How to Set Up a Car Rental Business in the UAE

November 13, 2024

The UAE, with its glittering skyscrapers and sprawling desert landscapes, has become synonymous with innovation and adventure, attracting millions of visitors eager to explore its wonders. This ever-increasing footfall has sparked a remarkable evolution in the car rental industry, transforming it from a niche service into a flourishing market.

The driving force behind this growth is not merely the rising tourist numbers but also a unique blend of lifestyle changes and technological advancements. As the UAE positions itself as a global hub for business and leisure, the demand for mobility solutions has surged. Expatriates, who make up a significant portion of the population, often seek the flexibility that car rentals provide, allowing them to navigate their new environment without the long-term commitment of car ownership. In other words, consumers are increasingly drawn to the idea of renting vehicles for specific occasions rather than investing in a car they may rarely use.

With a well-established tourism infrastructure and a robust economy, the potential for lucrative returns is, therefore, significant in the UAE, especially during peak seasons or major events, which consistently drive up demand. If you aspire to establish your own car rental business in the UAE, here’s one of many business activities that you can select under your license:

7710.00 – Renting and Leasing of Motor Vehicles

Renting and leasing of motor vehicles refers to the provision of passenger cars, trucks, utility trailers, and recreational vehicles through rental or operational leasing arrangements, wherein the lessor grants the lessee the right to use the specified vehicles for a predetermined period in exchange for periodic rental payments. This classification encompasses transactions that involve the leasing of vehicles without drivers, thus excluding driver-related services. 

It includes both short-term and long-term leasing agreements, where the lessee typically bears operational costs such as maintenance, insurance, and fuel, unless otherwise stipulated in the leasing contract. The vehicles leased under this classification are primarily utilised for transportation purposes, either for personal use, commercial activities, or recreational endeavours, and are governed by contractual terms that outline the rights, responsibilities, and liabilities of both parties involved in the leasing arrangement.

Exclusions directly involved with business activity 7710.00 include the renting or leasing of vehicles or trucks with a driver and financial leasing. These exclusions are distinct from the car rental services provided within this class.

Third-party Approval: Business activity 7710.00 requires third-party approval from the Sharjah Traffic Committee, prior to the issuance of the license. 

Filing of Economic Substance Return: Business activity 7710.00 is exempt from this requirement.

Anti-Money Laundering Compliance: Business activity 7710.00 is exempt from this requirement.


Did you find what you were looking for? Explore the other guides in our Activity Hub for exploring unique business ideas in Dubai and navigate the essentials of business setup with ease.

You can also calculate your business setup costs easily using our handy cost calculator and choose from our customized company setup packages to find your perfect fit.

Get your business license in the UAE today and explore a world of opportunities waiting for you.

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