The UAE Rent-a-Car Market Insights & Analysis
The UAE Rent-a-Car Market was USD 1.15 Billion in 2023 and is anticipated to witness a rise at a CAGR of around 8.6% during the forecast period, i.e., 2024-32 and would reach around 1.80 Billion USD through 2032. The market is on the rise, with increasing demand from domestic & international tourists and the growing popularity of ride-sharing services. Car rental companies are predicted to adapt their services and offerings to remain competitive, suggesting a wide range of vehicles & reasonable prices.
Also, the UAE government's initiatives to stimulate tourism and expand infrastructure as well as the rising number of events & numerous programs held across the country, are foreseen to drive the market's growth. Furthermore, easy licensing leads to increased competition among rental car companies, focusing on offering superior value-added services. Adopting electric and hybrid vehicles would also likely generate growth opportunities for the leading market players.
Additionally, with strategies such as sliding scale termination policies, pooled mileage for corporates, and guaranteed vehicle replacement during servicing, the UAE Rent-a-Car Market is expected to observe an upward trend through 2032.
The UAE Rent-a-Car Market Dynamics
- Significant Surge in the Number of Registered Car Rental Companies in Dubai Drives the Market
Dubai's CAR rental industry had a significant expansion in the first half of 2022, underscoring RTA's efforts to carry out Dubai's ambition for complete development, further impacting the UAE Rent-a-Car Market. Up to 78,000 automobiles were registered during this time, an increase of around 11.8% from the 69,000 vehicles registered during the same time last year, per licensing agency RTA.
Such growth can be attributed to RTI's effort to draw businesses & investors and boost their trust in Dubai's business environment by providing facilities and removing barriers. It also emphasizes Dubai's reputation as a financial and business center where transactions can be made in a welcoming and competitive environment.

- Frequent Events & Exhibitions in the UAE Remained a Key Trend in the UAE
The UAE has evolved as a global hub for industries & leisure tourism, with several events & exhibitions taking place across the nation. This tendency has raised the demand for rental automobiles, as visitors seek efficient & cost-effective transportation options. Furthermore, exhibitors & quests prefer their own vehicles, which allows them to easily move from one site to another without worrying about navigating public transportation.
As a result, rental car firms have expanded their fleets and services to match the rising demand. Also, as the UAE government works to construct world-class infrastructure, more events & fairs are likely to be conducted in the coming years, increasing demand for rental automobiles & thereby expanding the UAE Rent-a-Car Market size.
- Emergence of Ride-sharing Services Poses a Challenge
The increasing acceptance for ride-sharing services such as Uber and Careem is likely to hinder the traditional Rent-a-Car Market. These services provide a convenient & economical alternative to traditional car rentals. Further, many tourists choose them as they provide a more convenient and hassle-free experience. Hence, with the increasing desire for ride-sharing, the market would face limitations in terms of growth.
- Innovative Concepts Like Pay Per Minutes Are Emerging as Game Changers for Car Rentals
Automotive apps like Udrive, UAE's first pay-per-minute car rental concept, enabling renting efficiency, would likely drive car rental innovation. The innovation is in a car rental company's business model and operational excellence. While the apps accelerate the future, the culture and adoption of business innovation are where the future of car rental lies.
As more tourists seek efficient and flexible transportation alternatives in the UAE, rental car firms are projected to increase their fleets and services to match this growing demand, offering a variety of vehicles to suit different demands and budgets. This is likely to result in increased competition between rental car companies, which could lead to lower costs and improved services for consumers.
With a cost-effective & short-term driving option, where a customer may save up to 40% depending upon the type of the car, the concept is developing as a game changer, thus generating a profitable opportunity for the UAE Rent-a-Car Industry in the ensuing years.
The UAE Rent-a-Car Market Segment-wise Analysis
By Booking Type:
- Online
- Offline
Online booking is presumed to account for the maximum share of the UAE Rent-a-Car Market over the past few years. This is primarily because booking options for car rentals are available in the UAE through a cab company's website or mobile app. The ability to make a payment online has also made the process simpler. The accessibility of the services and their cost are the main forces behind this ecosystem. Furthermore, due to customers' need for affordability and convenience, on-demand payment is increasing the market for automobile rentals.
Numerous benefits come with online booking, but there are also several transparency-related problems that businesses constantly monitor and address. For example, a centralized system manages automobile rental firms' daily operations. It adheres to compliance standards, rules, regulations, and terms and conditions, which frequently vary from one business to another.
By Applications:
- Leisure
- Commercial
With massive government investments in the tourism sector and improving road connectivity to cater to tourists, pilgrims, and migrants' local commuting needs, Commercial applications are expected to contribute to UAE Rent-a-Car Market expansion through 2032. This has increased competition among leading players in offering new services and added benefits to attract customers looking for cab or taxi services.
Additionally, major rent-a-car companies are shifting towards digital platforms to offer online car rental services, further boosting the Rent-a-Car Market in UAE for commercial applications. Favorable licensing policies have also resulted in numerous drivers seeking commercial vehicles to meet the growing consumer demand for rental car services, presenting promising growth prospects for the market in the coming years.
Regional Projection of the UAE Rent-a-Car Industry
The UAE Rent-a-Car Market is geographically diversified, covering:
- Dubai
- Abu Dhabi & Al Ain
- Sharjah & Northern Emirates
Dubai is envisioned to flourish at a substantial CAGR during the forecast period. The market in Dubai has been alleviated by the relentless efforts made by the RTA in the past few years. Following regular talks with several businesses in this industry, RTA launched six measures that have significantly increased the UAERent-a-Car Market's potential for car rentals.
Moreover, the efforts included eliminating the surcharge on car rental cars, restricting the number of vehicles per car rental license to 10, increasing the lifespan of vehicles in use from two to four years, and exempting new vehicles from testing. Thus, the number of businesses registered in the car rental sector has increased substantially, further infusing the market share.
What Does Our UAE Rent-a-Car Market Research Study Entail?
- The UAE Rent-a-Car Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
- The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
- The UAE Rent-a-Car Market Research Report entails details about the most critical shifts in market share in the prominent regions.
- Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.
Table of Contents
- Introduction
- Objective of the study
- Product Definition
- Market Segmentation
- Study Variables
- Research Methodology
- Secondary Data Points
- Companies Interviewed
- Primary Data Points
- Break Down of Primary Interviews
- Secondary Data Points
- Executive Summary
- Market Dynamics
- Drivers
- Challenges
- Opportunity Assessment
- Recent Trends and Developments
- Key Factors Considered by Consumers While Selecting a Rental Car Company
- Smart Measures Takes by Car Rental Companies
- UAE Rent a Car Market Overview (2020-2032)
- Market Size
- By Value (in USD Million)
- By Volume (Total Fleet Available)
- Market Share, By Type of Car
- Economy
- Premium
- Ultra Luxury & Sports
- Market Share, By Application
- Leisure
- Commercial
- Market Share, By Drive Type
- Self-Driving
- Chauffer Driven
- Market Share, By Booking Type
- Online
- Offline
- Market Share, By Usage
- Up to 500 KM/day
- More than 500 KM/day
- Market Size, By Region
- Dubai
- Abu Dhabi & Al Ain
- Sharjah & Northern Emirates
- Market Share, By Company
- Competition Characteristics
- Revenue Shares & Analysis
- Market Size
- UAE Economy Car Rental Solutions Market Overview (2020-2032)
- Market Size
- By Value (in USD Million)
- By Volume (Total Fleet Available)
- Market Share, By Application
- Market Share By Drive Type
- Market Share By Booking Type
- Market Share By Usage
- Market Share By Region
- Market Size
- UAE Premium Car Rental Solutions Market Overview (2020-2032)
- Market Size
- By Value (in USD Million)
- By Volume (Total Fleet Available)
- Market Share, By Application
- Market Share By Drive Type
- Market Share By Booking Type
- Market Share By Usage
- Market Share By Region
- Market Size
- UAE Ultra Luxury & Sports Car Rental Solutions Market Overview (2020-2032)
- Market Size
- By Value (in USD Million)
- By Volume (Total Fleet Available)
- Market Share, By Application
- Market Share By Drive Type
- Market Share By Booking Type
- Market Share By Usage
- Market Share By Region
- Market Size
- Competitive Outlook (Company Profiles – Partial List)
- Thrifty
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- The Hertz Corporation
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Emirates Transport
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Massar Solutions
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Sixt Rent a Car
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- FasteR Rent a Car
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Kayak
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Europcar
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Avis Budget Group
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Dollar Rent a Car
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Speedy Drive Car Rental LLC
- Company Overview
- Business Segments
- Strategic Alliance/Partnerships
- Recent Developments
- Financials
- Others
- Thrifty
- Contact Us & Disclaimer
Companies Mentioned
- Thrifty
- The Hertz Corporation
- Emirates Transport
- Massar Solutions
- Sixt Rent a Car
- FasteR rent a car
- Kayak
- Europcar
- Avis Budget Group
- Dollar Rent a Car
- Speedy Drive Car Rental LLC
- Others
Frequently Asked Questions