The General Authority for Transport has confirmed the implementation of the first phase of the decision requiring car rental companies to issue all car rental contracts through the “Rental Contracts” service on the Transport Portal, effective today, Sunday, 15 Dhu al-Hijjah 1442 AH, corresponding to July 25, 2021 AD, This service will enable licensed companies to issue a standardized contract that meets all regulatory requirements and provisions, helping to protect the rights of both the lessor and the lessee, enhancing confidence in the services provided, and raising the quality of those services.
The first phase of this decision covers Category (D) car rental establishments, unclassified establishments in this sector, and establishments that manually record contracts. The second phase of the decision will cover Category (C), which will take effect on September 1, 2021. The third and fourth phases will cover categories (B) and (A), respectively, as will be announced by the General Authority for Transport at a later date.
The General Authority for Transport confirmed that the standardized electronic car rental contract offers several advantages: including that it is a notarized contract that fully complies with regulatory requirements and provisions, safeguards the rights of the parties involved (lessor and lessee), reduces disputes, eases the burden on relevant authorities, ensures quality rental services, and builds trust among car rental service users, as well as encourages investment in the sector, thereby fostering its growth and development and ensuring the availability of services and competitive prices that benefit investors, consumers, and the sector as a whole.