Numerous initiatives were instrumental in strengthening sector performance

Ahmed Mahboob:

“The increase reflects Dubai’s competitiveness and appeal in attracting companies to this sector and advancing the emirate’s comprehensive development vision.”

Dubai. Roads and Transport Authority. 24 April 2025:

As part of its ongoing efforts to support commercial transport activities, a vital sector that underpins Dubai’s economic and trade landscape and supports the goals of the Dubai Economic Agenda (D33) to position the city among the world’s top three economic hubs, Dubai’s Roads and Transport Authority (RTA) recorded substantial growth in the vehicle rental sector in 2024 compared to 2023.

The number of newly registered commercial vehicles rose by approximately 43%, while the number of registered vehicle rental companies increased by around 33% during the same period.

According to the Commercial Transport Activities Department at RTA’s Licensing Agency, 867 new rental companies were registered in 2024, bringing the total number of active companies in the sector to 3,494, up from 2,627 in 2023. The total number of vehicles in the rental fleet reached 71,040 by the end of 2024, compared to 49,725 the previous year.

The sector also witnessed strong growth in high-end vehicle rentals, which rose by 73%, while electric vehicles within the rental fleet increased by 50% compared to 2023.

Ahmed Mahboob, CEO of the Licensing Agency, RTA stated: “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.”

He noted that 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,” added Mahboob.

He also highlighted several RTA initiatives that have notably reinforced support for the commercial transport sector. One such initiative is the “Commercial Vehicle Life Extension Service”, which allows applicants to schedule appointments to extend the operational lifespan of vehicles that have exceeded the permitted limit. The extension is granted for one year, enabling the renewal of the vehicle’s registration upon passing the technical inspection requirements.

Another key initiative is the “Hourly Commercial Vehicle Rental Service”, which enables both individuals and companies to rent commercial transport vehicles on an hourly basis, promoting safer and more efficient service delivery. Additionally, the introduction of the “Commercial Licensing System (CLS)” 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.

Additional initiatives that have supported the growth of the commercial transport sector include extending the “Operational Lifespan of Electric Vehicles” from four to six years, introducing two new categories for luxury and premium vehicles in line with global classification standards, and increasing their operational lifespan to ten years.

The car rental sector is a key pillar of Dubai’s economy, particularly in supporting tourism and corporate business activities. It plays an important role in advancing both the tourism industry and the wider local and national economy. The sector is regulated through the (TARS) electronic rental system, which covers all vehicle rental operations overseen by RTA, including both (light and heavy vehicles). The system streamlines processes and facilitates efficient management of relationships between rental companies and their customers.