Saudi Arabia: New Restrictions on Vehicle Ownership for Expats in 2026
More than half a million families residing in Saudi Arabia face significant disruption following a General Directorate of Traffic decision to comprehensively ban the registration of large vehicles in the names of non-citizens, effective 2026. The measure targets vehicles capable of carrying seven or more passengers.
The prohibited vehicle categories include vans and microbuses from various manufacturers, including Hyundai and GMC, as well as taxis and limousines designated for public transport. Also affected are rental buses, heavy goods trucks requiring professional permits, and vehicles modified illegally, alongside those with temporary license plates issued for visit or export purposes.
The new regulation aims to restructure the entire transportation market, restricting ownership and operation of these vehicles exclusively to Saudi citizens. Authorities anticipate the move will create extensive employment opportunities within the taxi, school transport, and private transport sectors.
According to the directive, the policy intends to create hundreds of thousands of jobs for citizens in the transport sector, regulate the market by preventing unauthorized commercial use of large vehicles, and enhance safety by subjecting all large-scale transport to direct government oversight.
Traffic authorities have established stringent penalties for attempts to circumvent the new regulations through registration under false names. These include substantial financial fines and vehicle impoundment, with immediate ownership verification conducted through the Absher digital platform, according to the directive.
The decision is part of a broader strategy to reduce unjustified traffic congestion and ensure strict adherence to safety standards. Residents are urged to rectify the status of their existing vehicles to avoid future legal repercussions.
Recent data indicates Absher services are currently operating at 97% capacity, suggesting a high volume of traffic-related transactions, according to Saudi Auto reports. The Stage 5 of the Dakar Rally 2026 also recently concluded, with Latigan and Dania achieving notable success, though this event is unrelated to the new traffic regulations.