Saudi Arabia Car Rental and Leasing Market Set to Surge to USD 3.7 Billion by 2034 at a 2.76% CAGR

Saudi Arabia Car Rental and Leasing Market Overview

Market Size in 2025: USD 2.9 Billion

Market Size in 2034: USD 3.7 Billion

Market Growth Rate 2026-2034: 2.76%

According to IMARC Group's latest research publication, "Saudi Arabia Car Rental and Leasing Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia car rental and leasing market size reached USD 2.9 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 3.7 Billion by 2034, exhibiting a CAGR of 2.76% during 2026-2034.

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

● Predictive fleet management powered by 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.

● Machine learning algorithms power dynamic pricing and instant vehicle allocation, with digital platforms making the booking process three times faster through intelligent prompts and automated workflows.

● 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.

● AI-based fleet analytics optimize utilization and support predictive maintenance, lowering downtime and operational expenses while extending vehicle lifespan across rental fleets.

● Smart booking platforms utilize machine learning for demand forecasting and IoT sensors, cutting maintenance costs by 20% while supporting contactless check-in and check-out processes.

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How Vision 2030 is Transforming Saudi Arabia Car Rental and Leasing Industry

Saudi Arabia's Vision 2030 is revolutionizing the car rental and leasing industry by prioritizing economic diversification, infrastructure development, and technological innovation beyond oil dependence. The initiative drives demand for flexible mobility solutions, integrating cutting-edge technologies to enhance corporate fleet outsourcing and reduce asset ownership costs. This transformation aligns with industrial development goals, promoting partnerships between local companies and global mobility providers to establish service excellence centers. Government-backed programs through the National Industrial Development and Logistics Program foster research and development while attracting foreign investments in advanced transportation facilities. Major initiatives like NEOM, Red Sea Global, and Qiddiya require innovative mobility solutions, positioning car rental and leasing services as essential for workers, contractors, and millions of tourists. Government regulations such as Cabinet Decree No. 545 encourage government entities to prioritize leasing over purchasing vehicles, further boosting market demand. Ultimately, Vision 2030 positions the car rental and leasing sector as a cornerstone of economic transformation, enhancing mobility capabilities and establishing Saudi Arabia as a regional hub for innovative transportation services.

Saudi Arabia Car Rental and Leasing Market Trends & Drivers:

Saudi Arabia's car rental and leasing market is experiencing robust growth, driven by strategic partnerships and collaborations between local companies and international service providers that facilitate knowledge transfer and access to advanced mobility technologies. The market is fueled by government-led initiatives through Vision 2030, with companies like Budget Saudi and Lumi establishing state-of-the-art digital platforms equipped with advanced telematics and fleet management systems, enabling efficient vehicle allocation, real-time tracking, and integrated booking experiences while reducing dependence on traditional ownership models.

The rapid expansion of tourism is significantly boosting market demand. The growing number of religious tourists, leisure travelers, and business visitors creates substantial demand for short-term rental services and flexible mobility solutions across the Kingdom's expanding transportation infrastructure. With the Kingdom attracting 16.9 million Umrah pilgrims and 1.6 million Hajj pilgrims in 2024, and Vision 2030 targeting 30 million international pilgrims annually, the sector is creating new opportunities for innovation while reducing operational costs and improving customer experiences. The corporate sector's embrace of long-term leasing for fleet management, exemplified by companies adopting asset-light models that prioritize predictable monthly expenses over vehicle ownership, demonstrates the market's versatility in reducing capital requirements, offering vehicle flexibility, and minimizing risks tied to ownership while supporting sustainable development goals aligned with Vision 2030.

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Saudi Arabia Car Rental and Leasing Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Car Rental
● Car Leasing

Vehicle Type Insights:

● Economy/Budget
● Premium/Luxury

Vehicle Body Style Type Insights:

● Hatchback
● Sedan
● Multi-Utility Vehicle and Sports
● Utility Vehicle

Booking Type Insights:

● Online
● Offline

Breakup by Region:

● 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 and Leasing Market

● 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.

● February 2025: The Saudi government introduced Cabinet Decree No. 545 regarding the purchasing and leasing of vehicles by government entities, encouraging government organizations to prioritize leasing over purchasing to boost demand for leased vehicles across the sector.

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.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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