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.

Key Objectives of the New Regulations

Transparency, service quality, and conformity to industry standards are the primary goals of the revised rules.

Online Car Reservations and Digital Services

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 aligns with the increasing use of digital services in the automobile rental sector, making the process more convenient and modern.

Financial Requirements for Rental Companies

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.

Changes in Rental Services

• Renting automobiles with a driver is now permitted.

• Hourly automobile rentals have been removed as per Article 27.

• A six-hour minimum rental period is required for rentals with a driver.

New Fines and Violations

To strengthen compliance and monitoring, the amendments introduce new fines:

• SR1,000 fine for failing to provide official vehicle receipt documentation.

• SR4,000 fine for non-compliance with the TGA-designated electronic contract issuance method.

• SR3,000 fine for rental agreements not ending upon police notification of stolen vehicles.

• SR5,000 fine for operating without a valid rental business or broker license.

• SR3,000 fine for requiring customers to sign non-legal rental contracts.

Compliance with the New Rules

All rental companies and brokers must have valid permits and follow the updated rules to avoid penalties.