Summary
The market is segmented into Type of Lease (Individual, Corporate); Type of Services (Spot Rental & Limousine) and Type of Vehicle (Sedan, SUV/MUV, Half Lorries, Trucks, 22-Seater, Passenger Buses, Passenger Vans, Panel Vans, Luxury/Premium and others)
Market Overview
Kuwait Car Rental & Leasing Market Overview
The Kuwait Car Rental market was valued at KWD 116.4 million in FY’17 and expanded to KWD 168.3 million by FY’22, reflecting a CAGR of 7.6 percent. The sector experienced a significant setback during the COVID-19 period as major companies witnessed a substantial drop in fleet size due to pandemic-related uncertainty, delays in contract renewals, and widespread payment defaults. These disruptions collectively contributed to an increase in rental prices. Within the broader mobility ecosystem, the Kuwait Car Leasing market is predominantly driven by corporate demand, which accounts for nearly 85 percent of total leasing activity, while individual leasing constitutes the remaining 15 percent. In FY’22, the Kuwait Car Leasing market stood at KWD 233.4 million and is projected to reach KWD 381.4 million by FY’27, growing at a CAGR of 10.3 percent as demand for flexible, long-term mobility solutions continues to rise.
Kuwait Car Rental & Leasing Market Definition
Kuwait Vehicle Leasing Market: Kuwait Vehicle Leasing Market: The market sizing exercise was carried out for overall leasing market by adopting a Bottom-To-Top approach in which separate markets for Individual leasing and corporate leasing were extrapolated taking into consideration variables including Fleet Size and Average Annual Prices in KWD.
Individual Leasing: Individual vehicle leasing or car leasing is the leasing of a motor vehicle for a fixed period of time at an agreed amount of money for the lease to any private individual for personal need. The period of lease is more than 12 months, or the vehicle comes under the rental category.
Corporate Leasing: Corporate vehicle leasing or car leasing is the leasing of a motor vehicle for a fixed period of time at an agreed amount of money for the lease to any Private Corporation, Governmental agency or the Military. The period of lease is more than 12 months or the vehicle comes under the rental category. Under the market sizing approach, the market has been calculated by taking into account a combination of Government tender projects.
Spot Rental: Spot rental is the rental of motor vehicle for less than a year, usually days or weeks, depending upon the person’s requirements.
Taxonomy
Kuwait Car Rental & Leasing Market Ecosystem
Kuwait Car Rental & Leasing Market Size (Revenue, KWD Million), FY’17-FY’22
The Kuwait Rental market was valued at KWD 116.4 million in FY’17 and grew to KWD 168.3 million by FY’22, recording a CAGR of 7.6 percent. In parallel, the Kuwait Leasing market expanded from KWD 146.7 million in FY’17 to KWD 233.4 million in FY’22, achieving a higher CAGR of 9.7 percent. The industry experienced a significant setback during the COVID-19 period, when major companies saw a substantial reduction in fleet size due to pandemic-related uncertainty, delays in contract renewals, and widespread payment defaults. These disruptions contributed to a noticeable rise in prices, particularly within the individual leasing segment. Prior to the pandemic, the leasing market had been witnessing strong momentum, supported by defense contracts between the Kuwaiti Government and the United States Army, as well as rapid growth in the e-commerce, delivery, and diet food sectors. More recently, the adoption of online booking platforms, mobile applications, and GPS-enabled solutions has further improved customer accessibility and enhanced overall service experience within Kuwait’s car rental ecosystem.
Kuwait Car Rental & Leasing Market Segmentation, 2022
Kuwait Car Leasing Market Segmentation by Type of Lease (Revenue in %), 2022
The Kuwait Car Rental and Leasing market is segmented into corporate lease and individual lease categories, with corporate leasing emerging as the dominant segment, accounting for nearly 85 percent of the total market, while individual leasing represents the remaining 15 percent. This strong corporate presence is driven by Kuwait’s robust economy, where a large share of the workforce is employed across key sectors such as oil and gas, finance, and construction. These industries require extensive vehicle fleets to support daily operations, ranging from executive cars for senior management to utility vehicles for field personnel, thereby reinforcing demand for corporate leasing solutions. Although Kuwait had anticipated an influx of expatriates as part of its broader economic diversification strategy, the momentum was disrupted due to COVID-19 and the subsequent implementation of stricter immigration policies. The tightening of commercial visa issuance further limited the pool of eligible individuals entering the country. This constrained expatriate inflow has created a challenging landscape for leasing companies, particularly those relying on individual leasing volumes, as the potential customer base remains restricted under current regulatory conditions.
Kuwait Car Rental Market Segmentation by Type of Services (Revenue in %), 2022
The market is segmented into two primary service types: Spot Rental and Limousine services. Spot rentals dominate the Kuwait Car Rental market, accounting for nearly 95 percent of total revenue, while limousine services contribute the remaining 5 percent. Spot rental services cater to a broad range of customers, including tourists, business travelers, and individuals seeking short-term transportation solutions. Their flexibility, ease of access, and affordability make them highly preferred, driving consistently high usage rates and strong revenue contribution. In contrast, limousine services, though representing a smaller share of overall revenue, play a strategic role in enhancing the brand image of rental companies. By offering premium, chauffeur-driven transportation, companies strengthen their market positioning and cultivate long-term customer loyalty, making the segment valuable despite its relatively modest revenue share.