Annual Istimara Renewal and Issuance Fee Implemented in Saudi Arabia

In a significant development, Saudi Arabia has introduced an annual fee for renewing and issuing Istimara, impacting vehicle owners in the country. The new regulation, which is set to be rolled out in two phases, will primarily target owners of new light vehicle models from the Year 2024 in its initial stage. The second phase, scheduled for the Year 2024, will extend this fee requirement to encompass all light and heavy vehicle owners.

The calculation of the annual Istimara fee will be based on two key factors. For vehicles falling within the category of light cars manufactured in the Year 2015 or earlier, as well as all heavy vehicles, the primary determinant will be the engine capacity. On the other hand, for light vehicles produced in the Year 2016 or later, the primary criterion will be fuel efficiency.

It's noteworthy that low-consumption vehicles, which are characterized by their exceptional fuel efficiency, will be exempt from this annual fee. To facilitate a fair and balanced fee structure, the authorities have classified the fee into five distinct levels, each of which is directly linked to the vehicle's fuel efficiency. This approach ensures that owners of vehicles with varying degrees of fuel efficiency will be subject to fees that align with their environmental impact and consumption patterns.