Passenger cars, 2026 forecast | Prices against the UAE | Duty and VAT to import | Record plate |
▼714,000 | ▼-13.6% | ▲20.75% | SAR 21 million |
Down 7.5% on 2025 | Regional new-car price index | Before fees | 1 E, April 2024 |
Key takeaways
· Forecasts made in May put Saudi passenger car sales at 714,000 in 2026, down 7.5%, or 58,000 cars.1
· New cars are priced 13.6% below the UAE on our regional index, but UAE duty, VAT and costs eat the gap on an AED 100,000 car.1,2
· Importing into Saudi Arabia adds 20.75% in duty and VAT before fees, and an imported car usually cannot be resold for 3 years.3
· Lucid's KAEC plant targets 150,000-155,000 cars a year by 2028-2029, 8.2 times Lucid's entire 2025 output.4
· Number plates trade like collectibles: SAR 21 million for the record, SAR 2,000-10,000 for an ordinary plate.5
A smaller year
Saudi Arabia's passenger car market is forecast to fall from 772,000 units in 2025 to 714,000 in 2026: a 7.5% drop and 58,000 fewer cars. Those forecasts were made in May, in the middle of the Gulf shipping crisis, and they expect a broad recovery across the GCC from 2027.1
The mix is shifting as volumes fall. Chinese brands such as Haval, Jetour and Great Wall are filling gaps at the entry level, especially in Saudi Arabia, and our first-quarter used-price report says Chinese carmakers now hold over 25% of the Saudi and UAE market.1,6
Cheaper than the UAE, but rarely worth the drive
On the regional new-car price index in our May report, Saudi Arabia scores 91.05 against 105.41 for the UAE, with 100 as the average. New cars cost 13.6% less in the Kingdom; seen from the other side, they cost 15.8% more in the UAE.1
New-car price index, 2026 (regional average = 100)
Saudi Arabia is 13.6% below the UAE.
Item | Index |
UAE | 105.41 |
Regional average | 100.00 |
Saudi Arabia | 91.05 |
Source: Regional price index reported by YallaMotor, May 2026.1
The same report suggested UAE and Qatar buyers could save by buying popular models in Saudi Arabia. The tax stack says otherwise for most cars. A car brought into the UAE pays 5% customs duty and then 5% VAT on the value plus duty, 10.25% in all, and our cross-border guide adds about AED 5,000-7,000 for shipping, inspection, registration and insurance.1,2
Take a car that sells for AED 100,000 in the UAE. At the index gap it would cost about AED 86,377 in Saudi Arabia, AED 95,231 after UAE duty and VAT, and AED 100,231-102,231 once the other costs are added: no saving at all. On an AED 300,000 car the same sums leave AED 7,308-9,308, or 2.4-3.1%.1,2
Buying in Saudi Arabia and importing to the UAE, AED
At the index gap, plus UAE duty, VAT and our guide's AED 5,000-7,000 of costs. An illustration.
Item | Bought in the UAE | Saudi route, low costs | Saudi route, high costs |
AED 100,000 car | AED 100,000 | AED 100,231 | AED 102,231 |
AED 300,000 car | AED 300,000 | AED 290,692 | AED 292,692 |
Source: YallaMotor calculation from our price index, tax and cost figures.1,2
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Bringing a car into the Kingdom
Going the other way costs more. Saudi Arabia charges 5% customs duty on the declared value and 15% VAT on the value plus duty: 20.75% before any fees. The car has to be left-hand drive and is usually required to be model year 2017 or newer. GCC nationals may import 2 cars a year and expats with an Iqama 1, and an imported car usually cannot be sold in the Kingdom for 3 years.3
Importing into Saudi Arabia: declared value and landed cost, AED
Our import guide's worked examples, after 5% duty, 15% VAT and fees.
Item | Declared value | Landed cost |
Toyota Camry | AED 80,000 | AED 101,600 |
Nissan Patrol | AED 220,000 | AED 272,150 |
Electric car | AED 200,000 | AED 249,500 |
Source: YallaMotor Saudi import guide, August 2026.3
Our import guide's worked examples show the effect. A Toyota Camry declared at AED 80,000 lands at AED 101,600, 27.0% more, and a Nissan Patrol declared at AED 220,000 lands at AED 272,150, 23.7% more. A car that is not GCC-spec needs a further AED 5,000-15,000 of compliance work.3
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Cheap to keep on the road
Once a car is registered, the fixed costs are low. Annual registration for a private car is SAR 100, and an ownership transfer costs SAR 380, made up of a SAR 150 government fee and SAR 230 for Absher. Third-party insurance starts at about SAR 650-700 a year at Al-Tawuniya.7,8
Finance is where the real money is. Islamic car finance can start near 3.5% APR when your salary is paid into the bank, while conventional loans run at around 4% to 5.5%. Our finance guide's example of SAR 100,000 over 60 months costs SAR 109,150 in total at 3.5% and SAR 114,607 at 5.5%: SAR 5,457 apart.9
Item | Rule or fee in 2026 |
Annual registration, private car | SAR 100 |
Ownership transfer | SAR 380: a SAR 150 government fee plus SAR 230 for Absher |
Third-party insurance | From about SAR 650-700 a year at Al-Tawuniya |
Import duty and VAT | 5% duty on the declared value, then 15% VAT on value plus duty |
Who can import | GCC nationals 2 cars a year; expats with an Iqama 1 |
Which cars qualify | Left-hand drive, usually model year 2017 or newer |
Reselling an imported car | Usually not allowed for 3 years |
Car finance | Islamic from about 3.5% APR with salary transfer; conventional around 4% to 5.5% |
Saudi Arabia's car rules and fees at a glance, from our 2026 guides.3,7–9
Where the big money is going
Behind the showroom, the state is building an industry. The Public Investment Fund owns about 60% of Lucid Group after investing more than US$6 billion, and wants to back 500,000 electric cars a year by 2030. EVIQ, its venture with the Saudi Electricity Company, plans more than 5,000 fast chargers at 1,000+ locations by the same year.10
Lucid's plant at King Abdullah Economic City started in September 2023 by assembling about 5,000 cars a year from kits. It aims for 150,000-155,000 a year by 2028-2029, which is 8.2 times the 18,378 cars Lucid built worldwide in 2025, and about 95% of its output is earmarked for export. Riyadh has promised US$3.4 billion of financing and incentives spread over 15 years and has committed to buy up to 100,000 Lucid vehicles in the next decade.4
Lucid in Saudi Arabia: cars a year
The KAEC target is 8.2 times everything Lucid built worldwide in 2025.
Item | Cars |
KAEC kit assembly since 2023 | 5,000 |
Lucid worldwide, 2025 | 18,378 |
KAEC target, 2028-2029 | 150,000 |
Source: YallaMotor Lucid KAEC report, June 2026.4
Our July guide described the plant as fully operational, with Ceer in trial production on the same site. Lucid's midsize Earth crossover, to be built there, is expected to start at around US$48,000-50,000; our June report gives both figures.4,10
Plates: a market of their own
The most Saudi corner of the car market may be the number plate. The plate 1 E fetched SAR 21 million at an Absher auction in April 2024, and Dubai's P7, at roughly SAR 56 million, sets the regional ceiling. An ordinary four-digit plate, by contrast, usually changes hands for SAR 2,000-10,000 in 2026.5
The hammer price is not the whole bill: buyers add 15% VAT and a 2.5% commission, so a SAR 100,000 plate costs SAR 117,500. Official resale is locked for 12 months, and a plate worth SAR 500,000 or more can need 6-18 months to find a buyer, with hurried sales landing 20-40% below expectations.5
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What to watch
Three things will shape the next year: whether the recovery forecast for 2027 arrives, how quickly Lucid's plant moves from kit assembly to full production, and whether Chinese brands keep taking the entry level. For buyers, the Kingdom remains a cheaper place to buy a car and an expensive place to import one.1,3,4
Frequently asked questions
Are cars cheaper in Saudi Arabia than in the UAE?
On average, yes: our regional index puts Saudi Arabia at 91.05 against 105.41 for the UAE. After UAE duty, VAT and costs, the saving on a mid-priced car disappears.1,2
What does it cost to import a car into Saudi Arabia?
5% customs duty and 15% VAT on the value plus duty, 20.75% before fees. In our guide's example a Camry declared at AED 80,000 lands at AED 101,600.3
How much is car registration in Saudi Arabia?
SAR 100 a year for a private car. Transferring ownership costs SAR 380.7
How much does a Saudi number plate cost?
An ordinary four-digit plate usually sells for SAR 2,000-10,000; the record is SAR 21 million. Auction buyers add 15% VAT and a 2.5% commission.5
How we worked this out
We combined figures from ten YallaMotor articles published between January and October 2026. The sales forecast was made in May 2026 and is not a result. The price comparison uses the regional new-car price index in the same report, an average across models whose basis is not stated. The cross-border example assumes UAE Customs values the car at its Saudi price at the index gap, and adds our guide's AED 5,000-7,000 of extra costs in full. Plate records date from 2024; ordinary plate prices are for 2026. Lucid's volumes are company targets. Where our articles disagree, on the Lucid Earth's price, on what the US$3.4 billion measures and on registration fines, we show both figures or leave the figure out.
Assumptions used in our calculations
· Example car, UAE price: 100,000 AED — A round mid-market price for the cross-border illustration.
· Example premium car, UAE price: 300,000 AED — A round premium price for the cross-border illustration.
· Example plate hammer price: 100,000 SAR — Inside the Gold tier's typical winning bids in our plate guide.
Sources
1. Middle East Tensions Are Cutting 2026 Auto Sales by Tens of Thousands: What GCC Buyers Should Expect on Prices, Stock & Wait Times (YallaMotor article)
Ahmad Rashad Al Zeer · 11 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/middle-east-tensions-cutting-2026-auto-sales-what-gcc-buyers-should-expect-55351
2. Buying a Car in Saudi Arabia and Registering It in the UAE: The Full 2026 Cross-Border Guide (YallaMotor article)
Ahmad Rashad Al Zeer · 13 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/buy-car-saudi-arabia-register-uae-cross-border-guide-55565
3. How to Import a Car into Saudi Arabia 2026: Duties, SASO Approvals & Ceer-Era Restrictions Explained (YallaMotor article)
Ahmad Rashad Al Zeer · 13 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/import-car-saudi-arabia-duties-saso-approvals-ceer-era-restrictions-55563
4. Saudi-Made Lucids Are Coming: How King Abdullah Economic City's 150,000-Unit Plant Will Reshape EV Pricing in the GCC (YallaMotor article)
Ahmad Rashad Al Zeer · 5 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/saudi-made-lucids-king-abdullah-economic-city-150000-unit-plant-ev-pricing-gcc-55388
5. Saudi License Plate Auctions: How Vanity Numbers Became a SAR 50M Asset Class (YallaMotor article)
Ahmad Rashad Al Zeer · 13 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/saudi-license-plate-auctions-vanity-numbers-sar-50m-asset-class-55436
6. Q1 2026 GCC Used Car Price Report: Which Brands Went Up, Which Crashed (YallaMotor article)
Ahmad Rashad Al Zeer · 8 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/q1-2026-gcc-used-car-price-report-brands-went-up-crashed-55353
7. Comprehensive Guide to Car Registration in Saudi Arabia: Steps, Fees, and Documents 2026 (YallaMotor article)
Ahmad Rashad Al Zeer · 13 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/comprehensive-car-registration-guide-saudi-arabia-2026-steps-fees-documents-55029
8. Best Car Insurance KSA 2026: Comparison, Prices, and Coverage (YallaMotor article)
Ahmad Rashad Al Zeer · 14 Sept 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/best-car-insurance-saudi-arabia-2026-comparison-prices-guarantees-55084
9. Islamic vs Conventional Car Finance: What AED 100,000 Really Costs (YallaMotor article)
Ahmad Rashad Al Zeer · 6 Oct 2026 · retrieved 7 Oct 2026
https://www.yallamotor.com/news/islamic-vs-conventional-car-finance-uae-55745
10. The Saudi PIF Auto Empire Explained: Aston Martin, McLaren, Lucid and Ceer - What It Means for GCC Drivers (YallaMotor article)
Ahmad Rashad Al Zeer · 29 Aug 2026 · retrieved 14 Sept 2026
https://www.yallamotor.com/news/saudi-pif-auto-empire-explained-aston-martin-mclaren-lucid-ceer-gcc-drivers-55466
Every figure on this page links to the source it came from. Judgement and recommendations are labelled YallaMotor analysis.
