Dubai’s vehicle rental sector posted significant growth in 2024, marked by a sharp rise in both the number of rental companies and registered commercial vehicles.
A total of 867 new rental companies were registered during the year, bringing the overall number of active firms to 3,494—up from 2,627 in 2023. This represents a 33% increase in companies operating within the sector.
In terms of fleet size, 71,040 commercial vehicles were registered by the end of 2024, compared to 49,725 the previous year. This translates to a 43% increase in newly registered rental vehicles.
Electric and luxury rentals also recorded strong growth. High-end vehicle rentals surged by 73%, while electric vehicles increased by 50%, according to the Commercial Transport Activities Department at the Licensing Agency of RTA.
“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,” Ahmed Mahboob, CEO of the Licensing Agency at RTA, said.
He added that simplified procedures and the removal of operational barriers have played a key role in boosting investor confidence.
“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 said.
To further support the sector, RTA has rolled out initiatives such as the Commercial Vehicle Life Extension Service, which allows companies to extend the operational lifespan of vehicles that have exceeded the age limit, provided they pass a technical inspection.
Other efforts include the Hourly Commercial Vehicle Rental Service, enabling more flexible rental arrangements for individuals and businesses, and the launch of the Commercial Licensing System (CLS), which simplifies application processes for new and existing operators.
