DUBAI’S VEHICLE RENTAL SECTOR SEES STRONG GROWTH IN 2024

Dubai’s Roads and Transport Authority (RTA) recorded sharp growth in the emirate’s vehicle rental sector in 2024, with the number of newly registered commercial vehicles rising about 43 per cent compared to the previous year, the authority said on Saturday.

The number of registered rental companies increased by around 33 per cent during the same period, with 867 new companies registered, bringing the total to 3,494, up from 2,627 in 2023.

The total rental fleet expanded to 71,040 vehicles from 49,725, according to figures from RTA’s Licensing Agency.

“The increase in the number of newly registered vehicles and companies operating in the commercial transport sector demonstrates Dubai’s competitiveness and appeal in attracting businesses to this sector,” said Ahmed Mahboob, CEO of the Licensing Agency at RTA. “It also underscores the emirate’s commitment to accelerating economic growth and fulfilling its overarching development vision.”

High-end vehicle rentals rose by 73 per cent, while electric vehicles within the rental fleet grew by 50 per cent compared to 2023, RTA said.

Commercial vehicle market is a key sector

The sector is seen as critical to supporting Dubai’s broader economic and trade ambitions, including the goals outlined in the Dubai Economic Agenda “D33”, which aims to position the city among the world’s top three economic hubs.

Mahboob said the RTA is continuing to enhance service delivery and regulatory frameworks to support the sector, including initiatives such as the Commercial Vehicle Life Extension Service, which allows vehicles that have exceeded the operational limit to be inspected and registered for an additional year.

Other initiatives include the Hourly Commercial Vehicle Rental Service, aimed at promoting safer and more efficient rentals, and the introduction of the Commercial Licensing System (CLS), which simplifies application procedures for investors and service providers.

The RTA has also extended the operational lifespan of electric vehicles from four to six years and introduced new categories for luxury and premium vehicles, with a lifespan of up to ten years.

The car rental sector remains a key pillar of Dubai’s economy, supporting both tourism and corporate business activities.

Rental operations are regulated through the TARS electronic rental system, which covers light and heavy vehicles and streamlines processes between rental companies and customers.

“The growth in activity within the vehicle rental sector further underscores RTA’s pioneering role in facilitating business operations in this domain,” Mahboob said.

2025-04-28T03:11:13Z