How to Start a Car Rental Business in Dubai

How to Start a Car Rental Business in Dubai

There are numerous compelling reasons to establish a business in Dubai. First, everything has been thoroughly documented, from its 0% tax rate to its strategic location.

However, there are a few more reasons why a car rental company in Dubai is an ideal choice for starting a car rental business. According to MarkNtel Advisors, the UAE Rent Car Market will grow 8.9% between 2022 and 2027. Dubai's visitor numbers have risen by around a million each year and are expected to reach 20 million this year.

Furthermore, the country's rapidly expanding tourism sector has resulted in massive footfalls of tourists, pilgrims, and migrants, and events such as Auto Expos, which last six months and attract approximately three million people, are expected to increase demand for car rental services in the UAE and drive the market through 2027. Many of these visitors will need a car to get around and are willing to pay for it. So, let us learn how to start a car rental business in Dubai.

The Advantages of Starting a Car Rental Company in Dubai, UAE

To begin a car rental business in the UAE, you must first obtain a trading license. Car rental businesses in Dubai can be profitable if you understand the industry and are willing to embrace new technology. Here are some of the primary advantages of establishing a car rental business in Dubai:

Tourism is Rising

Every year, millions of tourists visit Dubai to see the incredible architecture, historical and religious sites, beaches, restaurants, and nature. Because Dubai is also the gateway to the rest of the United Arab Emirates, many visitors will want to rent a car to explore the rest of the country. Your car rental business in Dubai will undoubtedly be highly sought-after in the upcoming years.

New Preferences

Since the pandemic, many people have needed to be more comfortable taking public transportation. For those who don't have a car, renting a vehicle for trips is becoming more common. Hiring a car allows them to travel around Dubai without relying on public transportation or incurring the costs of purchasing their vehicle.


Another advantage of starting a car rental business in Dubai is using emerging technology. Thanks to smartphones, apps, and geolocation, people can now pick up and rent cars more efficiently than ever. This makes finding and renting a car much more accessible, increasing people's willingness to rent vehicles.

How to Set Up a Car Rental Business in Dubai, United Arab Emirates

Depending on a company's terms, the period for renting a car can last for several weeks or a few hours. The company's primary goal is to assist people with their daily commutes. The five steps below will guide you through setting up a car rental business in Dubai.

1. Determine your business activity.

The first step in obtaining a Dubai car rental business license is determining your business activity. Depending on the type of vehicle rental you intend to do, you may be eligible for various permits. The most common is 'Passenger Transport and Car Rental,' but you may need a different license if you work in a slightly different industry.

2. Select a trading name for your Dubai car rental company.

Your company's trading name should briefly describe what it does and should not contain any language that could be considered offensive or profane. Furthermore, the company name must not include any acronyms with your initials. For example, Ali Khamza Car Hire is acceptable, but AK Car Hire is not.

3. Determine the location of your car rental company in Dubai.

Choosing a business location is essential in starting your car rental business in Dubai. Many car rental companies choose to begin in Free Zone because it has a 0% tax rate and allows for 100% foreign ownership. In addition, because of our central location in Dubai, close to the airport and the seaport, you are ideally situated to meet the needs of tourists, business travelers, and local customers.

4. Submit your application and pay your fees.

To obtain your Dubai UAE car rental commercial license, you must fill out an application form and provide various documents and paperwork. As part of your business license application, you must also pay the associated fees.

5. Get your license and set up a business bank account.

Obtaining a license to operate a car rental company in Dubai takes only a few days if your paperwork is in order and your application form and fees are correct. Following the approval of your license, the final step is to open a business bank account so that you can make and receive payments.

Cost of Starting a Car Rental Company In Dubai, UAE

When setting up a car rental business in Dubai, there are several essential costs: the license price, the cost of your premises, and the RTA approvals. Then there's the cost of the fleet of vehicles you'll be using, which you can buy or lease.

The cost of establishing a car rental company in Dubai varies depending on the number of visas required. Starting a car rental company can cost as little as AED 12,500 if no visas are required.

If you require additional visas, the application fee can reach AED 23,600. (for six visa allocations). This figure includes the cost of your business license and any associated fees.

Documents Required to Establish a Car Rental Company in Dubai, UAE

If you'd like to launch a car rental company in Dubai, you must submit the following documents as part of your application.

  • A completed application form describing the types of car/vehicle rentals you will provide.
  • Copies of your passport, as well as passport-sized photos
  • A copy of your residence visa (if applicable)
  • Copy of Emirates ID (if applicable)

Working with a company formation expert, like Business Setup Worldwide, to ensure this is the case is a good idea when starting a new company in the UAE.

We are a team of company formation experts passionate about helping aspiring entrepreneurs and SMEs realize their dreams.

So you can concentrate on maintaining your business, and our professionals can form your company, apply for licenses and visas, and handle all the paperwork. Contact us, for more details.


Is car rental business profitable in Dubai?

Exotic cars and luxury on wheels are also popular in the "city of gold." Therefore, if you intend to start a car rental business in Dubai, you have undoubtedly made a wise decision.

How to start a car rental business in Dubai?

You must first obtain a trading licence in order to launch a car rental business in the UAE. How to obtain this licence is demonstrated in the next five steps.
First, choose a location.
Describe your company's operations
Choosing a name for your business
Submitting an application for a licence
Making your visa applications.

Is car rental worth it in Dubai?

Due to the abundance of rental car companies in Dubai, the prices are very competitive by global standards, and the quality of the vehicles is excellent.

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