Saudi Arabia Car Rental and Leasing Market Size Likely to Grow at a CAGR of 8.29% By 2034

Market Size and Growth

The Saudi Arabia Car Rental and Leasing Market size is forecast to grow at a CAGR of 8.29% from 2025 to 2034. The market is expected to grow from USD 2.58 Billion in 2025 to USD 5.59 Billion by 2034.

Overview

The Saudi Arabian car rental and leasing market is experiencing continued growth fuelled by increased business travel, a rapidly expanding tourism industry, and government diversification of the economy under Vision 2030. The increasing necessity for urban mobility, digitized booking platforms, and the outsourcing of corporate fleets will generate attractive opportunities for rental operators and leasing service providers during the forecast period.

Key Trends & Drivers

• Expanding Business & Leisure Travel: Rental car demand continues to strengthen in Saudi Arabia’s main cities of Riyadh, Jeddah, and Dammam due to the volume of business travel and government mobility demands, as well as the usual level of expat activity. As is the nature of religious tourism-Hajj and Umrah- coupled with increased domestic leisure tourism, there are great seasonal peaks in short-term rentals to support eventual year-round demand growth.

• Vision 2030 Infrastructure & Mobility Push: Demand for corporate leasing and fleet rentals is certainly increasing due to the mega projects in NEOM, the Red Sea Project, and broad urban expansions throughout Vision 2030. Contractors, consultants, and project staff will have various mobility needs throughout construction and development, and that is creating opportunities for the operators, especially for long-term leasing, which businesses and project teams need in the Kingdom.

• Digitization & Online Booking: The increase in cell phone app usage, combined with public growth in digital aggregator platforms, is changing how consumers will book rental cars in Saudi Arabia. The online channel will account for an increasing share of rentals as tech-savvy travellers expect immediate access to rental vehicles, clear and direct pricing, and convenience with limiting direct contact. It is forcing traditional operators to improve their booking systems and forcing operational change in multi-offering platforms that are more user-friendly for consumers.

Report Scope

SWOT Analysis

• Strengths: Saudi Arabia car rental and leasing market benefits from its geographical differentiator in being a travel and business center for the Middle East. Highways and urban infrastructure are efficient with established demand from corporate travellers, expatriates, and millions of religious pilgrims, ensuring a level of market resilience through challenging times. Other established car rental companies use fleet management systems, booking systems, and broad branch network connections to maintain efficient operational independence, so established operators can deliver quality service and service standards better than newer or less organized competitors and maintain service levels.

• Weaknesses: The most significant weakness is the cost of operation, given the effect of the extremities of the Saudi environment on vehicle wear and tear as a factor of sand, distances, and rough surface driving. Many customers are contrarian, notorious for their focus on low daily rates and avoidance of premium extras, meaning car rental operators were limited and incapable of price testing. The seasonal structure of the car rental process and the required period of peak travel periods in a travel season provide another challenge for ongoing and consistent revenue generation for organizations that do not integrate business or long-term leasing into their strategic adaptation.

• Opportunities: Several strong opportunities exist for rental companies to spearhead Saudi Arabia’s transition toward more sustainable mobility options by investing in electric and hybrid vehicles (EVs) to add to their rental fleet. Expanding to small cities, like Abha or Tabuk, will create new customer opportunities that are not centred on the major conglomerates. Partnering with airlines, hotels, and travel applications can significantly aid in improving rental booking volumes. Each may offer lower prices through partnerships, collect more customer data, and expand their loyalty programs. Upgrades in technology, including implementing artificial intelligence for fleet control and smart pricing, can also help rental operators control costs to provide a better customer experience.

• Threats: The market faces ever-increasing competition from either emerging competitors or locally developed ride-hailing apps that also offer a more convenient and lower price compared to a daily rental vehicle. Under new regulations, for example, such as more stringent emissions and additional taxes, could also add cost to rental operators. There are even broader geopolitical issues. For example, regional tensions or instability could have an overall negative impact on increasing tourist and subsequently corporate demand for their rentals. Companies that don’t embrace new technologies, digital channels, or a green fleet will likely quickly lose or fall behind their neighbours that can adapt or invest.

List of the prominent players in the Saudi Arabia Car Rental and Leasing Market:

• Hertz Corporation
• Avis Budget Group Inc.
• Sixt SE
• Hanco Automotive
• Key Car Rental Company
• Lumi Car Rentals
• SFL (Saudi-based operator)
• Theeb Rent a Car
• Enterprise Holdings Inc.
• Budget Rent a Car
• National Car Rental
• Yelo (Alwefaq Transportation Solutions)
• Bin Hadi Europcar International S.A.S.U.
• Samara (Alturki Holding)
• Zaatar Car Rental
• Others

The Saudi Arabia Car Rental and Leasing Market is segmented as follows:

By Type

• Car Rental
• Car Leasing

By Propulsion

• Internal Combustion Engine (ICE) vehicles
• Electric vehicles

By Vehicle Type

• Hatchback
• Sedan
• Multi‑Utility Vehicle (MUV) / SUV

By Booking Mode

• Online
• Offline

By End‑Use

• Individual customers
• Corporate clients