Saudi Arabia seeks feedback on draft private car rental brokerage regulations

Logo of Transport General Authority (TGA) 

Saudi Arabia’s Transport General Authority (TGA) has opened the draft implementing regulations governing digital brokerage activities for private car rental service providers for public consultation, with feedback due by Dec. 4.

The regulations aim to govern digital brokerage activities for private car rental service providers, develop and enhance these services, and encourage investment in the sector in coordination with relevant authorities.

They also seek to align the activity with the Kingdom’s economic and social development objectives, while taking environmental considerations and security and safety requirements into account.

Under the draft regulations, only establishments licensed by the TGA may engage in the activity. Licenses will be valid for three years and renewable for an equivalent period.

Establishments that meet some, but not all, licensing requirements may be granted a restricted license for 60 days to complete the remaining requirements. However, they will not be permitted to conduct the activity during this period.

To obtain a license, establishments must have a valid commercial registration that includes the relevant activity, provide a trademark registration certificate for their electronic application, and operate a technical system linked to the TGA’s electronic platform.

They must also meet the other requirements and pay the applicable fees and any outstanding fines.

Service providers will be required to establish clear policies covering pricing, booking cancellations and amendments, and make these policies available to customers before they complete a booking.

They must also provide round-the-clock technical support and communication channels, and address complaints and reports within no more than three business days.

The regulations further require providers to display customer ratings before bookings are made, submit requested data to the TGA within six hours for urgent requests and 48 hours for other requests, and refrain from collecting any amounts not specified in the booking or contract.

The draft also requires providers to refund prepaid amounts collected through electronic applications if a booking is canceled in accordance with the approved policy, the vehicle is unavailable with the agreed specifications, or the booking is not fulfilled for any other reason.

The regulations set a 30-day period for filing objections to violations issued by the TGA, and a 60-day period for challenging decisions issued by the committee reviewing violations before the competent court.