GCC Car Rental Market Overview
Market Size in 2024: USD 1.65 Billion
Market Size in 2033: USD 3.83 Billion
Market Growth Rate 2025-2033: 9.7%
According to IMARC Group's latest research publication, "GCC Car Rental Market Size, Share, Trends and Forecast by Booking Type, Rental Length, Vehicle Type, Application, End User, and Country, 2025-2033", the GCC car rental market size was valued at USD 1.65 billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 3.83 billion by 2033, exhibiting a CAGR of 9.7% from 2025-2033.
Growth Factors in the GCC Car Rental Market
- Booming Tourism Industry
The GCC region, encompassing countries like Saudi Arabia, the UAE, and Qatar, has become a global tourism hotspot, significantly driving the car rental market. Iconic attractions such as Dubai’s Burj Khalifa and Saudi Arabia’s historical sites draw millions of visitors annually, many of whom prefer the flexibility of renting cars to explore at their own pace. For instance, Saudi Arabia’s Vision 2030 initiative has boosted tourism through events like the Hajj pilgrimage and new cultural festivals, increasing demand for rental vehicles. This surge in tourism ensures a steady need for diverse rental options, from economy cars to SUVs, catering to varied traveler preferences.
- Infrastructure Development
Government investments in infrastructure, such as expanded road networks and modern airports, have transformed the GCC’s transportation landscape, fueling car rental demand. In Saudi Arabia, projects like the 385km Makkah road initiative enhance connectivity, making car rentals a convenient choice for both residents and tourists. Similarly, the UAE’s airport expansions in Dubai and Abu Dhabi have positioned car rental services as a vital link for travelers arriving at these hubs. These developments make it easier for rental companies to offer seamless services, encouraging more people to opt for rentals over public transport or personal vehicles.
- Rising Expatriate Population and Business Travel
The GCC’s growing expatriate population and thriving business environment significantly contribute to the car rental market’s expansion. Countries like the UAE and Qatar host large numbers of expatriates who often rely on rentals for short-term mobility needs. Additionally, the region’s status as a business hub drives demand for premium and chauffeur-driven vehicles. For example, corporate clients in Dubai frequently rent executive cars for visiting employees, as seen with companies like Hertz partnering with local firms to cater to this demand. This trend supports a robust market for both short-term and long-term rental solutions.
Key Trends in the GCC Car Rental Market
- Shift Toward Sustainable Vehicles
Sustainability is reshaping the GCC car rental market as companies respond to growing environmental awareness. Rental firms are increasingly incorporating electric and hybrid vehicles into their fleets to attract eco-conscious consumers. For instance, in December 2023, UAE-based EVLAB launched an all-in-one mobility app offering electric vehicle rentals, simplifying access to sustainable transport options. This trend aligns with regional goals, such as the UAE’s push for eco-friendly infrastructure, and appeals to tourists and residents seeking greener alternatives, enhancing the market’s appeal while addressing climate concerns.
- Digital Transformation and Online Booking
The rise of digital platforms has revolutionized the car rental experience in the GCC, with online booking systems and mobile apps becoming standard. Companies like Sixt and Avis have invested in user-friendly apps that streamline reservations, payments, and vehicle tracking, catering to a tech-savvy customer base. For example, Finalrentals’ partnership with Key Rent A Car in Saudi Arabia in September 2024 enhanced digital booking capabilities, improving customer convenience. This trend not only boosts operational efficiency but also attracts younger demographics who prioritize seamless, technology-driven services, transforming how rentals are accessed.
- Integration of Telematics
Telematics technology is gaining traction in the GCC car rental market, enhancing fleet management and customer experience. By using GPS and vehicle tracking, companies can monitor driver behavior, optimize maintenance, and improve safety. For instance, RentalMatics’ integration with TSD Mobility Solutions in 2021 showcased how telematics provides real-time data on vehicle location and performance, reducing risks like theft. This technology enables rental firms to offer personalized services, such as tailored routes for tourists, while ensuring operational efficiency, making it a pivotal trend shaping the industry’s competitiveness.
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GCC Car Rental Industry Segmentation:
The report has segmented the market into the following categories:
Analysis by Booking Type:
- Offline Booking
- Online Booking
Analysis by Rental Length:
- Short Term
- Long Term
Analysis by Vehicle Type:
- Luxury
- Executive
- Economy
- SUVs
- Others
Analysis by Application:
- Leisure/Tourism
- Business
Analysis by End User:
- Self-Driven
- Chauffeur-Driven
Country Analysis:
- Saudi Arabia
- UAE
- Qatar
- Bahrain
- Kuwait
- Oman
Competitive Landscape:
The competitive landscape of the industry has also been examined, along with the profiles of the key players.
Future Outlook
The GCC car rental market is poised for continued growth, driven by ongoing tourism initiatives, technological advancements, and a focus on sustainability. As countries like Saudi Arabia and the UAE further diversify their economies under initiatives like Vision 2030, the demand for flexible mobility solutions will rise, particularly in urban centers and tourist hubs. The adoption of electric vehicles and subscription-based rental models will likely expand, catering to environmentally conscious consumers and tech-savvy millennials. Additionally, partnerships like Changan Almajdouie’s collaboration with Yelo in Saudi Arabia signal a trend toward fleet expansion and localized offerings, ensuring the market remains dynamic and responsive to evolving consumer needs.
Research Methodology:
The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.
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