How to Start a Car Rental Business in Dubai, UAE?

Dubai is a major tourist destination, attracting millions of visitors each year. The demand for rental cars has increased as tourists prefer the convenience and flexibility of having their own transportation. Renting a car provides convenience and flexibility for both residents and visitors. It allows individuals to explore the city at their own pace and access areas that may be difficult to reach using public transportation.

Additionally, the rental car market in Dubai is competitive, with various companies offering competitive pricing and attractive deals. This affordability factor has attracted a broader customer base and contributed to the industry’s growth.

Rent a Car License In Dubai, UAE

  • Firstly, Set up a company or establish a branch in Dubai.
  • Reserve a unique trade name with the Department of Economic Development (DED).
  • Submit an application for a commercial license to the DED.
  • Prepare the necessary documents, including a business plan, Memorandum of Association (MOA), and lease agreement for a physical office space.
  • Obtain approval for the location of your rent a car business.
  • Fulfill the requirements for parking facilities and office space.
  • Obtain the necessary approvals from relevant authorities, such as the Roads and Transport Authority (RTA).
  • Comply with the Dubai Traffic Department’s regulations for car rental businesses.
  • Meanwhile, purchase or lease a suitable fleet of vehicles for your rent a car business.
  • Obtain insurance coverage for your rental vehicles, including comprehensive insurance and third-party liability coverage.
  • Hire qualified staff to handle customer inquiries, vehicle maintenance, and administrative tasks.
  • Implement a reliable reservation and booking system for your customers.
  • Adhere to customer service standards and continuously seek to improve your services.

Please note that the process and requirements may vary depending on the specific regulations and policies in place at the time of application.

Total Cost to Start a Rent a Car Business in Dubai, UAE

Total Cost of Obtaining a Rent a Car License in Dubai :

License Fees:

  • Range: 15,000 to 25,000 AED

Office Space and Location:

  • Office Rent: 50,000 to 200,000+ AED per year

Vehicle Fleet:

  • Fleet Acquisition: 500,000 to 1,000,000+ AED (for a small fleet of 5-10 vehicles)


  • Comprehensive Insurance: 10,000 to 30,000+ AED per year (depending on the number of vehicles and coverage)


  • Salaries and Wages: Varies based on the number of employees and their roles

Maintenance and Repairs:

  • Maintenance Costs: Varies based on the fleet size and vehicle condition


  • Marketing Expenses: Varies based on the chosen marketing strategies and budget

It is important to note that these cost estimates are approximate and can vary based on several factors, including the size of the operation, the quality of vehicles, and the chosen location.

Documents Required for Rent a Car Business in Dubai, UAE

  • Completed application form provided by the licensing authority (e.g., DED).
  • Copy of the Memorandum of Association (MOA) for your company.
  • Certificate of Trade Name Reservation.
  • Passport copies of company shareholders, directors, and authorized signatories.
  • Also, Emirates ID copies of company shareholders, directors, and authorized signatories.
  • No Objection Certificate (NOC) from the sponsor (if applicable).
  • Copy of the lease agreement for the office space.
  • Vehicle ownership documents, including registration certificates and insurance policies.
  • Detailed business plan outlining objectives, target market, marketing strategy, financial projections, and operational plans.
  • Financial documents such as financial statements, bank statements, and proof of financial stability.
  • Power of Attorney document (if appointing a representative).

Please note that these document requirements may vary based on the specific regulations and policies in place at the time of application

Start a Car Rental Business in Dubai with Business Diaries

Business Diaries can provide expert guidance on setting up your car rental business in Dubai, ensuring compliance with local regulations and legal requirements. Hence, we can help create effective marketing campaigns to promote your car rental services, including digital advertising, social media marketing, and partnerships with relevant businesses.

For any inquiries or to get started with your Rent a Car business in Dubai, please feel free to contact us today. Our team at Business Diaries is ready to assist you and provide personalized guidance for your car rental venture.