UAE Car Rental Market to hit AED 14.3B by 2027

Monday, February 5, 2024

Ken Research’s analysis forecasts the UAE Car Rental, Leasing, and Limousine Market to expand to AED 14.3 billion by 2027, growing at a CAGR of 6.4% from 2022. This forecast underscores the dynamic growth in the UAE’s transportation industry, propelled by increased tourism, business activities, and the rising expatriate community.

Market Growth and Evolution

The market has experienced steady growth since 2017, increasing from AED 8090.9 million to AED 10478.6 million in 2022. This rise is attributed to a diverse market structure that includes both organized and unorganized sectors, with small fleet operators dominating 45.6% of the market share.

Regional Market Analysis

Dubai leads the market due to its high concentration of government and corporate entities, along with significant capital influx. Abu Dhabi is also a key player, with its expanding business environment fueling the demand for car leasing. The market predominantly favors economy cars, which represent 65% of total sales, thanks to their cost-effectiveness and widespread availability.

Market Competition and Leading Entities

The market is characterized by moderate fragmentation, with key entities such as Emirates Transport, Thrifty Rent a Car, and Leaseplan playing pivotal roles. Emirates Transport is at the forefront with a fleet of 13,800 vehicles, and in the limousine sector, Private Limousine stands out with a fleet of 200 cars.

Trends and Market Dynamics

The demand for short-term car rentals is surging, driven by an influx of tourists and ongoing infrastructural advancements in the UAE. In the limousine segment, standard limousines are favored for their flexibility and practicality, catering to various events.

Projections and Key Growth Drivers

With ambitions to attract 40 million tourists by 2031, in line with the UAE Tourism Strategy 2031, the market is set for significant expansion. The emergence of e-hailing services, highlighted by partnerships such as the RTA of Dubai with Careem, is expected to further stimulate market growth.

Expert Insights from Ken Research

For in-depth, authoritative market insights and future trend forecasts in the UAE Car Rental, Leasing, and Limousine Market, consult Ken Research. Our detailed report offers an extensive review of market dynamics, competitive analysis, and strategic outlook for the future.

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