Decree

Arabic

The Minister of Transport and Logistics Services,

based on the powers granted to him by law,

after perusal of the Law of Public Transport on Roads of the Kingdom of Saudi Arabia issued by Royal Decree D/25 dated 21 Jumada Al-Thani 1397 [7 June 1977],

after perusal of the System of the Transport General Authority issued by Council of Ministers Decision 323 dated 14 Ramadan 1434 [22 July 2013], and its amendments,

after perusal of the Regulation Governing the Activity of Car Rental and Rental Brokerage issued by Minister of Transport and Logistics Services Decision 120/41/1 dated 7 Jumada Al-Awwal 1441 [3 January 2020], and its amendments,

and after perusal of Board of Directors of the Transport General Authority Decision 2/3/2024/4 dated 10 Jumada Al-Thani 1446 [11 December 2024],

hereby decides

First

The amendment of the Regulation Governing the Activity of Car Rental and Rental Brokerage is hereby approved as follows:

1‏. Adding a definition to article 1 that reads as follows:

Gross weight: The weight of a vehicle empty plus the maximum payload of the vehicle.

2․ Adding a definition to article 1 that reads as follows:

Electronic channels: The websites or electronic applications of licensed establishments practicing the activity, and other channels.

3․ Adding a definition to article 1 that reads as follows:

Booking:
The process of reserving a car and specifying additional services and equipment through electronic channels, which takes place before signing a rental contract.

2․ Adding a definition to article 1 that reads as follows:

Beneficiary:
A natural or legal person who carries out the booking process through electronic channels.

5․ Amending article 4(First)(1)(b) to read as follows:

A valid commercial registration that includes the activity of car rental or rental brokerage.

6․ Amending article 4(First)(2) to read as follows:

Providing a suitable headquarters in the city subject of the license in accordance with the approved municipal and technical requirements, or the requirements issued by the relevant competent entities.

7․ Amending article 4(First)(5) to read as follows:

Providing a financial guarantee of 100,000 Riyal in favor of the authority, in the form it specifies. Entrepreneurial ventures are exempt from providing the financial guarantee for one-time only.

8․ Deleting article 5(1)(d), which stipulated:

It is permitted to enter into a contract with a rental broker.

9․ Deleting article 5(1)(e), which stipulated:

It is permitted to practice car rental by the hour and with a driver, in accordance with the provisions of article 27 and article 28.

10‏. Amending article 5(2)(c) to read as follows:

Without prejudice to the provisions of article 9, one main headquarters must be provided at the level of the region or city subject of the license, with the possibility of opening an unlimited number of branches within the region and city subject of the license. An establishment may also open branches in other regions, provided that a minimum of 100 vehicles are provided at the level of each region. An establishment may open branches in other regions without restriction by adding 100 vehicles, in accordance with the rating issued to it based on service measurement points.

11․ Deleting article 5(2)(d), which stipulated:

It is permitted to enter into a contract with a rental broker in the city or region subject of the license.

12․ Deleting article 5(2)(e), which stipulated:

It is not permitted to practice car rental with a driver.

13․ Deleting article 5(2)(f), which stipulated:

It is permitted to practice car rental by the hour, in accordance with the provisions of article 27.

14․ Amending article 5(3)(c) to read as follows:

Without prejudice to the provisions of article 9, one main headquarters must be provided in the city subject of the license, with the possibility of opening branches only within the city subject of the license. An establishment may open branches outside the city in accordance with the rating issued to it based on service measurement points.

15․ Deleting article 5(3)(d), which stipulated:

It is not permitted to enter into a contract with a rental broker.

12․ Deleting article 5(3)(e), which stipulated:

It is not permitted to practice car rental by the hour or with a driver.

17․ Amending article 5(4)(c) to read as follows:

One main headquarters must be provided at the level of the city subject of the license, provided that the city is not one of the following: Riyadh, Makkah Al-Mukarramah, Al-Madinah Al-Munawwarah, Dammam Metropolitan Area, Jeddah, and Diriyah Governorate.

18․ Amending article 5(4)(d) to read as follows:

An establishment may open branches inside and outside the city subject of the license in accordance with the rating issued to it based on service measurement points.

19․ Deleting article 5(4)(e), which stipulated:

It is not permitted to enter into a contract with a rental broker.

20․ Deleting article 5(4)(f), which stipulated:

It is not permitted to practice car rental by the hour or with a driver.

21․ Amending article 5(5) to read as follows:

Luxury cars category.

19․ Deleting article 5(5)(e), which stipulated:

It is permitted to practice the activity of car rental by the hour or with a driver.

23‏. Adding article 5bis that reads as follows:

An establishment licensed to practice the activity of car rental may enter into a contract with a rental broker or provide rental services with a driver or by the hour based on its approved rating in accordance with service measurement points.

24․ Amending article 7 to read as follows:

1‏. The license conditions provided in article 4(1)(b), (2), (3), and (6) are essential for its validity. In the event of a breach of any of these conditions, the license must be suspended until the conditions are met or the license expires. A licensee shall not practice the activity until the condition is met, without prejudice to the right of the authority to impose the prescribed fine for that condition.

2․ If there is a shortage in the minimum number of vehicles required to practice the activity due to accidents or disasters beyond the control of a licensee, and the shortage is not rectified within 180 days from the date of the shortage, the license must be suspended, without prejudice to the right of the authority to impose the prescribed fine for that.

25․ Amending article 8(1) to read as follows:

Without prejudice to the provisions of articles 4 and 5, a license must be issued to the main headquarters in the name of the establishment for a period of three years.

26‏. Amending article 8(2) to read as follows:

A sub-license must be obtained for each branch from which the activity is practiced, and its classification and validity are linked to the main license, after fulfilling the license conditions provided in article 4(1), (2), and (7).

27․ ‏Amending article 11 to read as follows:

Without prejudice to the provisions of articles 4 and 5, an establishment licensed in the activity of car rental may change the license category after fulfilling the necessary conditions and requirements for the new category, after paying the fee and any fines (if any).

28․ Adding a paragraph numbered 4 to article 12 to read as follows:

4․ It is permitted to submit a renewal application and fulfill all its conditions within a period of 90 days from the expiry of the license, otherwise the license is considered canceled, without prejudice to the right of the authority to impose a fine for the delay in submitting the application.

29․ Amending article 13(3) to read as follows:

That the license is valid upon submitting the assignment application and until the license assignment is completed in the name of the assignee.

30‏. Amending article 14(2) to read as follows:

Deleting the activity from the Commercial Register.

31․ Amending article 15(1) to read as follows:

A license must be canceled after payment of fines (if any), otherwise the license is suspended in the event of non-payment, in the following cases:

32․ Deleting article 15(1)(c), which stipulated:

Canceling the license at the request of the establishment.

33‏. Amending article 15(1)(f) to read as follows:

A period of 90 days has passed since the expiry of the license without renewal.

34․ Deleting article 15(1)(g), which stipulated:

A period of 90 days has passed since the license was suspended without completing any of the license validity conditions.

35‏. Adding article 5(1)(h) that reads as follows:

(h) Failure to meet the approved minimum limit for calculating service measurement points twice in a row.

36․ Amending article 16 to read as follows:

Without prejudice to the provisions of the Traffic Law and its executive regulation, and the standard specifications for cars approved by the Saudi Standards, Metrology, and Quality Organization, an establishment licensed in the activity of car rental may rent out in accordance with the following:

1․ Renting out all types of passenger cars with no more than nine seats.

2․ Renting out all types of light transport vehicles with a gross weight not exceeding 3,500 kilograms, and the authority may exempt specific categories of vehicles with a gross weight exceeding 3,500 kilograms, which are used for special purposes.

37․ Amending article 17 to read as follows:

The operational lifespan of cars used in the activity of car rental must not exceed five years from the date of the year of manufacture, and the president may decide to increase the maximum operational lifespan for vehicles that operate on clean energy.

38‏. Adding article 18(1)(j) that reads as follows:

(j) That the car is owned by the establishment or through finance lease contracts, provided that the establishment is the actual user of the car.

39․ Amending article 18(2) to read as follows:

Without prejudice to the provisions of article 18(1), a vehicle operating card must be issued for a period of one year, provided that the validity date of the card does not exceed the expiry date of the license of the establishment or the operational lifespan of the vehicle, whichever is earlier, and the status of the card is linked to the status of the license issued to the establishment.

40․ Amending article 18(3) to read as follows:

The conditions for obtaining an operating card for the luxury car category must be issued by a decision of the president.

41․ Amending article 20 to read as follows:

A vehicle operating card must be canceled in the following cases:

(a) Cancellation of the license.

(b) Expiration of the operational lifespan of the car.

(c) A request submitted by the licensed establishment after payment of the fines (if any).

42․ Adding article 20bis that reads as follows:

It is permitted, by a decision of the president, to determine the controls and obligations to operate under the franchise model in the activity of car rental.

43․ Amending article 21 to read as follows:

An establishment licensed to practice the activity shall connect to the electronic system specified by the authority and issue its contracts through it, while adhering to the contract form, and it may add to it provisions that do not conflict with its articles, after obtaining the approval of the authority.

44․ Amending article 22 to read as follows:

A contract must include, at a minimum, the following requirements, data, and information, and the establishment shall verify their accuracy:

45․ Amending article 24 to read as follows:

An establishment licensed to practice the activity shall provide the renter with a copy of:

1․ ‏The contract after it is signed by both parties.

2‏. The settlement if there are no financial obligations at the time of returning the vehicle, if requested by the renter.

3․ Proof that the car has been received if the contract has not been closed due to financial obligations, and the renter has requested this.

46․ Amending article 27 to read as follows:

Without prejudice to the provisions of article 5, cars are rented by the hour to permitted establishments, in accordance with the following conditions:

47․ Amending article 27(1) to read as follows:

That the permitted hours for car rental with a driver are not less than six hours.

48․ Amending article 28 to read as follows:

Without prejudice to the provisions of article 5bis, an establishment licensed in the activity of car rental may rent out a car with a driver employed by the establishment, in accordance with the following conditions:

49․ Adding numbering to article 30 such that it reads as follows:

(a) A renter and those authorized by the contract to drive the car shall:

50․ Adding article 30(b) that reads as follows:

(b) ‏A lessor may refuse to rent out a vehicle to a renter if there are existing financial claims against the renter in favor of the lessor that are documented with the competent entities.

51․ Amending article 31(5) to read as follows:

A copy of the license, its approved rating in accordance with service measurement points, a copy of the obligations of the establishment licensed to practice the activity and the renter, and the conditions that the renter must meet must be displayed in the main headquarters and branches in a place visible to all.

52․ Amending article 31(7) to read as follows:

The authority must be provided with the information and data it requests in accordance with the following periods:

(a) ‏Urgent requests: Within a maximum period of six hours from the time of the request. ‏

(b) Other requests: Within a maximum period of 48 hours from the time of the request.

53‏. Deleting article 31(8), which stipulated:

Refraining from mortgaging the official documents belonging to the renter for the purpose of renting him a car or performing any actions that would harm him.

54‏. Deleting article 31(9), which stipulated:

Not photocopying official documents belonging to the renter for the purpose of renting them a car, and sufficing with recording all data automatically from those documents in the electronic systems specified by the authority.

55․ Amending article 31(15) to read as follows:

Establishing a mechanism for returning lost items to their owners, which must include contact numbers, and complying with any instructions issued by the authority.

56․ Adding article 31(24) that reads as follows:

24․ That the amount of fuel in the car standard tank is not less than a quarter as a minimum when the vehicle is handed over to the renter.

57‏. Adding article 31(25) that reads as follows:

25․ Providing a child safety seat at the request of the renter.

56․ Adding article 31(26) that reads as follows:

26․ The date and time of reporting a car theft is considered the end of the rental contract, provided there is proof of reporting the theft from the competent entities.

59․ Adding article 31(27) that reads as follows:

27․ A renter does not sign any additional papers other than the contract for the purpose of renting.

60‏. Adding article 31bis that reads as follows:

A renter shall not smoke in the car, and the licensee may impose a fine on the renter in case of non-compliance, taking into account the following:

1․ Informing the renter that smoking is not permitted in the rented vehicle.

2‏. That there is proof that the renter has been informed that smoking is not permitted in the rented vehicle.

61․ Amending article 32(1) to read as follows:

Subjecting a car to insurance coverage that covers—at a minimum—civil liability against third parties in accordance with the unified mandatory insurance policy and includes all age groups for vehicles throughout the operating period, the duration of the contract, or any extension to it. Under no circumstances does the liability resulting from this type of coverage transfer to the renter, and the establishment shall bear full liability for renting out a car without any insurance coverage.

62‏. Amending article 34(1) to read as follows:

Entering into a contract with an establishment licensed in the activity of car rental, which is permitted to enter into a contract with an insurance broker based on its approved rating in accordance with service measurement points.

63․ Amending article 35(16) to read as follows:

Not transporting persons or goods for a fee except with the approval of the lessor, without prejudice to other relevant legislation.

64․ Amending article 35(20) to read as follows:

Not subleasing the car to a third party, and the president may issue regulations to govern this.

65․ Amending article 36(6) to read as follows:

Damages resulting from traffic accidents that are not covered by the insurance policy or the additional insurance coverage specified in the contract.

66‏. Adding article 36bis to read as follows:

Establishments licensed to practice the activity may provide the booking service through electronic channels, taking into account the following:

First

An establishment shall place its approved rating in accordance with the service measurement points in the electronic channels.

Second

An establishment shall, when providing services through electronic channels, comply with the following:

1․ Clarifying the necessary means of communication for complaints, inquiries, and reports.

2․ Having a clear pricing policy.

3․ Having a clear policy to govern the process of canceling or modifying a booking by the beneficiary or the lessor.

4․ Obtaining the acknowledgment of the beneficiary that he has read the pricing policy and cancellation and modification policy before completing the booking process.

5․ Verifying that the beneficiary meets the rental conditions stipulated in article 30, in accordance with the data entered by the beneficiary, before completing the booking process.

6․ Providing the beneficiary with a booking reference number.

7․ If the car booked by the beneficiary is not available—and after the approval of the beneficiary—the car must be replaced with a car of the same class. If a car of the same class is not available, it must be replaced with a car of the next higher class without any additional costs to the renter. If a car of the higher class is also not available, it must be replaced with a car of a lower class in accordance with the tariff announced through electronic channels, after the approval of the beneficiary and the refund of the price difference to the beneficiary.

Third

Without prejudice to the right of the authority to impose the prescribed fine, an establishment shall refund the amounts paid in advance through electronic channels in the following cases:

(a) Canceling the booking by the beneficiary or the lessor, without prejudice to the policy approved by the establishment.

(b) Not replacing the vehicle in accordance with Second(7).

(c) Unavailability of additional services and equipment specified in the booking.

(d) Failure to verify that the beneficiary meets the rental conditions as provided in Second(5).

(e) Failure to execute the booking for any other reasons.

Fourth

An establishment has the right, in case the data of the beneficiary is incorrect, to cancel the booking, taking into account Second(3).

67․ Amending article 37 to read as follows:

The president or his delegate shall approve the points calculation criteria applied to the licensed establishment practicing the activity to measure the level of services provided and the extent of its compliance with the provisions of this regulation.

68․ Deleting article 38, which stipulated:

The president or his delegate may—after approving the points calculation criteria—issue a decision not to renew the license if it exceeds the maximum limit approved for points calculation for adherence to the level of service and compliance with the provisions of this regulation.

69‏. Deleting article 39, which stipulated:

Points calculated are subject to the provisions of this regulation.

70․ Amending article 50 to read as follows:

If a renter does not receive the car from the establishment licensed to practice the activity for any reason, the renter shall contact the authority to take the necessary measures.

71․ Amending article 51 to read as follows:

In the event of a dispute between the parties to the contract arising from the assessment of damages resulting from non-traffic accidents, misuse, or wear and tear, the establishment licensed to practice the activity shall assess the damage to the car through a valuation entity accredited by the Saudi Authority for Accredited Valuers, provided that the party who caused the damage shall bear the cost of the inspection and the report.

72․ Amending violation 8 of the Violations and Punishments Schedule to read as follows:

An establishment licensed to practice the activity of car rental renting out a car with a driver if its approved rating in accordance with the service measurement points does not permit it to do so.

73‏. Amending violation 9 of the Violations and Punishments Schedule to read as follows:

An establishment licensed to practice the activity of car rental renting out a car by the hour if its approved rating in accordance with the service measurement points does not permit it to do so.

74․ Amending violation 16 of the Violations and Punishments Schedule to read as follows:

An establishment licensed to practice the activity of car rental renting out a car that is not subject to the specifications and conditions of the provisions of the regulation.

75‏. Amending violation 26 of the Violations and Punishments Schedule to read as follows:

Failure to provide the renter with a copy of the settlement receipt when there are no financial obligations at the time of returning the vehicle, at the request of the renter.

76․ Amending violation 29 of the Violations and Punishments Schedule to read as follows:

An establishment licensed to practice the activity of car rental renting out a car with a driver by the hour for a period of less than six hours.

77․ Amending violation 41 of the Violations and Punishments Schedule to read as follows:

Failure to provide the authority with urgent information and data within the specified period, and the value of the fine is 5,000 Riyal.

78․ Amending violation 49 of the Violations and Punishments Schedule to read as follows:

Failure to establish a mechanism for returning lost items to their owners, which includes contact numbers, and complying with any instructions issued by the authority.

79․ Amending violation 61 of the Violations and Punishments Schedule to read as follows:

Failure of an establishment licensed to practice the activity of car rental to maintain the cleanliness of the car inside and out and its readiness for rental.

80․ Amending violation 69 of the Violations and Punishments Schedule to read as follows:

Failure of an establishment licensed to practice the activity to have the damage to the vehicle assessed by a valuation entity accredited by the Saudi Authority for Accredited Valuers in case of disagreement on the damage assessment, and the value of the fine is 2,000 Riyal.

81‏. Adding a violation numbered 70 to the Violations and Punishments Schedule that reads as follows:

Failure to provide the authority with information and other data in accordance with the specified period, and the value of the fine is 3,000 Riyal.

82․ Adding a violation numbered 71 to the Violations and Punishments Schedule that reads as follows:

Failure to provide the renter with confirmation of vehicle receipt when the contract is not closed due to outstanding financial obligations, and the renter requests this, and the value of the fine is 1,000 Riyal.

83․ Adding a violation numbered 72 to the Violations and Punishments Schedule that reads as follows:

Failure to issue the contract through the electronic system specified by the authority, and the value of the fine is 4,000 Riyal.

84․ Adding a violation numbered 73 to the Violations and Punishments Schedule that reads as follows:

If an establishment licensed to practice the activity of car rental rents out a car with less than a quarter tank of fuel, and the value of the fine is 1,000 Riyal.

85․ Adding a violation numbered 74 to the Violations and Punishments Schedule that reads as follows:

Failure to consider the date and time of reporting the car theft as the end of the rental contract, when there is proof of reporting the theft from the competent entities, and the value of the fine is 3,000 Riyal.

86․ Adding a violation numbered 75 to the Violations and Punishments Schedule that reads as follows:

Practicing the activity of car rental with an expired license, and the value of the fine is 5,000 Riyal.

87․ Adding a violation numbered 76 to the Violations and Punishments Schedule that reads as follows:

Practicing the activity of rental brokerage with an expired license, and the value of the fine is 5,000 Riyal.

88․ Adding a violation numbered 77 to the Violations and Punishments Schedule that reads as follows:

An establishment licensed to practice the activity of car rental rents out a car with a canceled operating card, and the value of the fine is 5,000 Riyal.

89․ Adding a violation numbered 78 to the Violations and Punishments Schedule that reads as follows:

An establishment recovers or stops a car without referring to the competent entity, and the value of the fine is 2,000 Riyal.

90․ Adding a violation numbered 79 to the Violations and Punishments Schedule that reads as follows:

An establishment submits a renewal application within a period of 90 days from the expiry of the license, and the value of the fine is 2,000 Riyal.

91․ Adding a violation numbered 80 to the Violations and Punishments Schedule that reads as follows:

Failure to provide a child safety seat at the request of the renter, and the value of the fine is 1,000 Riyal.

92․ Adding a violation numbered 81 to the Violations and Punishments Schedule that reads as follows:

Failure to clarify the necessary means of communication for complaints, inquiries, and reports through electronic channels, and the value of the fine is 1,000 Riyal.

93․ Adding a violation numbered 82 to the Violations and Punishments Schedule that reads as follows:

Lack of a clear pricing policy through electronic channels, and the value of the fine is 500 Riyal.

94․ Adding a violation numbered 83 to the Violations and Punishments Schedule that reads as follows:

Lack of a clear policy for a user to cancel or modify the booking through electronic channels, and the value of the fine is 500 Riyals.

95․ Adding a violation numbered 84 to the Violations and Punishments Schedule that reads as follows:

Failure to verify that the rental conditions are met by a user before completing the booking through electronic channels, and the value of the fine is 1,000 Riyals.

96․ Adding a violation numbered 85 to the Violations and Punishments Schedule that reads as follows:

Failure to comply with the booking or booking details through electronic channels, and the value of the fine is 3,000 Riyals.

97․ Adding a violation numbered 86 to the Violations and Punishments Schedule that reads as follows:

Failure of the establishment to refund amounts paid in advance through electronic channels, and the value of the fine is 2,000 Riyal.

98․ Adding a violation numbered 87 to the Violations and Punishments Schedule that reads as follows:

Failure to verify the validity of the requirements, data, or information included in the contract, and the value of the fine is 2,000 Riyal.

99․ Adding a violation numbered 88 to the Violations and Punishments Schedule that reads as follows:

A renter signs additional documents other than the contract for the purpose of renting, and the value of the fine is 3,000 Riyal.

100․ Adding a violation numbered 89 to the Violations and Punishments Schedule that reads as follows:

Failure to place a copy of the approved rating in accordance with the service measurement points, in a place visible to all in the main headquarters for the practice of the activity or any of its branches, and the value of the fine is 500 Riyal.

101․ Adding a violation numbered 90 to the Violations and Punishments Schedule that reads as follows:

Failure to place the approved rating in accordance with the service measurement points in electronic channels, and the value of the fine is 500 Riyal.

102․ Adding a violation numbered 91 to the Violations and Punishments Schedule that reads as follows:

An establishment licensed to practice the activity of car rental enters into a contract with a rental broker if the rating issued to it based on service measurement points does not permit it to do so, and the value of the fine is 3,000 Riyal.

103․ Adding a violation numbered 92 to the Violations and Punishments Schedule that reads as follows:

Failure to comply with the controls and obligations related to the commercial franchise model in the activity of car rental, and the value of the fine is 3,000 Riyal.

104․ Adding a violation numbered 93 to the Violations and Punishments Schedule that reads as follows:

Failure to provide the beneficiary with a booking reference number, and the value of the fine is 500 Riyal.

105․ Adding a violation numbered 94 to the Violations and Punishments Schedule that reads as follows:

Failure of an establishment licensed to practice the activity of car rental to subject the car to insurance coverage that includes all age groups, and the value of the fine is 3,000 Riyal.

Second

These amendments enter into force from the date of their publication in the official gazette.

Third

The President of the Transport General Authority is hereby authorized to approve the appropriate mechanisms to implement the provisions of this regulation and issue the necessary decisions and circulars for this.

Fourth

The President of the Transport General Authority shall take the necessary measures to implement this decision.

May Allah provide success.

Minister of Transport and Logistics Services
Saleh bin Nasser Al-Jasser

Issued on: 20 Sha’ban 1446
Corresponding to: 19 February 2025

Published in Umm Al-Qura 5073 issued on 28 February 2025.