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Investor Guide 2024: Saudi Arabia's Car Rental Industry
Saudi Arabia provides an abundance of opportunities for expanding one's business, particularly in the transportation sector. The Saudi Arabian car rental industry is experiencing a significant increase in activity, rendering it an ideal investment opportunity for ambitious entrepreneurs and experienced investors. If you have effectively operated a business in your home country and are currently exploring new opportunities in the UAE or KSA, CIG Saudi Arabia will provide you with a comprehensive guide to assist you in your journey.
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
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Market Research and Business Plan
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Legalities and Licensing
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 )
- The minimum number of vehicles is 3,000 or more.
- A single headquarters is located in Saudi Arabia.
- A leasing broker in the licensed jurisdiction.
( B )
- A minimum of 300 vehicles is required.
- Headquarters.
- A rental broker operating within the license's jurisdiction.
( C )
- The minimum number of vehicles is one hundred.
- Headquartered in the Kingdom of Saudi Arabia
- Contracting with a rental intermediary is prohibited.
(D)
- A minimum of fifteen vehicles.
- 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.
- No branches are permitted to be established in the city of license or any other city.
- There is no rental broker.
( E )
- The license is intended for prestige and high-end vehicles, while only twenty (20) vehicles are necessary.
- A single administrative office must be established within the city of the license.
- 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.- Obtain the restricted license.
- Add the vehicles
- Complete the requirements of other government agencies.
- Obtain the operation cards and driver cards.
- 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.
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