Keeping up with Dubai’s stratospheric growth and the city’s mobility requirements, the Roads and Transport Authority (RTA) said it recorded substantial growth in the vehicle rental sector in 2024 compared to 2023.
The Commercial Transport Activities Department at RTA’s Licensing Agency revealed that 867 new rental companies were registered during 2024. This brings the total number of rental companies operating in Dubai to 3,494, up 33 per cent from 2,627 in 2023.
Dubai’s vehicle rental surge
The total number of vehicles in the rental fleet reached 71,040, compared to 49,725 the previous year. The addition of these 21,315 new vehicles represent a staggering increase of 42.9 per cent.
The number of high-end rental vehicles grew 73 per cent, while electric vehicles within the rental fleet increased by 50 per cent compared to 2023.
Ahmed Mahboob, CEO of the Licensing Agency, RTA, commented: “The increase in the number of newly registered vehicles and companies operating in the commercial transport sector demonstrates Dubai’s competitiveness and appeal in attracting businesses to this sector.
“It also underscores the emirate’s commitment to accelerating economic growth and fulfilling its overarching development vision. By offering streamlined procedures and removing barriers, RTA continues to support private sector companies and investors, bolstering their confidence in Dubai’s business landscape and its position as a global hub for commerce and finance.”
Mahboon added that the RTA remains dedicated to continuous improvement and service excellence by providing innovative solutions that address private sector needs. This includes aligning service delivery with sector-specific requirements to enhance customer satisfaction and strengthen trust in Dubai’s business and investment environment.
“The growth in activity within the vehicle rental sector, both in terms of the number of vehicles and registered companies, further underscores RTA’s pioneering role in facilitating business operations in this domain. This progress has been driven by the continuous enhancement of service quality and incentives, along with the development of flexible and integrated regulatory frameworks that effectively govern all segments of the sector,” Mahboob added.
RTA has also launched several initiatives that reinforce support for the commercial transport sector, including steps like the ‘Commercial Vehicle Life Extension Service’ and the ‘Hourly Commercial Vehicle Rental Service’.
Under the ‘Commercial Vehicle Life Extension Service’, companies can extend the operational lifespan of vehicles that have exceeded the permitted limit. The one-year extension is subject to the vehicle passing the technical inspection requirements.
‘Hourly Commercial Vehicle Rental Service’ enables both individuals and companies to rent commercial transport vehicles on an hourly basis, promoting safer and more efficient service delivery.
The RTA has also introduced the ‘Commercial Licensing System’, which has streamlined the customer journey by simplifying application procedures for new investors and existing service providers, while also enhancing governance and expediting the approval process.
Other RTA moves that have supported the growth of the commercial transport sector include extending the operational lifespan of electric vehicles from four to six years and increasing the operational lifespan of luxury and premium vehicles to 10 years.
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