Saudi Arabia Car Rental Market Expands with Rising Tourism and Business Travel: Outlook 2025

Saudi Arabia Car Rental Market Overview

Market Size in 2024: USD 778.7 Million

Market Size in 2033: USD 964.0 Million

Market Growth Rate 2025-2033: 2.4%

According to IMARC Group's latest research publication, "Saudi Arabia Car Rental Market Report by Booking Type (Offline Booking, Online Booking), Rental Length (Short Term, Long Term), Vehicle Type (Luxury, Executive, Economy, SUVs, Others), Application (Leisure/Tourism, Business), End User (Self-Driven, Chauffeur-Driven), and Region 2025-2033", the Saudi Arabia car rental market size reached USD 778.7 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 964.0 Million by 2033, exhibiting a growth rate (CAGR) of 2.4% during 2025-2033.

How Digital Innovation is Reshaping the Future of Saudi Arabia Car Rental Market

• Digital transformation through mobile apps and online reservation systems is revolutionizing car rental accessibility, with GPS navigation and contactless services enhancing customer experience across the Kingdom.
• The government's Vision 2030 tourism initiatives are driving demand for flexible transportation solutions, with car rentals supporting the growing leisure and business travel sectors in emerging destinations.
• Corporate fleet management evolution is creating opportunities for long-term rental partnerships, as businesses seek cost-effective alternatives to vehicle ownership while maintaining operational flexibility.
• Tourism sector growth of 73% in international arrivals is generating sustained demand for rental vehicles, particularly in major cities and tourist destinations across Saudi Arabia's diverse regions.
• Leading car rental companies are expanding their fleets with electric and hybrid vehicles, aligning with Saudi Arabia's sustainability goals and meeting evolving consumer preferences for eco-friendly transportation.

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Saudi Arabia Car Rental Market Trends & Drivers:

One major catalyst behind the car rental market's growth in Saudi Arabia comes from the Kingdom's ambitious tourism development under Vision 2030. The remarkable 73% increase in international tourist arrivals, coupled with a 207% surge in tourism revenues, is creating sustained demand for flexible transportation solutions. Religious tourism to Makkah and Medina generates consistent year-round rental demand, while new tourism destinations and entertainment projects require reliable ground transportation infrastructure. The government's focus on diversifying the economy beyond oil is encouraging domestic tourism, with Saudis increasingly exploring their own country's attractions. Digital transformation initiatives are making car rental services more accessible through mobile applications and online platforms, streamlining the booking process and enhancing customer convenience across all demographics.

Another significant driver is the evolving corporate landscape and business travel patterns in Saudi Arabia. Companies are increasingly recognizing car rental as a cost-effective alternative to maintaining large corporate fleets, especially for project-based work and temporary assignments. The rise of business tourism and international conferences in cities like Riyadh and Jeddah creates demand for executive and luxury vehicle rentals. Small and medium enterprises are particularly embracing rental solutions to avoid capital expenditure while maintaining operational flexibility. The market's current value of USD 778.7 million reflects this shift toward service-based mobility solutions, with businesses prioritizing access over ownership in an increasingly dynamic economic environment.

Technological innovations and changing consumer preferences are fundamentally transforming the Saudi car rental experience, creating new growth opportunities and market segments. The integration of GPS navigation systems, mobile check-in capabilities, and contactless service delivery has made car rental more convenient and appealing to tech-savvy consumers. Environmental consciousness is driving demand for hybrid and electric vehicle options, with rental companies expanding their sustainable fleet offerings to meet green transportation preferences. The emergence of ride-sharing culture is creating crossover opportunities, with some consumers using car rentals for longer trips while relying on other services for daily commutes. Premium vehicle categories are experiencing strong growth as consumers seek experiential travel options, while economy segments remain robust due to price-conscious domestic tourism and business travel.

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Saudi Arabia Car Rental 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

• 2025 August: Major car rental companies expand electric vehicle fleets in response to Saudi Green Initiative, offering sustainable transportation options for environmentally conscious tourists and business travelers.
• 2025 July: Digital transformation accelerates with launch of AI-powered car rental platforms, featuring predictive pricing and personalized vehicle recommendations based on travel patterns and preferences.
• 2025 May: Tourism infrastructure development in NEOM and Red Sea projects creates new car rental hubs, with companies establishing specialized services for luxury resort and business district transportation.

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