Saudi Arabia issues first e-license for car rental brokerage

Cairo: Saudi authorities have issued the first electronic licence for car rental brokerage on app-based leasing of vehicles owned by individuals, local media reported.

The move allows Saudi owners of cars to supplement their incomes and ensure rental of roadworthy cars, according to Saudi newspaper Okaz.

Last March, head of the Saudi Public Transport Authority Rumaih Al Rumaih said that the agency would allow the rental service of individuals’ private cars via an electronic platform licensed as an electronic rental broker with the aim of increasing citizens’ incomes.

“Renting an unregulated, unchecked or non-insured car will be a thing of the past after the launch of the rental portal with the aim of regulating business in this field,” he added.

The first such licence has been granted to the App “Sharik” or “Participate” that covers the whole kingdom, news website Ajel reported.

In recent years, Saudi Arabia has launched a series of initiatives to diversify its oil-reliant economy as part of an ambitious development scheme.