Bahrain Poised to Reap Benefits from GCC's Landmark Unified Land Transport Law

The Gulf Cooperation Council (GCC) has reached a significant milestone in regional logistics with the recent approval of a unified land transport law by the Saudi Cabinet.

This decision aims to streamline procedures and enhance cohesion among GCC member states. The new law is expected to improve organisational efficiency, simplify logistical processes and elevate service quality across the region.

It will prioritise strengthening road safety standards, protecting investments, and stimulating growth within the GCC's logistics sector.

Jassim Abdulaal, Managing Partner at Grant Thornton Bahrain, commented: “The discussions at the Committee of GCC Undersecretaries demonstrate the region’s commitment to strategic infrastructure development and collaborative projects, which bodes well 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 begin once member states, including Bahrain, finalise 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 Gulf.

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 the kingdom's pivotal role in the GCC’s transport infrastructure.

However, challenges remain, as noted by Yaser Abbas Salman, an industry expert on public entities at Grant Thornton Bahrain.

He pointed out the difficulties of harmonising 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, emphasised the need to address financial constraints on public services and infrastructure through refined decision-making processes and optimised 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 to ensure sustainable outcomes.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.