The UAE is in a growth period. In fact, the country is on track to record its fastest economic growth in over a decade, encouraged by a boost in both oil and non-oil sectors, according to economists and analysts with leading institutions.
The upswing had resulted in a boost for the automotive industry, petrol prices have risen, but so too has the interest in car rentals, second-hand cars and Electric Vehicles.
The dramatic change in lifestyle due to the pandemic and a looming recession has disrupted long-standing automotive industry habits and Dubai’s car rental industry, in particular, has reported a 23.7% growth in the number of companies registered in the first half of 2022, up from 1087 companies registered in the same period last year, according to Dubai’s Road and Transport Authority. Along with that, 78,000 vehicles were registered in the first half of 2022, up 11.8% from 69,000 in the same period last year.
“Our ultimate objective is to ensure the sustainable growth of the commercial transport sector’
Dubai’s RTA confirmed that it incentivises car rental businesses to ensure steady growth. Along with introducing helpful initiatives to boost growth, the Dubai entity stated that its ultimate aim is to ensure sustainable growth in the sector and enhance the satisfaction of customers.
“The rapid expansion of Dubai’s car rental sector in the first half of 2022 underscores RTA’s efforts in implementing Dubai’s comprehensive development vision. By offering facilities and overcoming obstacles, RTA is able to attract companies and investors, and raise their confidence in Dubai’s business environment. It also highlights Dubai’s profile as a financial and business hub, a place where business can be conducted in a friendly and competitive atmosphere,” said Abdulla Yousef Al Ali, CEO, Licensing Agency, RTA.
Incentives for the rental sector
To ensure growth in the car rental sector, new initiatives have been introduced which include exempting new vehicles from testing, limiting the number to 10 vehicles per car rental license, extending the lifetime of vehicles in use from two to four years, and abolishing the surcharge on car rental vehicles, according to the RTA report.
Traditional ownership habits have been disrupted
Traditional ownership habits are shifting as lifestyle and behavioral changes dictate how people use their cars.
DubiCars continues to monitor automotive trends, for similar updates follow the DubiCars blog.
