Monday, March 3, 2025
New regulations could affect your Car Rental experience in Saudi Arabia
Saleh Al-Jasser, Saudi Arabia's Minister of Transport and Logistics, has authorized major changes to the rules that manage automobile rental agencies and rental cars in the kingdom. Trending: Saudi Arabia offers amnesty to objectors: State Presidency chief
Transparency, service quality, and conformity to industry standards are the primary goals of the revised rules.
One of the most important changes defines "reservation" in Article 1 to mean making a car reservation and choosing extra services online before completing the rental agreement. This change is in line with the increasing use of digital services in the automobile rental sector, and it will make the process easier and more modern for everyone involved.
The amended financial requirements for rental companies are as follows:
A financial guarantee of SR100,000 in favor of the Transport General Authority (TGA) is now mandated in Paragraph 5 of Clause One of Article 4. To encourage industrial expansion and small company ownership, however, pioneering firms will be temporarily exempt from this rule. Recommend: Moroor monitoring cars parked this way, even near to your home
One big change in the rules is that you can now rent automobiles with a driver, which gives you more options when you book your rental car. Also, as mentioned in Article 27, the part that allowed hourly automobile rentals is no longer there.
The new rules guarantee more organized and uniform rental agreements by requiring a six-hour minimum rental period with a driver.
The new fines and violations included by the amendments are an attempt to increase compliance policing and strengthen monitoring. Companies that rent out vehicles are now liable for SR1,000 in fines for failing to furnish customers with official documentation of vehicle receipt as long as the contract is active owing to financial commitments.
Additionally, the TGA-designated electronic method for contract issuance is now mandatory; failure to comply may result in a fine of SR4,000. See Also: Absher introduces new e-services related to Jawazat
The new regulations also make a big difference when it comes to stolen rental cars; they state that the rental agreement must end on the day and hour the police are notified of the theft. A SR3,000 fine will be levied for any violation of this rule.
All rental companies and brokers must now have valid permits, thanks to further regulatory procedures. A fine of SAR 5,000 will now be imposed for those who engage in rental businesses or serve as rental brokers with a license that has expired.
In addition, there is an SR3,000 fine for rental agencies that demand customers sign anything apart from the legal rental contract. Join Saudi Expatriates family on Telegram
New regulations could affect your Car Rental experience in Saudi Arabia
