Investors in the Saudi Arabian industry have pulled out from the business

By Marc Castro

Sep 24, 2013 09:23 AM EDT

Nearly 30% of investors in the Saudi Arabian taxi industry have pulled out in the past three years. The major reasons for such exits are unworkable regulations stipulating that Saudi Arabian citizens work in the industy.

It was reported that the latest transport issue to emerge in the kingdom, according to the former chairman of the Taxis Committee at the Jeddah Chamber of Commerce and Industry Abdulhadi Al Qahtani, was the lack of accountability of the authorities to hinder the growth of the taxi industry.

Al Qahtani further elaborated the current state of the industry through an interview with the local daily The Arab News. He said the taxi sector was 'chaotic' and many taxi operators openly violated the rules and regulations in place, such as operating without a plate number.

The major investors in the industry had set aside USD133.33 miillion or SAR500 million in order to maintain and operate a taxi company. Al Qahtani said, "We were shocked by decisions that caused many investors to pull out from the sector."

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics