Logistics and Supply Chain Market Entry in Saudi Arabia

Logistics companies may require different approvals depending on whether they provide road freight, freight forwarding, warehousing, customs clearance, courier services, last-mile delivery, maritime transport, rail services or integrated supply chain solutions.

The commercial registration must accurately reflect the intended activity, but the company may not begin regulated transport or customs activities until the relevant operating licences have been obtained.

Key Regulatory Authorities

1. Transport General Authority

The Transport General Authority regulates land, maritime and rail transport activities in Saudi Arabia. Its mandate includes activity licensing, operational standards, safety requirements and service quality.

Depending on the operating model, a TGA licence may be required for:

  • Road freight transportation
  • Freight brokerage or freight forwarding
  • Bus and passenger transportation
  • Courier and parcel activities
  • Last-mile and delivery applications
  • Vehicle rental and leasing activities
  • Maritime transport and shipping-related services
  • Rail-related activities

Transport licences are generally issued through the Logisti platform according to the selected activity.

2. Zakat, Tax and Customs Authority

ZATCA regulates customs processes and customs clearance activities.

Companies acting as customs brokers require a customs clearance licence. Importers and exporters may also need to authorise a licensed customs broker to act on their behalf through the relevant customs systems.

ZATCA also regulates:

  • Bonded zones
  • Customs warehouses
  • Tax warehouses for excisable goods
  • Import and export declarations
  • Customs compliance
  • Authorised Economic Operator participation

Typical Approvals and Requirements

1. Transport Activity Licence

The specific licence depends on:

  • Goods or passengers being transported
  • Domestic or international operations
  • Own-account or third-party transportation
  • Vehicle category and fleet size
  • Road, maritime or rail activity
  • Physical or technology-enabled delivery model

Requirements may include:

  • Minimum number and type of vehicles
  • Vehicle ownership or approved leasing arrangements
  • Vehicle registration and insurance
  • Qualified operational management
  • Driver licensing and employment compliance
  • Electronic tracking or platform integration
  • Approved premises or parking facilities
  • Safety and maintenance procedures

2. Freight Forwarding and Customs Clearance

A freight forwarding licence does not automatically authorise the company to carry out customs clearance.

Where customs declarations will be submitted directly, the company may require:

  • A ZATCA customs clearance licence
  • Qualified and registered customs personnel
  • Relevant financial guarantees
  • System access and user registrations
  • Port or border-specific arrangements
  • Compliance with customs broker regulations

ZATCA has also enabled qualifying freight forwarding companies to obtain customs clearance licences, subject to the applicable requirements.

3. Warehouse and Distribution Facility Approval

Physical warehouse operations may require:

  • Municipal commercial licence
  • Approved lease or title documentation
  • Land-use and zoning confirmation
  • Civil Defence fire and life-safety approval
  • Building completion or occupancy documentation
  • Warehouse layout approval
  • Environmental approval where applicable
  • Product-specific storage approvals

Additional licences can apply when storing:

  • Food products
  • Pharmaceuticals or medical devices
  • Chemicals or hazardous materials
  • Petroleum products
  • Excise goods
  • Controlled or temperature-sensitive products

4. Customs and Importer Registration

Businesses importing or exporting goods may require:

  • ZATCA registration
  • Fasah or relevant customs-platform access
  • Customs broker authorisation
  • Product conformity registrations
  • Import permits for restricted goods
  • Correct tariff classification
  • Country-of-origin and labelling compliance

5. Bonded and Tax Warehouses

Operating a bonded facility or tax warehouse requires a separate approval.For excisable goods, ZATCA’s tax warehouse process may require a formal application and an original bank guarantee before the licence is issued.

6. Authorised Economic Operator

Established importers, exporters and logistics providers may apply to join the Saudi Authorised Economic Operator programme.

Current eligibility conditions include holding a valid commercial registration, being registered with ZATCA for at least one year and conducting import, export or logistics activities.

How We Support

We support logistics and supply chain companies with:

01

Activity and licence mapping

02

TGA transport application coordination

03

Freight forwarding and customs clearance pathway assessment

04

Warehouse and municipal approval coordination

05

ZATCA and customs submission coordination

06

Import and product approval coordination

07

Operational readiness support and platform activation coordination

08

Post-licensing operational readiness support

Questions & answers

Frequently Asked Questions

Do logistics companies require a transport licence in Saudi Arabia?
It depends on the services being provided. Businesses involved in road freight, freight forwarding, courier services, last-mile delivery, maritime transport, rail operations or other regulated transport activities may require approvals from the relevant authorities before commencing operations.
Can a foreign logistics company establish operations in Saudi Arabia?
Yes. International logistics and supply chain companies can establish a presence in Saudi Arabia, subject to the applicable foreign investment requirements and sector-specific regulatory approvals. The approval pathway depends on the proposed operating model and logistics activities.
Is company formation enough to begin logistics operations?
No. Registering a Saudi company does not automatically authorise regulated logistics activities. Depending on the business model, companies may also require transport licences, customs-related approvals, warehouse permits and other operational authorisations before they can begin trading.
Do freight forwarding companies also need a customs clearance licence?
Not necessarily. A freight forwarding licence does not automatically permit customs clearance activities. Companies intending to submit customs declarations directly may require a separate customs clearance licence and must satisfy the applicable regulatory requirements.
What approvals are required to establish a warehouse in Saudi Arabia?
Warehouse operations may require municipal approvals, land-use confirmation, Civil Defence approval, occupancy documentation and, depending on the products being stored, additional sector-specific licences. Businesses handling regulated goods such as pharmaceuticals, food products or hazardous materials may require further approvals.