Saudi Arabia Car Rental & Leasing Services Market

Saudi Arabia Car Rental & Leasing Services Market is worth USD 1.5 Bn, fueled by rising tourism, urban growth, and infrastructure projects, with opportunities in EVs and e-commerce.

Region:Middle East

Author(s):Geetanshi

Product Code:KRAB5811

Pages:96

Published On:October 2025

About the Report

Base Year 2024

Saudi Arabia Car Rental & Leasing Services Market Overview

  • The Saudi Arabia Car Rental & Leasing Services Market is valued at USD 1.5 billion, based on a five-year historical analysis. This growth is primarily driven by increasing tourism, urbanization, and a growing expatriate population, which has led to a higher demand for flexible transportation options. The rise in business travel and the expansion of the logistics sector have also contributed significantly to the market's expansion.
  • Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their economic activities, tourism attractions, and infrastructure development. Riyadh, being the capital, serves as a central hub for business and government activities, while Jeddah is a gateway for pilgrims and tourists. Dammam, with its proximity to oil fields, attracts corporate clients, further enhancing the demand for car rental and leasing services.
  • In 2023, the Saudi government implemented regulations to enhance the car rental sector's transparency and consumer protection. This includes mandatory insurance coverage for rental vehicles and the establishment of a licensing framework for rental companies, aimed at ensuring safety and reliability in the services provided to consumers.
Saudi Arabia Car Rental & Leasing Services Market Size

Saudi Arabia Car Rental & Leasing Services Market Segmentation

By Type:The market is segmented into various types, including short-term rentals, long-term leases, luxury car rentals, commercial vehicle rentals, car sharing services, fleet management services, and others. Among these, short-term rentals are particularly popular due to the increasing number of tourists and business travelers seeking flexible transportation options. Long-term leases are also gaining traction among expatriates and corporate clients looking for cost-effective solutions for extended periods.

Saudi Arabia Car Rental & Leasing Services Market segmentation by Type.

By End-User:The end-user segmentation includes individual consumers, corporate clients, government agencies, tour operators, event organizers, and others. Individual consumers dominate the market, driven by the increasing trend of personal mobility and the growing number of tourists. Corporate clients also represent a significant portion, as businesses often require rental services for employee travel and logistics.

Saudi Arabia Car Rental & Leasing Services Market segmentation by End-User.

Saudi Arabia Car Rental & Leasing Services Market Competitive Landscape

The Saudi Arabia Car Rental & Leasing Services Market is characterized by a dynamic mix of regional and international players. Leading participants such as Al-Futtaim Motors, Budget Saudi Arabia, Hertz Saudi Arabia, Sixt Rent a Car, Avis Saudi Arabia, Europcar Saudi Arabia, Thrifty Car Rental, National Car Rental, Careem, Udrive, Yelo Car Rental, Limo Saudi Arabia, Al-Muqarram Car Rental, Al-Jazira Vehicles, Al-Mansour Car Rental contribute to innovation, geographic expansion, and service delivery in this space.

Al-Futtaim Motors

1955

Dubai, UAE

Budget Saudi Arabia

1990

Riyadh, Saudi Arabia

Hertz Saudi Arabia

1994

Jeddah, Saudi Arabia

Sixt Rent a Car

1912

Munich, Germany

Avis Saudi Arabia

1946

Riyadh, Saudi Arabia

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Revenue Growth Rate

Customer Retention Rate

Fleet Utilization Rate

Average Daily Rate (ADR)

Pricing Strategy

Saudi Arabia Car Rental & Leasing Services Market Industry Analysis

Growth Drivers

  • Increasing Tourism and Business Travel:In future, Saudi Arabia anticipates over 20 million international visitors, driven by initiatives like Vision 2030. The tourism sector is projected to contribute approximately SAR 100 billion to the economy, enhancing demand for car rental services. Business travel is also on the rise, with a 15% increase in corporate travel budgets, further fueling the need for flexible transportation options in urban areas and tourist hotspots.
  • Rising Urbanization and Population Growth:Saudi Arabia's urban population is expected to reach 36 million in future, representing a significant shift towards city living. This urbanization trend is accompanied by a 2.5% annual population growth rate, leading to increased demand for mobility solutions. As more residents seek convenient transportation, car rental services are becoming essential for both daily commutes and leisure activities, driving market expansion.
  • Expansion of Infrastructure Projects:The Saudi government is investing over SAR 1 trillion in infrastructure projects in future, including new roads, airports, and public transport systems. These developments are expected to enhance connectivity and accessibility, increasing the demand for car rental services. Improved infrastructure will facilitate easier travel for both residents and tourists, creating a favorable environment for the car rental and leasing market to thrive.

Market Challenges

  • Intense Competition Among Service Providers:The car rental market in Saudi Arabia is characterized by fierce competition, with over 100 registered companies vying for market share. This saturation leads to price wars, which can erode profit margins. In future, the average rental price is projected to decline by 5% due to competitive pressures, making it challenging for companies to maintain profitability while attracting customers.
  • Regulatory Compliance and Licensing Issues:Car rental companies face stringent regulatory requirements, including licensing and safety standards. In future, the government is expected to implement new regulations that could increase operational costs by up to 10%. Compliance with these regulations can be burdensome, particularly for smaller operators, potentially limiting their ability to compete effectively in the market.

Saudi Arabia Car Rental & Leasing Services Market Future Outlook

The future of the car rental and leasing market in Saudi Arabia appears promising, driven by ongoing urbanization and a growing tourism sector. As infrastructure projects continue to unfold, the demand for rental services is expected to rise significantly. Additionally, the integration of technology and digital platforms will enhance customer experiences, making rentals more accessible. Companies that adapt to these trends and focus on sustainability will likely capture a larger share of the market, positioning themselves for long-term success.

Market Opportunities

  • Growth in E-commerce and Delivery Services:The rise of e-commerce in Saudi Arabia, projected to reach SAR 50 billion in future, presents a significant opportunity for car rental services. Companies can cater to delivery needs by offering vehicles tailored for logistics, thus tapping into a growing market segment that requires reliable transportation solutions for goods.
  • Adoption of Electric Vehicles in Rental Fleets:With the Saudi government aiming for 30% of vehicles to be electric by 2030, car rental companies have a unique opportunity to integrate electric vehicles into their fleets. This shift not only aligns with sustainability goals but also attracts environmentally conscious consumers, potentially increasing market share and enhancing brand reputation.

Scope of the Report

SegmentSub-Segments
By Type

Short-term rentals

Long-term leases

Luxury car rentals

Commercial vehicle rentals

Car sharing services

Fleet management services

Others

By End-User

Individual consumers

Corporate clients

Government agencies

Tour operators

Event organizers

Others

By Vehicle Type

Economy cars

SUVs

Vans

Trucks

Electric vehicles

Others

By Rental Duration

Daily rentals

Weekly rentals

Monthly rentals

Annual leases

By Distribution Channel

Online bookings

Offline bookings

Travel agency partnerships

Corporate contracts

By Payment Model

Pay-per-use

Subscription-based

Prepaid rentals

Postpaid rentals

By Region

Central Region

Eastern Region

Western Region

Southern Region

Northern Region

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Saudi Arabian Monetary Authority, Ministry of Transport)

Automobile Manufacturers

Fleet Management Companies

Insurance Providers

Tourism and Hospitality Companies

Logistics and Supply Chain Companies

Real Estate Developers

Players Mentioned in the Report:

Al-Futtaim Motors

Budget Saudi Arabia

Hertz Saudi Arabia

Sixt Rent a Car

Avis Saudi Arabia

Europcar Saudi Arabia

Thrifty Car Rental

National Car Rental

Careem

Udrive

Yelo Car Rental

Limo Saudi Arabia

Al-Muqarram Car Rental

Al-Jazira Vehicles

Al-Mansour Car Rental

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Saudi Arabia Car Rental & Leasing Services Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Saudi Arabia Car Rental & Leasing Services Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Saudi Arabia Car Rental & Leasing Services Market Analysis

3.1 Growth Drivers

3.1.1 Increasing tourism and business travel
3.1.2 Rising urbanization and population growth
3.1.3 Expansion of infrastructure projects
3.1.4 Growing demand for flexible mobility solutions

3.2 Market Challenges

3.2.1 Intense competition among service providers
3.2.2 Regulatory compliance and licensing issues
3.2.3 Fluctuating fuel prices
3.2.4 Economic fluctuations affecting consumer spending

3.3 Market Opportunities

3.3.1 Growth in e-commerce and delivery services
3.3.2 Adoption of electric vehicles in rental fleets
3.3.3 Partnerships with travel agencies and hotels
3.3.4 Expansion into underserved regions

3.4 Market Trends

3.4.1 Increasing digitalization of rental services
3.4.2 Shift towards subscription-based rental models
3.4.3 Focus on sustainability and eco-friendly options
3.4.4 Integration of technology for enhanced customer experience

3.5 Government Regulation

3.5.1 Licensing requirements for car rental companies
3.5.2 Safety and insurance regulations
3.5.3 Environmental regulations for vehicle emissions
3.5.4 Consumer protection laws in rental agreements

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Saudi Arabia Car Rental & Leasing Services Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Saudi Arabia Car Rental & Leasing Services Market Segmentation

8.1 By Type

8.1.1 Short-term rentals
8.1.2 Long-term leases
8.1.3 Luxury car rentals
8.1.4 Commercial vehicle rentals
8.1.5 Car sharing services
8.1.6 Fleet management services
8.1.7 Others

8.2 By End-User

8.2.1 Individual consumers
8.2.2 Corporate clients
8.2.3 Government agencies
8.2.4 Tour operators
8.2.5 Event organizers
8.2.6 Others

8.3 By Vehicle Type

8.3.1 Economy cars
8.3.2 SUVs
8.3.3 Vans
8.3.4 Trucks
8.3.5 Electric vehicles
8.3.6 Others

8.4 By Rental Duration

8.4.1 Daily rentals
8.4.2 Weekly rentals
8.4.3 Monthly rentals
8.4.4 Annual leases

8.5 By Distribution Channel

8.5.1 Online bookings
8.5.2 Offline bookings
8.5.3 Travel agency partnerships
8.5.4 Corporate contracts

8.6 By Payment Model

8.6.1 Pay-per-use
8.6.2 Subscription-based
8.6.3 Prepaid rentals
8.6.4 Postpaid rentals

8.7 By Region

8.7.1 Central Region
8.7.2 Eastern Region
8.7.3 Western Region
8.7.4 Southern Region
8.7.5 Northern Region
8.7.6 Others

9. Saudi Arabia Car Rental & Leasing Services Market Competitive Analysis

9.1 Market Share of Key Players(Micro, Small, Medium, Large Enterprises)

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Revenue Growth Rate
9.2.4 Customer Retention Rate
9.2.5 Fleet Utilization Rate
9.2.6 Average Daily Rate (ADR)
9.2.7 Pricing Strategy
9.2.8 Market Penetration Rate
9.2.9 Customer Satisfaction Score
9.2.10 Operational Efficiency Ratio

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis(By Class and Payload)

9.5 Detailed Profile of Major Companies

9.5.1 Al-Futtaim Motors
9.5.2 Budget Saudi Arabia
9.5.3 Hertz Saudi Arabia
9.5.4 Sixt Rent a Car
9.5.5 Avis Saudi Arabia
9.5.6 Europcar Saudi Arabia
9.5.7 Thrifty Car Rental
9.5.8 National Car Rental
9.5.9 Careem
9.5.10 Udrive
9.5.11 Yelo Car Rental
9.5.12 Limo Saudi Arabia
9.5.13 Al-Muqarram Car Rental
9.5.14 Al-Jazira Vehicles
9.5.15 Al-Mansour Car Rental

10. Saudi Arabia Car Rental & Leasing Services Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Tourism
10.1.2 Ministry of Transport
10.1.3 Ministry of Interior
10.1.4 Ministry of Finance

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Corporate travel budgets
10.2.2 Investment in fleet expansion
10.2.3 Spending on technology integration

10.3 Pain Point Analysis by End-User Category

10.3.1 High rental costs
10.3.2 Limited vehicle availability
10.3.3 Inconsistent service quality

10.4 User Readiness for Adoption

10.4.1 Awareness of rental options
10.4.2 Acceptance of digital platforms
10.4.3 Willingness to adopt new models

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Cost savings analysis
10.5.2 User satisfaction metrics
10.5.3 Opportunities for upselling

11. Saudi Arabia Car Rental & Leasing Services Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market gaps identification

1.2 Value proposition development

1.3 Revenue model exploration

1.4 Customer segmentation analysis

1.5 Competitive landscape overview

1.6 Key partnerships identification

1.7 Operational framework design


2. Marketing and Positioning Recommendations

2.1 Branding strategies

2.2 Product USPs

2.3 Target audience definition

2.4 Communication channels selection

2.5 Promotional tactics

2.6 Customer engagement strategies


3. Distribution Plan

3.1 Urban retail strategies

3.2 Rural NGO tie-ups

3.3 Online vs offline distribution

3.4 Partnership opportunities

3.5 Logistics and supply chain considerations


4. Channel & Pricing Gaps

4.1 Underserved routes

4.2 Pricing bands analysis

4.3 Competitor pricing comparison

4.4 Customer willingness to pay

4.5 Dynamic pricing strategies


5. Unmet Demand & Latent Needs

5.1 Category gaps identification

5.2 Consumer segments analysis

5.3 Emerging trends exploration

5.4 Customer feedback integration


6. Customer Relationship

6.1 Loyalty programs design

6.2 After-sales service strategies

6.3 Customer feedback mechanisms

6.4 Relationship management tools


7. Value Proposition

7.1 Sustainability initiatives

7.2 Integrated supply chains

7.3 Customer-centric offerings

7.4 Competitive advantages


8. Key Activities

8.1 Regulatory compliance

8.2 Branding efforts

8.3 Distribution setup

8.4 Training and development


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product mix considerations
9.1.2 Pricing band analysis
9.1.3 Packaging strategies

9.2 Export Entry Strategy

9.2.1 Target countries identification
9.2.2 Compliance roadmap development

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital requirements analysis

11.2 Timelines for market entry


12. Control vs Risk Trade-Off

12.1 Ownership considerations

12.2 Partnerships evaluation


13. Profitability Outlook

13.1 Breakeven analysis

13.2 Long-term sustainability strategies


14. Potential Partner List

14.1 Distributors identification

14.2 Joint Ventures opportunities

14.3 Acquisition targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity timelines
15.2.2 Milestone tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from government agencies and trade associations in Saudi Arabia
  • Review of market trends and forecasts from reputable market research publications
  • Examination of economic indicators and automotive sector performance metrics

Primary Research

  • Interviews with executives from leading car rental and leasing companies in Saudi Arabia
  • Surveys targeting customers to understand preferences and usage patterns
  • Focus groups with industry stakeholders, including fleet managers and rental service operators

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including financial reports and market surveys
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks conducted through expert panel reviews and feedback sessions

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total market size based on national vehicle registration statistics and rental penetration rates
  • Segmentation of the market by vehicle type, rental duration, and customer demographics
  • Incorporation of macroeconomic factors such as GDP growth and tourism influx

Bottom-up Modeling

  • Collection of data on fleet sizes and utilization rates from major rental companies
  • Analysis of pricing strategies and revenue models employed by car rental firms
  • Calculation of market size based on average rental rates multiplied by estimated rental days

Forecasting & Scenario Analysis

  • Development of forecasting models using historical data and market growth drivers
  • Scenario analysis based on potential regulatory changes and shifts in consumer behavior
  • Creation of baseline, optimistic, and pessimistic forecasts through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Corporate Car Leasing100Corporate Fleet Managers, Procurement Officers
Tourism and Leisure Rentals80Travel Agency Managers, Tour Operators
Short-term Rental Services120Rental Service Managers, Customer Experience Leads
Long-term Leasing Solutions90Business Development Managers, Financial Analysts
Consumer Rental Preferences150End-users, Frequent Renters, Casual Users

Frequently Asked Questions

What is the current value of the Saudi Arabia Car Rental & Leasing Services Market?

The Saudi Arabia Car Rental & Leasing Services Market is valued at approximately USD 1.5 billion, driven by factors such as increasing tourism, urbanization, and a growing expatriate population seeking flexible transportation options.

Which cities dominate the car rental market in Saudi Arabia?

What regulations has the Saudi government implemented for car rental services?

What types of car rental services are available in Saudi Arabia?

Other Adjacent Reports

UAE Automotive Leasing Market

Vietnam Ride-Sharing Services Market

Belgium Tourism Services Market

Egypt Logistics Transportation Market

UAE Fleet Management MarketMiddle East Electric Vehicle Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

KSA Vehicle Insurance Market

Qatar Automotive Repair Market

India Corporate Travel Market Outlook to 2030

Singapore E-Commerce Delivery Market

Why Buy From Us?

Refine Robust Result (RRR) Framework
Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follow Robust, Refine and Result (RRR) methodology. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents' facts and opinions, and Result for presenting data with story.

Our Reach Is Unmatched
Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm
Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions
More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust
Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support
Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Clients Choose Us?

400000+
Reports in repository
150+
Consulting projects a year
100+
Analysts
8000+
Client Queries in 2022