6 new companies get licenses for parcel delivery services

June 16, 2020

Saudi Gazette report

RIYADH — The Communications and Information Technology Commission (CITC) announced licenses for six new parcel delivery companies in Saudi Arabia, as it rolled out a new licensing plan for the postal sector.

The commission clarified that five companies, Saee, Jones Transport, Aymakan, Almajdouie Logistics and Mkhdoom, had been given licenses to transport and deliver parcels inside the Kingdom, while Fetchr had been licensed to carry out both domestic and international deliveries, Saudi Press Agency report.

In the wake of the announcement, the CITC launched a new online portal, making the registration process more efficient for new companies wishing to enter the market. The registration portal, which can be found on CITC's website, supports a range of licensing services including requests, issuance, renewal, cancellation and updates.

To encourage growth and international investment, the CITC also issued new guidelines for potential postal sector investors. The guide helps investors familiarize themselves with existing regulations and procedures in Saudi Arabia's postal sector. It also advises potential postal service providers on best practices and how to obtain approvals and licenses for their companies.

In a ground-breaking move in March 2019, the Saudi Council of Ministers moved the regulatory and supervisory functions of the postal sector to the CITC. The commission is now responsible for regulating the postal market, encouraging competition among suppliers, and attracting global investment to the sector.

The CITC Governor, Mohammed Al-Tamimi, stated that "the CITC has already begun implementing our new strategy and, through careful regulation and encouraging healthy competition, we aim to provide postal users in Saudi Arabia with efficient and affordable services. Our new mandate rests on three key pillars: assisting Saudi Arabia’s digital transformation, promoting investment and protecting consumers.

Opening the door to new companies fulfills these goals by improving e-commerce usage, positioning the Saudi postal sector as an attractive investment opportunity, and incentivizing providers to give the best possible postal services to users."

"Under CITC's supervision, there are now 22 licensed companies in Saudi Arabia, providing local and international parcel delivery services. The Saudi postal sector is worth over SAR 5 billion and employs 90,000 people, with a capacity of processing 22 million shipments each quarter," the governor said.

June 16, 2020
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