Dubai's commercial transport, car rental sectors post robust growth

Dubai’s car rental and commercial vehicle sector saw major growth in 2024.

The Roads and Transport Authority has reported a 43 per cent jump in newly registered commercial vehicles and a 33 per cent increase in rental companies compared to the previous year.

Over 860 new rental firms opened in 2024, bringing the total to nearly 3,500 across the city. The rental fleet itself grew to more than 71,000 vehicles — up from just under 50,000 in 2023.

High-end vehicle rentals surged by 73 per cent, while electric cars within the rental fleet rose by 50 per cent, reflecting growing demand for both luxury and sustainable options.

The RTA credits streamlined licensing services, flexible regulations, and new initiatives — like hourly rentals and vehicle life extensions — for driving growth and supporting businesses in the sector.

The authority said this expansion highlights Dubai’s strong business appeal and continued focus on innovation and economic development.

Dubai’s Roads and Transport Authority 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%… pic.twitter.com/TMeZ0iBCDy

— Dubai Media Office (@DXBMediaOffice) April 24, 2025

• The 'Commercial Vehicle Life Extension Service' 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.
• Other 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.