Car Leasing Companies in Saudi Arabia Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Saudi Arabia Car Rental And Leasing Market Analysis

The Saudi Arabia Car Rental And Leasing Market size is estimated at USD 2.51 billion in 2025, and is expected to reach USD 3.90 billion by 2030, at a CAGR of 9.21% during the forecast period (2025-2030).

The Saudi Arabian car rental and leasing industry is experiencing robust growth driven by the country's expanding tourism sector and business landscape. The tourism industry has emerged as a significant contributor to market growth, with the country generating substantial revenue of over USD 3,200 million in 2022 from travel and tourism activities. The increasing influx of visitors to holy sites like Mecca and Medina, particularly during festivals such as Eid Al-Fitr and Eid Al-Adha, has created sustained demand for rental vehicles. This growth is further supported by the establishment of new corporate offices, as businesses increasingly opt for fleet leasing solutions rather than outright purchases for their transportation needs.

The market is witnessing a significant digital transformation, with service providers increasingly adopting technology-driven solutions to enhance customer experience. With internet penetration reaching 95.7% in Saudi Arabia, there has been a substantial shift toward online and mobile booking platforms. Major industry players are investing in mobile applications and web platforms to streamline the booking process and offer additional features such as real-time vehicle tracking, digital contracts, and contactless payments. For instance, in August 2021, Lumi launched a new mobile application and web platform to provide a seamless mobility services experience for its customers.

The industry is characterized by aggressive fleet management and modernization initiatives by major operators. Leading companies are actively expanding their fleets with newer models and diverse vehicle options to meet evolving customer preferences. In 2023, several major rental companies collectively maintained a fleet of over 100,000 vehicles across the kingdom, with many operators ensuring that 80% of their rental fleet is under two years old to maintain service quality and reduce maintenance costs. Companies are also incorporating premium and luxury vehicles into their fleets to cater to the growing demand for high-end rental options.

Strategic partnerships and market consolidation have become prominent trends shaping the industry landscape. In January 2024, ekar activated car subscription services within its Self-drive Super App across Saudi Arabia through partnerships with major car rental companies in the Kingdom. The Saudi Transport General Authority's implementation of unified electronic contracts for car rental firms has further standardized operations and improved transparency in the sector. Additionally, rental companies are forming alliances with automotive manufacturers, hotels, airlines, and technology providers to enhance their service offerings and expand their market presence.

Saudi Arabia Car Rental And Leasing Market Trends

Growing Tourism and Business Activities

The surge in tourism and business activities in Saudi Arabia has emerged as a significant driver for the airport car rental and leasing market. The Saudi Arabian General Investment Authority's accelerated efforts through the Invest Saudi brand to promote the Kingdom's competitive business environment have resulted in substantial growth in corporate presence. This expansion in business activities has led to increased demand for corporate mobility solutions, particularly from industries such as IT, logistics, construction, and oil and gas sectors, with the logistics industry claiming the largest share of demand, followed by FMCG and e-commerce industries.

The transformation of Saudi Arabia's tourism landscape has created new opportunities for airport car rental and leasing services. The government's initiatives to boost investment in the country have attracted numerous international companies, leading to a rising population of office commuters and business travelers requiring reliable transportation solutions. This trend is further supported by the increasing number of companies establishing their presence in strategic locations across the Kingdom, creating a steady demand for both short-term rentals and long-term leasing solutions for corporate clients and executives traveling within the country.

Increasing Online Booking Penetration

The digital transformation of the car rental and leasing industry has become a crucial market driver, with online bookings showing significant growth in recent years. As of 2023, approximately 54% of car rides were booked through online platforms, compared to 46% offline bookings, demonstrating a clear shift in consumer preferences towards digital solutions. This trend is supported by the increasing internet penetration in Saudi Arabia and the growing preference among young users for making travel arrangements through online and mobile platforms.

The advancement in technology has enhanced the functionality of online booking platforms, offering additional features such as real-time vehicle monitoring, performance tracking, and maintenance scheduling. In July 2023, Lucid's introduction of its Air model for lease in the Saudi Arabian market through various leasing companies, with options starting from USD 995 per month for 36 months, exemplifies how digital platforms are facilitating easier access to luxury car rental options. The integration of advanced booking features, such as document verification, e-signing contracts, and cashless transactions, has provided car rental companies with a competitive edge while meeting the evolving needs of tech-savvy consumers.

Rising Demand for SUVs and Premium Vehicles

The increasing preference for SUVs and premium vehicles has emerged as a significant driver in the Saudi Arabian car rental and leasing market. In 2022, SUV unit sales reached 224.3 thousand units, reflecting strong consumer demand for larger, more versatile vehicles. This trend is particularly evident among tourists and families who prefer SUVs for their superior passenger capacity and luggage space, leading rental companies to continuously update their fleets with the latest SUV models to maintain competitiveness.

The premium vehicle segment has also witnessed substantial growth, driven by the increasing number of young Saudi consumers opting for luxury brands. The recent relaxation of regulations regarding 7-passenger SUV purchases for expats has created new opportunities in the market, while rental companies are responding by diversifying their premium vehicle offerings. This trend is further supported by innovative leasing solutions, such as subscription-based services and flexible rental terms, making luxury car rental more accessible to a broader customer base while providing rental companies with opportunities to expand their high-end vehicle portfolios.

Government Support and Regulations

The Saudi government's proactive approach in implementing supportive regulations and initiatives has become a crucial driver for the car rental and leasing market. The implementation of the unified electronic contract system through the Naql portal has streamlined the rental process while protecting the rights of both lessors and lessees. This digital transformation initiative, aligned with Saudi Vision 2030, has created a more transparent and efficient operating environment for car rental companies while building consumer confidence in the rental and leasing services.

The government's commitment to technological innovation and digital transformation has fostered an environment conducive to the growth of modern rental services. The Saudi Transport General Authority's initiatives to regulate the car rental sector have led to enhanced service quality and operational efficiency. These regulatory frameworks have encouraged rental companies to adopt advanced technologies and innovative business models, such as app-based services and connected fleet management systems, contributing to the overall modernization of the industry while ensuring consumer protection and service reliability. Furthermore, the introduction of electric vehicle rental options aligns with the government's sustainability goals, providing consumers with environmentally friendly transportation choices.

Segment Analysis: By Type

Car Leasing Segment in Saudi Arabia Car Rental and Leasing Market

The personal car leasing segment dominates the Saudi Arabia car rental and leasing market, holding approximately 58% market share in 2024. This segment's prominence is primarily driven by strong corporate demand, especially from industries such as IT, logistics, construction, and oil and gas sectors, where there is considerable demand for equipment transportation and employee mobility. The logistics industry maintains the largest share in terms of demand, followed by the FMCG and e-commerce industries. Over 80% of car leasing contracts are typically signed for an average of 36 months, with government agencies being particularly price-sensitive customers. The segment's growth is further supported by the increasing number of companies setting up businesses in Saudi Arabia, driven by government initiatives to boost investment in the country through the Saudi Arabian General Investment Authority (SAGIA).

Car Rental Segment in Saudi Arabia Car Rental and Leasing Market

The car rental segment is projected to be the fastest-growing segment in the Saudi Arabia car rental and leasing market, with an expected growth rate of approximately 10% during 2024-2029. This robust growth is driven by increasing demand from both tourists and locals for daily commuting purposes. The segment's expansion is supported by the growing number of companies establishing operations in Saudi Arabia, leading to an increased population of office workers requiring corporate car rental services. Market players are actively expanding their fleet sizes with the latest models, entering new partnerships, and raising funds through investors to capture the growing market opportunity. The shift in consumer preferences toward a modernized lifestyle from traditional ones, coupled with their inclination towards technologically advanced personal vehicles and increasing disposable income, are major factors propelling the growth of car rental services in the country.

Segment Analysis: By Vehicle Type

Economy/Budget Segment in Saudi Arabia Car Rental and Leasing Market

The Economy/Budget segment dominates the Saudi Arabia car rental and leasing market, holding approximately 81% market share in 2024. This segment's prominence is driven by its popularity among local residents, pilgrimage visitors, and office commuters who prioritize economic benefits and cost savings on maintenance. The segment has shown remarkable resilience and growth through strategic expansions by major rental companies and the introduction of innovative rental solutions. Companies are actively expanding their economy vehicle fleets with popular brands like Hyundai, Toyota, Nissan, Ford, Kia, and Chevrolet to meet the growing demand. The segment's strong performance is further supported by the increasing number of corporate clients and the rising trend of budget-conscious tourism in Saudi Arabia.

Premium/Luxury Segment in Saudi Arabia Car Rental and Leasing Market

The Premium/Luxury segment is emerging as the fastest-growing segment in the Saudi Arabian car rental and leasing market, projected to grow at approximately 9% during 2024-2029. This growth is primarily driven by the increasing demand for luxury vehicles among young Saudi consumers who prefer driving premium brands like Lexus, Porsche, and Rolls Royce. The segment's expansion is further supported by the growing number of international businesses establishing their presence in Saudi Arabia, creating a steady demand for luxury vehicle rentals. Rental companies are actively enhancing their premium offerings through strategic partnerships with luxury car manufacturers and introducing attractive membership programs for high-end customers. The segment's growth is also bolstered by the rising number of affluent tourists and business travelers seeking premium mobility solutions during their stay in the Kingdom.

Segment Analysis: By Vehicle Body Style

Sedan Segment in Saudi Arabia Car Rental and Leasing Market

The sedan segment continues to dominate the Saudi Arabia car rental and leasing market, holding approximately 51% market share in 2024. This significant market position is primarily driven by strong corporate demand, especially from business travelers and executives who prefer sedans for city transportation. The segment's popularity is further enhanced by rental companies regularly updating their sedan fleets with the latest models from premium brands like Mercedes and BMW, as well as economic options from manufacturers such as Hyundai, Toyota, Nissan, Ford, and Kia. Additionally, the increasing number of international business travelers and the growing corporate sector in Saudi Arabia have contributed substantially to maintaining sedans as the preferred choice in the car rental and leasing market.

SUV Segment in Saudi Arabia Car Rental and Leasing Market

The Sport Utility Vehicle (SUV) segment is emerging as the fastest-growing category in the Saudi Arabian car rental and leasing market, projected to grow at approximately 9% during 2024-2029. This robust growth is primarily attributed to increasing family tourism and the growing preference for SUVs due to their spacious interiors and luggage capacity. The segment's expansion is further supported by rental companies continuously diversifying their SUV offerings, ranging from compact crossovers to premium luxury SUVs, catering to various customer preferences and budget requirements. The trend toward SUV rentals is also being driven by the country's developing tourism infrastructure and the rising number of leisure travelers who prefer versatile vehicles for both city commuting and outdoor adventures.

Remaining Segments in Vehicle Body Style Market

The hatchback segment represents an important component of the Saudi Arabian car rental and leasing market, particularly appealing to budget-conscious customers and those seeking vehicles for short-term urban commuting. Hatchbacks are increasingly popular among young professionals and tourists looking for economical and easily maneuverable vehicles for city driving. Rental companies are maintaining a diverse fleet of hatchbacks, offering models from various manufacturers to cater to different customer preferences. The segment's value proposition centers on fuel efficiency, easier parking in urban areas, and lower rental rates compared to larger vehicle categories, making it an attractive option for cost-sensitive customers and those primarily requiring vehicles for city use.

Segment Analysis: By Booking Type

Online Booking Segment in Saudi Arabia Car Rental and Leasing Market

The online booking segment has emerged as the dominant force in the Saudi Arabia car rental and leasing market, commanding approximately 55% of the total market share in 2024. This segment's prominence is driven by the increasing penetration of smartphones and internet connectivity across the kingdom, with a particular focus on young users who prefer making travel bookings through digital platforms. The segment's growth is further bolstered by technological advancements that enable features such as real-time vehicle monitoring, performance tracking, and maintenance scheduling. Online booking platforms have evolved to offer comprehensive services including document verification, detailed vehicle information, flexible pickup and drop-off options, e-signing of contracts, and cashless transactions. The Saudi government's initiatives, such as the implementation of unified electronic contracts through the Naql portal, have also contributed to the segment's expansion. Additionally, the rise of car-sharing applications and subscription-based services has further accelerated the adoption of online booking channels, making it the fastest-growing segment with a projected growth rate of nearly 12% from 2024 to 2029.

Offline Booking Segment in Saudi Arabia Car Rental and Leasing Market

The offline booking segment continues to maintain a significant presence in the Saudi Arabia car rental and leasing market, particularly serving corporate travelers and customers seeking long-term rental arrangements. This traditional channel remains relevant due to its ability to provide personalized service and face-to-face interactions, which many customers value when making substantial rental commitments. The segment is particularly strong at airport locations, where many companies maintain physical counters to serve arriving travelers. Offline bookings are preferred for specialized services such as limousine rentals and corporate fleet arrangements, where detailed discussions and customized packages are often required. The segment benefits from its established network of physical locations across major cities and transportation hubs, making it accessible to customers who prefer direct interactions. Many rental companies are maintaining a hybrid approach, offering both online and offline services to cater to diverse customer preferences and ensure maximum market coverage.