Saudi Government orders nationalization of public transport industry

Makkah Gov. Prince Khaled Al-Faisal, who is also the chairman of the ministerial supervisory committee on public transport, has ordered all contracts for the public transport system (including metro and buses) in Makkah, Jeddah and Taif to incorporate a clause for the Saudization of the public transport industries, all the way from spare parts workers through to the manufacturing phase. The governor directed a meeting with members of the Saudi Arabian General Investment Authority (SAGIA) in Jeddah, calling for the establishment of spare part factories in the province.
SAGIA members gave a presentation of the public transport industry, emphasizing the construction of transportation equipment and operating machinery by Saudi people. Members of the committee said the Saudization of the public transport industry in the province would create approximately 2,500 jobs.
This is said to be in addition to 1,500 jobs in the field of basic components. They pointed out that the Saudization of the industry would also lead to a cut in costs for the transport industry in the long run. Separately, sources said the government plans to launch two public transport systems in Makkah and Jeddah at a total cost of SR107 billion. The Makkah public transport system involves a metro system for Haj and Umrah pilgrims year-round, and a rapid transit bus network with 60 depots to serve the Grand Mosque and areas that are not covered by the metro or rapid transit buses.