Saudi Arabia’s car leasing industry is hitting the fast lane, driven by a mix of favorable conditions and shifting dynamics. According to Glasgow Research & Consulting, the market—valued at approximately $772 million in 2023—is on track to soar to $1.3 billion by 2028, fueled by a projected compound annual growth rate (CAGR) of 9.7%.
Several forces are revving up this growth. The increasing adoption of leasing solutions by businesses, combined with a rising workforce across the Kingdom, is fueling demand. Notably, the growing number of women drivers, following the recent lifting of restrictions, is further boosting the sector.
Like the broader Saudi economy, the car leasing market is undergoing a transformation. Post-pandemic recovery has spurred modernization across major cities, accompanied by a push toward electric vehicles and sustainable mobility options. This aligns with Saudi Arabia’s broader vision of becoming a global business hub, which has drawn a steady influx of expatriates. Many of these newcomers prefer leasing vehicles over buying, given the convenience and flexibility of leasing contracts, typically lasting three to four years.
Local champions such as Hanco and Theeb dominate the market, though global players like Budget, Hertz, and Avis also hold significant ground. Among the most popular leased models are everyday sedans like the Toyota Camry, Hyundai Sonata, and Nissan Altima. Luxury seekers often opt for premium models, including the Mercedes-Benz E-Class and BMW 7 Series.
Sedans lead the charge, accounting for 43% of all leases in 2022, followed closely by SUVs at 39%. Luxury vehicles represent a smaller but notable 8% of the market. Corporate clients dominate the leasing space, making up 81% of contracts, with private leasing contributing the remaining 19%.
Looking ahead, digitalization will play a pivotal role in shaping the future of the industry. Glasgow Research & Consulting highlights that companies prioritizing customer retention and seamless service experiences will stand out in this competitive landscape. As the market matures, embracing technology and customer-centric strategies will be key to sustained growth and success.
With strong momentum and a forward-looking approach, Saudi Arabia’s car leasing sector is poised to become a vital component of the Kingdom’s evolving mobility ecosystem.
