403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Saudi Arabia’s car rental sector accelerates amid tourism and digital shift
(MENAFN- Oxford Business Group) Saleh Hussein Al Jerwi, acting CEO of Key Car Rental, tells Oxford Business Group that tourism, digitalisation and flexible leasing are reshaping mobility demand
Riyadh, September 2026: Saudi Arabia’s car rental market is undergoing structural change as tourism expansion, digital adoption and evolving customer preferences reshape demand across the Kingdom, Saleh Hussein Al Jerwi, acting CEO of Key Car Rental, told Oxford Business Group in a recent interview.
Al Jerwi, said the growth of tourism, including religious travel, entertainment and international events, is playing a central role in driving demand for mobility services. “Saudi Arabia is witnessing growth across many areas, but tourism is particularly important for the mobility sector,” he said, adding that this shift is influencing both the volume and profile of car rental demand.
Changing travel patterns are also contributing to more dynamic fleet management strategies. Increased visitor flows to destinations such as Asir are creating seasonal demand peaks, particularly during the summer months, while regional airports are recording rising rental activity. At the same time, inbound travel from GCC markets is strengthening Saudi Arabia’s position as a regional tourism and leisure hub.
Customer expectations are evolving in parallel, with a growing preference for speed, convenience and digital access. Online bookings now account for a significant share of transactions, supported by aggregators and mobility platforms. “Around 65% of our customers use online channels, which illustrates how quickly booking behaviour is shifting,” Al Jerwi said.
The sector is also expanding beyond traditional daily rentals, with more flexible models gaining traction. Monthly rentals and operating leases are increasingly being adopted by both individuals and corporates seeking cost predictability and operational flexibility. “Monthly rental is growing because it gives customers greater flexibility, more predictable costs and the ability to adapt their mobility needs without committing to asset ownership,” he said.
Corporate mobility and commercial leasing are emerging as key growth segments, supported by the expansion of logistics and business activity in the Kingdom. Leasing solutions are enabling companies to scale fleets efficiently without significant upfront capital expenditure, particularly in segments such as light and medium sized commercial vehicles.
While Saudi Arabia benefits from a well-developed road network and an improving regulatory framework, including the introduction of a unified rental contract, Al Jerwi, noted that managing seasonal demand remains a key challenge for operators. He added that continued innovation and digital integration will be critical to maintaining competitiveness. “Customers want services at their fingertips, and companies that adapt fastest will be best positioned to grow,” he said.
Commenting on the interview, Busra Karacadag, Country Director at Oxford Business Group, said: “The interview highlights how tourism growth and changing customer expectations are reshaping demand patterns in Saudi Arabia’s car rental market, while creating new opportunities for flexible and digitally enabled mobility solutions.”
As Saudi Arabia advances its Vision 2030 objectives, the car rental segment is expected to play a growing role in enabling mobility across tourism, logistics and corporate travel, supported by continued investment in technology and service innovation.
Full interview is now available to view at
Riyadh, September 2026: Saudi Arabia’s car rental market is undergoing structural change as tourism expansion, digital adoption and evolving customer preferences reshape demand across the Kingdom, Saleh Hussein Al Jerwi, acting CEO of Key Car Rental, told Oxford Business Group in a recent interview.
Al Jerwi, said the growth of tourism, including religious travel, entertainment and international events, is playing a central role in driving demand for mobility services. “Saudi Arabia is witnessing growth across many areas, but tourism is particularly important for the mobility sector,” he said, adding that this shift is influencing both the volume and profile of car rental demand.
Changing travel patterns are also contributing to more dynamic fleet management strategies. Increased visitor flows to destinations such as Asir are creating seasonal demand peaks, particularly during the summer months, while regional airports are recording rising rental activity. At the same time, inbound travel from GCC markets is strengthening Saudi Arabia’s position as a regional tourism and leisure hub.
Customer expectations are evolving in parallel, with a growing preference for speed, convenience and digital access. Online bookings now account for a significant share of transactions, supported by aggregators and mobility platforms. “Around 65% of our customers use online channels, which illustrates how quickly booking behaviour is shifting,” Al Jerwi said.
The sector is also expanding beyond traditional daily rentals, with more flexible models gaining traction. Monthly rentals and operating leases are increasingly being adopted by both individuals and corporates seeking cost predictability and operational flexibility. “Monthly rental is growing because it gives customers greater flexibility, more predictable costs and the ability to adapt their mobility needs without committing to asset ownership,” he said.
Corporate mobility and commercial leasing are emerging as key growth segments, supported by the expansion of logistics and business activity in the Kingdom. Leasing solutions are enabling companies to scale fleets efficiently without significant upfront capital expenditure, particularly in segments such as light and medium sized commercial vehicles.
While Saudi Arabia benefits from a well-developed road network and an improving regulatory framework, including the introduction of a unified rental contract, Al Jerwi, noted that managing seasonal demand remains a key challenge for operators. He added that continued innovation and digital integration will be critical to maintaining competitiveness. “Customers want services at their fingertips, and companies that adapt fastest will be best positioned to grow,” he said.
Commenting on the interview, Busra Karacadag, Country Director at Oxford Business Group, said: “The interview highlights how tourism growth and changing customer expectations are reshaping demand patterns in Saudi Arabia’s car rental market, while creating new opportunities for flexible and digitally enabled mobility solutions.”
As Saudi Arabia advances its Vision 2030 objectives, the car rental segment is expected to play a growing role in enabling mobility across tourism, logistics and corporate travel, supported by continued investment in technology and service innovation.
Full interview is now available to view at
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment