Saudi transport authority says unified e-contracts for car rentals to attract more investors

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Saleh Alzowayeed, the official spokesperson of the Transport General Authority, said that the decision to obligate all car rental facilities to adopt the unified electronic contract will have a positive impact in attracting investors and have an encouraging business environment.

In an interview with Al-Ekhbariya TV, Alzowayeed said that the decision will be implemented in four phases, first of which began on July 25 and will include more than 320 facilities.

Phase two will apply for category (C), effective from Muharram 24, and will include 149 facilities. Phases three and four will include categories (B) and (A), whose dates of implementation will be announced later.

The new system will help the sector by preserving the rights of investors and car renters. It will also address several issues and violations with regard to setting illegal conditions, including the usage of financial securities.

The lessee will receive cars that are licensed by the authority and have valid insurance and sound periodic inspection, Alzowayeed noted.

The e-contract will clarify all rights and obligations for the renters, such as daily fares and the mechanism of calculating additional hours, as well as the conditions for car delivery and handover.

It will also help owners of car rentals to verify electronically and directly the identity of renters, in addition to reducing disputes that occur when contracting, the official said.

The Transport General Authority announced in June that the implementation of Phase one of its decision to issue car rental contracts through the “Tajeer” portal and the obligation of all car rental facilities to adopt the unified electronic contract issued through the portal, starting July 25, according to Argaam's data.

Phase one will apply to rental facilities that fall under category (D) and the ones that are licensed but are uncategorized and the facilities that conclude contracts manually.