Saudi Arabia: E-payments in Public Benefit Markets Are Mandatory

Saudi Gazette, 11 December 2023: Saudi Arabia’s Environment, Water and Agriculture Ministry has announced it has issued guidelines to regulate the operation of public benefit markets and monitor the work of service providers.

Among other things, under the Agricultural Law using e-payments when buying and selling in public benefit markets is mandatory. The Saudisation rules also have to be complied with in line with government regulations. A licence has to be obtained from the Municipal, Rural Affairs and Housing Ministry as well.

In order to establish a new market in a city or governorate where there is an existing market, the new market has to demonstrate it has a comparative advantage over the existing market. The population in the area must also be proportionate to the number of markets wanting to establish in the city.

The capacity of the existing market must be insufficient to accommodate all activities as well.

When a new livestock market is being established, the fact they are outside the urban area must be taken into account.

When the market conforms to the previous standards, it is up to the Ministry to decide on the application.

An aerial photograph showing the location of the new market must also be attached to the application.

In addition, there are specific requirements for holding seasonal markets and auctions. These include that an entity that organises the market or auction bears all financial and organisational burdens. The seasonal market or auction must also not affect the movement and activity of the public goods market in the region.

All market stakeholders including wholesalers, retailers, distributors, service providers, cooperative societies and transporters have to register.

The relevant authority will determine the appropriate working days and hours for each market in the cities, governorates and their affiliated centres on regular and seasonal days such as Ramadan and Hajj.

A sign will also have to be placed clearly at the market entrances. This will have to indicate the operational days and hours as well as the days of the seasons, the name of the season and its start and end dates.

Agricultural product prices in the main markets in the Kingdom will be made through approved channels and platforms through the price controller assigned by the Environment, Water and Agriculture Ministry and its branches and offices.

Investors have to enter prices and quantity information through approved channels and platforms.

All market stakeholders have to place waste in designated places and waste containers and places exposed to pollution must be periodically cleaned and sterilised.

If the market is closed, air curtains will be put at the entrances. Insects, rodents, and stray animals will have to be controlled via mechanical and chemical methods and must not affect the safety of food products.

The Environment, Water and Agriculture Ministry will issue licences for shops, barns and stalls and permits for service providers and market workers affiliated with shops, firms and companies licensed to work in the market.

In terms of the transportation of agricultural products, quality and safety of agricultural products must be maintained.

Vehicle owners who fail to comply will be fined. Only healthy agricultural products should be permitted to enter and agricultural products which are unfit for human consumption should be destroyed.

Confiscated materials which are not fit for human consumption will be destroyed.

The Ministry will carry out periodic oversight of all stores, sheds, and barns on a daily basis and it is responsible for reporting visits and violations through approved channels.

Also reported in Al Riyadh on 10 December 2023. Click here to read more.

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Saudi Arabia: Zakat, Tax and Customs Authority Issues Final Tax Warning

Arabian Business, 3 December 2023: Saudi Arabia’s Zakat, Tax and Customs Authority has issued a tax warning about unpaid taxes.

The Authority had warned businesses to pay unpaid taxes before the end of the year or face being fined.

They have urged affected entities to take advantage of the Cancellation of Fines and Exemption of Financial Penalties Initiative, which ends on 31 December 2023.

Under the Initiative, taxpayers will be exempt from paying fines for late registration, delayed payments, overdue tax return filings, VAT return adjustments and violations of e-invoicing and general VAT provisions.

To be eligible for the Initiative, taxpayers must be registered, file all tax returns with the Authority and settle all outstanding tax returns.

Taxes owed may be paid in instalments if a request is submitted to the Authority by 31 December and outstanding amounts paid within the timeframe specified by the Authority.

Fines for tax evasion and fines paid before the effective date of the Initiative are not eligible.

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Saudi Arabia: Rights and Obligations of Public Transport Users Regulation Approved

Saudi Gazette, 25 November 2023: Saudi Arabia’s Transport General Authority or TGA has announced it has approved a regulation regarding rights and obligations of public transport users.

It has also approved the schedule of violations and fines. They have done so in line with Saudi Arabia Cabinet Decision No. 44/1445 on the same topic.

The regulation includes four sections covering all of the rights and obligations of public transport users in the Kingdom. Among other requirements, passengers have to give up seats for families with children.

Passengers will also be entitled to be offered options if their mode of transportation is delayed or cancelled for more than 120 minutes.

The carrier must provide passengers with several options. They should offer passengers the option of proceeding with their journey, rescheduling with alternative routes at no extra cost, or opting for a full ticket refund and returning to their point of origin.

However, the carrier will be exempt from liability and minimum compensation for delays in arriving at final destinations, when it is caused by circumstances beyond their control. This includes situations where adverse weather conditions jeopardise safe operations or when exceptional circumstances or force majeure events disrupt regular services, despite all reasonable precautions being taken.

Passengers can choose between a full ticket refund for the unused itinerary, accompanied by compensation equivalent to 25% of the ticket value for the cancelled trip, or exploring alternative travel arrangements within three hours of the original departure time. This alternative must be in a class equivalent to their initial reservation and compensation must be equivalent to 25% of the ticket value for the cancelled trip.

It aims to increase the level of awareness about the rights and obligations of beneficiaries.

The first section in the regulation includes the general provisions that apply to all means of transport covered under the regulation.

The second section covers land transport. The provisions spell out the rights and obligations of public transport bus users in and between cities. They also specify the rights and obligations of users in assisting and enabling disabled people and those with limited mobility to use buses.

The third section covers railway transport. They clarify the rights and obligations of railway users in and between cities. They also clarify the rights and obligations of users in assisting and enabling disabled people to use trains.

The fourth section covers maritime transport. They clarify the rights and obligations of users of maritime transport. They also clarify the rights and obligations of users in assisting and enabling disabled people and those with limited mobility to use maritime transport.

The tables of classification of violations and penalties also specify the obligations of bus users in and between cities, the obligations of railway users in and between cities and the obligations of maritime transport users.

Additional reporting from Gulf News (United Arab Emirates) on 25 November 2023.

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Saudi Arabia: Passenger Rights Protection Regulations Come into Force

Gulf News (United Arab Emirates), 20 November 2023: New passenger rights protection regulations issued by Saudi Arabia’s General Authority of Civil Aviation have come into force.

They cover ticketing, boarding, in-flight services, baggage handling and helping passengers with special needs, including those with reduced mobility.

Travellers could be compensated 6,568 Saudi Riyals for lost or damaged baggage.

Passengers whose baggage is delayed will receive 740 Riyals for the first day of delay and 300 Riyals for every subsequent day up to a maximum of five days.

Compensation provisions have also been strengthened and extended. Compensation of between 150 and 200% of the original ticket value could be awarded for flight delays, cancellations, overbooking and unexpected stopovers.

Passengers who are delayed for more than three hours can now disembark and receive compensation in line with the new regulations.

Passengers must also not be left stranded during unscheduled stops. Passengers will be compensated 500 Riyals each time they are.

Travellers who are on overbooked flights can expect refunds and compensations up to 200% of the original ticket value.

Those who are downgraded will be entitled to 200% compensation as well.

Airlines who deny a disabled passenger boarding or provide inadequate facilities will have to pay compensation of 500 Riyals or 200% of the original ticket price.

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Saudi Arabia: Private Sector Entities Urged to Complete Employment Contract Documentation

Saudi Gazette, 13 November 2023: Saudi Arabia’s Human Resources and Social Development Ministry has urged private sector entities to complete the employment contract documentation procedures for their Saudi and non-Saudi employees via the Ministry’s Qiwa platform.

The Ministry has specified the compliance percentages required by establishments in terms of contract documentation, based on the total number of employees the establishment has.

• 20% of contract documentation had to be completed by the end of the first quarter of this year.

• 50% of contract documentation had to be completed by the second quarter of this year.

• 80% of contract documentation had to be completed by the third quarter of this year.

Only those establishments who completed 80% or more of contract documentation by the end of the third quarter will be able to benefit fully from the Ministry’s services.

The contract documentation service enables employers to upload and update employee contract information in an automated and easy way.

It also allows employees to verify the validity of their contract data. If both parties agree, the contract will be considered documented and approved by the Ministry.

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Saudi Arabia: Special Economic Zones Centre to be Established

Arab News, 6 November 2023: Saudi Arabia’s Royal Commission for Riyadh City has announced it is going to establish a Special Economic Zones Centre.

The Centre will help the Commission oversee the special economic zones in Riyadh City.

It will have its own financial and administrative independence, which will allow it to develop new economic zones in Riyadh.

It will be responsible for granting licences to investors in these zones and will offer comprehensive services based on international best practices.

This will facilitate the recruitment of national and international talent and expertise to work with the new businesses and firms in the Centre.

It will also support Riyadh’s transformation into one of the world’s largest city economies. It will do this by creating a competitive regulatory environment for a broad range of economic activities.

It is being established in line with national economic diversification goals.

The Centre will cooperate with the Royal Commission for Cities and Special Economic Zones to develop strategies for the economic areas.

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Saudi Arabia: New Shipping Service Announced

Nuom News, 30 October 2023: Saudi Arabia’s General Ports Authority or Mawani has announced the launch of a new shipping service.

CMACGM has launched a new India Gulf Express shipping service to King Abdulaziz Port in Dammam.

The new shipping service connects King Abdulaziz Port in Dammam with seven regional and international ports including Nhava Sheva, Mundra and Mangalore in India, Colombo in Sri Lanka, Jebel Ali and Khalifa in the UAE and Umm Qasr in Iraq.

It will operate four ships a week, with a total capacity of up to 9,800 containers.

It will improve the operational capabilities of King Abdulaziz Port in Dammam.

It will boost trade and export activity and increase the Kingdom’s links with global markets.

In addition to improving economic growth by reducing the time required for imports and exports, it will also reduce the cost of sea freight to and from the Kingdom’s ports, in line with the National Strategy for Transport and Logistics Services.

Click here to read more.

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Saudi Arabia: Major Visa Change Announced

Saudi Gazette, 23 October 2023: Saudi Arabia’s General Directorate of Passports or Jawazat has announced a major visa change.

They have urged holders of all types of visit visas, who are staying in the Kingdom, to strictly comply with the visa rules and regulations and extend it seven days before it is due to expire.

They can do so electronically via the Absher Afrad or Absher Aamal portals and the Muqeem e-portal.

This means they do not need to visit the Jawazat offices in person.

When they are renewing their visa, they should also make the relevant payment and ensure they have valid medical insurance.

Any beneficiaries who face difficulties in utilising the e-service can submit a request to the Jawazat via its communication service on the Absher platform. A specialist team at the directorate will examine the case and notify the beneficiary of the status via text message.

However, the visit visa cannot be extended for more than 180 days.

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