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Want to start your Car Rental Business? Things you should know in UAE

Want to start your Car Rental Business? Things you should know in UAE | Dhanguard

There are numerous compelling reasons to start a business in Dubai. Everything about it has been thoroughly recorded, from its 0% tax rate to its advantageous location. However, there are a few additional factors that make Dubai the ideal place for beginning a car rental business.

For one thing, the emirate has a sizable expat population that may prefer not to buy a car while in the UAE, instead relying on public transportation for everyday errands and renting a car for larger journeys. Then there's Dubai's growing visitor numbers, which have risen by almost a million year on year and are set to top 20 million this year.

Then there's Dubai's growing visitor numbers, which have risen by almost a million year on year and are set to top 20 million this year. Many of these visitors will need a car to go about, and they are willing to pay for it. These and other factors are to blame for the emirate's burgeoning vehicle rental business. The UAE car rental and lease market was valued at USD 1.8 billion in 2018. This is predicted to rise to USD 2.5 billion by 2023. There has never been a better time to join in. Does this catch your interest? Then continue reading to learn how to start a car rental business in Dubai.

What are the steps to starting a Car Rental Business in Dubai?

The procedure of launching a car rental company in Dubai is simple from start to end which is elucidated below for a better understanding-

9 Steps to starting a Car Rental Business in Dubai


You'll need real premises to start a car rental business in Dubai, including an office and a lot or garage to store your fleet. This should ideally be in a densely populated area or near a transportation centre such as an airport or train station. You have the option of establishing your business on the mainland or in a free zone in the UAE. While setting up a free zone is often more cost-effective, keep in mind that if you want to trade directly with the UAE market, you'll need to build a branch or hire a distributor.


When launching a business in the UAE, it's critical to have a clear idea of what you'll be doing. Failure to do so can lead to problems down the road, and engaging in unlicensed activities can result in fines or license revocation. Your mentioned activity must be picked from the Dubai Department of Economic Development's official list (DED). The designated DED activity for opening a car rental business is ‘Car rent and passenger transportation.' You are allowed to rent CARS for brief periods of time, without drivers under this activity.


The third step is to choose a company name. There are a few crucial points to remember at this point, many of which are unique to our situation. Keep in mind that you must follow a set of naming rules. In short, any disrespectful or profane words should be avoided. If you're naming your company after yourself, avoid well-known company names and abbreviations – for example, Dave Mann Consulting rather than D Mann Consulting. You should also double-check that the name you want to use is available for registration.


A commercial license is required to operate a car rental business in Dubai and the UAE. You must present the following documents when applying for your license:

  • Application form filled out completely
  • A copy of the putative owner's passport
  • Two passport-size color photographs
  • You'll need approval from the Road Traffic Authority in addition to your commercial license (RTA). RTA training may also be necessary for your employees.


To work in the UAE, you will need a visa if you do not already have one. The visa application procedure can be relatively simple if you have the appropriate counsel. The majority of business formation agents can assist you with both this phase and your licensing application. You can also sponsor others for their visas if you have a UAE company license. A spouse, parent, or kid, as well as a domestic worker such as a housekeeper, could fall into this category.

The maximum number of visas you can apply for is determined by the size of your business, the configuration you choose, and, in the case of dependant visas, your personal earnings.


You should prepare a thorough business plan before investing in equipment, as it is critical to understand the size of the market, the gaps in the market, and the type of business you are trying to launch. Will you create a small firm with specialized vehicles, or will you start something with room to grow? All of these inquiries will aid in determining your initial investment. However, it is advised that a good beginning point would be at least 10 cars and enough space to store them. You should also have a functioning office with all of the essential office equipment, such as multiple computers, landline telephones, printers, and a water cooler, among other things.

Consider what cleaning tools you'll require to get the vehicles ready for new clients. Investing in vacuum cleaners and other cleaning supplies may be a good option. Because you will be categorised as a "fleet owner," you may be entitled to certain benefits when acquiring automobiles, such as buying wholesale direct from manufacturers. It's worth noting, though, that UAE regulations mandate that rental vehicles be replaced every two years.


Human resourcing is a critical component of any successful organization. Because the business, especially in the early days when the workplace culture is still being developed, is a direct reflection of the workforce, you'll need to work with knowledgeable people you can trust.

You can't start a business like this on your own, and you'll definitely need at least three people in the beginning – a salesperson, a driver, and a car washer. Your business plan and goals will determine how many individuals you need to hire.


The rental industry, like many other economic areas in the UAE, may be fiercely competitive. You must first choose how you will set your company apart from competitors will it be through price, services, or your fleet, and then communicate that message. Traditional means like as newspaper, television, radio, or billboard adverts, as well as leaflet drops and branded merchandise, are all available to reach your potential clients.

In comparison to traditional marketing, web marketing allows for a considerably more complex and focused strategy. Encourage your customers to like and communicate with you on Facebook and Instagram; create dialogues with them, and they'll start sharing and liking your material.

This is known as organic marketing, and most social media users believe it to be trustworthy. You should also consider using social media to promote your content and articles. Whatever you do, make sure you have a distinct identity and message for your audience.


When it comes to interacting in the marketplace, customers are increasingly searching for convenience. On a morning commute, most things can be discovered with the tips of your fingers on your Smartphone. You'll want to make sure you have an online presence, and Search Engine Optimization (SEO) is a crucial component of that.

Try to make your website and payment alternatives as web-friendly as possible. People are considerably more likely to do business with you if they can get their preferred goods with only a few clicks. If people feel upset with an outdated, time-consuming, or clumsy website, they are much more likely to leave and go to a competitor's website. Future-proof your firm by becoming as tech-savvy as possible from the start, and establish yourself as a rental vehicle company for the present and future.

How much does it cost to start a Car Rental Business in Dubai?

Starting a car rental business in Dubai comes with a slew of expenses. The cost of the license, the lease of your premises, and any RTA approvals are all factors to consider. You'll also have to think about the expense of your automobiles. While the number of vehicles in your fleet is entirely up to you, most reputable companies have at least ten.

These can be either purchased outright or leased. Because automobile rental businesses vary so widely in size, location, and level of service, it's impossible to give an estimate of how much it will cost to start one. Meeting with a company formation expert and outlining your requirements is the best approach to obtain a sense of the fees involved in beginning a vehicle rental in Dubai.


Thus starting a Car Rental Business in UAE can be profitable for you if done in the appropriate manner. Therefore we hope this blog provided you with incite full information. For more information on other related aspects as well, feel free to check out our Website also.


Frequently Asked Questions

An auto insurance policy lasts for a year and must be renewed every year. If you fail to amend your contract, you will be given a one-month grace period to renew your auto insurance policy. This ensures that your plan's status remains active.

If you purchase third-party liability coverage, you will be covered for losses to a third party if your car is involved in an accident. It offers compensation in the event of a loss of life, physical injury, or material damage to a third party as a result of an accident caused by your vehicle.

To legally drive a vehicle in the UAE, we must have Car insurance.

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