Font Size

- Aa +

Thu 14 Apr 2016 01:06 PM

Font Size

- Aa +

Saudi ministry 'to approve private car leasing'

Individuals could contract with vehicle leasing companies to make use of their cars

Saudi ministry 'to approve private car leasing'

Saudi Arabia’s Ministry of Transport may allow citizens to privately lease their vehicles to others, local media said on Tuesday.

Regulations are being drafted enabling Saudi individuals to contract with existing car leasing companies, enabling commercial use of their privately owned cars.

An official source told Saudi Gazette: “The ministry will put in place regulations enabling Saudi individuals to contract with car leasing companies allowing the company to lease their privately owned cars with profit as listed in contract and the ministry’ regulations.”

However, any privately-owned cars will not count as part of the minimum number of cars required by the leasing company to operate.

The ministry is also in the process of approving licences for transport companies that offer services through mobile apps – it reportedly licenced Careem on Wednesday after checking it complied with all ministry regulations, the newspaper said while six others have already obtained a licence.

“The new wave of transportation companies will facilitate transportation services in the kingdom. The ministry supports companies with innovative services, which will greatly serve the general public,” the source was quoted as saying.

For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.