Riyadh - Saudi Arabia
The Saudi Ministry of Tourism has approved a new regulation of licensing requirements for travel and tourism services activities, based on the tourism system issued by Royal Decree No. (M/18). The decision, published in the Official Gazette, Umm Al-Qura, stipulates that establishments wishing to obtain a license for “general travel and tourism services” are required to provide a financial guarantee of 50,000 riyals, while the amount increases to 800,000 riyals if the activities include providing visa issuance services for those wishing to come to the Kingdom.

Bank guarantee controls and standards

This decision replaces previous ministerial decisions and comes into effect immediately, based on the Travel and Tourism Services Regulations, which give the Ministry the authority to set guarantees not to exceed two million riyals. The government services platform stipulated that the guarantee be final and unconditional in favor of the ministry, issued by one of the licensed local banks, and extend for the license period plus an additional 60 days, provided that the original is delivered to the ministry’s headquarters in the Diplomatic Quarter in Riyadh.
An official confirmation of the sector’s protection
In this context, the Saudi Ministry of Tourism explained that “updating licensing requirements and determining financial guarantee amounts comes with the aim of raising the efficiency of the tourism market, ensuring that establishments adhere to regulatory standards, and providing the highest levels of reliability for visitors.” This trend highlights the keenness of the competent authorities to raise the level of services provided and develop an environmental environment that regulates business tourism and inbound visits.

Opportunities and gains for the Arab investor and visitor

This decision enhances the regulation of the investment environment for the Arab investor in Saudi Arabia by increasing market transparency and protecting commercial transactions in the travel and logistics services sector, which encourages reliable partnerships. At the same time, this strict regulation ensures that Arab tourists and visitors obtain reliable, high-quality visa and travel services through accredited companies, which contributes to facilitating the procedures for arriving and exploring the various tourist destinations in the Kingdom.