How to Start Car Rental Business in Dubai

How to Start Car Rental Business in Dubai

Car Rental Business In Dubai, UAE?

Dubai is a top tourist destination for people around the world. Millions of people visit the city every year and they require transportation for exploring the city. This attracts a lot of entrepreneurs for setting up a business due to its strategic location and large tourist gatherings, providing ample opportunities for new businesses to grow. And when it comes to starting a car rental business, there are a lot of expatriates who don’t want to buy a vehicle and rather prefer to take public transport or rent a car in Dubai. Whether for the daily tofro office trips, business meetings, long trips with a girlfriend, shopping with kids, taking your doggo to the vet or weekend barbecues with friends, a car is the most convenient and preferred means of transport in Dubai or any other emirate of the UAE.


Let’s look at some more reasons why car rental company formation will pay you off handsomely:

  • The automotive sector in Dubai is one of the most profitable sectors in Dubai for plenty of reasons

  • Car rental companies in Dubai are able to serve their rides to customers at a competitive rental fee complemented by fatty discounts and affordable daily, weekly and monthly car hire packages. 24/7 emergency assistance, free delivery & pick-up are the other benefits the Dubai-based rental car providers offer to their consumers

  • A huge customer base because residents/expats (with 21+ age and a valid driving licence) choose to rent a car instead of buying their own for all good reasons such as affordability, variety, effortless process, and high level of comfort as well as convenience compared to public transport, etc.

  • 100% ownership of your car rental business on the mainland is possible now. However, you are required to engage a Local Service Agent for an annual service fee as part of the mandatory requirements to fulfill to acquire a service/professional trade license in Dubai, UAE.

  • A car rental fee is way cheaper (as low as AED 30/day) than taxi fares here, that’s why the car rental business in Dubai is always at its peak

Benefits of Starting A Car Rental Business

With rental vehicles, people have the leverage to make as many stops as they want and extend their stay at places they find interesting. Car rental businesses in Dubai are advantageous if you understand the industry and are prepared to use new technology. According to the latest statistics published by World Population Review, around 3 million people reside in Dubai as of 2023. Out of this, 85% people are non-citizens.


Below are some of the reasons why they are likely to prefer renting a car in Dubai:

How to Start Car Rental Business in Dubai


Millions of tourists travel to Dubai every year to visit the emirate’s incredible architecture, historical and religious sites, beaches, restaurants, and nature. Many tourists arriving in the country will be looking to hire a car to explore the rest of the UAE.


How to Start Car Rental Business in Dubai

Time Saver

Although public transport in Dubai is one of the best in the country and covers the whole of the city, people also prefer to rent cars because there are certain limitations such as meeting strict work timings during rush hours or planning for a quick trip.


Car Rental Business


Another benefit of starting a car rental business in Dubai is that it will allow you to make the most of emerging technology. Thanks to smartphones, apps and geolocation, it is easier than ever for people to pick up and rent cars as when they need them

Steps to apply for Car Rental Business

Car Rental Business

1. Business Activity

There are a few potential license types you could apply for, depending on the type of vehicle rental you hope to do. The most common is ‘Passenger Transport and Car Rent’, although you may need a different license if you operate in a slightly different sector.


2. Choose Location

choosing a business location is crucial. Since you will need physical premises for your fleet of vehicles, you will need some space. A strategic location will help you here, whether close to an airport, seaport, or another transport hub to meet the needs of tourists, business travelers, and local customers.


3. Application & Pay Fees

To operate a car rental business in Dubai, you need to get a Non-objection certificate NOC from RTA (The Roads and Transport Authority). Upon receiving the NOC, you must submit the filled-out application. Paying the associated fees as part of your business license application is also essential


4. Business Bank Account

Getting your license to run a car rental company in Dubai takes just a few days – so long as all your paperwork is in order and your application form and fees are all correct. At MARKEF, we help you by checking that all your paperwork meets the requirements so that you avoid any unnecessary admin obstacles.


Cost To Start A Car Rental Company In Dubai

When you consider how to start a car rental business in Dubai, you need to consider the costs involved before you begin trading. You’ll need to factor in the cost of your trade license, your premises, the RTA authorizations, and the cost of your fleet of cars. Launching a car rental firm in Dubai varies in cost depending on how many visas you require. If no visas are needed, starting a car rental company can cost as little as AED 12,500. Besides the license cost, you will also need funds to pay for the vehicles you hope to rent, insurance, office space, car cleaning services, and marketing costs.


If you want to launch a car rental business in Dubai, you will need to provide the following documents as part of the application process.


  • A completed application form which describes what kinds of car/vehicle rental you will offer

  • Copies of your passport and passport size photos

  • A copy of your residence visa (if applicable)

  • Emirates ID copy (if applicable)

To establish and run a mainland car rental company in Dubai, you need a commercial license that DED dispenses. Submit to DED an online application complete with all the required details and attachments to obtain one. Below is the list of documents that are required for a car rental business license in Dubai:


  • Duly filled-in application form

  • 2 coloured passport-sized photographs

  • Valid visit or residence visa for partners

  • Preliminary approval of the licensing authorities (Dubai Economy – Free Zones)

  • Copies of the partners’ passports

  • Emirates ID of citizen partners (if applicable) or passport in case the citizen doesn’t have identification papers

  • NOC from the sponsor in case the partner is a non-GCC citizen

  • Undertaking to abide by the conditions and requirements related to the requested type of activity

  • Approval of other governmental bodies for some business activities (check the table in the Terms and Conditions section).

  • A letter from the Road Traffic Authority (RTA) bearing their consent Furthermore, your employees may also have to undergo RTA training.

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