Car rental has grown to be a large industry worldwide although it has a humble beginning dating back to the early 1900s. You may find it abusing that the car rental industry can be traced back to the ages of the Roman Empire where horse-driven chariots were rented out.
The car rental industry has evolved through many phases since 1904 when a bicycle shop in the US first started to rent a car to a highly competitive modern era where car rental companies have diversified fleets with hundreds of different car brands and are highly organized with several branches at different locations.
In UAE, the car rental industry has grown with the industrial revolution wave rapidly rocking the middle-eastern emirates. In 2015, the UAE was listed as the 5th fastest growing economy in the world. The United Arab Emirates has, over the last decade, diversified its economy from crude oil production and expertise to tourism and other non-oil sectors. This has stimulated a spike in the number of foreigners in the country.
The car rental industry in UAE is valued at $567million (AED 2.1 billion), of which luxury cars accounts for $73.71 (AED 270 million) which is 13% of the industry’s value. The car rental industry in UAE is projected to grow at 5% to 10% annually. Car rentals in the UAE have evolved to an expansive industry where varieties of exotic cars are available for hire. There are vehicles of all brands, types, sizes and tastes.
While some rental cars are available for as low as AED 47 a day, some luxury cars cost as much as AED 3500 per day! Some car leasing companies even buy a new brand of car if they have a suitable leasing agreement.
The Roads and Transport Authority (RTA), the agency responsible for driving in the UAE allows foreigners and tourists to drive Dubai-registered cars in the emirates if they have an international driving license.
Residents who are at least twenty-one years old with a valid driving license are also allowed to rent a car in the UAE, although some luxury car rental dubai companies pitch the age limit for certain types of cars at twenty-five.
A lot of factors have necessitated the need to rent a car in UAE rather than buy one as it is cheaper and has a lot of advantages, especially for foreigners and tourists who undoubtedly would rather enjoy the beautiful spectacle of the city than deal with traffic.
Some other factors that have culminated in the relevance of car rental in UAE are:
1. Short Travels to Neighboring Countries
A trip to neighboring middle-eastern countries has been made convenient and fun by rental cars. Renting a car for such trips affords optimal utility and convenience.
2. Alternative for Broken Vehicle
There’s bound to be a breakdown of your vehicle at some point and renting a car could be the one thing that saves you from stranding.
3. Cutting Certain Costs
You’d be surprised how cheap you could rent a car in the UAE. Hiring a car does cut certain costs;
emphatically so for longer rental periods. Although there’s been debate as to whether to rent or buy a car in the UAE, car rental is usually favored over buying as it is proven to be cheaper.
4. Sufficient Options to Choose From
Car rentals afford one the luxury of driving in whatever vehicle they want to without having to buy it. You could also hire a car to suit your agenda for a day.
5. Convenience
Why go on a tour and still deal with the stress of jumping cabs or public buses? Renting a car helps you make the best of your tour; taking you to places where it would actually cost more to pay a cab.
The car rental industry in UAE has grown explicitly over the last few years. There are several car rental companies in the UAE and a lot more are joining the industry annually.
However, over time, only a few companies have distinguished themselves in car rentals in Dubai; rent a car Dubai tops the league of trusted companies with a fleet of different brands of cars.
