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The unified contract for rental of cars in Saudi Arabia supports 22,000 citizens working in the car rental sector and includes more than 300,000 vehicles in the first phase, Saudi Press Agency (SPA) reported, citing Minister of Transport and the Public Transport Authority (PTA) chairman, Saleh bin Nasser Al-Jasser.
The contract will be applied to buses and trucks in later phases, Al-Jasser said, adding that the authority aspires to guarantee existing investments and encourage new ones to enter the market.
The contract will also enhance consumer confidence (citizen, resident, or tourist) in the vehicle rental service and reduce negative practices that result from the absence of a clear mechanism for documented rights and obligations, the chairman noted.
Al-Jasser indicated that the decision contributes to the elimination of many negative phenomena in the sector and will positively affect consumer confidence, and reduce disputes and the need for litigation.
It will also reduce the burden on courts and other agencies, he said.
The unified contract comes as a completion for the steps that have been started by the PTA to organize the rental sector, starting from updating the activity regulations till launching the rental portal and the evaluation service related to assessing the damage caused by non-traffic accidents.
According to data compiled by Argaam, Saudi Arabia’s Cabinet approved the vehicle rental contract of all kinds - signed between its parties through the PTA’s online for the regulation of vehicle rental procedures – and will be in the rule of documented contracts in terms of evidence and implementation.
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