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How to Start a Car Rental Business in Dubai?

As we all know, Dubai is known for its tourism and technological advancements. In addition to this, Dubai is also popular among tourists for its luxury cars. People from all over the world love to visit Dubai and enjoy their vacations in which budgeted and luxury travelers are included. Luxury travelers love to get a car on rent and drive on the roads of Dubai.

Starting a car rental business in Dubai without a plan or advice isn’t a great idea. So, let’s discuss the essential things you need to remember when you start your business.

Is It a Good Idea to Start a Car Rental Business in Dubai?

The tourism industry is growing daily in Dubai, creating a demand for private cars. Since using your car and having fun in Dubi is more flexible and enjoyable. The car rental business is directly linked with the tourism sector. The demand for the tourism sector in Dubai makes the car rental business more profitable.

Dubai’s government always supports you if you want to start your business. Not only the government but also a stable economy and friendly business environment give you more confidence to start and grow your business in Dubai. There’s no doubt about the market competition, but you can enter this market with proper research and business strategy.

If you want expert advice and business strategy for a car rental business in Dubai, we at Alriyady can help you start and grow your business.

Car Rental Business Model

Generally, two business models are working for the car rental business in Dubai, one for tourists and the second for expats. In the tourist business model, we rent our cars to them hourly as a business owner. The required documents in this business model from tourists are driving licenses. Tourists can book cars from online platforms and visit the office as well. Usually, tourists in Dubai prefer to book luxury cars.

However, if you talk about the second business model for expats. In this business model, expats rent out cars from car rental businesses monthly. The required document in this business model is the UAE ID card. Expats prefer to drive vehicles with good petrol average rather than luxury cars.

Step to Start a Car Rental Business in Dubai

  • The first step to starting any business in Dubai is to select the business name. By choosing a business name, you must remember that your name should be unique. If you choose a unique name, it will help you to get fast approval and speed up your process.
  • The second step is to define the business activities and select the location of your business. Once you determine the business activities, the government authorities will assign you a license, as it is compulsory in Dubai to get a trade license before starting a business. We recommend you read a trade license blog before applying, as it will be easy to follow the procedure and prepare your relevant documents.
  • If you talk about the location of the car rental business in Dubai, you can set up your business in Mainland and Freezone. The mainland and free zone have their benefits, which we have discussed in different blogs. It would be best to read them to understand where you need to start your business in Dubai and which location suits you.
  • The next step, and one of the main steps, is to select the vehicles you want to include for your clients. Before finalizing the vehicles, you must decide if you will offer your car rental services to tourists, expats, or both. Expats prefer to use vehicles with good petrol averages, and tourists like driving luxury cars in Dubai.
  • After these steps, the next step is to fill out the application form and attach the relevant documents. Once your application file is ready, you can submit this file to the government authorities along with the fee.
  • With this license, you need an additional approval document to start a car rental business in Dubai. NOC is required from RTA (Roads and Transport Authority) Dubai. Contact us if you want more details or advice regarding NOC; our experts will guide you.
  • Finally after completing all the applications and getting a license, the next step is to open a bank account. You can open a bank account in Dubai by providing all the details of your business and business license. Further, you can read the procedure to open a bank account, and we are hopeful that you will have a clear path and an idea about the process after reading this.

Final Words

In the final words of the car rental business in Dubai, we advise you to stay calm and focus on your business strategy. If you do this, there are more chances that your business will grow. Additionally, you will get support from the friendly business environment of Dubai. We recommend including the different types of vehicles in your business as it will increase the chances of getting more clients. You must have a reasonable marketing budget; the investment in the satisfaction of your current customer would also be a marketing strategy.

We advise you to keep improving your business, and you can do this by getting a review or feedback from your current customer. As a car rental business owner, you must keep in touch with industry updates to apply them to your business. So, starting a car rental business in Dubai is more than just cars. By following our guidelines, your business will be on the right track, and if you need any help or advice, our experts would love to help you in your industry.


You must get vehicle insurance; RTA will ask you about this. The best way is to choose a reputable insurance company and get vehicle insurance. Before signing a contract with the insurance company, we recommend to read their policies. Their policies must meet the legal requirements.

There is no doubt about it. An online booking system will help you to grab clients and build your reputation among the clients in the market. Please ensure your online booking system is user- and mobile-friendly because this customer convenience will help you grow your business.

The best way is to set an online schedule for the maintenance of rental vehicles because, in this strategy, there are fewer chances of missing the schedule. All your rental cars must be in optimal condition, and customers should be satisfied with your vehicle’s performance.

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