Starting a car rental business in Dubai: complete guide

Dec 07, 2023

As Dubai continues to thrive as a leading tourist destination and international business hub, car rental companies have emerged as pivotal players in the city's transportation industry. The rapid growth of this sector mirrors the increasing demand from local residents and visitors for the flexibility and convenience of having a vehicle tailored to their needs.

Establishing a car rental company in Dubai is facilitated by a favorable business environment, world-class transport infrastructure, and a growing demand for premium car rental services. 

  1. Choosing the Type of Company 

The first crucial step is determining the most suitable type of business. Typically, a mainland company is preferable if your goal is to provide services on a broader scale in Dubai and the United Arab Emirates. 

  1. Adhering to Industry-Specific Rules

Similar to many sectors in the UAE, it's essential to comply with specific rules pertaining to vehicle rental. The system differs from practices in Europe, requiring adherence to conditions related to the type of vehicle, its age, and the number of vehicles. Generally, having between 10 to 20 vehicles is required, depending on the chosen company type. 

  1. Registering a Trade Name

 After making your decision, select a trade name for your enterprise. This name should serve as a marketing asset while meeting the UAE regulatory requirements for approval.

  1. Finding a Commercial Space

Operating a vehicle rental business requires meeting certain conditions, including leasing an appropriate space and obtaining an Ejari.

  1. Obtaining a Commercial License

The next step is acquiring a commercial license from the Dubai Department of Economic Development (DED) to conduct this business activity. It's important to determine whether you plan to offer car rental services with or without drivers.

  1. Approval from Dubai's Transport Authority

The DED is not the sole authority to approach; authorization to conduct this activity is also granted by the RTA (Roads and Transport Authority). Several criteria, such as insurance, commercial location, and a corresponding fleet of vehicles, must be met.

Starting a car rental business in Dubai can be a profitable venture. However, it's crucial to comply with administrative regulations and follow the necessary steps as per the UAE authorities' requirements.

Our team is prepared to support you through this process, aiding in your success and streamlining administrative procedures.

You might also like