Dubai’s vehicle rental sector recorded remarkable growth in 2024, with the number of registered rental vehicles increasing by 43% compared to 2023, according to the Commercial Transport Activities Department at the Licensing Agency of Dubai’s Roads and Transport Authority (RTA). The sector also witnessed a 33% increase in the number of newly registered companies, reflecting the emirate’s growing appeal as a leading global hub for business and logistics services.
The total number of companies registered to operate in the vehicle rental sector reached 3,494 by the end of 2024, compared to 2,627 in 2023. Meanwhile, the number of registered rental vehicles rose to 71,040, up from 49,725 vehicles the previous year. The statistics also highlighted notable growth in luxury rental vehicles, which surged by 73%, and a 50% increase in the number of electric vehicles used for rentals, underscoring the market’s shift towards sustainable and premium mobility solutions.
Ahmed Mahboub, CEO of the Licensing Agency at RTA Dubai, affirmed that this growth reflects Dubai’s competitiveness and ability to attract both global and regional companies. He attributed the sector’s expansion to regulatory facilitation and innovative initiatives launched by the RTA to encourage investment in this vital field. Mahboub noted that the RTA introduced several strategic initiatives, such as the “Vehicle Lifetime Extension” service, allowing rental vehicles to extend their registration for an additional year after passing technical inspections. Other measures included extending the operational life of electric vehicles from four to six years, introducing new classifications for luxury vehicles, and extending their operational lifespan to ten years.
Mahboub added that these initiatives are part of the RTA’s ongoing efforts to enhance the business environment, provide flexible regulatory frameworks, and support the sustainable growth of the sector, in line with Dubai’s comprehensive economic development goals.