UAE Car Rental Market Size

Car Rental in UAE Market Analysis

United Arab Emirates car rental was valued at USD 885.83 million in 2021 and expected to surpass a net valuation of USD 1,729.80 million by 2027 end, registering a solid CAGR growth of 11.8% during the forecast period.

The COVID-19 pandemic has partially affected the market for the United Arab Emirates car market with strict lockdown and a decrease in traveling to restrain the spread of the virus. However, with an increase in the number of tourists visiting the UAE, the demand for car rental services has picked up the pace by the end of 2021 and is likely to continue over the forecast period.

Consumer preferences shifted as a result of a variety of circumstances. Most notably, health concerns drove people and families to hire vehicles rather than public transportation. The rise of digital platforms in the marketplace has also facilitated the selection of cars for hire or leasing.

Significant growth in the population of individuals traveling for business and leisure travel is driving demand for car rental services. Rising internet penetration across the country has enabled enterprises in the sector to attract a wider consumer base through the use of smart mobile applications for customer convenience.

• Udrive, the app-based pay-per-minute car rental service, has announced a USD 5 million Series B round of funding, in which it will welcome commercial, institutional and private investors. Such funding will positively impact the market growth in the upcoming years.

Thus, growing commercial events and reviving tourism activities will positively impact the market growth during the forecast period.