The Saudi Arabia car rental and leasing market was valued at USD 2.75 Billion in 2025. Enhanced fleet efficiency through AI-driven telematics is enabling Saudi firms to reduce fuel consumption, reducing operational costs while attracting sustainability-focused enterprise clients. As a result, the market is expected to grow at a CAGR of 9.20% during the forecast period of 2026-2035 to reach a value of USD 6.63 Billion by 2035.
Growth in the market is driven by government initiatives and rising digitalisation. For example, Saudi Arabia's Vision 2030 smart transportation projects call for 15% of Riyadh's public cars to be autonomous by 2030. This has opened fresh opportunities for B2B operators to expand fleets and offer long-term leasing services, especially in cities like Riyadh and Jeddah where corporate mobility demand is scaling up.
Furthermore, recent figures from the Saudi Transport General Authority indicate a 31% rise in digital vehicle registrations in 2024. Meanwhile, initiatives like the Public Investment Fund’s (PIF) support of Seera Group’s Lumi car rental arm highlight the strategic shift toward structured, tech-driven fleets, accelerating the Saudi Arabia car rental and leasing market value. Lumi reported a 7% YoY revenue growth in Q1 2025, indicating growing corporate demand for outsourced vehicle solutions. Additionally, the government is encouraging green mobility, offering incentives for EV fleet adoption in the leasing sector.
The shift toward integrated mobility platforms is further reshaping the market dynamics. For instance, companies like ekar and Telgani are bundling telematics, app integration, and fleet optimisation analytics. These technology offerings are reshaping customer expectations and presenting differentiation opportunities for suppliers. These factors are aligning well with tourism growth, logistics expansion, and last-mile delivery demand, turning the market into a critical segment of Saudi Arabia’s transport ecosystem.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
9.2%
Value in USD Billion
2026-2035
*this image is indicative*
Fleet owners are integrating telematics for real-time tracking, driver behaviour monitoring, and predictive maintenance. Companies in the Saudi Arabia car rental and leasing industry like Aljomaih Automotive and Yelo are adopting IoT-driven systems to increase uptime and lower operational costs. The Transport General Authority supports such innovations by offering subsidies for telematics installation under its fleet modernisation programme. This enables corporate clients to have better control and insight into vehicle performance, making data-backed leasing decisions.
The push for sustainable transport is becoming a tangible motivator for the Saudi Arabia car rental and leasing market revenue. In March 2023, the Saudi Green Initiative began providing tax incentives for businesses leasing electric or hybrid vehicles. Aramco’s corporate fleet leasing now includes hybrid sedans for executive transport. Meanwhile, Lumi and Seera have introduced EV-specific leasing plans tailored for logistics and hospitality partners. The government’s USD 2.6 billion pledge to boost EV infrastructure is further propelling this growth. In response, many leasing firms are restructuring portfolios to include EV maintenance services, battery swapping options, and training modules, turning sustainability into a complete value-added service for B2B clients.
Large organisations across banking, construction, and oil sectors in Saudi Arabia are shifting from owning fleets to leasing them. Firms like Budget Saudi are designing bespoke leasing contracts, while others are spanning contracts for 3 to 5 years, with embedded services like insurance, servicing, and GPS tracking, accelerating the Saudi Arabia car rental and leasing market dynamics. The appeal lies in fixed monthly costs and reduced asset management responsibilities. This model also improves operational agility, allows easier vehicle upgrades, and aligns well with Vision 2030’s efficiency goals, boosting the demand among both corporate and semi-government institutions in the region.
Digital-first rental platforms such as Telgani and ekar are gaining massive traction in the market, particularly in the B2B domain. These apps allow corporate clients to compare vendors, monitor usage, and integrate invoicing seamlessly. This has fuelled multi-city expansion of platforms offering corporate dashboards, AI-based vehicle allocation, and usage analytics. These tools are proving highly attractive for firms with shifting mobility needs, from event management to inter-branch staff transfers, boosting adoption of on-demand rentals with data-led decision-making.
The kingdom’s focus on tourism, with 150 million annual visitors targeted by 2030, is driving seasonal demand in the Saudi Arabia car rental and leasing market. The launch of mega events like Riyadh Season and Diriyah Gate has led firms such as Sixt and Yelo to create seasonal corporate rental packages. These are tailored for hotels, tour agencies, and event logistics providers needing scalable transport during peak months. Notably, the Ministry of Tourism’s recent licensing relaxations for mobility providers in special zones has made it easier for companies to deploy short-term fleets without extensive paperwork.
The EMR’s report titled “Saudi Arabia Car Rental and Leasing Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Key Insight: As per the market report, the car rental category benefits from growing travel demand and evolving consumer behaviours favouring flexibility, while leasing thrives on fleet demand and operational cost-efficiency for businesses. Rental is more suited to transient users, both tourists and short-term business visitors, whereas leasing appeals to long-term users and corporations focusing on streamlined mobility management. Innovative models such as digital subscriptions, AI-driven fleet management, and data-centric route optimisation are transforming both categories.
Market Breakup by Propulsion
Key Insight: ICE vehicles dominate the car rental and leasing market share in Saudi Arabia due to infrastructure readiness and cost-efficiency, ideal for high-mileage commercial use. However, electric vehicles are fast disrupting the leasing space, propelled by government incentives, sustainability mandates, and private-sector innovation. Fleets are beginning to trial hybrid models, particularly in urban deployments. As Saudi Arabia invests heavily in clean mobility infrastructure, like NEOM’s planned EV policies, fleet owners are gradually diversifying propulsion portfolios.
Market Breakup by Vehicle Type
Key Insight: Sedans stabilise the Saudi Arabia car rental demand forecast for their operational efficiency, reliability, and affordability, making them ideal for daily rentals and long-term leases. SUVs and MUVs, on the other hand, are increasingly being used for tourism, adventure travel, and premium shuttle services. Hatchbacks, although less prominent, still serve short-distance urban needs. Vehicle choice depends on use-case scenarios, customer profile, and route geography. Leasing firms are adjusting inventory to match seasonal, regional, and corporate mobility requirements.
Market Breakup by Mode
Key Insight: As per the Saudi Arabia car rental and leasing industry report, offline channels remain essential for high-value B2B transactions and traditional customers who prioritise service assurance and negotiation. Meanwhile, online platforms are thriving on speed, convenience, and technology integration. Both models coexist, serving different user bases and transaction sizes. Hybrid operators even offer ‘click-and-collect’ models, merging digital booking with offline pickup and inspection. As Saudi Arabia pushes towards digital governance and smart cities, the online distribution channel is expected to increasingly attract corporate and institutional customers.
Market Breakup by End Use
Key Insight: Corporate leasing largely contributes to the market value due to operational efficiency, bundled service offerings, and tax advantages. However, individual users, especially digital-savvy renters, are shaping the demand patterns, drawn to flexibility and convenience. From expatriates avoiding ownership to gig workers needing reliable mobility tools, personal leasing is carving out new revenue streams.
By Type, Car Rental Accounts for the Dominant Share of the Market
Car rental remains dominant in the market, largely fuelled by growing tourism under Vision 2030 and an expanding expat population. Short-term rentals are witnessing high traction in cities like Riyadh and Jeddah, with players like Lumi and Theeb are taking advantage of the growing demand from Umrah and other business travellers. Digital-first rental kiosks and contactless pickups are becoming a norm, reducing operational costs while improving user convenience. Moreover, government initiatives to boost domestic tourism, such as the “Saudi Seasons” events, have intensified vehicle demand across peak seasons, pushing car rental firms to expand their fleets with tech-integrated systems and green vehicle options, subtly shifting operational models.
Car leasing is registering the fast growth in the Saudi Arabia car rental and leasing market, supported by increased demand from corporates seeking asset-light models amid economic diversifications. Fleet leasing is gaining momentum among logistics, construction, and service sectors, with vendors offering customisable packages, predictive maintenance, and integrated telematics. Companies like Budget Saudi and Key Car Rental are leveraging AI-based fleet analytics to reduce downtimes and operating costs. Demand for long-term leases from SMEs is also on the rise, particularly with favourable tax structures and depreciation benefits.
By Propulsion, the Internal Combustion Engine Category Accounts for the Larger Market Share
ICE vehicles occupy majority of the market share due to robust refuelling infrastructure and high availability in both premium and economy segments. Fleet operators prefer ICE units for their lower upfront costs, faster resale cycles, and compatibility with intercity travel routes. Despite sustainability goals, oil prices remain favourable, making ICE vehicles cost-effective for both consumers and businesses. Major firms like AVIS Saudi, Hertz and others continue to renew ICE fleets with newer, fuel-efficient models meeting Saudi’s updated fuel economy standards. Until electric infrastructure scales, ICE-based fleets are expected to maintain dominance, particularly in B2B contracts involving logistics, staff transport, and nationwide coverage projects.
Electric vehicles are surging in leasing portfolios, supported by Vision 2030’s ambitious net-zero targets and a push to diversify away from fossil fuels, accelerating the Saudi Arabia car rental and leasing market value. In September 2023, Lucid Motors, partially funded by Saudi PIF, launched its EV fleet pilot in Riyadh, indicating serious government intent. EV leases are now being offered by Aljomaih and Alfanar with incentives like zero maintenance costs and exclusive charging plans. Ride-hailing services are integrating leased EVs to meet green mandates. Government subsidies for charging infrastructure and reduced registration fees are accelerating adoption, especially for corporate clients seeking ESG alignment.
By Vehicle Type, Sedan Occupy a Substantial Share of the Market
Sedans have largely boosted the car rental and leasing demand in Saudi Arabia. These cars are valued for their balance between cost, comfort, and fuel efficiency. They are particularly favoured by business travellers, executives, and staff transportation services. Their aerodynamic efficiency and urban compatibility make them practical for city-wide mobility, while still being capable for long-distance trips. Car rental platforms like Budget Rent a Car, and Hanco Automotive prioritise sedans in their digital inventory owing to their high turnover and lower maintenance costs. Players like Toyota Camry and Hyundai Elantra dominate this vehicle category, often integrated into smart fleet management platforms offering telematics and user data analytics.
SUVs and MUVs are rapidly growing in car rental and leasing industry in Saudi Arabia,, especially through tourist and corporate transport categories. Their appeal lies in rugged performance, spacious interiors, and suitability for off-road and multi-passenger travel. With Saudi Arabia promoting heritage tourism across AlUla, Asir, and desert trails, these vehicles are being heavily leased for adventure, VIP, and guided tour services. Local operators like Key Car Rental now offer luxury MUVs with multilingual in-car systems and Wi-Fi for international tourists. Fleet providers like Yelo have added electric SUVs to cater to eco-conscious customers.
By Mode, the Offline Segment Registers the Majority of the Market Share
Despite the digital shift, offline bookings continue to hold dominance in the Saudi market, particularly for B2B fleet contracts and high-value corporate deals. Many government tenders and long-term contracts are processed via formal offline procurement channels due to regulatory requirements and trust in in-person negotiations. Clients often require physical inspection and customisation of fleet services before committing. Offline channels also serve walk-in customers in airport counters and hotel lobbies, which are high-traffic areas. Additionally, rental firms maintain physical branches across cities for vehicle return, service checks, and customer support, providing a comprehensive ecosystem.
Online booking platforms are growing rapidly as younger customers and SMEs embrace convenience and real-time pricing transparency, boosting the Saudi Arabia car rental and leasing market opportunities. Cloud-based fleet management systems now allow customers to browse, select, and customise lease or rental terms via mobile apps. Integrations with ride-hailing apps and fintech wallets are also streamlining the payment and onboarding process. Start-ups like Telgani and Invygo are leveraging AI to provide dynamic pricing and predictive maintenance options. Moreover, the government’s push for digital transformation in services aligns with this trend. Online platforms also offer paperless KYC, real-time vehicle tracking, and remote customer service, driving greater trust and repeat usage.
By End Use, the Corporation Segment Secures a Substantial Share of the Market
The dominance of the corporate end use is bolstered by cost control, predictable budgeting, and simplified fleet management. Major sectors like oil & gas, logistics, and telecom use leased vehicles for employee transport and field operations. Leasing providers offer bundled packages with insurance, GPS, fuel cards, and 24/7 roadside support, creating full-service mobility solutions. As companies face pressure to reduce carbon footprints, many opt for newer, low-emission fleets through leasing. Government entities also prefer leasing to avoid long-term capital expenditure.
Individual users, especially expats and young professionals, are increasingly favouring leasing for access to premium vehicles without ownership headaches, propelling the Saudi Arabia car rental and leasing market expansion. Subscription-based car leasing apps like Carasti, SelfDrive, and Invygo are catering to lifestyle-driven demand with flexible monthly packages and swap options. These services offer a curated experience with vehicle delivery, servicing, and renewal reminders. Rising cost of living and tighter credit lending norms have made leasing a smarter financial decision for many residents.
The Saudi Arabia car rental and leasing market players like Yelo, Lumi, Budget Saudi, and Seera Group are shifting focus from vehicle supply to end-to-end fleet management. Innovation hubs are emerging around Riyadh and NEOM, encouraging startups to deliver app-based leasing and AI-enhanced vehicle monitoring. For international players, partnerships with local firms offer gateway to structured contracts and regulatory navigation.
The biggest opportunity for Saudi Arabia car rental and leasing companies lies in developing smart fleet solutions. The market also observes a growing demand for niche leasing models, like EV-only fleets for last-mile delivery or luxury rental packages for executive tourism. Moreover, green leasing, fleet telematics, AI-driven platforms, EV adoption, and bespoke corporate contracts are some of the defining trends that are shaping the market. Firms can integrate telematics, offer flexible packages, and comply fast with regulatory shifts to gain competitive edge in the market.
The Hertz Corporation is an American multinational car rental company that was started in 1918. Hertz is one of the largest worldwide vehicle rental companies by sales, locations, and fleet size. Hertz is currently operational in more than 160 countries around the globe.
Avis Budget Group, Inc., founded in 1946, is an American car rental agency holding company. Avis is headquartered in Parsippany, New Jersey, and is the parent company of various top car rental brands, including Avis car rental, Maggiore, MoriniRent, and Zipcar.
SIXT SE is an international mobility service-providing company that deals in the areas of vehicle rental, car sharing, ride-hailing, and subscription. SIXT IS headquartered in Pullach, Munich, Germany and is currently operational in more than 100 countries with offices at over 2000 locations around the globe.
Hanco (Al Tala’a International Transportation Co. Limited), established in 1976, is a leading company headquartered in Jeddah. With a fleet exceeding 11,000 vehicles, Hanco operates across major cities in the Kingdom, offering comprehensive mobility solutions to both corporate and individual clients.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the market are Key Car Rental Company, Enterprise Holdings, Inc. (National Car Rental), Yelo (Alwefaq Transportation Solutions), Bin Hadi, Europcar International SASU, and Samara (Alturki holding), among others.
Explore the latest trends shaping the Saudi Arabia car rental and leasing market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Saudi Arabia car rental and leasing market trends 2026.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the Saudi Arabia car rental and leasing market reached an approximate value of USD 2.75 Billion.
The market is projected to grow at a CAGR of 9.20% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach around USD 6.63 Billion by 2035.
Key strategies driving the market include building digital dashboards, customising B2B contracts, integrating EVs into portfolios, forging government partnerships, and offering predictive fleet services to stay competitive.
The key trends of the market are the rising working population in Saudi Arabia owing to the increasing foreign investment in this country and the growing inclination towards luxury vehicles.
The different modes to rent or lease a vehicle are online and offline.
The different types of vehicles that can be rented or leased are hatchback, sedan, and multi-utility vehicles and sport utility vehicles.
The key players included in the market report are The Hertz Corporation, Avis Budget Group, Inc., SIXT SE, Hanco (Al Tala’a International Transportation Co. Limited), Key Car Rental Company, Enterprise Holdings, Inc. (National Car Rental), Yelo (Alwefaq Transportation Solutions), Bin Hadi, Europcar International SASU, and Samara (Alturki holding), among others.
The key challenges are navigating complex regulatory structures, adapting to rapid digitalisation, managing EV infrastructure gaps, and meeting varied fleet requirements across industries.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Propulsion |
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| Breakup by Vehicle Type |
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| Breakup by Mode |
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| Breakup by End Use |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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