Saudi Arabia Leasing Market by Lease Type (Commercial Vehicle Lease, Heavy Equipment Lease, Plant and Machinery Lease, Real Estate Lease), By Provider Type (Financial Companies vs Non-Financial Companies), By Tenure Period (Less than 2 years, 2- 5 Years, More than 5 Years) By End User (Logistics/Transport, FMCG, Ecommerce, Retail, Industries, Construction, Government Sector, Others), By Region, Competition Forecast & Opportunities, 2028
Published Date: January - 2025 | Publisher: MIR | No of Pages: 320 | Industry: BFSI | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationSaudi Arabia Leasing Market by Lease Type (Commercial Vehicle Lease, Heavy Equipment Lease, Plant and Machinery Lease, Real Estate Lease), By Provider Type (Financial Companies vs Non-Financial Companies), By Tenure Period (Less than 2 years, 2- 5 Years, More than 5 Years) By End User (Logistics/Transport, FMCG, Ecommerce, Retail, Industries, Construction, Government Sector, Others), By Region, Competition Forecast & Opportunities, 2028
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The Saudi Arabian car rental and leasing market was valued at approximately USD 2.30 billion in 2024 and is projected to reach USD 3.57 billion by 2029, growing at a compound annual growth rate (CAGR) of 9.21% during this period.
Long-term funding as well as overcoming various legal and tax barriers may be provided by financial leasing. They also have the comparative advantage of being adept at serving specific target markets or industries.
costs
In term of regional share, Eastern region is expected to dominate the market in the forecasted period. According to the Kingdom's Vision 2030, eastern province is experiencing rapid urbanization, industrialization, and infrastructure development. The Eastern Province's emir, Prince Saud Bin Naif, recently unveiled the Central Awamiyah project, which aims to create a tourist destination along with a civil, cultural, and artistic center. This initiative is anticipated to increase the demand for construction equipment rental services.
Growing Tie-ups for Commercial Vehicle Lease are Propelling the Market Growth
Instead of spending money on truck purchases, businesses prefer to rent or lease trucks for their transportation needs. Truck leasing and rental services provide modern truck models at a reasonable price, while also eliminating organizations’ maintenance and repair costs. For instance, the global cosmetics company Baheya World Ltd. Co. from Jeddah announced that it had reached a business agreement with the European truck rental firm, Fraikin Dayim Truck Rental Co., to support Baheya's kingdom-wide distribution of cosmetics to their network of beauty salons, sales agents, etc.
Growing Demand from Real Estate Leasing is Influencing the Market
Improvements in the economy and rising business activity in the first quarter of 2022, helped the office real estate market perform better across the kingdom. Furthermore, according to the Saudi Press Agency citing Ejar, the number of online lease agreements for real estate increased by 44% in 2021, compared to the previous year. Ejar is an integrated system that aims to develop the housing and real estate sectors in Saudi Arabia. It is a programme that aims to organize and promote investment in the real estate market as well as develop and renew services and strategic partnerships. Over 200,000 contracts were signed in ten months, leading up to October 2021, according to this online platform. The programme attributed the rise in online lease agreements to its ongoing efforts to create and update services and forge new strategic alliances. The most recent of which was its affiliation with the National Water Company,
This sector is one of the major causes for the escalated demand for Leasing Segment within Saudi Arabia.
Increasing Addition to the Portfolio of Leasing Companies to Cater the Market Demand
The market is witnessing a significant rise in competition among the national and international players in the Leasing market. Companies are concentrating on expanding their respective portfolios within Saudi Arabia in order to reach a larger number of the targeted audience for leasing. For instance, to meet the evolving needs of Saudi corporate clients, leading car rental and leasing company Avis Saudi Arabia has launched a new equipment leasing division., The company seeks to align itself with the Kingdom's Vision 2030 in order to take advantage of potential future growth opportunities in the transportation sector.
Significantly the market is expecting its service providers to cater the demand from variety of the prominent customers. Therefore, it is necessary and beneficial for the leasing firms to expand their portfolio, to remain competitive in the leasing market of Saudi Arabia.
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Market Segmentation
Saudi Arabia leasing market is segmented into lease type, provider type, tenure period, end user, regional distribution, and competitive landscape. Based on lease type, the market is divided into commercial vehicle lease, heavy equipment lease, plant and machinery lease, real estate lease. Based on provider type, the market is categorized into financial companies vs non-financial companies. By the tenure period, the market is categorized into less than 2 years, 2- 5 years, more than 5 years. Based on end user, the market is segmented into logistics/transport, FMCG, ecommerce, retail, industries, construction, government sector, others. Saudi Arabia leasing market is studied in Western, Central, Southern, Eastern and Northern regions.
Market Players
Yanal Finance Company, Gulf Lifting Financial Leasing Company, AJIL Financial Services Company, Al Yusr Leasing & Financing Co, Gulf Finance Company, GuidanceATEL Equipment Support Company Limited, United International Transportation Co. (Budget Saudi), Al Arabi Heavy Equipment Lease Company, Kirnaf Co., and Saudi Fransi Lease Finance Company, are the key market players operating in Saudi Arabia leasing market.
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Attribute |
Details |
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Base Year |
2022 |
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Historic Data |
2018 – 2021 |
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Estimated Year |
2023 |
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Forecast Period |
2024 – 2028 |
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Quantitative Units |
Revenue in USD Million, and CAGR for 2018-2023 and 2023-2028 |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors, and trends |
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Segments covered |
· Leasing Type · Provider Type · Tenure Period · End User |
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Regional scope |
Western, Central, Southern, Eastern and Northern |
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Key companies profiled |
Yanal Finance Company, Gulf Lifting Financial Leasing Company, AJIL Financial Services Company, Al Yusr Leasing & Financing Co, Gulf Finance Company, GuidanceATEL Equipment Support Company Limited, United International Transportation Co. (Budget Saudi), Al Arabi Heavy Equipment Lease Company, Kirnaf Co., and Saudi Fransi Lease Finance Company. |
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Customization scope |
10% free report customization with purchase. Addition or alteration to regional & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
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