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According to a Market Research Report titled "Saudi Arabia Car Rental and Leasing Market Projections to 2020 - Religious Tourism and Short Term Car Rental to Stimulate Growth" by Ken Research

Saudi Arabia car rental market has accounted for a significant share in the Middle East car rental service. It has one of the most highly developed car rental service that involves substantial amount of consumer spending on car rental services. Saudi Arabia has large geographical area and is well connected by roads, thus car rental services are considered reasonable options for travelling purposes in Saudi Arabia. Majority of the population in Saudi Arabia has a higher car ownership and has majorly been driven by leisure tourism services that are inclusive of religious tourism.

Car sharing on the other hand majorly comprises of carpooling services that involves pooling a car with customers that travel through the same route or have the same destination. Car sharing is a niche market and has not witnessed preponderance in the past few years on account of higher car ownership in the country.

The car rental market is largely dependent on vehicle manufacturing and overall economic conditions in the new and used vehicle market, since these factors directly impact the cost of acquiring vehicles and the disposition value of vehicles.

The tourism industry in Saudi Arabia had witnessed an inclination in 2010. It has been noticed that the number of car rental fleets in the rental service has inclined over the years from 2010-2015. The number of rented passenger cars for longer duration has enhanced in the past few years due to which the car rental brands in the country have been forced to enhance its fleet size in the country.

Saudi Arabia car rental market has been broadly segmented on the basis of car leasing, short term car rental and Chauffeur driven car segment. Despite the growing demand on car rentals, it still remains highly vulnerable to risks where more than 20% individual customers do not abide by rental conditions, whether in terms of handing over cars at the deadline and payment or parking of cars at different locations. Thereby, the regulations have increased and this calls the corporate to demand cars from organized car rental companies.

The on-airport rental service commonly charges high rates as compared to the off airport segment. On-airport car rentals subjected to daily fees and taxes as opposed to off-airport car rental. Therefore, on-airport car rentals generate higher revenue as opposed to off-airport car rentals.

For more information on the market research report please refer to the below link:

• Lack of financial stability/ unstable job opportunities and continuous influx of tourists due to the presence of pilgrimage places such as Mecca and Medina has led to the rise in the number of car rental firms in Saudi Arabia.

• Best, Hanco, Budget, Hertz Corporation and Europcar have been the leading brands in the Saudi Arabia car rental and leasing market.

Ken Research announced its latest publication on “Saudi Arabia Car Rental and Leasing Market Outlook to 2020 - Religious Tourism and Short Term Car Rental to Stimulate Growth” which provides a comprehensive analysis of the Car Rental Market in Middle East. The report covers various aspects such as market size of Saudi Arabia car rental and leasing market on basis of revenues and fleet size, segmentation on the basis of Car Leasing, short term car rental and chauffeur driven car rental, on airport and off airport, regions, mode of booking, purpose of booking, and organizational structure for car rental market in Saudi Arabia. The report also provides insights on vehicle leasing market size and segmentation by industry verticals, term of contracts and vehicle type in Saudi Arabia. The report is useful for industry consultants and analysts, car rental companies and new players venturing in the market.

The share of Saudi Arabia is the largest within the entire car rental market in Middle East with reference to the overall revenues in 2015. Saudi Arabia car rental and leasing market has grown at a positive CAGR of 0.6% over the period, 2010-2015. The expected growth rests on a number of factors, including population growth, the growing numbers of pilgrims, Umrah performers and visiting businessmen coupled with the developmental plans experienced by the Kingdom in oil and nonoil sectors.

The car rental industry in Saudi Arabia has been dominated by the organized segment. Saudi Arabia car rental and leasing market has been majorly dominated by brands namely Best, Hanco, Budget, Avis, Hertz, Europcar and others. The market has been dominated by branded players due to widespread availability of different car variants and affordability in terms of pricing. Majority of the international tourists in the country prefer online car booking in advance. Therefore, the presence of branded players such as budget, thrifty and hertz allow international tourists to do prior booking as compared to the other local players. Branded players offer a variety of car types and have a larger fleet size as compared to the local players

The restrictive factor would only be the terrorist attacks which would restrain the growth of tourism and thus push a negative impact on the car rental industry. The three suicide attacks which occurred across Saudi Arabia, including one in Medina near the Prophet’s Mohammad’s Mosque, one in Jeddah and one at a Shiite mosque in Qatif in the Eastern Province in 2016 will make the market for car rental grow at a slower pace in the short run by reducing the tourism growth.

Saudi Arabia car rental and leasing market is one of the mature markets in the Middle East region with a consistent and steady growth rate. The market is driven by competitive pricing (in terms of profit margins), induction of innovative technology by organized players and increasingly investing in luxury cars to cater the demands of their customers. Projection for the future suggests that the market for car rental is expected to witness promising growth, with revenues is expected to mount to USD 745 million by 2020.

Key Topics Covered in the Report:

Saudi Arabia Car Rental and Leasing Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Business Segments
• Chauffeur driven on airport or off airport
• Booking method
• Car trips
• Major cities
• Organized- unorganized
• Car leasing by industry verticals, term of contract and car type

-          Trends and Development

-          Government Regulations

-          Traveler’s Profile by age and gender

-          Competition and Market Share

-          Future Outlook

-          Macro Economic Variables

Key Products Mentioned in the Report

Car Leasing

Short Term Car Rental

Chauffeur Driven Car Rental

Companies Covered in the Report

Budget

Hanco

Best Rent a Car

Avis

Hertz

Europcar

Diamond Lease

Auto Rent

Patriot Rent a Car

Super Price Rent a Car

Source: https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/south-africa-lubricant-market-report/42049-100.html

Related Reports:

India Self Drive Car Rental Market Outlook to 2020 - Rising Customer Aspirations and Easy Availability of Renting Options to Boost Future Growth

Europe Car Rental Industry Analysis to 2017 - Latvia, Belgium and Ukraine to Stimulate the Market Growth

India Car Rental Market Outlook to 2019 - Rising Online Booking to Drive the Future Growth

Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

The market research report by Ken Research titled “Middle East Car Rental and Leasing Market Outlook to 2020 - Augmentation in Qatar and Oman Coupled with Demand for Car Leasing to Shape Future” provides a comprehensive analysis of the Car Rental and Vehicle Leasing market in Middle East along with information on toll applications. The report covers various aspects such as market size of Middle East Car Rental market on basis of revenues and fleet size with in-depth analysis of UAE, Saudi Arabia, Kuwait, Oman, Egypt, Qatar, Bahrain and Jordan car rental markets. The report provides segmentation on the basis of Car Leasing, short term car rental and chauffeur driven car rental, by on-airport and off-airport, by regions, by mode of booking, by purpose of booking, and by organizational structure for car rental market. The report offers insights on car leasing market size and segmentation by industry verticals, term of contracts and vehicle type for car leasing market in UAE, Saudi Arabia, Kuwait, Oman, Egypt, Qatar, Bahrain and Jordan and segmentation of overall Middle east car rental market by geography and business segments. The report is useful for industry consultants and analysts, car rental companies and new players venturing in the market.

The Car Rental Market in Middle East will continue to grow at a considerable rate in the coming years. The market for car rental in Middle East has been driven by countries such as Oman, Qatar, Bahrain and Kuwait. Countries such as Saudi Arabia and UAE constitute for a major portion of car rental revenues across the Middle East region. The market for car rental in the country has been driven by the rise in demand for local players in Middle East although the market has been dominated by players such as Hertz Corporation, Sixt, Avis Corporation and Europcar. Local players predominant in the Middle East Car Rental Industry are Regency, Strong car rental, Auto rent, Market Rent- A- Car, Al- Mulla, Al Sayer and others.

Improving economic conditions, high proportion of expatriate population, stability, growth of tourism and investment in travel infrastructure has led to a growth in Middle East car rental industry. Over the past five years from 2010-2015, the car rental industry in Middle East has posted an average annual growth rate of 2.8% in revenues.

According to the research report, the revenues for the car rental market are expected to incline at a CAGR of around 7% during the period 2016-2020, with the revenues expected to be mounted to USD 1.7 billion by 2020. The fleet size of car rental market in the region is expected to reach around 400K by 2020.

The decline in expatriate population in various countries (majorly Kuwait) due to the enunciation of government regulation is likely to defy the long term car rental market in the region. FIFA world cup hosting by Qatar in 2022 and expansion of petroleum projects by Kuwait National Petroleum Corporation is likely to be one of the major drivers in the car rental market in the Middle East region.

“Larger and diversified fleet size with flexible renting options would help the competitors in the market to grow and incline their share in the market pie. This along with the presence of offices of various car rental firms across various airport terminals and other important locations in the region will help the augmentation of the revenues of car rental companies”, according to the Research Analyst, Ken Research.

Key Topics Covered in the Report:

Middle East Car Rental Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Geography
• Business Segments

-          Trends and Development

-          Porter’s Model

-          Government Regulations

-          Competition and Market Share

-          Company Strategies of Major Players in the Market

-          Future Outlook

-          Key Opportunities in Market

Saudi Arabia Car Rental Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Business Segments
• Chauffeur driven on airport or off airport
• Booking method
• Car trips
• Major cities
• Organized- unorganized
• Car leasing by industry verticals, term of contract and car type

-          Trends and Development

-          Government Regulations

-          Traveler’s Profile by age and gender

-          Competition and Market Share

-          Future Outlook

-          Macro Economic Variables

UAE Car Rental Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Business Segments
• Chauffeur driven on airport or off airport
• Booking method
• Car trips
• Major cities
• Organized- unorganized
• Car leasing by industry verticals, term of contract and car type

-          Trends and Development

-          Government Regulations

-          Traveler’s Profile by age and gender

-          Competition and Market Share

-          Future Outlook

-          Macro Economic Variables

Kuwait Car Rental Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Business Segments
• Chauffeur driven on airport or off airport
• Booking method
• Car trips
• Major cities
• Organized- unorganized
• Car leasing by industry verticals, term of contract and car type

-          Trends and Development

-          Government Regulations

-          Traveler’s Profile by age and gender

-          Competition and Market Share

-          Future Outlook

-          Macro Economic Variables

Egypt Car Rental Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Business Segments
• Chauffeur driven on airport or off airport
• Booking method
• Car trips
• Major cities
• Organized- unorganized
• Car leasing by industry verticals, term of contract and car type

-          Trends and Development

-          Government Regulations

-          Traveler’s Profile by age and gender

-          Competition and Market Share

-          Future Outlook

-          Macro Economic Variables

Oman Car Rental Market

-          Market Size by Revenue and Fleet Size

-          Market Segmentation by

• Business Segments
• Chauffeur driven on airport or off airport
• Booking method
• Car trips
• Major cities
• Organized- unorganized
• Car leasing by industry verticals, term of contract and car type

-          Trends and Development

-          Government Regulations

-          Traveler’s Profile by age and gender

-          Competition and Market Share

-          Future Outlook

-          Macro Economic Variables

-          Snapshot of Qatar , Bahrain and Jordan car rental markets and future outlook

Key Products Mentioned in the Report

Car Leasing

Short Term Car Rental

Chauffeur Driven Car Rental

Companies Covered in the Report

Hertz

Avis Hala

Thrifty

Europcar

Sixt

Budget

Hanco

Best

Autorent

Sixt

Al-Mullah

Al Sayer

Sefeena

Ousol 

Diamond Lease

Patriot Rent a Car

 Super Price Rent a Car

National

Payless

Kayak

Mark rent a car

For more information on the report, refer to below link:

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/middle-east-car-rental-leasing-market/42895-100.html

Related Reports:

India Self Drive Car Rental Market Outlook to 2020 - Rising Customer Aspirations and Easy Availability of Renting Options to Boost Future Growth

Europe Car Rental Industry Analysis to 2017 - Latvia, Belgium and Ukraine to Stimulate the Market Growth

India Car Rental Market Outlook to 2019 - Rising Online Booking to Drive the Future Growth