date of entry into force of the law.

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Published in Umm Al-Qura 5083 issued on 25 April 2025.

Arabic

Issued by Royal Order O/303

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First

The Oversight and Anti-Corruption Authority shall sign a settlement agreement with anyone who takes the initiative to request this from among those who committed a corruption crime before the date of 15 Safar 1439 [4 November 2017]—whether a natural or a legal person—and it has not been discovered. The agreement must include the following principles:

1․ Obliging the person with whom the agreement is signed to return or collect the property subject of the crime—or its value—and any revenue generated by such property—if any—in addition to the payment of a percentage of 5% per year of this property calculated starting from the time the crime is committed until the completion of the actual payment by virtue of the settlement agreement. He shall also submit an accurate explanation of the information he has on the crime subject of the settlement and any other crime relating to it or to other corruption crimes. In exchange for implementing such obligations, no public criminal lawsuit is to be commenced against him in regard to any of the crimes subject of the settlement.

2․ The agreement must be approved by the Head of the Criminal Investigation and Prosecution Unit in the authority after it is signed by the parties. It is deemed an enforcement document, and this agreement is not subject to objection before any entity whatsoever.

3․ It must specify—by a decision by the president of the authority—a period not exceeding three years to end the settlement procedures and to perform the obligations provided in the agreement. If the obligations are not performed by the person with whom the agreement is signed—within the time period specified—the Criminal Investigation and Prosecution Unit in the authority shall undertake the procedures for public criminal lawsuit against him.

4․ All property collected in the implementation of the agreement must be deposited in the public treasury of the state.

5․ If it is established after signing the settlement agreement that the person with whom it is signed has concealed any information about the crime subject of the settlement, any related crime, or any other corruption crime, the Criminal Investigation and Prosecution Unit in the authority shall commence the public criminal lawsuit against him immediately, even if this is after the approval and performance of the settlement agreement, unless the president of the authority sees that public interest requires continuing with the performance of the agreement without prejudice to any procedures taken in regard to other crimes mentioned in this paragraph. In all cases, taking any action pursuant to this paragraph does not result in returning the property paid by the person who signed the agreement in implementation of it.

6․ Whoever takes the initiative to make a settlement request to the authority within a period not exceeding a year from the date of the issuance of these rules and meets his obligations provided in the agreement signed with him is exempt from the collection of the 5% referred to in paragraph 1 of this clause.

Second

The Oversight and Anti-Corruption Authority may implement clause First of these rules, without prejudice to any provisions in this clause, against those who agree to conduct the settlement: Those against whom judicial rulings are issued, are currently being tried, or against whom inquiry or investigation procedures have commenced in regard to corruption cases committed before the issuance of these rules, or those who make a request to conduct a settlement from among those who commit corruption crimes—before their discovery—from 15 Safar 1439 [4 November 2017] and before the issuance of these rules, taking into account the following:

1․ That the authority does not commence undertaking any settlement procedures except after the issuance of the approval of the King based on justifications determined by the president of the authority.

2․ That he does not benefit from the exemption stipulated in clause First(6) of these rules.

3․ The competent court shall order—based on a request by the authority—the stay of the lawsuit against whoever agrees to conduct a settlement from among those currently being tried—after taking the necessary action provided in paragraph 1 of this clause—and if all the clauses of the settlement agreement and the obligations provided in it are implemented, the public criminal lawsuit is deemed to have lapsed in his regard.

4․ Whoever has a judicial ruling for imprisonment issued against him must be relieved of the enforcement of the punishment or the completion of its remainder if he implements all the clauses of the agreement and obligations provided in it. If it is established after approving the agreement that he concealed information about the crime subject of the settlement, any other related crime, or other corruption crimes, the imprisonment punishment must be enforced or the remainder of its period must be completed, unless the president of the authority sees that public interest requires continuing the implementation of the provisions of the agreement in this regard, without prejudice to the procedures undertaken in regard to the other crimes referred to in this paragraph. In all cases, implementing any of the provisions of this paragraph does not result in returning the amounts paid by the person who signs the agreement in implementation of it.

Third

The President of the Oversight and Anti-Corruption Authority may implement the provisions of clause First of these rules without prejudice to the special provisions provided in this clause against whoever commits a corruption crime after the date of issuance of these rules and takes the initiative to request a settlement before its discovery in exchange of implementing his obligations that are claimed before the court competent with imposing the punishment legally prescribed at its minimum or to stay its enforcement, taking into account the following:

1․ That the authority does not commence undertaking the settlement procedures except after the issuance of the approval of the King on this based on justifications determined by the president of the authority.

2․ That he does not benefit from the exemption stipulated in clause First(6) of these rules.

Fourth

The President of the Oversight and Anti-Corruption Authority shall prepare periodic reports every six months containing all that relates to settlement agreements signed with natural or legal persons who commit corruption crimes—in accordance with the provisions of these rules—regarding their numbers, matters recorded, the number implemented, the property returned or collected as a result of them, and proposals that the authority sees to address any developments after the date of the issuance of these rules, and it shall submit these reports to the King to consider them.

Fifth

The provisions contained in these rules do not prejudice any settlement agreement signed—before its issuance–regarding a corruption crime, it is not permitted for any entity to object to such agreement, and the public criminal lawsuit—if all its provisions are implemented—lapses by virtue of it.

Sixth

These rules are effective from the date of their issuance.

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Published in Umm Al-Qura 5068 issued on 7 February 2025.

Arabic

Issued by Council of Ministers Decision 545.

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First
Definitions

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

Controls: The Controls for Purchasing and Renting Vehicles by Government Entities.

Government entities: Ministries and other government agencies.

Maintenance: The maintenance of a vehicle, based on a planned or unplanned procedure or both, to ensure that its condition remains suitable for performing the required tasks throughout its service life.

Maintenance appointments: A unit, either a specified distance in kilometers or a period of time, that a vehicle completes between major repairs or preventive work specified by the vehicle manufacturer.

Vehicle purchase: The ownership by the beneficiary government entity of a vehicle.

Vehicle rental: The operational rental of a vehicle which entails obtaining the vehicle as a service and not as an asset.

Government fleet: A group of vehicles owned or rented by a government entity and provided to its employees for use in the course of performing their duties.

Electronic platform: The unified platform for government fleet management services.

Second
General Provisions

Government entities shall, when there is a need to secure vehicles, take into consideration the following:

1․ Giving priority to vehicles secured through industry localization and knowledge transfer agreements signed with investors to encourage them to transfer industries and knowledge to the Kingdom in exchange for incentives that include a guarantee that government entities must purchase their vehicles, provided that the percentage and duration of the guarantee are agreed upon in accordance with a feasibility study that takes into account investment returns in exchange for a commitment by the government to purchase.

2‏. Studying capacity and demand to plan the need for vehicles when the draft budget is requested, provided that this study includes determining the purposes of using the vehicles and the technical specifications according to the type of vehicle.

3‏. The technical terms and specifications of the vehicles must be detailed and clear.

4․ Taking into account the approved standard specifications or international specifications in matters that do not have adopted national specifications, and that they do not include a reference to a specific type or make, specify a particular trademark or trade name, or set specifications that only apply to specific producers or suppliers, without prejudice to the provisions of paragraph 1 of this clause.

5․ Not exaggerating the technical specifications of vehicles, and that they do not exceed the needs and requirements of the government entity and the financial appropriations allocated to it.

6‏. The requirements and needs of persons with disabilities if there are eligible employees. A government entity may seek the assistance of any expert or specialist whose opinion it deems necessary when setting the technical specifications.

Third
Vehicle Types and Specifications

Government vehicles are classified as follows:

1‏. Civil vehicles: Vehicles used by government entities to carry out basic tasks and do not contain any special equipment.

2․ Secret security vehicles: Vehicles used by government security and military agencies and other agencies whose work requires secrecy and do not contain special security or military equipment.

The schedules accompanying the controls must explain the purposes for which vehicles are used, the minimum fuel economy rating, and the types of vehicles by category.

Fourth
Vehicle Purchase or Rental

1‏. Without prejudice to clause Second(1) of the controls, the Government Tenders and Procurement Law and its executive regulation, and the Regulation for Preferring Local Content, Local Small and Medium Enterprises, and Companies Listed on the Financial Market in Works and Procurement and taking into account the agreements for localizing industry and transferring knowledge signed with investors, government entities shall transition from securing vehicles through purchase to securing them through rental, according to the types of vehicles defined in the controls, and the following conditions must be taken into account:

(a) That a rental achieves an interest for the government entity that exceeds the interest achieved from a purchase.

(b) ‏The decision of the need to rent instead of purchase must be based on a technical report prepared by a specialized technical committee and approved by the person authorized to award the contract.

(c) ‏The rented vehicle must be insured by the lessor or under his guarantee for the rental period, while being required in all cases to maintain it during the rental period.

(d) The rental period must be consistent with the cost approved for the contract in the budget, and must also be consistent with the purpose for which the vehicle is rented.

2․ Without prejudice to paragraph 1 of this clause, a government entity may—after the approval of the Government Expenditure and Projects Efficiency Authority—secure vehicles through purchase if it sees that purchasing achieves a greater interest for it than the interest achieved from rental, provided that it prepares a feasibility study and estimated cost for that and presents it to the Government Expenditure and Projects Efficiency Authority according to the parameters referred to in the Government Tenders and Procurement Law and its executive regulation.

3․ A government entity shall bear—when securing its vehicles through purchase—all related operating costs throughout the period of its ownership.

4․ ‏Without prejudice to the orders and decisions issued regarding the reception and transportation of delegations, the government entity may—when needed—secure vehicles for the purpose of receiving and transporting delegations through daily rental according to the duration of the visit or stay of the delegation, and according to the purposes of use indicated in the schedules accompanying the controls.

5․ ‏A government entity shall take into account quality and economic efficiency when it wishes to secure vehicles, and shall take into account developmental aspects and approved strategic plans.

6․ ‏When transitioning to vehicle rental, a government entity shall include the following costs within the rental value: Vehicle rental cost—insurance cost—tire change cost—battery change cost‏—periodic maintenance cost—replacement vehicle cost in case of breakdown—spare parts cost‏—accident repairs cost, in addition to the cost of additional vehicle equipment and maintenance—if any—including but not limited to: Installing a vehicle tracking system, government entity logo, and others.

7․ A government entity shall adopt the highest levels of fuel consumption efficiency when purchasing or renting its vehicles for itself, provided that the Saudi Energy Efficiency Center provides those entities with a list of highly efficient vehicles. The center shall review the minimum standard for evaluating fuel economy annually, consider newer models with high fuel efficiency, and issue the necessary circulars in this regard.

8․ ‏The minimum fuel economy evaluation standard for civil vehicles must be according to the purposes of use referred to in the schedules accompanying the controls. Security and military vehicles are exempted from the minimum fuel economy evaluation standard—as needed—due to the diversity of their technical specifications and the diversity of the nature of security and military missions. The categories of large SUVs and 4WD pickups are also exempted from the application of the minimum fuel economy evaluation standard.

Fifth
Vehicle Operation and Maintenance

The transport department in government agencies—or its equivalent—shall carry out the following:

1․ Receiving vehicles according to the established procedures and conducting a technical inspection on them.

2‏. Keeping all vehicle information in separate files, including the original form or a copy of it in case of rental, classifying it according to the purpose of its use, its periodic maintenance report, copies of maintenance documents and spare parts, and other important information.

3‏. Regulating the use of vehicles allocated to the entity according to business needs and the tasks assigned to it, utilizing the shared fleet mechanism to allow the vehicle to be used by more than one employee, and adhering to its periodic maintenance appointments in specialized workshops, as well as preserving it and its safety and cleanliness on a permanent and continuous basis.

4‏. Following up on the maintenance of rented government vehicles in accordance with the contract signed with the counterparty, which must include periodic maintenance and spare parts.

5․ Securing fuel products for vehicles through fuel supply companies with which the Government Expenditure and Projects Efficiency Authority has signed framework agreements to serve government entities in regard to fuel supply.

6‏. As an exception to paragraph 5 of this clause, government entities may—after the approval of the Government Expenditure and Projects Efficiency Authority—secure fuel by linking the vehicle to modern technology services, including but not limited to: NFC smart card system, RFID chip system, or their equivalent, and reducing the use of traditional methods and cash advances.

7․ Providing the internal audit department at the government entity with vehicle data, the departments using it, and information about its users.

Sixth
Vehicle Delivery Conditions

1․ The vehicle must be delivered to the driver and the field employee in accordance with the receipt and delivery procedures followed in this regard, and the necessary measures must be taken to ensure that the vehicle is returned to the transport department at the end of the working hours of each day, except for those whose urgent work needs require that it continues to remain with him.

2‏. Linking the vehicle to the name of the employee when it is delivered to him, and implementing the system for monitoring violations of the General Traffic Department, taking into consideration the mechanism for shared use of the vehicle that allows it to be used by more than one employee.

Seventh
Duties of the Employee Using the Vehicle

1‏. Not transporting or placing prohibited materials in the vehicle of the government entity in his custody.  The employee alone shall bear liability for a breach of this condition towards the competent entities.

2․ Following the Traffic Law and other laws while using the vehicle and complying with the number of passengers permitted for the vehicle, while bearing all liabilities in the event that it is used in activities that contravene the instructions.

3․ Not driving the vehicle unless his driving license is valid.

4․ Not handing over the vehicle to any other person.

5․ Reporting to the government entity upon noticing any defect in the vehicle and not continuing to use it until the defect is repaired, while bearing liability for any damage to the vehicle in the event of failure to report or defects resulting from misuse.

6․ Not using the vehicle outside the scope of his designated work inside or outside the city, and not using it for work and tasks other than those designated for it.

7․ Not making any modifications inside or outside the vehicle and not tampering with its devices, unless required by work.

8‏. Obtaining the necessary approvals from the entity in which he is employed in the event that the vehicle is maintained outside the maintenance centers approved by the government entity.

9․ Complying with the periodic maintenance appointments according to the form approved by the transport department of the government entity, whether in terms of periods or number of kilometers, with the vehicle user being held accountable and legally liable in the event of repeated failure to comply with the periodic maintenance appointments.

Eighth
Combining Allowances

Without prejudice to the relevant laws and regulations and taking into consideration clause Sixth(1) of the controls, a government employee may simultaneously have two allowances (the monthly transportation allowance and the in-kind transportation allowance) when he obtains a government vehicle for work purposes and needs if he returns it to the transport department at the end of the working hours of each day, or when business needs require it to remain with him to carry out security tasks outside official working hours.

Ninth
Accident Procedures Within Cities

An employee shall, in the event of a vehicle traffic accident within a city, contact the unified number of the General Traffic Department or the companies concerned with traffic accidents, and wait for their arrival to plan the accident and receive a copy of the official accident report. The employee does not have the right to waive the rights of the government entity against the other party in the accident under any circumstances.

Tenth
Government Vehicle Insurance

1‏. Government vehicles must be insured through insurance policies approved by the competent entity.

2․ The driver of a government vehicle (driven by a designated official driver and under his responsibility) shall procure insurance against third parties or comprehensive insurance, and the state shall bear the premiums for third-party insurance on those vehicles when the vehicle license is issued for the first time only.

3․ Insurance for vehicles driven by more than one driver (service and security) must be provided by the state by approving special items for this purpose in the budget of each government entity that owns these vehicles, according to their numbers, to cover the risk against third parties.

4․ Exemption from bearing the costs of repairing damages to government vehicles must be in accordance with the procedures set by the Ministry of Finance.

5․ Insurance for vehicles belonging to any government entity or its renewal must be after a committee consisting of delegates from the Ministries of Interior and Finance carries out the following procedures:

(a) Inventorying all government vehicles, registration numbers, and age.

(b) Establishing precise automated procedures for registering vehicles entering and leaving service, so that insurance is documented directly.

(c) Establishing an appropriate mechanism to prevent manipulation in assigning mistakes to government entities.

(d) Establishing a mechanism to authorize the driver of a government vehicle to receive compensation issued by an insurance company in the event that the driver is involved in a traffic accident, in accordance with the provisions of the unified insurance policy.

6‏. Government vehicle insurance works must be tendered in accordance with the contracting methods specified in the Government Tenders and Procurement Law, with the possibility of being divisible to allow the largest number of licensed insurance companies the opportunity to submit their bids.

7․ Insurance for rented government vehicles must be comprehensive insurance for the duration of the rental contract. The counterparty shall bear the insurance, and the government entity may bear a percentage of the costs of comprehensive insurance as it deems appropriate, provided that the type of insurance coverage is specified in the contract.

8‏. Government vehicle insurance does not cover tactical vehicles which are not used on highways or cities and are limited to military areas and training grounds.

Eleventh
Disposal of Vehicles

1․ ‏A vehicle must be technically evaluated after ten years of use. If the technical reports establish the quality of the vehicle, it continues to be in service, provided that the technical evaluation is repeated every year.

2․ ‏A government entity may dispose of vehicles that have been in use for ten years or more, or whose maintenance costs have become high, in accordance with the legal procedures followed in this regard.

3‏. If the technical reports prove a defect that affects the safety and security of vehicle users, and the cost of repairing it is high compared to the replacement value, the government entity may safely dispose of the vehicle in accordance with the legal procedures.

Twelfth
Electronic Platform

1․ Government entities shall register all data on existing and new vehicles on the electronic platform, provided that the data covers—including but not limited to—the following:

– Government vehicle data, such as year of manufacture, purpose of use, and maintenance.

‏- Details of the beneficiaries of these vehicles.

‏- Government fleet management.

‏- Fuel supply management.

‏- Maintenance management.

‏- Relevant periodic reports.

2‏. The contents of this clause do not include the vehicles of the guests of the Custodian of the Two Holy Mosques, the guests of His Highness the Crown Prince, VIP guests, and secret security vehicles and their drivers, the registration of which on the platform may result in a threat to public safety or public security, loss of life or property, or the disclosure of secret sites or missions, and it is sufficient to register them within the entity concerned with such business.

Thirteenth

Without prejudice to the controls, government entities shall—except for government entities that have secret security vehicles—prepare detailed controls for the use of government vehicles belonging to it, in a manner that ensures the rationalization of their use and preservation, is consistent with the nature of the business of the entity, and does not conflict with the controls, and shall provide the Oversight and Anti-Corruption Authority with these controls and any new amendments to them, and the Oversight and Anti-Corruption Authority shall monitor and follow up on the use in accordance with these controls and the detailed controls prepared by government entities.  As for government entities that have secret security vehicles, they shall prepare the controls and implement them within the sector without the need to provide them to the authority.

Fourteenth

The controls must be published in the official gazette, and come into force after 180 days from the date of their publication.

Fifteenth

The controls repeal all provisions that conflict with them.

Schedule 1
Purposes of Using Government Vehicles Subject to the Controls

Purposes of use		Vehicle categories for flat paved areas	Vehicle categories for off-road and mountainous areas
Supervision	Supervision of operation and maintenance contracts	– Small sedan vehicle – Small SUV – Pickup	– Small 4WD SUV – 4WD pickup
	Supervision of construction project contracts
Oversight	Conducting oversight field inspection visits of commercial establishments	– Small sedan vehicle – Medium sedan vehicle – Small SUV – Medium SUV	– Small 4WD SUV – Medium 4WD SUV – Large 4WD SUV – 4WD pickup
	Conducting oversight field inspection visits of government entities
	Inspection works and response to reports by citizens
Passenger transport	School transport and daily appointments for care homes	– Passenger van – Medium bus	– Medium 4WD SUV – Passenger van – Medium bus
	Employee transport to and from the workplace	– Small sedan vehicle – Medium sedan vehicle – Small SUV – Medium SUV – Passenger van – Medium bus	– Small 4WD SUV – Medium 4WD SUV – Passenger van – Medium bus
	Employee transport within the workplace	– Small sedan vehicle – Medium sedan vehicle – Passenger van – Medium bus	– Small 4WD SUV – Medium 4WD SUV – Passenger van – Medium bus

Passenger transport	Employee transport from the workplace to external meetings	– Small sedan vehicle – Medium sedan vehicle – Passenger van – Medium bus	– Small 4WD SUV – Medium 4WD SUV – Passenger van – Medium bus
	Reception and transport of delegations	– Large sedan vehicle – Medium sedan vehicle – Medium SUV – Large SUV – Passenger van – Medium bus	– Medium 4WD SUV – Large 4WD SUV – Passenger van – Medium bus
Administrative correspondence	Correspondence and mail transport	– Small sedan vehicle – Small SUV – Light transport pickup – Goods transport van	– Small 4WD SUV – 4WD pickup – Goods transport van
Equipment and goods transport	Food and supplies transport	– Light transport pickup – Goods transport van	– 4WD pickup – Goods transport van
	– Appliances and furniture transport
Secret vehicles	Vehicles belonging to military and security entities, which are used for administrative purposes and transporting passengers and do not contain special equipment	– Small sedan vehicle – Medium sedan vehicle – Small SUV – Medium SUV – Large SUV – Minibus – Medium bus – Large bus – Minivan – Medium van – Passenger van	– Small 4WD SUV – Medium 4WD SUV – Large 4WD SUV
	Vehicles belonging to military and security entities, which are used for search and investigation purposes and do not contain special equipment

Schedule 2
Minimum Fuel Economy Rating for Government Vehicles

Vehicle type	Vehicle category	Minimum fuel economy rating
Sedan	Small sedan	Excellent
	Medium sedan	Excellent
	Large sedan	Good
	Small SUV(for city use)	Very good
	Medium SUV (for city use)	Very good

Vehicle type	Vehicle category	Minimum fuel economy rating
SUV	Large SUV (for city use)	Very good
	Small 4WD SUV (for use in off-road and desert areas)	Very good
	Medium 4WD SUV (for use in off-road and desert areas)	Very good
	Small 4WD SUV (for use in off-road and desert areas)	None
Pickup	Light transport pickup	Very good
	4WD pickup	None
Van	Goods transport van	Very good
	Passenger van
Bus	Medium bus	Very good

Schedule 3
Vehicle Types by Category

Category	Examples include but are not limited to
Small sedan	Toyota Corolla—Hyundai Accent—Kia Rio—Kia Cerato—Hyundai Elantra—Toyota Yaris—or their equivalent
Medium sedan	Lucid—Toyota Camry—Hyundai Sonata—Mazda 6—or their equivalent
Large sedan	Lucid Air—Lexus LS—Mercedes S Class–BMW 7 Series–Audi A—Genesis G90—or their equivalent
Small SUV	Toyota RAV4—Hyundai Tucson—Hyundai Creta—Kia Sportage—Mazda CX-3—Mazda CX-5—or their equivalent
Medium SUV	Lucid Gravity—Toyota Fortuner—GMC Acadia—Ford Explorer—Nissan Pathfinder—Toyota Prado—Chevrolet Traverse—Hyundai Santa Fe— Kia Sorento—or their equivalent
Large hybrid SUV	Lucid Gravity—GMC Yukon—Toyota Land Cruiser—GMC Tahoe—Ford Expedition—Nissan Patrol—or their equivalent

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Published in Umm Al-Qura 5072 issued on 21 February 2025.