How to Buy a Car in Saudi Arabia in 2026: Complete Guide for Saudis and Expats

Saudi Arabia: Owning a car in Saudi Arabia is not a luxury but a practical necessity. Most major cities do have public transport, but it does not cover the distances, hours, and routes that most residents need. It has become very easy and fast to buy a car in Saudi Arabia in 2026 thanks to platforms like Absher and Tamm, which handle registration, transfer, and renewal online. Here is what you need to complete the car-buying process in Saudi Arabia, whether you are a citizen or an expat. 

Who Can Buy a Car in Saudi Arabia

Saudi nationals and legal residents both can buy a car and they follow almost the same path. But expats need to provide a few extra documents and their ownership is slightly limited: 

Saudi citizens

• Need a valid National ID and a Saudi driving licence
• No cap on the number of private vehicles owned

Expats (residents)

• Must hold a valid Iqama (residency permit) and a Saudi driving licence
• Expat households can only own up to two personal vehicles
• A foreign licence from an approved country (GCC, EU, US, Canada, Australia, New Zealand) is accepted for up to one year, after which a Saudi licence is mandatory
• Business owners may register up to five commercial vehicles under a trade licence
• Tourists and short-stay visitors are generally unable to purchase or register a vehicle in their own name
• Expats can import a car into Saudi Arabia every three years but can only sell it after three years from the import date have passed.

They must have an active insurance policy before registration can be completed. There is no way around this step.

Driving Licence for Expats: Foreign nationals holding a licence from a recognised country, including neighbouring Gulf states, EU member countries, the US, Canada, Australia, or New Zealand, are permitted to drive for up to one year before obtaining a Saudi licence. Once your Iqama is issued, transition to a Saudi driving licence without delay. If your licence is from a country not on the approved list, you must enrol with a local driving school and pass a formal driving test.

Required Documents: Citizens vs. Expats

Document	Saudi Citizen	Expat (Iqama Holder)
National ID / Iqama	National ID (Huwiyya)	Valid Iqama + Passport copy
Driving licence	Saudi licence	Saudi driving licence (mandatory)
Insurance policy	Minimum third-party liability	Minimum third-party liability
Fahas inspection certificate	Required for used cars	Required for used cars
Sponsor/employer letter	Not required	Required for vehicle registration
Bank/salary documents	Required for financing	Required for financing
National Address	Confirmed via Absher	Confirmed via Absher

Most dealerships handle the entire registration process through the TAM or Absher system. Once your payment and insurance are complete, you will receive your Istimara (vehicle registration) and number plates.

Step-by-Step Buying Process

Buying a New Car from a Dealership

1. Choose your vehicle and confirm the price including VAT
2. Arrange insurance before visiting the dealership; you will need your ID or Iqama, driving licence, and vehicle details (VIN) to activate your policy
3. Pay in cash, or apply for bank financing with salary slips, bank statements, and your ID or Iqama
4. The dealer registers the vehicle through TAM or Absher. Collect your car along with your Istimara and final invoice.
5. Keep digital copies of your Istimara and insurance policy for renewals

EV buyers note: Electric vehicles currently qualify for 0% VAT until 2030, so if you want low long-term running costs. 

Buying a Used Car

1. Inspect the vehicle in person and never pay a deposit before physically seeing the car
2. Check VIN and run a history report through Mojaz (mojaz.com.sa), Saudi Arabia's official vehicle history platform
3. Verify there are no outstanding traffic fines or legal encumbrances on the vehicle through Absher
4. A used car purchase becomes legally binding only when ownership is transferred on Absher. Until that transfer is completed, the seller remains the registered owner and is liable for the vehicle.
5. Buyer arranges insurance in their own name before re-registration is processed
6. The total cost for the transfer is SAR 380, which includes a SAR 150 government fee and a SAR 230 service fee.

Common used car pitfalls to avoid:

• Rolled-back odometers for that check Mojaz report
• American-spec vehicles sold as GCC-spec (different safety ratings and parts availability)
• For hidden accident damage: request a professional inspection at a Fahas-approved centre
• Undisclosed outstanding bank finance on the vehicle

Car Financing Options

Saudi buyers have three main financing routes:

Route	Best For	Key Requirement
Cash purchase	Fastest, no interest cost	Full purchase amount ready upfront
Bank loan (Murabaha)	Most common, structured payments	Salary certificate, 3 months bank statements
Dealership finance	Convenient, often 0% for specific models	Valid ID/Iqama, stable income proof

If your Iqama or work contract is nearing expiry, renew it first because banks prefer contracts with validity extending beyond your repayment period.

Registration, Insurance, and Inspection

The Fahas, Istimara, and Absher Process

• Fahas (MVPI): the mandatory safety and emissions inspection. New private cars are exempt for the first three years, then inspected annually. A passed certificate is valid for 12 months.
• Istimara: your official vehicle registration, now digital and viewable in Absher.
• Absher: where you register, renew, transfer, and pay, without visiting a traffic office in most cases.

Expatriates can register their vehicles online through the Absher e-government portal. By logging in using your Iqama number, navigate to Vehicles, then go to Manage Vehicles, select Register Vehicle or Renew Vehicle Registration, upload your documents, and pay via a Saudi Riyal payment card. You cannot renew an Istimara or transfer ownership without a valid Fahas, active insurance, and zero unpaid fines. So, for successful registration, sort these out before. 

Fees Breakdown

Fee	Amount (SAR)	Notes
Private vehicle registration	100	Annual Istimara fee
Private truck registration	200	Annual fee
Ownership transfer (total)	380	SAR 150 government + SAR 230 service
Lost Istimara replacement	100	Via Absher, clear fines first
Export plates	100	Additional fee if applicable

Registration fees range from SAR 100 to SAR 400, depending on the car type and registration status.

Special Considerations

Importing a Vehicle

Residents with valid Iqama can import cars following the same procedure as Saudi nationals. Required documents include proof of ownership, proof of purchase, an export certificate, and a GCC specification certificate.

After customs clearance, book a Muroor appointment through your Absher account. Then visit the Traffic Department with your Technical Inspection Certificate, insurance proof, and all submitted documents to complete registration and receive your Istimara and plates.

Note: Expats can only import a car every three years and cannot sell the vehicle and can only sell it after three years of the import date.

Tips for Expats

• First get your Saudi driving licence, then start the buying process. Because you cannot register a car without a valid Saudi driving licence
• Update your National Address is on Absher
• Check all the traffic fines and pay all any unpaid fines
• Insure the vehicle in your own name before completing the Absher ownership transfer if you are buying a used car
• Get a Mandatory 3-year insurance to apply for second personal vehicles 

Useful Resources and Contacts

Resource	Purpose	Link
Absher (Individuals)	Registration, transfer, fines, licence	absher.sa
Tameeni	Car insurance marketplace	tameeni.com.sa
Fahas	Vehicle technical inspection	fahas.com.sa
Muroor (Traffic Department)	In-person registration and plates	Via Absher appointment
Mojaz	Vehicle history check for used cars	mojaz.com.sa
ZATCA	VAT and customs queries	zatca.gov.sa

Final Advice

It has become very simple to buy a car in Saudi Arabia in 2026. Get the required documents and walk into the showroom or meet a private seller. The process is almost automated for the Saudi citizens but in the case of expats, the Iqama, Saudi driving licence, and insurance must all be active and valid before any transaction can be completed. Absher does most of the heavy lifting making it a central point for every vehicle-related transaction. Just download the app, activate your account, and link your National Address before you begin the buying process. That single step will make every subsequent step significantly faster. Do not forget to check the vehicle history service via Mojaz if you are buying a used car and do not make payment before the Absher ownership transfer is confirmed complete. That would save you from the most common and costly mistakes in the Saudi used car market.

Also Read: Step-by-Step Guide to Getting a Driving License in Saudi Arabia