At Dubiz, we understand the complexities & challenges of establishing a business in UAE’s evolving landscape. Our suite of expert business setup services is specially designed to support your venture at every stage, from inception to expansion.
At Dubiz, we understand the complexities & challenges of establishing a business in UAE’s evolving landscape. Our suite of expert business setup services is specially designed to support your venture at every stage, from inception to expansion.
Dubai is transforming into a global tourist destination, with more than 20 million expected visitors by the end of this year. Its robust infrastructure, diverse economy, and strategic location also make it a prime location for entrepreneurs, encouraging them to start a business in Dubai. With its thriving tourism, luxury living, and business-friendly environment, establishing a car rental business in Dubai presents a great opportunity for entrepreneurs.
This guide explores the rent a car business in Dubai, covering its processes, requirements, and costs.
A car rental business in UAE is a company that allows its customers to hire automobiles for specific periods, ranging from a few hours to several weeks, depending on its policies. The primary aim of these companies is to facilitate transportation needs, including daily commutes. These companies often have branches in different places, allowing customers to return their rented vehicles to any convenient branch.
To rent a car in Dubai, you must be at least 21 years old and have a valid driver’s license from your home country. Depending on your nationality, you might also require an International Driving Permit (IDP).
As a car rental business in Dubai, you must ensure that lessees adhere to your guidelines while driving, return vehicles on time, and maintain them in the same condition as when renting. Implementing a prepaid agreement can be beneficial for your business.
As highlighted by Mordor Intelligence™ Industry Reports, in 2021, the UAE car rental market was valued at USD 885.83 million and is expected to exceed USD 1,729.80 million by 2027. The demand for car rental services, specifically in Dubai, is rising, fuelled by a surge in tourism and a thriving business sector.
Factors like health worries pushing people to choose private transport, the rise of online platforms making it easy to pick and book cars, and the hassle of using public transport, particularly for long journeys and sightseeing, are boosting the car rental business in Dubai. Whether it’s tourists, locals, students, families, or business travellers, renting a car gives them flexibility and convenience for short and long trips.
Follow these simple steps to start your car rental business in Dubai:
Start by researching the car rental market in Dubai to understand the competition, who your customers are, and what they want. Figure out if tourists or business travellers are your primary customers and if they prefer luxury or budget-friendly cars. Also, you need to select your services carefully. If you don’t, you could face problems later, like getting fined or losing your license. You must choose activities from the official list provided by the Dubai Department of Economic Development (DED) to start your business the right way.
Next, you must choose whether to set up your business in the mainland or go for free zone company formation in Dubai, considering the advantages and regulations of each.
Also, to run a car rental business in Dubai, you will need physical premises that can serve as both an office and garage for your vehicles. To attract potential customers, it is best to choose a spot close to an airport or a busy transportation hub.
Your choice of company structure in Dubai depends on your business needs and the economic zone in which it will operate. Dubai offers various corporate structures to choose from, such as sole proprietorship, limited liability company (LLC), or setting up a branch of an international company.
When picking a trade name for your business, ensure it follows UAE rules and conventions to avoid potential issues. The name should be lawful, unique, and relevant to your business. Avoid using names that go against public morals or include religious, governmental, or external organisation names.
After deciding on your business structure, the next step is registering your company. For a car rental business in Dubai, you must apply for a commercial license from the Department of Economic Development (DED). You will need to fill out an application form and submit necessary documents such as copies of business owners’ passports, lease documents for your office space, passport-sized photographs, and other relevant papers. After approval, you must pay the required fees and collect your license.
In addition to obtaining the business license, you will need approval from the Road and Transport Authority (RTA) for your car rental business in Dubai. Furthermore, your staff may need to undergo RTA Dubai training as part of the requirements.
To build a thriving car rental business in Dubai, you must select your fleet meticulously. This involves conducting thorough market research to understand which types of cars are in high demand. Additionally, you must decide whether to purchase new or used vehicles or lease a fleet. Decisions depend on factors like initial investment, depreciation, and maintenance costs. Maintaining excellent technical conditions for your fleet is crucial for ensuring customer safety and satisfaction.
The last step involves opening a corporate bank account to facilitate payments and transactions for your car rental business in Dubai. Additionally, you will need to apply for visas to legally reside in Dubai for yourself, your family, and any employees.
Remember, getting the right business insurance to safeguard your company against potential risks is important. Also, it is important to stay informed and follow all local laws and regulations concerning car rentals, including those set by the RTA and traffic laws. For any additional guidance, please get in touch with our experts at DUBIZ.
The following documents are generally required for starting a car rental business in Dubai:
Specific authorities may request additional documents. Let our experts at DUBIZ handle the documentation for you!
The cost of a car rental business license usually ranges from AED 15,000 to AED 20,000*. However, the overall cost can vary depending on several factors, including:
We advise you to contact our experts at DUBIZ for a complete breakdown of business setup costs.
Dubai’s flourishing tourism and business sector presents immense opportunities for aspiring entrepreneurs to start their car rental business in Dubai. Our specialists at DUBIZ assist aspiring entrepreneurs in starting their dream venture in the Emirates, ensuring their entire setup process and paperwork are hassle-free and prompt.
If you want to start your car rental business journey in the city of your dreams, why wait? Let’s launch it together!
Contact our experts today at +971 562986853 or WhatsApp us at +971 569973630. You can also drop an email at info@dubiz.co for any inquiries.
The cost of a car rental business license usually ranges from AED 15,000 to AED 20,000*. However, the overall business setup cost depends on various other factors, including the nature and size of the business, Ejari contract fee, visa charges, RTA car rental service fee, cost of your fleet of cars, etc.
Yes, you can rent a car in Dubai. You must be at least 21 years old (25 years old for some supercar rental companies) and have a valid driver’s license from your home country. Depending on your nationality, you might also require an International Driving Permit (IDP).
Yes, the car rental business can be quite profitable in Dubai, given its thriving tourism, luxury lifestyle, and rising demands from expats and locals. However, the market can be highly competitive. Thus, a robust marketing strategy, customer focus, and service quality maintenance are imperative to success.
To start a car rental business in Dubai, follow these simple steps:
