Saudi Arabia Car Rental Market Report and Forecast 2032

Saudi Arabia Car Rental Market Insights & Analysis

The Saudi Arabia Car Rental Market is expected to grow at a CAGR of around 9.5% during the forecast period 2025-32. The growth of the industry can be accredited to the country's expanding tourism sector. Tourists and travelers who want ease, freedom, and comfort when visiting another nation commonly choose to rent a car. The Saudi Arabian government's growing investments in public & private infrastructure, such as roads, highways, and bridges, have also played a substantial role in the market's growth.  Recently, individuals have shown a fondness for private transportation while they are commuting to institutions, places of employment, and other areas. In response to this trend, Saudi Arabian industry participants have added more amenities for consumers.

Also, local car rental companies offer a wide range of vehicles, including SUVs, sports cars, luxury cars, and economy cars, to meet the wide range of customer needs. The sector has always been very active, and the most popular modes of transportation are local & airport. In this well-established industry, there are numerous service providers that offer consumers pickup and drop-off services at reasonable prices, like Theeb, Udrive, and Europcar.

Philippines Apparel and Footwear Market FY32

• Study Period: 2020- 2032


• Base Year: 2024


• CAGR(2025-2032): 9.5%


• Market Value 2024: USD XX Billion/Million


• Major Players: Hertz, Sixt Rent a Car, Europcar, LUMI, Avis Budget Group, FinalRentals KSA, Enterprise Holdings, Inc., Alwefaq Transportation Solutions (Yelo), and Others

Moreover, the upsurge in inbound tourism in Saudi Arabia, where tourists do a lot of expebditure on leisure, business, and related activities, has elevated demand for both self-driving & chauffeur-driven car rental services. Additionally, the rising population of the country's major cities, like Riyadh, Jeddah, Mecca, and Dammam, as well as the influx of foreigners are presumed to boost need for car rentals, further contributing in infusing the Saudi Arabia Car Rental Market in the years to come.

Saudi Arabia Car Rental Market Dynamics

• Expansion of the Tourism Industry to Fuel Market Growth

Saudi Arabia's tourism industry has expanded quickly in recent years as a result of the government's growing focus on this market. Due to significant infrastructure development and investments, including the building of hotels, theme parks, art galleries, metro lines, and more, Saudi Arabia's tourism sector has thrived. Therefore, the number of tourists traveling to various parts of Saudi Arabia has increased considerably.

Also, tourists who rent automobiles enjoy a high degree of luxury and frequently have the chance to take advantage of alluring deals that are included in hotel and travel packages. As a result, these elements benefit the Saudi Arabia Car Rental Industry.

• Increasing Efforts to Improve Public Transportation to Limit the Market Growth

The Saudi Arabian government is making substantial investments in developing a robust public transportation infrastructure in the nation. This initiative strives to improve the quality of life in urban areas & establish the country as a global logistics hub. These infrastructure projects include the building of trains, metro lines, and public transport buses, which will enhance road connectivity across various regions such as Jazan, Sabya, Abu Arish, and more.

Moreover, the government is keenly engaging in public-private partnerships & contracts to develop the public transport network. For example, in 2021, the Ministry of Transport and Logistics Services introduced the National Transport and Logistics Strategy, which incorporates several initiatives to lessen road traffic accidents, implement global best practices, ensure efficient connectivity, and promote public transport development in Saudi cities.

Thus, the expansion of this public transport infrastructure has led a substantial portion of consumers, especially those looking for inexpensive transportation options, to shift from car rental to public transportation services, hence impacting the growth of the Saudi Arabia Car Rental Market.

Saudi Arabia Car Rental Market Segment-wise Analysis

By Application:

• Leisure
• Commercial

In the Saudi Arabia Car Rental Market, the Commercial Sector upholds sizable market share and would flourish during 2025-32. The Saudi government's initiatives to promote foreign direct investment (FDI) and the rapid growth of the nation's service sector have considerably impacted the demand for rental cars for getting to & from several business locations.

Moreover, there will probably be an uptick in inbound & regular business travel in Saudi Arabia as more companies expand their operations there, which would boost demand for vehicle rental services in the coming years.

By Drive Type:

• Self-driving
• Chauffeur

Self-driving cars are foreseen to become the most popular driving type in the upcoming years, by gaining a significant share of the Saudi Arabian Car Rental Market. Augmented privacy, cost-effective solutions, and flexibility are the primary factors driving the market growth. Also, without being constrained by chauffeur-based services, customers can travel to any location at their convenience. They can arrange their travels around their schedules and take their time visiting different places.

When compared to chauffeur-based services, self-driving rental cars are frequently more affordable and offer greater privacy, particularly during longer rental durations. Consumers can avoid the costs of employing a professional driver, which results in further transportation cost savings.

What Does Our Saudi Arabia Car Rental Market Research Study Entail?

• Saudi Arabia Car Rental Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• Saudi Arabia Car Rental Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.