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How to Start a Car Rental Business in Dubai?

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Car Rental Business
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With a strong tourist market and a relatively large transient expat population, Dubai is an ideal market to set up a car rental business.

Dubai is home to major car rental companies such as Avis, Budget, Herts, Dollar, Enterprise, amongst others. Nevertheless, this has not hampered the growth of small to medium local firms. The UAE government has massively expanded the road network throughout the country in the past decade.

While public transport is available in key metropolitan areas, large portions of the country and even Dubai itself can only be explored by car. While a taxi network does exist in all Emirates, frequent use is costlier than leasing a car.

Businesses of all sizes find it more convenient to lease cars from car rental firms rather than establish their fleet. Many car rental firms concentrate their marketing efforts to target businesses rather than consumers with very profitable results.

With a small fleet and an understanding of the core client base, anyone can launch a profitable car rental business.

Car Rental Business Location and Fleet

To set up a car rental business, you will need a physical office; this site will need to be a minimum of 150 meters squared.

As you will most likely have a small fleet on-site, you should select a site with ample parking. Many car rental businesses cluster around the airport or other central parts of town to make it convenient for their clients.

What type of vehicles you select to have as a part of your fleet depends on the type of clientele that you are trying to acquire. You can get high-end luxury vehicles if your aim is to target tourists. You can also stick to conventional, affordable vehicles which corporate clients prefer. Either way, keep in mind that the vehicle fleet should not be older than two years.

You should also sign up for a service agreement with a reputable maintenance shop to ensure that your cars are in top shape for your clientele. It’s also recommended that you research fleet management systems that facilitate GPS tracking and inventory control. You wouldn’t want to lose track of your assets which can happen in a high churn business. Equally, you want a system that permits potential clients to see what cars are available online on any given day to maximize booking potential.

Proper insurance coverage for your fleet is mandatory. With your fleet on the road 24/7, accidents are part of the business and making sure you can restore your fleet swiftly is critical to your business success.

Car Rental License

Most car rental firms choose to set up a business with a local license, as free zones don’t generally issue such licenses.

There are some exceptions which our consultants can tell you about. To get approval for your license there are certain conditions that must be met to acquire a no-objection certificate from the Road & Transport Authority (RTA).

Our consultants are familiar with all the documentation and requirements from the RTA. Therefore its recommended that you have a free consultation. Once you obtain your business license, please keep in mind that you are subject to inspection by the RTA at any time. Therefore you need to ensure that your maintenance and bookkeeping is up to the necessary standard.

In summary, running a car rental business in Dubai can be a very successful venture. Having experts by your side who are familiar with all the requirements to launch your firm and keep it on the right side of the law will provide you with the peace of mind that you require.

Speak to us today about how we can help you launch your dream business in Dubai.

Gilbert Sakr

Do you need help in business setup or looking to start a business in Dubai? Here you will find all the information and business ideas you need for starting your own company in Dubai.

Comments (13)

  • Ernie

    April 10, 2019 - 7:09 pm

    Thanks for the excellent manual

    Reply
  • Waqas

    July 11, 2019 - 2:46 am

    Hey . I want to start car rental business in dubai? What are the pros and cones ? Need suggestion please. Thanks in advance.

    Reply
    • Henri Hazougi

      July 22, 2019 - 10:59 am

      Hey Waqas, thank you for your message.
      Someone from the team will get back to you soon regarding your car rental business inquiry.

      Reply
  • shiller Wilson

    August 8, 2019 - 3:31 pm

    Good Day,

    One important info is missing in the above article.

    is there any restriction of the life of vehicle a Rental A Car company can own..? What is the maximum life of a vehicle can be with..
    Is there any such law to abide by..

    Rgds,
    Shiller Wilson

    Reply
  • Ronney Halter

    September 12, 2019 - 2:09 pm

    Hey Henri, Amazing write-up! I guess starting a car rental business with a mobile app could be the one in a million opportunity that can change your destiny.

    Reply
  • DR. Muna

    October 3, 2019 - 5:41 pm

    I want open a car rental business In Dubai for luxury cars. But I wanna know am I aloud to sell it by the minute by RTA or are there some regulation.
    Best regards

    Reply
    • Henri Hazougi

      October 13, 2019 - 1:27 pm

      Hey Muna,
      Thank you for your inquiry regarding the car rental business.
      One of our consultants will get back to you soon.

      Reply
  • Sumaria Anum

    March 25, 2020 - 10:10 am

    Ahaaa! Amazing and beautiful I am much impressed by your work. Greaaaaaaaaaaat
    We are also providing rent car services in Abu Dhabi join us for more information you will be amazed if you check it we are providing different categories and different brands of car for you all.
    We offer a rental car in Dubai with drivers are without drivers join us for more information.

    Reply
  • Mary Amos

    June 23, 2020 - 2:22 pm

    I want to star a car hiring business in UAE, what are d regulations and requirements, please?

    Reply
    • Gilbert Sakr

      June 28, 2020 - 11:32 am

      Dear Mary,
      We hope you got the email from one of our consultants regarding the car rental company setup.
      Thank you!

      Reply
  • Abhishek

    August 19, 2020 - 9:23 am

    Hello! Can you start a Rental Car Business with a Free-Zone License and can you have a Office in the Mainland with parking spaces?

    Thank you.

    Reply
    • Gilbert Sakr

      August 19, 2020 - 10:44 am

      Dear Abhishek,
      Thank you for your message. One of our consultants will get back to you regarding your car rental business inquiry very soon.

      Reply
  • Iqbal

    September 4, 2020 - 6:26 am

    Need to know about the car rent buisness.
    The dokuments . Paper Work .

    Reply

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