Press Release

Saudi Arabia Light Vehicle Leasing and Rental Market to Grow with a CAGR of 9.60% through 2030

Growing tourism and business travel, rising demand for short-term vehicle access, and increasing digital leasing platforms are the factors driving the market in the forecast period 2026–2030.

 

According to TechSci Research report, “Saudi Arabia Light Vehicle Leasing and Rental Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, The Saudi Arabia Light Vehicle Leasing and Rental Market was valued at USD 2.52 Billion in 2024 and is expected to reach USD 4.37 Billion by 2030 with a CAGR of 9.60% during the forecast period.

The Saudi Arabia light vehicle leasing and rental market is undergoing a transformative phase, propelled by evolving regulatory frameworks, rapid urbanization, and increased infrastructure development. Major drivers include government-led reforms under Vision 2030, which aim to boost non-oil sectors, including tourism, logistics, and urban mobility, thereby increasing demand for short-term and long-term vehicle leasing. Enhanced business activity, as demonstrated by the issuance of over 154,000 new commercial records in Q1 2025, reflects a growing need for flexible vehicle solutions among startups, SMEs, and multinational corporations entering the market.

The rise in demand for commercial mobility solutions across construction, FMCG, and e-commerce sectors is further fueling fleet-based rentals. Companies are increasingly relying on leased light vehicles for last-mile delivery, project logistics, and workforce mobility due to cost efficiency and ease of fleet scalability. Rental operators are aligning offerings with seasonal fluctuations in tourism and pilgrimage traffic, which spike vehicle demand in specific months.

 

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Saudi Arabia Light Vehicle Leasing and Rental Market Is Segmented by Vehicle Type, End Use Industry, Booking, Lease Type, and Region.

​In 2024, passenger cars became the fastest-growing segment in Saudi Arabia’s light vehicle leasing and rental market. Demand surged among urban residents, tourists, and professionals seeking flexible and affordable mobility without ownership burdens. The rise in business registrations, corporate mobility needs, and tourism activity fueled rentals of sedans, compact cars, and SUVs. Younger users favored app-based platforms offering quick booking, digital verification, and clear pricing. The versatility of passenger cars for daily use, cost efficiency, and comfort increased their appeal over light commercial vehicles. Operators expanded fleets with economy and mid-range cars to meet rising demand during peak travel, business events, and religious seasons.

The Northern and Central Region led the country in light vehicle leasing and rental growth in 2024. Riyadh’s position as a business and administrative hub created sustained demand from professionals, government entities, and corporate clients. The area's commercial infrastructure, tech parks, and frequent events supported high rental activity. A large share of new business registrations in this region also increased leasing needs. Digital adoption, strong road connectivity, and widespread use of mobile platforms made rentals more accessible. The region offered stable rental cycles and repeat customers, encouraging operators to prioritize fleet growth and service enhancements there.


Major Market Players Operating in Saudi Arabia Light Vehicle Leasing and Rental Market Are:

  • Budget Rent a Car System, Inc
  • Yelo
  • Avis Budget Group Inc.
  • Key Car Rental
  • LUMI Rental Co. Ltd.
  • Hanco (Al Tala'a International Transportation Co. Limited)
  • Al FARIS RENT A CAR
  • eZhire (Al Jazirah rent a Car)
  • AutoWorld
  • Yahma Rent A Car


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Leasing providers are increasingly incorporating electric and hybrid vehicles into their fleets in response to growing environmental awareness and customer demand for sustainable transport options. These vehicles help clients meet sustainability goals and reduce fuel expenses. For leasing companies, offering low-emission vehicles opens up new market segments and aligns with evolving environmental regulations. While initial acquisition costs may be higher, the long-term savings on fuel and maintenance often offset these investments. Green vehicles are particularly appealing to corporations with ESG mandates, which drives demand for eco-friendly fleet options. Leasing also allows customers to experience the benefits of electric mobility without the high upfront costs of purchase”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

Saudi Arabia Light Vehicle Leasing and Rental Market By Vehicle Type (Passenger Cars, Light Commercial Vehicle), By End-Use Industry (FMCG, Construction, Corporate, E-Commerce), By Booking (Offline, Online), By Lease Type (Finance Lease, Full Rental), By Region, Competition, Forecast and Opportunities, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Saudi Arabia Light Vehicle Leasing and Rental Market.

 

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Saudi Arabia Light Vehicle Leasing and Rental Market By Vehicle Type (Passenger Cars, Light Commercial Vehicle), By End-Use Industry (FMCG, Construction, Corporate, E-Commerce), By Booking (Offline, Online), By Lease Type (Finance Lease, Full Rental), By Region, Competition, Forecast and Opportunities, 2020-2030F

Automotive | Jul, 2025

Growing tourism and business travel, rising demand for short-term vehicle access, and increasing digital leasing platforms are the factors driving the market in the forecast period 2026–2030.

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