UAE Car Rental Leasing and Limousine Market Outlook to 2027

Driven by Increase in Tourism and Business Travel along with Rising Expatriate Population and Infrastructure Development

Region:Middle East

Author(s):Kuntal

Product Code:KR1396

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Published on

January 2024

Total pages

152

About the Report

About the Report

Market Overview:

UAE Car Rental, Leasing and Limousine Market is constantly evolving and is predicted to maintain the same growth in the forecasted period as well.  The rental, leasing, and limousine sector in the United Arab Emirates is presently experiencing a late growth period. This presents an opportunity for new companies to focus on customer-centric approaches and technical advancements.

UAE Car Rental Leasing and Limousine Market

The rental, leasing, and limousine automobile market in the United Arab Emirates is fragmented due to the presence of numerous companies, which presents opportunities as well as challenges for those involved in the industry. The UAE Car Rental, Leasing and Limousine Market is flourishing owing to its rising region for automakers because of its advantageous location, policies, expanding EV infrastructure, and low operating costs.

There are between 1500 and 1700 enterprises in the UAE automobile rental market, most of which are unorganized. Small fleet operators hold the biggest market share of 45.6%, followed by large players. One of the most developed markets in the Middle East is the automobile rental and leasing sector in the UAE, where several companies provide customers with both rental and leasing options.

With their main offices located in Dubai, the majority of the big companies in the UAE rental market cater to both individual and business clients. One of the established companies, Avis Budget has over 49 years of expertise operating worldwide fleets, is dedicated to innovation, and is advancing the direction of transportation.

UAE Car Rental Leasing and Limousine Industry

UAE Car Rental, Leasing and Limousine Market Analysis

  • Dubai holds a dominant position in the UAE's car rental, leasing, and limousine business due to its large concentration of government and corporate offices, as well as the substantial inflow of wealth.
  • Abu Dhabi's goal of lowering its reliance on oil has resulted in a more diverse corporate climate and an increase in business traveller numbers, which has fueled the demand for car leasing.
  • Thrifty, Diamond Lease, and AutoRent hold a dominant 18.3% share in the UAE rental industry, making them the top 3 companies. With 5,600 vehicles, Diamond Lease has the biggest fleet in the UAE.
  • In the coming years, there will be a greater supply of rental automobiles as more domestic and international firms enter the market, such as Self Drive and Fastrack Luxury Car Rental.
  • Increased demand for short-term car rental services is a result of the influx of tourists and the rapidly changing infrastructure of the United Arab Emirates.
  • In the UAE limousine market, Standard limos are the popular option because of their practicality, cost, and versatility. They are comfortable and suitable for a range of occasions because of their moderate size and seating capacity.

 

Key Trends by Market Segment:

By Type of Vehicle: The UAE Car Rental Market is classified into three major categories: Economy, SUV, and Luxury. UAE Car Rental Market is dominated by a fleet of Economy cars with a market share of 65% owing to their availability and affordability.  As they are comfortable and capacious, SUVs are usually the vehicle of choice for travellers. Corporate reservations are best made on economy cars because of their greater availability and lower cost. The most desired economy car is the Nissan Sunny. While business clients choose to rent for periods of one to six months, depending on their needs, tourists usually reserve rentals for a week or a month.

UAE Car Rental Leasing and Limousine Market Trends

By Type of End Users: End-users of the UAE Car Leasing Market are categorized into three important categories Commercial, Private, and Government. Commercial clients are the major drivers for the leasing companies in UAE amounting 65% of the total market share. The reason behind their dominance of commercial users is business tourists who lease a vehicle for more than 1 year till the completion of their project in the country.Additionally,Companies typically lease cars in Dubai for three years to facilitate the commute of a large number of their employees.

UAE Car Rental Leasing and Limousine Market Analysis

By Type of Vehicle: The UAE Car Rental, Leasing, and Limousine Market is segmented into seven regions Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. Among the seven regions, Dubai is leading the UAE Car Rental, Leasing, and Limousine Market with 56% of the market share. Given that it has the largest concentration of government and business offices as well as large financial inflows, Dubai leads the market for car rental, leasing, and limousine market followed by Abu Dhabi, Sharjah, and others.

UAE Car Rental Leasing and Limousine Market Forecast

Competitive Landscape:

Major Players in UAE Car Rental, Leasing and Limousine Market

UAE Car Rental Leasing and Limousine Market Growth

  • The majority of the leading companies in the UAE rental industry have their main headquarters in Dubai and cater to both individual and corporate clients.
  • The UAE government has implemented incentives, including as tax exemptions and lower fees, to encourage the purchase of electric vehicles. However, ICE vehicles still hold more than 90% of the market share in the UAE rental industry.
  • With 13,800 vehicles, Emirates Transport leads the UAE car leasing market in terms of fleet size. In the UAE car leasing market, the top 3 companies, Emirates, Thrifty Rent a Car, and Leaseplan, hold a majority stake of approximately 25%.
  • In the UAE car limousine market, Private Limousine has the largest fleet size with 200 cars. In the UAE car leasing market, the top 3 companies, Private Limousine, Avis, and Hot Wheels, hold a combined market share of more than 10%. In this market, there are both international businesses like Avis and regional ones like Hot Wheels.
  • About 70% of the limousine market is dominated by small fleet owners, making it an extremely competitive industry to compete in. Due to their modest fleet sizes and face-to-face interactions, these smaller players are able to provide more individualized services.

UAE Car Rental Leasing and Limousine Market Revenue

Recent Developments:

  • UAE limousine firms have been emphasizing the use of cutting-edge technology in both their vehicles and services. Some of these to improve the whole customer experience while booking and riding the limousine include real-time GPS tracking, online booking platforms, mobile applications with integrated services, etc.
  • In the UAE as well as other regions of the world, there has been an increase in the focus on environmental consciousness and sustainability. To attract clients who are even more environmentally aware, several limousine companies are moving toward sustainability by adding electric and hybrid vehicles to their fleets.
  • The demand for limo services has grown significantly in Dubai. This is brought on by an increase in corporate organizations, business travellers, hotels, tour companies, and visitors, among other factors. Many of these limo businesses have partnerships with high-end hotel chains and corporate entities to provide limo services for wealthy customers.
  • Many events, like the Dubai Air Show, Formula One Racing, Dubai Expo, and others, use limousine services. The need for limousine services among prestigious guests, actors, performers, business travellers, etc., will rise coupled with the numerous events that are scheduled for the next few years.

 

Future Outlook:

UAE Car Rental Leasing and Limousine Market Share

  • The market will grow at a CAGR of 6.4% during 2022-2027 owing to factors such as the Increase in Tourism and Business Travel along with Rising Expatriate Population and Infrastructure Development.
  • The government has set a target of 40 million tourists by 2031, with the tourism sector expected to generate $123 billion in income, as per the UAE Tourism Strategy 2031. The market for taxi aggregators will immediately profit from the growing number of tourists who choose app-based transportation because of its accessibility and convenience.
  • The Road Transport Authority (RTA) of Dubai announced goals in 2023 to switch from street-hailing to e-hail services, to achieve an 80% e-hail acceptance rate in the coming years. The administration and the well-known taxi aggregator Careem worked together on this, which will increase income for taxi aggregators in the United Arab Emirates.
  • The UAE's stance as a luxury vacation destination and its fast-growing affluent population are driving demand for high-end, custom-tailored premium e-hailing services. For example, ZED, a high-end e-hailing service, was launched in 2023, especially catering to wealthy customers – offering them personalized ride-hailing experiences.

Scope Of The Report

Scope of the Report

UAE Car Rental, Leasing and Limousine Market

 

By Type of Vehicle

 

·       Economy

·       SUV

·       Luxury

 

By Type of End-User

 

·       Commercial

·       Private

·       Government

 

By Type of Gender

 

·       Standard Limousine

·       Large Sized Limousine

·       Premium Limousine

·       Ultra Luxury Limousine

 

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Products

Products

Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:

  • Investors
  • Manufacturers & Distributors
  • Fleet & Equipment Owners
  • Government Entity
  • Environmental Advocates
  • Automotive & Machinery Professionals

 

Time Period Captured in the Report:

  • Historical Period: 2017-2022
  • Base Year: 2022
  • Forecast Period: 2022-2027


Companies

Major Players Mentioned in the Report:

  • Access Rent a Car
  • Advanced Car Rentals
  • Aero Car Rent a Car
  • Afamia Car Rentals
  • AL Habtoor

Table of Contents

Table of Contents

1. Executive Summary

1.1 Executive Summary of UAE Car Rental, Leasing and Limousine Market

2. Country Overview of UAE

2.1 Economic Overview

2.2 Population Demographics

2.3 Digital Penetration in the Country

2.4 Tourism Industry in UAE

3. Automotive Industry in UAE

3.1 Automobile Manufacturing Hubs in UAE

3.2 Import Scenario of UAE Motor Vehicles Market 

3.3 UAE Passenger Car Market

3.4 Automotive Passenger Car Market by Type of Brand

3.5 Passenger Car Pricing by Major Brands and Type of Vehicles

4. UAE Car Rental, Leasing and Limousine Market Overview

4.1 Ecosystem of Major Players and Stakeholders in the Industry

4.2 Business Cycle of UAE Car Rental, Leasing and Limousine Market 

4.3 Timeline of Major Players

4.4 B2C Addressable Market Size in UAE Car Rental, Leasing and Limousine Market 

4.5 Seasonality Trends in UAE Car Rental, Leasing and Limousine Market 

4.6 Market Sizing by Revenue, 2017-2022

4.7 Market Sizing by Fleet Size, 2017-2022

4.8 Market Segmentation by Region, 2022

5. UAE Car Rental Market

5.1 Executive Summary

5.2 Ecosystem of Players in UAE CAR Rental Market

5.3 Business Cycle of the Industry

5.4 Operating Model in UAE Car Rental Market

5.5 Market Sizing of UAE Car Rental Market, 2017-2022

5.6 Market Segmentation by Type of Vehicle, 2022

5.7 Pricing Analysis by Vehicle Type in Rental Industry

5.8 Market Segmentation by ICE and EV, 2022

5.9 Market Segmentation by Duration of Booking, 2022

5.10 Market Segmentation by End Users, 2022

5.11 Market Segmentation by Pick-up Point, 2022

5.12 Market Segmentation by Mode of Booking, 2022

5.13 Market Segmentation by Region, 2022

5.14 Regional Cross Comparison of UAE Car Rental Market

5.15 Trends and Developments in UAE Car Rental Market

5.16 Future Market Sizing of UAE Car Rental Market, 2022-2027F

5.17 Future Market Segmentation by Type of Vehicle, 2027F

5.18 Future Market Segmentation by ICE and EV, 2027F

5.19 Future Market Segmentation by Duration of Booking and End-Users, 2027F

5.20 Future Market Segmentation by Pick-up Point, 2027F

5.21 Future Market Segmentation by Mode of Booking, 2027F

5.22 Future Market Segmentation by Region, 2027F

6. UAE Car Leasing Market

6.1 Executive Summary

6.2 Ecosystem

6.3 Business Cycle

6.4 Operating Model

6.5 Market Sizing of UAE Car Leasing Market, 2017-2022

6.6 Market Segmentation by Type of Vehicle, 2022

6.7 Pricing Analysis

6.8 Market Segmentation by Duration of Leasing and End-Users, 2022

6.9 Market Segmentation by Commercial, 2022

6.10 Market Segmentation by Region, 2022

6.11 Trends and Developments in UAE Car Leasing Market

6.12 Future Market Sizing of UAE Car Leasing Market, 2022-2027F

6.13 Future Market Segmentation by Type of Vehicle, 2027F

6.14 Future Market Segmentation by Duration of Leasing and Region, 2027F

6.15 Future Market Segmentation by End-Users and Commercial, 2027F

7. UAE Limousine Market

7.1 Executive Summary

7.2 Ecosystem

7.3 Business Cycle

7.4 Timeline of Major Players

7.5 Operating Model

7.6 Market Sizing of UAE Limousine Market, 2017-2022

7.7 Market Segmentation by Type of Vehicle, 2022

7.8 Market Segmentation by Region and Pick-up Point, 2022

7.9 Market Segmentation by Source of Payment and Purpose, 2022

7.10 Trends and Developments in UAE Limousine Market

7.11 Future Market Sizing of UAE Limousine Market, 2022-2027F

7.12 Future Market Segmentation by Type of Vehicle, 2027F

7.13 Future Market Segmentation by Region and Pick-up Point, 2027F

7.14 Future Market Segmentation by Source of Payment and Purpose, 2027F

8. Snapshot of UAE Cab Aggregators Market

8.1 Executive Summary

8.2 Ecosystem

8.3 Operating Model

8.4 Pricing Comparison of different Cab Aggregators

8.5 Growth Drivers

8.6 Future Trends

9. End-User Analysis

9.1 Market Shares by Commercial End Users, 2022

9.2 Recent Factors affecting End Users of Rental and Leasing Market in UAE

9.3 Future Demand potential of Commercial and Government End Users

9.4 Factors Influencing choice of Vehicle

10. Industry Analysis

10.1 SWOT Analysis

10.2 PESTLE Analysis

10.3 Growth Drivers

10.4 Challenges and Paint Points

10.5 Trends and Developments

10.6 Government Regulations

10.7 Procedure for Setting up a Car Rental Company in UAE

10.8 Government Initiatives

11. Competition Landscape of UAE Car Rental, Leasing and Limousine Market

11.1 Competition Overview (Market Stage, Competition Nature, Number of Companies, Major Players and others)

11.2 Market Positioning Analysis of UAE Car Rental, Leasing and Limousine Market

11.3 Cross-Comparison of Major Car Rental and Leasing Companies – General Parameters

11.4 Cross-Comparison of Major Car Rental and Leasing Companies – Operational Parameters

11.5 Cross-Comparison of Major Car Rental and Leasing Companies – Financial Parameters

11.6 Cross-Comparison of Major Limousine Companies – General Parameters

11.7 Cross-Comparison of Major Limousine Companies – Operational Parameters

12. Future Outlook of UAE Car Rental, Leasing and Limousine Market

12.1 Future Market Sizing by Revenue, 2022-2027F

12.2 Future Market Sizing by Fleet Size, 2022-2027F

12.3 Future Market Segmentation by Region, 2027F

13. Analyst Recommendations

13.1 Future Propositions

13.2 Technology Advancements

13.3 Growth Strategies

13.4 Expansion Strategies

14. Research Methodology

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Research Methodology

Research Methodology

Step: 1 Identifying Key Variables: Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around the market to collate industry-level information.

Step: 2 Market Building: Collating statistics on the Car Rental, Leasing and Limousine market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for the UAE Car Rental, Leasing and Limousine market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.

Step: 3 Validating and Finalizing: Building market hypotheses and conducting CATIs with industry experts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Step: 4 Research output: Our team will approach multiple Car Rental, Leasing and limousine-providing channels and understand the nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from Car Rental, Leasing and Limousine providers.

UAE Car Rental Leasing and Limousine Market Research

UAE Car Rental Leasing and Limousine Industry Research

Frequently Asked Questions

Frequently Asked Questions

How big is UAE Car Rental, Leasing and Limousine Market?

The UAE Car Rental, Leasing and Limousine Market was valued at ~ AED 10,478.6  Mn in 2022.

What are the Key Factors Driving the UAE Car Rental, Leasing and Limousine Market?

Increase in tourism and business travel along with rising expatriate population and infrastructure development are likely to fuel the growth in the UAE Car Rental, Leasing and Limousine Market.

Who are the Key Players in the UAE Car Rental, Leasing and Limousine Market?

Access Rent a Car, Advanced Car Rentals, Aero Car Rent a Car, Afamia Car Rentals, and AL Habtoor are some of the key players in the UAE Car Rental, Leasing and Limousine Market.

What is the Future of the UAE Car Rental, Leasing and Limousine Market?

The UAE Car Rental, Leasing and Limousine Market is expected to reach ~ AED 14315.8 Mn at a CAGR of 6.4% during the forecasted period of 2022-2027.

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