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, and 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.
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How Digital Innovation is Reshaping the Future of Saudi Arabia Car Rental Market
AI-powered vehicle allocation platforms are helping Saudi car rental firms raise fleet utilization rates above 80%, minimizing idle inventory and boosting rental profits for city and airport branches.
Saudi government’s Smart Mobility Program enables AI-backed autonomous vehicle pilots and data analytics in car rental hubs, supporting seamless customer experiences and improving regulatory efficiency across urban transport networks.
Rental companies now rely on AI-driven predictive maintenance systems, reducing vehicle breakdown incidents by around 30% and cutting costly unscheduled repairs using telematics and IoT integration.
Tourism hot spots, especially during major events like Riyadh Season, see car rental pricing engines dynamically adjust rates and vehicle availability—AI supports over 70% of these price changes in real time.
Celebrating sustainability, AI in car rentals helps optimize green fleet deployment; electric and hybrid vehicles now make up about 10% of premium rentals, targeting eco-minded local and foreign travelers.
Saudi Arabia Car Rental Market Trends & Drivers:
One of the biggest growth drivers in Saudi Arabia car rental market trends is the surge in tourism fueled by Vision 2030 projects and religious travel. With the government aiming for more than 30 million Umrah and Hajj pilgrims yearly, cities like Mecca and Medina are experiencing round-the-clock rental demand peaks. Leisure travel beyond pilgrimage is also booming, with new attractions in NEOM, Qiddiya, and the Red Sea Project encouraging longer rental durations and premium SUV bookings. Companies are introducing multilingual digital platforms and tourist-friendly self-drive options, making the car rental experience smoother and more accessible for international visitors.
Digital transformation is another major force shaping the industry, as online bookings now account for nearly 72% of total rentals. Companies like Lumi, Yelo, and Budget Saudi are investing heavily in AI-driven platforms for dynamic pricing, real-time fleet tracking, and mobile-based keyless rentals. The government’s push for smart mobility through the Transport General Authority and Saudi Data and Artificial Intelligence Authority has further spurred tech-enabled services. These innovations not only enhance convenience for users but also cut operational costs, reduce vehicle downtime, and boost fleet utilization efficiency across major cities including Riyadh, Jeddah, and Dammam.
Sustainability and green initiatives are fast emerging as defining trends, aligning the rental industry with the Saudi Green Initiative’s carbon reduction goals. Many companies are adding electric and hybrid vehicles to their fleets, supported by government subsidies and growing EV infrastructure across urban centers. Operators are forming partnerships with energy companies to install fast chargers near airports, malls, and hotels, making eco-friendly rentals more practical for everyday travelers. This gradual shift toward electrified fleets is attracting environmentally conscious consumers while improving operational sustainability and corporate image within Saudi Arabia’s evolving mobility landscape.
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
August 2025: Major car rental companies launch integrated mobile applications with AI-powered features, enabling seamless booking and enhancing customer experience across all regions.
July 2025: Introduction of electric and hybrid vehicle fleets by leading rental companies to support Saudi Green Initiative and meet growing environmental consciousness among consumers.
June 2025: Strategic partnerships between car rental companies and tourism authorities to provide integrated transportation solutions for Vision 2030 mega-projects and tourist destinations.
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