On accelerating growth in Saudi Arabia’s mobility sector
To what extent is Saudi Arabia’s mobility landscape evolving as Vision 2030 accelerates growth in tourism, business travel, airport activity and major events?
SALEH HUSSEIN AL JERWI: Saudi Arabia is witnessing growth across many areas, but tourism is particularly important for the mobility sector. This includes tourism for religious purposes, entertainment and major international sports competitions and championships, such as Formula One. This development is changing both the volume and profile of demand for car rental services.
We can see this clearly in customer behaviour and rental locations. For example, tourism growth in the south of the Kingdom, particularly in Asir, has created stronger seasonal demand during the summer. In response, fleet allocation across the market is becoming more dynamic, with vehicles being moved from major urban centres such as Riyadh and Jeddah to destinations such as Abha and Khamis Mushait during peak periods. Abha airport and other regions are now seeing a growing number of car rentals every year.
There is also rising demand from GCC nationals and residents visiting Saudi Arabia during holiday periods such as the Gregorian New Year break. Customers from the UAE, Kuwait and Qatar are increasingly travelling to Riyadh and other Saudi cities, reflecting the Kingdom’s growing position as a regional leisure and events destination.
Customer expectations are changing as well. Travellers increasingly want speed, convenience and digital access. Around 65% of our customers use online channels, which illustrates how quickly booking behaviour is shifting. The wider market is also moving from walk-ins and phone bookings towards digital platforms, supported by aggregators and mobility applications. This transition will continue as the customer base becomes younger and more technology-oriented.
How are flexible rental models, corporate mobility and commercial vehicle leasing changing the role of car rental companies in the Saudi economy?
AL JERWI: As customer preferences evolve, the service portfolio in the car rental market is becoming broader and more flexible. Daily rentals remain important, but weekly and monthly options are gaining traction as customers look for practical alternatives between short-term rental and long-term ownership. Monthly rental, in particular, is growing because it gives customers greater flexibility, more predictable costs and the ability to adapt their mobility needs without committing to asset ownership. This reflects a wider shift towards usage-based mobility solutions.
Corporate mobility is another important pillar. There are two main segments. The first is operating leases, where companies take vehicles for three to five years. This is a growing market in Saudi Arabia because it allows businesses to access fleets without owning and managing all the assets themselves. The second segment is corporate accounts, where companies receive special pricing and can book cars electronically for employees travelling on business. Human resources or travel departments can make bookings online, employees collect vehicles with minimal friction and the company receives consolidated invoices at the end of the month.
Commercial vehicle leasing is also important because logistics is expanding rapidly in the Kingdom. Many companies need large fleets of light and medium-sized trucks, often with cooling or freezing units. Buying 100, 200 or even 1000 vehicles requires significant capital, and this can slow companies down when they want to grow quickly. Operating lease models remove much of that burden by covering procurement, vehicle preparation, modifications, maintenance, tyres, oil changes and repairs. This allows companies to scale faster and focus on their core business.
What are the main challenges facing the sector and what will define success for mobility companies over the coming years?
AL JERWI: Saudi Arabia has strong infrastructure for mobility. The road network is extensive and of high quality, and this is essential because the Kingdom is vast. Airlines and railways are developing, but vehicles remain central to moving people and goods between cities, airports, tourism destinations and commercial centres.
The regulatory environment has improved. The General Transport Authority’s unified rental contract has helped organise the sector by simplifying claims, enforcement and dispute resolution. This supports formal operators and improves confidence for both companies and customers.
One of the main challenges is managing cyclical and seasonal demand in spot rentals. In operating leases, the vehicle lifecycle is easier to plan because the asset is with the customer for several years. In short-term rental, demand rises and falls throughout the year, including holiday periods and tourism seasons. Managing fleet allocation efficiently is therefore critical.
Looking ahead, innovation will drive the sector. Traditional rental and leasing models will not meet the country’s needs. Saudi Arabia is advancing quickly in electronic services and online solutions, and mobility companies must keep pace. Customers want services at their fingertips, and companies that adapt fastest will be best positioned to grow.
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