JEDDAH, 27 February — The Ministry of Communications has ordered the closure of several taxi companies recently because of their failure to meet Saudization requirements. Some of the companies have also incurred huge losses.
Muhammad Tawfiq, director of transportation at the ministry's Makkah Region branch, said applications for taxi licenses from companies and individuals were still being accepted as viability studies confirm high market demand. The official denied rumors that the ministry stopped issuing licenses for taxi companies.
He said there was a steady increase in the number of taxi cars operated by individuals and establishments. However, several companies have quit the market due to accumulating losses, he added.
Tawfiq put Saudization rate achieved by 270 tax companies, which operate a total of 13,000 cars around the Kingdom, at 25 percent. There are 5,000 taxis owned by Saudi individuals in Jeddah city.
