The UAE Rent a Car market is experiencing robust growth owing to factors such increasing influx of international tourists as the country is a hub of shopping, a rising trend of affordability among millennials, a robust presence of market players offering services at competitive rates, and significant growth in the working population. Apart from this, a burgeoning number of SMEs, an upcoming mega-event such as Expo 2021 along with a surging number of foreign residents, and increasing leisure tourism in the country are the factors are projected to accelerate the demand for rental cars services over the forecast period. The COVID-19 outbreak has adversely affected the small car rental companies due to restrictions on movement by the government along with government also issued travel advisories shut their operations and reduction in booking due to fear of spreading of the virus. However, the market is started to come back on track due to the resumption in activities and it is expected to witness robust growth in the near future on account of the host of Expo 2021.
According to MarkNtel Advisors’ research report “UAE Rent a Car Market Analysis, 2020”, the UAE Rent a Car market is anticipated to grow at a CAGR 8.9% during 2021-26F. Based on Type of Car, Economy segment acquired a significant market share on account on rising number of working population and expat population along with most tourists opt for economy car rental services from the airport to in order to less the cost of renting and traveling. Besides these, the demand for luxury rented car is gaining pace at a robust rate on account rising expansion by the market players in the premium rented cars and surging demand for luxury rented cars among corporate offices and organizations for the clients and corporate users.
“UAE Rent a Car Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting sales and purchase decisions, hotspots, and opportunities available for Rent Car providers across the Globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the formulation of Go to Market Strategies and identifying the blue ocean for its offerings.
Dubai Exhibits the Fastest Growth
Dubai is anticipated to attain the highest CAGR by 2026 in the UAE Rent a Car market. The increasing investment by the market player to drive expansion in order to propel the number of premium cars in its fleet, rise in ex-pat population and the influx of corporate organizations and business partners are the factors accentuating the demand for rental car service in the country. Moreover, the host of EXPO 2021 is the factor projected to upsurge the market growth due to increase in the number of tourists along with hotels and airlines is expected cater huge demand for rented cars during and towards the exposition as stated in MarkNtel Advisors’ research report “UAE Rent a Car Market Analysis, 2020”.
According to MarkNtel Advisors’, the key players with a considerable market share in the UAE Rent a Car market are Thrifty, Hertz, Emirates Transport, Massar Solutions, Sixt Rent a Car, Fast rent a car, Kayak, Europcar, Avis Rent a Car, Dollar Rent a Car, Others, etc.
Key questions answered in the study: