GCC Car Rental Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The GCC Car Rental Market is Segmented by Vehicle Type (Economy/Budget and Premium/Luxury), by Vehicle Body Style (Hatchback, Sedan, and Sport Utility Vehicle), and by Booking Channel (Online and Offline) and by Country (United Arab Emirates (UAE), Saudi Arabia, Qatar, and Rest of GCC Countries). The report offers market size and forecasts for GCC Car Rental in terms of value (USD Million) for all the above segments.

GCC Car Rental Market Size

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GCC Car Rental Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 15.00 %
Market Concentration Low

Major Players

GCC Car Rental Market Major Players

*Disclaimer: Major Players sorted in no particular order

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GCC Car Rental Market Analysis

The GCC Car Rental Market was valued at USD 600 Million in 2021 and is expected to reach USD 1600 Million by 2027, registering a CAGR of over 15% during the forecast period.

The COVID-19 pandemic had a severe negative impact on the car rental market. The sudden and complete transport halt due to the COVID-19 pandemic has forced the slowdown of the car rental market in the region. The reduced preference for shared mobility in the region further deteriorated the demand for rental cars in GCC countries. However, post-pandemic, as the tourist footfall has increased significantly, the demand for car rental has witnessed a significant increase across GCC and is expected to continue during the forecast period. 

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.

GCC Car Rental Market Trends

This section covers the major market trends shaping the GCC Car Rental Market according to our research experts:

Online Booking Segment is Expected to Grow Significantly

The car rental market's growth is favorable 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 unfavorable among tourists.

The online booking segment of the market is expected to grow at a significant pace during the forecast period. Approximately 57% of the bookings were made through the online booking channel which is further expected to increase significantly to 64% by 2026, in the region. The increase in the reservation can be attributed to the high tourist influx into the countries like United Arab Emirates, Saudi Arabia, etc.,

Furthermore, the trend of online renting a car through apps has improved over the period. App developers have been designing mobile rental applications with more advanced booking features that offer more vehicle availability and comparable rental costs on a single platform. For instance, in August 2020, Ejaro introduced a licensed car sharing application in Saudi Arabia. The application connects car owners with people looking to rent vehicles. Startup only takes 20% of each transaction, and the rest goes to the vehicle owner. In January 2021, the startup raised around USD 850,000 in seed funding from angel investors and BIM Ventures.

GCC Car Rental Market - Revenue Share () by Booking Channel, 2021

UAE is the Largest Market

The 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.

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. In 2020, Dubai witnessed a total of 5.51 million visitors with total international visitors from Jan 2021 to May 2021 accounted for 2.06 Million visitors.

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.

GCC Car Rental Market - Revenue Share (%), by Country, 2021

GCC Car Rental Industry Overview

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.

In November 2021, Saudi Arabia-based car rental and mobility startup, Teglani, raised USD 2.5 million in a pre-Series A round led by Impact46 with participation from Nomw Capital. Telgani has agreements and partnerships with more than 50 local and international car rental companies and +500 branches across the country, covering more than 44 cities and 13 airports.

GCC Car Rental Market Leaders

  1. Thrifty

  2. Sixt

  3. Hertz Corporation

  4. Fast Rent a car

  5. KAYAK

*Disclaimer: Major Players sorted in no particular order

GCC Car Rental Market Concentration
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GCC Car Rental Market News

In August 2021, Lumi launched state-of-the-art booking platforms to enhance the customer experience in car rental for Saudi Arabia. The new intuitive and seamless digital platforms further streamline and automate the online booking process, providing customers a quick, secure, and hassle-free experience.

In August 2021, Invygo announced that it raised USD 1.9 million in a pre-Series A round from several venture capitals and angel investors. The funding may help the company to create partnerships with dealers and car rental companies, providing its customers with a diverse catalog of cars.

GCC Car Rental Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    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

  5. 5. MARKET SEGMENTATION

    1. 5.1 Vehicle Type

      1. 5.1.1 Offline

      2. 5.1.2 Online

    2. 5.2 Vehicle Body Style

      1. 5.2.1 Hatchback

      2. 5.2.2 Sedan

      3. 5.2.3 Sport Utility Vehicle

    3. 5.3 Booking Channel

      1. 5.3.1 Online

      2. 5.3.2 Offline

    4. 5.4 Country

      1. 5.4.1 United Arab Emirates (UAE)

      2. 5.4.2 Saudi Arabia

      3. 5.4.3 Qatar

      4. 5.4.4 Rest of GCC Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Hertz Corporation

      2. 6.2.2 Sixt SE

      3. 6.2.3 Avis Budget Group Inc.

      4. 6.2.4 Enterprise Holdings Inc.

      5. 6.2.5 Auto Rent

      6. 6.2.6 Key Car Rental

      7. 6.2.7 Esar International Group

      8. 6.2.8 National Rent A Car

      9. 6.2.9 Kayak

      10. 6.2.10 Skyscanner UAE

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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GCC Car Rental Industry Segmentation

The GCC Car Rental Market is segmented by Vehicle Type (Economy/Budget and Premium/Luxury), by Vehicle Body Style (Hatchback, Sedan, and Sport Utility Vehicle), and by Booking Channel (Online and Offline) and by Country (United Arab Emirates (UAE), Saudi Arabia, Qatar, and Rest of GCC Countries). The report offers market size and forecasts for GCC Car Rental in terms of value (USD Million) for all the above segments.

Vehicle Type
Offline
Online
Vehicle Body Style
Hatchback
Sedan
Sport Utility Vehicle
Booking Channel
Online
Offline
Country
United Arab Emirates (UAE)
Saudi Arabia
Qatar
Rest of GCC Countries
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GCC Car Rental Market Research FAQs

The GCC Car Rental Market is projected to register a CAGR of greater than 15% during the forecast period (2024-2029)

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

The report covers the GCC Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the GCC Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

GCC Car Rental Industry Report

Statistics for the 2024 GCC Car Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Car Rental analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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GCC Car Rental Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)