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Report
Saudi Arabia Car Rental And Leasing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Market Report I 2026-01-16 I 120 Pages I Mordor Intelligence
Saudi Arabia Car Rental And Leasing Market Analysis
The Saudi Arabia Car Rental And Leasing Market size in 2026 is estimated at USD 3.07 billion, growing from 2025 value of USD 2.87 billion with 2031 projections showing USD 4.33 billion, growing at 7.09% CAGR over 2026-2031. Rising tourism, corporate fleet outsourcing, and Vision 2030 infrastructure commitments underpin steady demand expansion as the Kingdom transitions toward a diverse service economy. Online booking platforms, continue to streamline transactions and widen customer reach, while self-drive preferences, anchor consumer autonomy trends. Short-term rentals still lead overall volumes; however, corporate cost-optimization pushes long-term leasing to outpace the broader Saudi Arabia car rental and leasing market. Consolidation among large operators, coupled with technology-driven platforms such as SHIFT, intensifies competitive differentiation centered on digital convenience, predictive maintenance, and fleet electrification readiness.
Saudi Arabia Car Rental And Leasing Market Trends and Insights
Expansion Of Leisure & Religious Tourism
Religious pilgrimages generate predictable but intense spikes, prompting dynamic pricing and fleet redeployment strategies around Mecca and Medina. Vision 2030 targets 30 million pilgrims yearly, boosts year-round utilization, and reduces seasonality risk. Leisure travelers pursuing desert, coastal, and heritage itineraries extend rental durations and favor premium SUVs. Simplified International Driving Permit processing expands self-drive adoption among foreign visitors. Integrated service models now package insurance, navigation, and multilingual assistance to capture tourist loyalty.
Vision 2030 Entertainment Mega-Projects
NEOM's car-free blueprint compels operators to innovate with feeder services and mobility-as-a-service collaborations outside the core city limits. Once attractions launch, Qiddiya and the Red Sea Project fuel demand for commercial vehicles during construction and upscale rentals. Incoming expatriate workforces rely on long-term leasing for reliable personal transportation under flexible contracts. Proximity-based service hubs reduce response times and enable premium vehicle availability for high-income tourists. Aggregated project zones offer predictable returns that justify fleet expansions and specialized vehicle acquisitions.
Inflation-Driven Cost Escalation
Fuel, parts, and insurance premiums climb faster than headline inflation and compress margins Unpredictable fuel pricing complicates multi-year contract negotiations, prompting hedging or surcharges Global semiconductor shortages extend vehicle delivery lead times and elevate acquisition costs, delaying fleet refresh cycles Higher accident rates lift insurance premiums, particularly for luxury and commercial vans Operators respond with bulk procurement, preventive maintenance, and telematics-guided driving behavior analytics to mitigate expenses.
Other drivers and restraints analyzed in the detailed report include:
Surge In Logistics & E-Commerce DemandGovernment Fleet-Outsourcing MandatesLagging EV-Charging Infrastructure
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Short-term arrangements retained 50.68% of the Saudi Arabia car rental and leasing market share in 2025 by catering to tourism surges and business travel recovery. The Saudi Arabia car rental and leasing market size attributable to long-term contracts is forecast to double between 2023 and 2025 under Budget Saudi's expansion roadmap. Integrated digital portals allow clients to pivot between daily and multi-year plans without administrative friction. Long-term contracts contributed 7.22% CAGR, nearly matching overall Saudi Arabia car rental and leasing market growth, as corporations and government agencies prioritize predictable monthly expenses over outright purchases.
Shift in payment preferences shapes asset-light supply chains, permitting rapid fleet rightsizing during demand volatility Corporate sustainability aims also push for low-emission vehicles, which are easier to pilot under long-term leases than outright purchases The Saudi Arabia car rental and leasing market benefits from tax deductions tied to service contracts, encouraging businesses to extend contract tenures Tourism-led short-term volumes still contribute cash-flow peaks, especially during Hajj and entertainment events.
Thanks to competitive pricing, economy vehicles captured 62.85% of the Saudi Arabia car rental and leasing market share in 2025. Yet the premium category, growing at 7.34% CAGR, records above-average revenue per day as customers pursue elevated travel experiences. Corporate executives and high-end tourists gravitate toward technology-rich sedans and SUVs furnished with connectivity features.
Digital booking engines showcase premium inventory with transparent upgrade pricing, nudging customers toward higher categories Rising disposable incomes, coupled with luxury hospitality growth along the Red Sea coast, reinforce demand for prestige marques The Saudi Arabia car rental and leasing market size for premium vehicles is projected to grow exponentially by 2031 as operators expand brand-specific fleets Loyalty programs and chauffeur add-ons lock in repeat clientele and lift utilization ratios.
The Saudi Arabia Car Rental and Leasing Market Report is Segmented by Duration (Short-Term Leasing and Long-Term Leasing), Vehicle Type (Economy/Budget and Premium/Luxury), Body Type (Hatchback and More), Booking Type (Online and Offline), Customer Type (Corporate and Leisure/Tourism), and Rental Mode (Self-Drive and Chauffeur-Drive). The Market Forecasts are Provided in Terms of Value (USD).
List of Companies Covered in this Report:
Hertz Corporation Sixt SE Avis Budget Group Inc. Strong Rent a Car Auto Rent Key Car Rental Hanco Automotive National Car Rental Ejaro Budget Rent-A-Car (United Intl. Transportation Co.) Turo Best Rent A Car Yelo (Al Wefaq Transportation) Zipcar Europcar Mobility Group Bin Hadi Samara Land Transportation Services Theeb Rent A Car Esar International Group Autoworld (Al-Jazira Equipment Co.) Lumi Rental Co. Uber Carshare KSA
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Expansion Of Leisure & Religious Tourism
4.2.2 Vision 2030 Entertainment Mega-Projects
4.2.3 Surge In Logistics & E-Commerce Demand
4.2.4 Government Fleet-Outsourcing Mandates
4.2.5 Electrification Incentives For Rental Fleets
4.2.6 AI-Based Predictive Maintenance Cuts TCO
4.3 Market Restraints
4.3.1 Inflation-Driven Cost Escalation
4.3.2 High Fleet-Financing Interest Rates
4.3.3 Lagging EV-Charging Infrastructure
4.3.4 Strict Traffic-Violation (Mufakha) Penalties
4.4 Value / Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Buyers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes
4.7.5 Competitive Rivalry
5 Market Size & Growth Forecasts (Value (USD))
5.1 By Duration
5.1.1 Short-term Leasing
5.1.2 Long-term Leasing
5.2 By Vehicle Type
5.2.1 Economy / Budget
5.2.2 Premium / Luxury
5.3 By Body Type
5.3.1 Hatchback
5.3.2 Sedan
5.3.3 Multi-Utility Vehicle
5.3.4 Sports Utility Vehicle
5.4 By Booking Type
5.4.1 Online
5.4.2 Offline
5.5 By Customer Type
5.5.1 Corporate
5.5.2 Leisure / Tourism
5.6 By Rental Mode
5.6.1 Self-drive
5.6.2 Chauffeur-driven
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (Includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, SWOT Analysis, and Recent Developments)
6.4.1 Hertz Corporation
6.4.2 Sixt SE
6.4.3 Avis Budget Group Inc.
6.4.4 Strong Rent a Car
6.4.5 Auto Rent
6.4.6 Key Car Rental
6.4.7 Hanco Automotive
6.4.8 National Car Rental
6.4.9 Ejaro
6.4.10 Budget Rent-A-Car (United Intl. Transportation Co.)
6.4.11 Turo
6.4.12 Best Rent A Car
6.4.13 Yelo (Al Wefaq Transportation)
6.4.14 Zipcar
6.4.15 Europcar Mobility Group
6.4.16 Bin Hadi
6.4.17 Samara Land Transportation Services
6.4.18 Theeb Rent A Car
6.4.19 Esar International Group
6.4.20 Autoworld (Al-Jazira Equipment Co.)
6.4.21 Lumi Rental Co.
6.4.22 Uber Carshare KSA
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