General Policy for the Postal Sector in the Kingdom of Saudi Arabia

Document Purpose

Pursuant to the responsibilities entrusted to the Ministry of Transport and Logistic Services (MOTLS) regarding the postal sector in the Kingdom of Saudi Arabia, and in accordance with Paragraph (1) of the Council of Ministers Resolution No. (705) dated 27/12/1443 AH—which mandates the Ministry to oversee the postal sector, formulate its general policies, development plans, and related programs, and supervise their implementation upon approval—this General Policy for the Postal Sector has been developed.

This document serves as a strategic roadmap for implementation and an action plan to guide decision-making and achieve outcomes, encompassing the key directions and pillars essential to attaining the sector’s objectives.

Preamble

The policy is predicated on accelerating the growth of postal services in the Kingdom to support the objectives of Saudi Vision 2030. By establishing a clear vision for this vital sector, the policy aims to drive national development, ensure sector advancement, and maximize its contribution to the GDP.

Furthermore, it seeks to enhance services by fostering trust between investors, beneficiaries, and postal service providers. To achieve these goals, the policy relies on the following:

• Digital solutions and automated systems to stimulate the digital economy (e.g., Big Data, analytics, and E-commerce).
• Adopting flexible operations capable of responding to incidents that may lead to service interruptions.
• Stimulating the investment environment within the postal sector.
• Improving the regulatory environment and implementing enabling strategies and initiatives.

Objectives

1. Developing current postal service standards and introducing innovative services ensuring diversity, availability, and competitive pricing.
2. Increasing competition among entrepreneurs, local companies, and foreign investors, while supporting e-commerce and the digital economy.
3. Enhancing transparency through innovative governance and regulations that provide information to prospective investors without compromising beneficiary data privacy.
4. Developing human capital and ensuring optimal employment of talent.
5. Improving the sector's financial standing and maximizing investment returns in line with Vision 2030.
6. Ensuring that sector plans are beneficiary-centric and aligned with digital transformation goals.
7. Defining the roles required of relevant stakeholders.
8. Improving the Kingdom's global sector-related indices and fulfilling international treaty obligations.
9. Encouraging innovation to meet the needs of individuals, entrepreneurs, and the business sector.
10. Facilitating compliance with laws, regulations, and licensing procedures to foster fair competition.
11. Clarifying the roles of MOTLS, the Transport General Authority (TGA), the National Operator, and other stakeholders.

Policy Pillars

I. Universal Service (Right of Universal Access)

Universal service is the cornerstone of the sector's social dimension, aiming to provide a baseline of postal services to all beneficiaries at affordable prices.

This policy seeks to:

• Establish a Universal Postal Service Policy based on appropriate pricing methodologies and international quality standards.
• Deploy postal services via adequate infrastructure across all geographical regions at all times without discrimination.
• Ensure access for all segments of society regardless of the economic viability or population density of a region.
• Designate the National Operator to provide the Universal Service.

II. Infrastructure and the National Address

To solidify the Kingdom's position as a Global Logistics Hub, the policy focuses on:

• Developing supporting infrastructure by building and enhancing Geographic Information Systems (GIS).
• Maximizing the utilization of the National Address and ensuring its integration with digital maps.
• Evolving the National Address into a regional model by improving coding methods and verification services, making it a core part of personal identity.
• Protecting critical infrastructure assets and National Address data.

III. Interests of Beneficiaries & Investors and Demand Growth

The policy addresses the shift from traditional mail to e-commerce parcels and the increasing demand for same-day delivery by:

1. Improving service quality through efficient processing, better delivery times, and advanced tracking systems.
2. Protecting integrity and beneficiary interests (e.g., right to access, non-discrimination, data privacy, and protection from misleading ads).
3. Enhancing service standards (speed, reliability, and quality).
4. Implementing best practices to mitigate risks and internal/external threats.

IV. Entrepreneurship and Competitive Market

1. Establishing a climate for fair and effective competition to ensure providers meet user expectations.
2. Providing opportunities for SMEs and removing administrative, technical, and regulatory barriers.
3. Attracting leading international companies and developing local content.

V. Technology and Innovation

Embracing the Fourth Industrial Revolution by:

1. Utilizing Big Data, Cloud Computing, AI, IoT, and Drones.
2. Introducing innovative solutions like Parcel Lockers and Electric Vehicles to solve Last-Mile Delivery challenges.
3. Encouraging R&D to create high-quality, affordable innovative services.

Stakeholders and Expected Roles