Car Rental Market in Saudi Arabia: Digital Platforms, Short-Term Leasing, Urban Mobility & Vision 2030 Impact

According to IMARC Group's latest research publication, Saudi Arabia car rental market size reached USD 797.4 Million in 2025. The market is projected to reach USD 976.7 Million by 2034, exhibiting a growth rate (CAGR) of 2.28% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Car Rental Market

• Predictive Fleet Management: AI-driven telematics cuts fuel consumption and slashes operational costs while enhancing vehicle uptime through predictive maintenance, reducing unplanned downtime by up to 40% across Saudi rental fleets.
• Smart Booking Platforms: Machine learning algorithms power dynamic pricing and instant vehicle allocation, with digital platforms like Telgani and ekar making the booking process three times faster through intelligent prompts and automated workflows.
• Route and Usage Optimization: AI analytics track driver behavior, location data, and fuel usage in real-time, enabling companies to optimize routes, reduce idle time, and lower per-vehicle costs significantly.
• Conversational AI Assistants: SelfDrive Mobility launched SIA, the region's first conversational AI for car rentals, completing bookings within seconds through natural language processing and supporting multiple payment options seamlessly.
• Enhanced Customer Experience: AI enables personalized recommendations, usage-based pricing models, and transparent upgrade options, while integrated telematics systems improve safety monitoring and provide customers with detailed trip analytics.

How Vision 2030 is Revolutionizing Saudi Arabia Car Rental Industry

Vision 2030 is completely reshaping how Saudis and visitors get around the Kingdom. The government's bold push to diversify beyond oil has sparked unprecedented growth in tourism, with Saudi Arabia smashing its target of 100 million visitors seven years early—reaching 127 million tourists in 2024 alone. That's a staggering 73% surge in international arrivals paired with a 207% jump in tourism revenue, creating massive sustained demand for flexible transportation solutions. Whether it's pilgrims heading to Makkah and Medina or tourists exploring NEOM and The Red Sea projects, rental cars have become essential infrastructure. The western region alone hosts 17 giga-projects worth USD 185.5 billion, mostly around Jeddah, pulling in workers, consultants, and corporate teams who need both short-term rentals and long-term leases. Religious tourism remains huge—16.9 million Umrah pilgrims and 1.6 million Hajj pilgrims visited in 2024, with the Kingdom aiming for 30 million international pilgrims soon. Saudi Arabia's smart transportation goals call for 15% of Riyadh's public vehicles to go autonomous, opening fresh opportunities for B2B operators expanding fleets in cities like Riyadh and Jeddah where corporate mobility is scaling fast.

Get a Sample Report Highlighting Key Growth Drivers and Trends

Saudi Arabia Car Rental Market Trends & Drivers:

The Saudi car rental sector is riding a massive tourism wave fueled by Vision 2030's infrastructure investments and economic reforms. Government initiatives like Saudi Seasons events and mega-developments including NEOM, Qiddiya, and Red Sea Global are drawing millions of visitors and contractors needing temporary mobility. Budget Saudi Arabia reported net profits exceeding SAR 168 million and revenues surpassing SAR 1.088 billion in the first half of 2025, reflecting how Vision 2030's diversification push is directly feeding rental demand. The Kingdom attracted 16.9 million Umrah and 1.6 million Hajj pilgrims in 2024, with projects worth USD 53 billion underway to facilitate religious tourism. Female licensing reforms introduced post-2018 have unlocked an entirely new demographic for self-drive rentals, boosting weekday utilization rates significantly. The Seera Group's Lumi rental arm, backed by the Public Investment Fund, reported 7% year-over-year revenue growth in Q1 2025, demonstrating strong corporate appetite for tech-driven fleet solutions. Meanwhile, 17 giga-projects valued at USD 185.5 billion are transforming the western region, especially Jeddah, creating opportunities for both tourist rentals and corporate leasing as companies relocate to capitalize on development.

Digital transformation is reshaping the entire customer experience in car rentals across Saudi Arabia. Over 60% of rental companies now offer mobile apps for bookings, supported by 25% growth in smartphone penetration and a 31% rise in digital vehicle registrations in 2024. Budget Saudi Arabia's comprehensive mobile app lets users browse vehicles, select from 111 branches, and complete bookings in simple steps, reflecting how digitalization has become table stakes. Companies like ekar and Telgani bundle telematics, app integration, and fleet optimization analytics into platforms offering corporate dashboards, AI-based vehicle allocation, and usage monitoring. Online channels captured 71.82% of market share in 2024 and are forecast to expand at 7.46% annually through 2030. SelfDrive Mobility just launched SIA, the region's first conversational AI car rental assistant, cutting booking times by introducing intelligent 'Hot Keys' and instant confirmation through proprietary fleet systems. Real-time data on vehicle performance, location, and driver behavior lets operators optimize efficiency and cut costs, while predictive maintenance capabilities reduce unexpected downtime and extend vehicle life across rental fleets.

Corporate fleet outsourcing is accelerating as businesses adopt asset-light models aligned with economic diversification goals under Vision 2030. Corporate accounts captured 56.74% of revenue share in 2024, driven by companies wanting predictable monthly expenses rather than outright vehicle purchases. Long-term leasing contracts are forecast to double between 2023 and 2025 under Budget Saudi's expansion roadmap, with integrated digital portals letting clients switch between daily and multi-year plans without administrative friction. The shift from ownership to usage appeals especially to young professionals, expatriates, and businesses on temporary assignments who want to avoid depreciation, insurance, and maintenance burdens. Leasing keeps fleet expenses off balance sheets, enhancing financial agility for corporations. Government incentives for EV fleet adoption and partnerships with mega-projects like NEOM and Red Sea Global are pushing operators to expand capabilities in project-based leasing. Female entrepreneurship is surging—45% of all commercial records issued in Q1 2025 were owned by women—further expanding the customer base. Companies benefit from tax deductions tied to service contracts, encouraging longer lease tenures while sustainability goals make low-emission vehicles easier to pilot under leases than purchases.

Saudi Arabia Car Rental Market Industry Segmentation:

The report has segmented the market into the following categories:

Booking Type Insights:

• Offline Booking
• Online Booking

Rental Length Insights:

• Short Term
• Long Term

Vehicle Type Insights:

• Luxury
• Executive
• Economy
• SUVs
• Others

Application Insights:

• Leisure/Tourism
• Business
• End User Insights:
• Self-Driven
• Chauffeur-Driven

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Car Rental Market

• December 2025: Platforms adopt machine learning for demand forecasting and IoT sensors, cutting maintenance costs 20% while supporting contactless check-in/out.
• November 2025: SelfDrive Mobility launched SIA, the Middle East's first conversational AI car rental booking assistant, utilizing intelligent 'Hot Keys' that make reservations three times faster with instant confirmation through proprietary fleet management systems.
• October 2025: Budget Saudi Arabia confirmed record financial performance for H1 2025, with net profits exceeding SAR 168 million and revenues surpassing SAR 1.088 billion, underpinned by strategic alignment with Vision 2030 objectives supporting economic diversification and tourism growth.
• October 2025: Budget Saudi Arabia integrates telematics for real-time fleet management, reducing downtime by 25% and boosting online reservations to 72% market share.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.