GCC Car Rental Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The GCC Car Rental Market is Segmented by Vehicle Type (Economy cars, Luxury cars, Sports utility vehicles), By Rental Duration Type (Short term, Long Term), By Application Type (Tourism, Daily Utility), Booking access type (Online booking, Offline booking), Driving Type (Self-driven, Chauffeur) and Countries.

Market Snapshot

GCC Car Rental Market_Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: 15.7 %

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Market Overview

The GCC Car Rental Market is anticipated to register a CAGR of about 15.7% during the forecast period (2020 – 2025).

  • Car rental companies rent out cars for a suitable fee for a specific duration. Generally, hiring periods could range from a few hours to also a few days or weeks. With hassle-free, low maintenance, and cheap pricing, renting cars is also becoming popular in the GCC markets.
  • The market for car rental in all the GCC nations has been driven by growing economies like the United Arab Emirates and Oman. Saudi Arabia constitutes most car rental revenues amongst the GCC nations.
  • Car rentals can have various purposes, including airport transport, local usage, outstation, event transportation, self-drive, and employee transportation. They are also offering additional services such as entertainment systems, GPS navigation systems, and insurance. Rise of electric cars providing the same utility with an added benefit of reduced ill-effects on the environment is also becoming popular amongst the developed GCC countries.

Scope of the Report

The GCC Car Rental Market covers the current and upcoming trends with recent technological development. The report will provide detailed analysis on various areas of the market by type, duration, and application. The market share of significant automotive rental companies across the GCC market will be provided in the report.

Booking Type
Rental Duration
Short Term
Long Term
Application Type
Daily Utility
Driving Type
Vehicle Type
Economy Cars
Luxury Cars

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Key Market Trends

Demand for Travel to Pilgrimage Sites, Growing Tourism and Regulations

The car rental market's growth is favourable due to stringent government legislation on purchase and car driving in the country. Using public transportation can become time-consuming and unpredictable. Also, cities like Cairo and Riyadh require long distances to see places for sightseeing. Moreover, public transport doesn't give an end to end ride, which is especially unfavourable among tourists.

During the month of Ramadan, the Middle Eastern countries see the largest renting of cars. These also include people from Bangladesh, Pakistan, Indonesia, Yemen, and Egypt who prefer to rent a car. Upcoming FIFA world 2022 in Qatar and petroleum projects are is likely to the primary drivers in the car rental market in the GCC market.

TCar rental services are offering online systems, including mobile applications, to gain consumers. 53.3% of adults in the GCC region have access to the internet through their mobile phones, which is also one of the highest amongst all other areas of the Middle East & Africa region. As mobile phone use has risen, the usage of smartphones for convenient Car rental booking has also increased. Also, Saudi Arabia recently lifted a ban on women from driving vehicles, expanding the demand for car rental users.

GCC Car Rental Market_Key Market Trend1

UAE is the Largest Market

UAE car rental industry is primarily highly influenced by both the tourists and office corporates. With the growing popularity of a Technology-based platform and adopting new customer-oriented services, the government is providing initiatives to push the market. In the UAE, the Airports are well outside the city, proving car rental services a profitable business in Dubai and Abu Dhabi.

As of 2019, UAE seeing a growing number in the tourists visiting annually.

Especially Dubai is the major attraction in the GCC region. In Dubai, Burj Khalifa, Burj Al Arab, The Dubai Mall, Palm Jumeirah, and Dubai Creek are prevalent tourist gathering places throughout the year. The city offers a variety of restaurants, bars, and nightclubs. Also, Abu Dhabi is popular amongst travellers visiting the UAE due to its culture, heritage, and attractions, such as Sheikh Zayed Mosque, Khalifa Park, among others. Moreover, many corporate offices also rent cars for their corporate uses and clients, hence causing growth in demand for rental services[SK1] .

With the growing economy in the UAE and readily available car rentals on demand, car rentals have become even more accessible and sustainable. The rise in population, especially in larger cities, is leading to the unavailability of space, and the rising prices of fuel and taxes have all resulted in people drawn towards sustainability. Environmentally friendly vehicles like electric vehicles (EVs) are being adopted as the UAE car rental industry is moving towards eco-friendly solutions.

[SK1]Don’t write about the places, write about the rental market like who all the players in UAE, their rental fleet size growth, news etc.

Please make changes

GCC Car Rental Market_Key Market Trend2

Competitive Landscape

The GCC Car Rental Market is hugely fragmented with various startups, and regional players such as Budget rent a car, Thrifty, Sixt rent a car, Hertz, and Fast rent a car. Although to have the edge over its competitors, the major rental companies are making joint-ventures, partnerships to launch newer products.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Booking Type

      1. 5.1.1 Offline

      2. 5.1.2 Online

    2. 5.2 Rental Duration

      1. 5.2.1 Short Term

      2. 5.2.2 Long Term

    3. 5.3 Application Type

      1. 5.3.1 Tourism

      2. 5.3.2 Daily Utility

    4. 5.4 Driving Type

      1. 5.4.1 Self-Driven

      2. 5.4.2 Chauffeur

    5. 5.5 Vehicle Type

      1. 5.5.1 Economy Cars

      2. 5.5.2 Luxury Cars

      3. 5.5.3 SUVs

  6. 6. Geography

    1. 6.1 GCC Countries

      1. 6.1.1 United Arab Emirates

      2. 6.1.2 Saudi Arabia

      3. 6.1.3 Oman

      4. 6.1.4 Others


    1. 7.1 Vendor Market Share

    2. 7.2 Company Profiles

      1. 7.2.1 Thrifty

      2. 7.2.2 Sixt

      3. 7.2.3 Hertz Corporation

      4. 7.2.4 Fast Rent a car

      5. 7.2.5 KAYAK

      6. 7.2.6 AVIS Rent a Car

      7. 7.2.7 Skyscanner UAE

    3. *List Not Exhaustive

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Frequently Asked Questions

The GCC Car Rental Market market is studied from 2018 - 2027.

The GCC Car Rental Market is growing at a CAGR of 15.7% over the next 5 years.

Thrifty, Sixt, Hertz Corporation, Fast Rent a car, KAYAK are the major companies operating in GCC Car Rental Market.

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