Investor Guide 2024: Saudi Arabia's Car Rental Industry

Why Invest in Saudi Arabia’s Booming Car Rental Activity Market?

One of the most rapidly expanding economies in the Middle East is Saudi Arabia. This is due to the Vision 2030 initiative, which is designed to reduce oil dependence and diversify the economy. As a consequence, sectors such as transportation, tourism, and entertainment have experienced substantial expansion. The car rental industry in Saudi Arabia is a profitable investment due to the growing demand for mobility solutions, which is driven by both local and tourist requirements.

High Demand for Transportation Services

The transportation market has experienced a substantial increase in response to the increase in tourism and business travel. Consequently, the acquisition of a transportation license in Saudi Arabia can provide access to a plethora of business opportunities. Investors who are interested in entering the Saudi Arabian car rental market will discover a market that is prepared to receive high-quality services.

Government Support and Regulations

The Saudi government provides a variety of incentives to foreign investors, such as favorable business regulations and streamlined processes for company formation. CIG Saudi Arabia offers comprehensive consultation services to assist you in navigating these procedures, thereby guaranteeing that you obtain your transportation license in Saudi Arabia without any complications.

Starting a Car Rental Business in Saudi Arabia

• Market Research and Business Plan

It is advisable to conduct comprehensive market investigation prior to engaging in the car rental industry in Saudi Arabia. Comprehend consumer preferences and the competition. A meticulous business plan will establish the foundation for success. It is advisable to conduct comprehensive market investigation prior to engaging in the car rental industry in Saudi Arabia. Comprehend consumer preferences and the competition. A meticulous business plan will establish the foundation for success.

• Legalities and Licensing

The establishment of a business in a foreign country is accompanied by a variety of obstacles, primarily legal in nature. The process is streamlined by CIG Saudi Arabia, which ensures that all legal obligations are met and facilitates the acquisition of the necessary licenses. Obtaining a transportation license in Saudi Arabia is a simple procedure with our expertise.

Types of Car Rental Activity License in Saudi Arabia

• Car Rental License 
• Rental Broker License

Basic Requirements for Obtaining a Car Rental License

The enterprise submits an application for the license through the Naql e-platform. The commercial registration of the enterprise is restricted to its activity. Nevertheless, a single commercial registration may encompass multiple transport activities or a transport activity that supports one.

• A certificate from GOSI that is currently valid. • A valid clearance certificate from ZATCA. • Establishing suitable headquarters in accordance with the approved municipal and technical requirements and traffic regulations. • Providing the minimum number of vehicles required to operate the activity, in accordance with the license category, provided that the cars are either owned directly by the enterprise or leased through a financial lease contract. • The vehicle must be new and have not been previously registered in the Kingdom when it is first introduced to the service. • Connecting to electronic systems that are predetermined by the TGA. • The payment of any applicable fees.

Term of License: three years.

Categories of Car Rental Activity License in Saudi Arabia

A license is granted to engage in automobile rental activities in accordance with the appropriate category upon the completion of the following conditions and procedures:

 ( A )

1. The minimum number of vehicles is 3,000 or more.
2. A single headquarters is located in Saudi Arabia.
3. A leasing broker in the licensed jurisdiction.

 ( B )

1. A minimum of 300 vehicles is required.
2. Headquarters.
3. A rental broker operating within the license's jurisdiction.

( C )

1. The minimum number of vehicles is one hundred.
2. Headquartered in the Kingdom of Saudi Arabia
3. Contracting with a rental intermediary is prohibited.

 (D)

1. A minimum of fifteen vehicles.
2. The city of license must have a single main office, provided that it is not one of the following cities: Riyadh, Makkah, Al-Madinah, Dammam Metropolitan Area, or Jeddah.
3. No branches are permitted to be established in the city of license or any other city.
4. There is no rental broker.

 ( E )

1. The license is intended for prestige and high-end vehicles, while only twenty (20) vehicles are necessary.
2. A single administrative office must be established within the city of the license.
3. May establish branches in the city of license or other cities, subject to certain conditions.

How to obtain the license via Naql e-portal 

Steps to Practicing the  Car Rental Activity & Rental Brokers Register with the portal.

1. Obtain the restricted license.
2. Add the vehicles
3. Complete the requirements of other government agencies.
4. Obtain the operation cards and driver cards.
5. Obtain the final license

Basic Requirements for Licensing the Transport of Goods for Enterprises

• The enterprise submits an application for the license through the Naql e-platform, which serves as the official electronic portal.
• A commercial registration that is restricted to the activity.
• A certificate from GOSI that is currently valid.
• A valid clearance certificate from ZATCA.
• According to the approved municipal and technical requirements and traffic requirements, the appropriate headquarters should be established.
• Connecting to electronic systems that are predetermined by the TGA.
• A financial guarantee of SAR 100,000 in the form that TGA determines for its benefit.

Term of License: three years. Related topic:

Why Choose CIG Saudi Arabia As Your Investment Partner

   Expertise and Experience

• Company formation services in the UAE and KSA are our area of expertise at CIG Saudi Arabia. Additionally, the wealth of experience and local knowledge that our team of experts possesses guarantees that your investment voyage is both successful and seamless.

  Tailored Services

• We are aware that every company has different requirements. Therefore, our services are customized to match your unique needs, whether you are an investor growing your portfolio or an entrepreneur starting your first business. From getting a Saudi Arabian transportation license to negotiating the complexities of renting a car in Saudi Arabia, we cover it all

End-to-End Support

We provide comprehensive support, from the initial consultation to the final setup, guaranteeing that all facets of your business formation are managed professionally and efficiently. Therefore, you can invest in Saudi Arabia with assurance, as you are assured that CIG Saudi Arabia is available to provide support at every stage. For investors aiming to profit from the growing demand for transportation services, the Saudi Arabian car rental market offers a bright future. But you can simply handle the challenges of KSA company formation and licensing if you have the support of CIG Saudi Arabia. So, make your investing dreams come true and investigate Saudi Arabia's rich business environment now.