Traffic regulations amendment: Exemption of acquisition vehicles from inspection and insurance
The Saudi General Directorate of Public Security has launched a significant project to amend the executive regulations of the Traffic Law through the "Istilaa" platform of the National Competitiveness Center. This initiative aims to regulate the imported vehicle sector and streamline related procedures in line with current developments in the Kingdom's automotive industry.
Details of exemption from examination and insurance
The proposed project includes a significant amendment to Article (8/7) of the Executive Regulations, stipulating that: "The vehicle to be acquired shall be registered after payment of the prescribed fees and shall be exempt from inspection and insurance." This decision addresses a long-standing challenge faced by car collectors, as previous regulations required technical inspection and insurance procedures that may not be suitable for vehicles purchased solely for display or collection purposes, and not for daily road use.
Supporting the hobby of classic and rare cars
This regulatory move comes in the context of the Kingdom's growing interest in the classic and rare car sector, which has witnessed remarkable growth in recent years, coinciding with the Riyadh Season events and the international auto shows hosted by the Kingdom. By exempting collector vehicles from the traditional initial registration requirements, the relevant authorities are opening the door wide for investors and enthusiasts to import and preserve heritage cars as valuable assets without the hassle of unnecessary procedures for vehicles not driven on public roads, thus enhancing quality of life and supporting tourism and entertainment.
Mechanism for converting registration to road use
The project also addressed the practicalities of vehicle ownership, adding a new article (8/9) to the Directorate, which stipulates the possibility of "amending the registration of a vehicle for personal use to a vehicle permitted for road use after completing the necessary procedures outlined in this system and its regulations." This clause provides significant flexibility for owners, allowing them to change the vehicle's status from "personal use" to "use" once the traffic safety and technical inspection requirements are met. This ensures the safety of road users and strikes a balance between personal enjoyment and compliance with regulations.
Economic and regulatory impact
This amendment is expected to revitalize the auction market and the sale of rare cars in Saudi Arabia, making the Kingdom a regional destination for car enthusiasts. This move also reflects the legislative authorities' commitment to developing regulations to keep pace with changes, while maintaining the highest standards of traffic safety and ensuring that procedures are governed in a way that prevents arbitrary practices and provides a legal framework for them.
