Source Credit: Saudi Expatriates
Riyadh: A regulatory shift includes removing the previous restriction on renting cars with a driver, increasing flexibility in rental services. Additionally, hourly car rentals are no longer permitted, with the minimum rental duration with a driver now set at six hours.
Saudi Arabia’s Minister of Transport and Logistics, Saleh Al-Jasser, has approved major amendments to the regulations governing car rental and rental brokers, introducing changes aimed at improving service quality, enhancing transparency, and ensuring industry compliance.
One key update clarifies the definition of "reservation," now specifying that booking a car and selecting additional services must occur through electronic platforms before finalizing the rental contract. This aligns with the growing reliance on digital services in the sector.
Financial requirements have also been revised, with rental companies now required to provide a SR100,000 financial guarantee to the Transport General Authority (TGA). However, entrepreneurial establishments are granted a one-time exemption to support small businesses.
To strengthen oversight, new penalties have been introduced. Rental companies must provide proof of vehicle receipt when contracts remain open due to financial obligations, with non-compliance resulting in a SR1,000 fine. Issuing contracts through the designated electronic system is now mandatory, with violations subject to a SR4,000 fine.
Regarding stolen rental vehicles, the new regulations mandate that the rental contract is considered terminated at the time of reporting the theft. Failure to adhere to this rule will incur a SR3,000 fine. Additionally, rental companies operating with expired licenses will face a SR5,000 fine.
Furthermore, tenants cannot be required to sign additional documents beyond the official rental contract, with violations leading to a SR3,000 penalty. These amendments aim to streamline the car rental sector while ensuring consumer protection and regulatory compliance.
