Bahrain to Benefit from GCC’s Unified Land Transport Law

The GCC has reached a major milestone in regional logistics with the recent approval of a unified land transport law by the Saudi Cabinet.

The decision aims to streamline procedures and enhance unity across GCC member states. The new law is expected to improve organizational efficiency, simplify logistical processes, and boost service quality throughout the region. It will focus on strengthening road safety standards, protecting investments, and stimulating growth in the logistics sector across GCC countries.

Jassim Abdulaal, managing partner at Grant Thornton Bahrain, remarked: “The discussions at the Committee of GCC Undersecretaries demonstrate the region’s commitment to strategic infrastructure development and collaborative projects, which is promising for investment and commercial activities in the GCC. Grant Thornton is proud to support these initiatives, leveraging our financial advisory expertise to advance these projects.”

The Saudi Transport General Authority (TGA) has announced that the new law will regulate all international land transport activities, including both passenger and freight transportation, for registered vehicles across GCC states. Implementation will commence once member states, including Bahrain, finalize their internal procedures.

In Bahrain, the law is expected to streamline cross-border transport, enhance logistical efficiency, and align regulations with other GCC countries. This is anticipated to improve the movement of goods and passengers, bolstering Bahrain’s role as a key trade and logistics hub in the GCC.

The 25th meeting of the Committee of GCC Undersecretaries of Transport and Communications in Muscat also highlighted the strategic railway project’s potential to stimulate economic growth and commercial exchange across the GCC. For Bahrain, this project promises increased connectivity and new economic opportunities as the railway network integrates with regional transport corridors, reinforcing its pivotal role in the GCC’s transport infrastructure.

However, challenges remain, as noted by Yaser Abbas Salman, industry expert on public entities at Grant Thornton Bahrain. He pointed out the difficulties of harmonizing regulations, securing infrastructure investments, integrating advanced technologies, ensuring stakeholder co-operation, managing cross-border operations, and maintaining regional stability.

The firm’s senior partner Jatin Karia emphasized the need to address financial constraints on public services and infrastructure through refined decision-making processes and optimized service delivery. He stressed that by improving operational efficiency and safeguarding financial resources, infrastructure projects can be delivered more effectively, with a focus on performance and accountability ensuring sustainable outcomes.