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Automotive

Car rental office feasibility study

Latest regulatory change: 2025 · reviewed 2026-11-05

A business renting out private cars daily or monthly under the unified electronic contract.

  • 1,526,947rental contracts in Q1 2025[1]
  • 22%growth in contracts on the same quarter of 2024[1]
  • 5 yearsproposed operating life of a rental car[3]

Latest regulatory and market changes

  1. 2022All car rental contracts are now issued only through the Ta'jeer service on the Naql e-portal.[1]
  2. 2024The Transport General Authority (TGA) dropped the minimum requirement of 3,000 cars, allowing unlimited branches in the licensed city and a minimum of 100 cars for each other region.[2]
  3. 2025The authority published draft regulations setting the operating life of rental cars at 5 years, or 8 years for clean-energy cars, with cars linked to its electronic systems.[3]

Why now

  • Growth in rental demand shows in the rise of unified electronic contracts.[1]
  • Removing the minimum fleet requirement lowered the entry threshold for new businesses.[2]

1,526,947Unified electronic car rental contracts in Q1 2025, up 22% on the same quarter of 2024.[1]

The idea and business model

A business licensed by the Transport General Authority (TGA) that rents passenger cars and light commercial vehicles to individuals and companies. Revenue comes from daily and monthly rental fees and add-on service charges, then from selling cars at the end of their operating life.

Model: Asset rental

Project economics

Revenue formula

Number of cars×Utilisation rate×Average daily rate

Sales channels

  • Daily rental
  • Monthly and corporate rental
  • Online booking platforms

Largest cost items

  • Car purchases or finance instalments
  • Insurance
  • Maintenance
  • Office rent and salaries

Decisive indicators we measure

  • Fleet utilisation rate
  • Revenue per car
  • Monthly cost per car
  • Resale value

Relevant authorities

  • Transport General Authority (TGA): activity licence and unified contract via the Ta'jeer platform
  • Ministry of Commerce: Commercial Registration (CR)
  • Ministry of Municipalities and Housing (MoMAH) via Balady: office licence
  • Ministry of Human Resources and Social Development (HRSD): labour and Saudization

What needs your attention

  • The operating-life limit forces regular fleet renewal and makes resale value part of the feasibility.
  • The proposed regulations require new cars not previously registered in Saudi Arabia.
  • Fleet financing and leasing shape cash flow more than accounting profit does.

What a Car rental office study calculates for you

  • Fleet size and category mix
  • Utilisation rate needed to break even
  • Fleet financing and repayment schedule
  • Depreciation and sale value after the operating life
  • Cash flow in the renewal year

Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.

Sources

Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.

  1. «النقل»: 1526947 عملية تأجير سيارات في الربع الأولعكاظ · 2025-05
  2. إلغاء شرط 3000 سيارة.. وإجازة التأجير بالساعةالمدينة · 2024-12
  3. 5 سنوات العمر التشغيلي للسيارات المستخدمة في نشاط التأجيرعكاظ · 2025-08
  4. Saudi Arabia's Tajeer Rental System Includes over 300,000 VehiclesAsharq Al-Awsat · 2020-03

Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.