Saudi Ministry of Transportation issues executive regulations for car rental sector
The Saudi Ministry of Transportation issued new executive regulations that split operating licences in the car rental sector into four categories. Rental vehicles must not operate for more than five years, and cars entering the sector must be brand new. The first category: requires that the company follow locally recognised corporate structures, have a minimum of 3k cars, offer one main branch in the Kingdom with the option of opening more throughout, can contract with the lease broker, and can rent cars by the hour with a driver. The second category requires: the company follow locally recognised corporate structures, have a minimum of 300 cars, offer one main branch in the Kingdom with the option of opening more throughout (with at least 100 cars per area), can contract with the lease broker, and cannot rent cars with a driver but can rent them by the hour. The third category: the company is to follow locally recognised corporate structures, have a minimum of 100 cars, offer one main branch in the Kingdom with the option of opening more in the licensed area only, cannot contract with the lease broker, and cannot rent cars with a driver or by the hour. Finally, the fourth category includes: a requirement that the company follows locally recognised corporate structures, has a minimum of 15 cars, offers one main branch in the Kingdom (cannot be located in Riyadh, Mecca, Medina, Dammam or Jeddah), cannot contract with the lease broker, and cannot rent cars with a driver or by the hour.
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