The demand for rental cars has been constantly growing in the UAE for the last couple of years. The same trend can be observed in other regions as well. Indeed, why has owning a luxurious vehicle lost its relevance before renting one?
Look for the answers from people at the center of events. Renty is one of the leading groups of companies in the luxury car rental and yacht charter market in the region. Although it began operations in 2018, it has already established a strong presence in the local market. The founder, Yevhen Parokhod, shared his experience and perspective on the trend.
Car rental industry outlook
According to Horizon Grand View Research, the car rental market in the UAE has been steadily growing since 2018. The total market revenue for 2024 was around $2.456 billion. The forecast for the following 5 years is quite optimistic. The number is expected to reach $5,243 billion by 2030, which is almost twice as much. The annual growth rate is about 13.1%.
The study by Mordor Intelligence also shows steady growth and expansion for the industry, with a CAGR of 11.8% during the years 2025-2030.
Overall, the development of the UAE car rental market marks a new trend regarding the ownership versus renting of vehicles. There is a growing demand for flexibility, freedom of transportation, and financial responsibility. Yevhen Parokhod opens the company’s perspective on this trend and its implications for the market, and how Renty found the perfect place and time to start its journey.
What are the pros and cons of owning?
The traditional model of buying cars is no longer as popular as it once was. However, it still has a lot to offer to individuals and companies. Owning a vehicle means it is entirely at your disposal, and you can do with it anything you want – take it to another country, change the interior, or upgrade internal systems.
For some, it can be a form of investment. However, the value of a vehicle decreases with every year—any vehicle ages, whether you use it or not. Even premium cars lose some of their value over the years.
When it comes to luxury vehicles, they can also serve as a status symbol and a matter of convenience. It was especially valid 10 years ago when rental services were less fast and convenient.
What are the pros and cons of renting?
So, what makes people choose to rent a vehicle rather than own one? Well, there are several significant factors to consider:
- When you buy a car, you freeze capital. It is not working for you anymore, which is not ideal.
- All of the maintenance falls on the owner’s shoulders. It adds to the vehicle’s price and requires additional time and effort. If you decide to rent, none of these issues are yours. You can hop in and drive.
- Although you can travel in your own vehicle, it is inconvenient considering maintenance, taxes, and fees. A car can become a burden that prevents one from taking long trips. Rental vehicles are convenient for those who travel for work or pleasure. Whenever you go, you can have the same level of comfort without any hassle.
- Renting means you can choose a special vehicle for a specific occasion, whether it’s an SUV for a family trip or a convertible for a romantic getaway.
The difference is similar to owning vs renting an apartment or house. One will hold you in place, and the other will give you more freedom and flexibility.
TOP reasons for the popularity of car rental in the UAE
The founder of Renty shares his view on this shift: “The MENA market is steadily moving towards the sharing economy, the ‘all for hire’ model. Modern society wants to be mobile and independent without financial burdens.”
One of the reasons this trend is prevalent in the UAE is the lifestyle there. Millions of people come here for business every year, and many of them opt to rent. The main reasons are as follows:
- Tourism and business are on the rise. The increasing number of visitors means more demand for comfortable means of transportation. It is hard to find something more comfortable than a personal vehicle in a new surrounding.
- It is also a common alternative to taxis and transfers. There is less hassle and much more convenience.
- Online booking services make renting very easy. One can find, select, and book a car in minutes and get it delivered to the airport or hotel.
- The majority of the bookings happen online for Renty. Many visitors prefer to arrange their transportation even before they arrive in the UAE.
- All of that becomes even more fortunate with mobile applications. You can find your dream car on the go with your smartphone.
- Overall, the shift from public transport is also linked to the COVID-19 pandemic and the desire for more private spaces.
When you review car rental, it is a matter of convenience, reliability, and excellent service.
Renty is among the market leaders in the UAE car rental industry
Renty is a perfect representation of the shift from the traditional car-owning model to rental services. It functions as a marketplace and operates with its own fleet of vehicles, categorized into various classes, ranging from economy to premium models.
“Our company is not about dumping and cheap prices. Renty.ae is committed to delivering top-class service and quality. That’s why people choose us, because they pay for quality,” says the CEO, Yevhen.
The attention to detail in providing excellent services is what helped the company to stand out.
Today, Renty offers not only cars but also yacht charters. Additionally, a convenient lease-to-own program is available. It is popular among those who visit the UAE for extended periods.
The company has clients from all over the world as they appreciate the ease of booking, transparent terms and conditions, and outstanding customer support.
Although the rental market in the MENA region is growing, the company is not afraid of competition.
“It has grown a lot in quality over the last three years. We are happy to have such serious competitors; it keeps us constantly energized and doesn’t allow us to relax.”
Statistical data
Renty constantly works on expanding its services and fleet of cars. At the beginning of 2023, the fleet consisted of 150 vehicles. A year later, at the dawn of 2024, the fleet expanded to nearly twice its original number. In the following year, the volume was doubled!
Adding a yacht charter service to the operation was also a significant shift. Water activities are among the most sought-after in the UAE, so there is a high demand for convenience and flexibility here as well.
Another important statistic to remember is the increase in long-term car rentals (from one week to a month). For instance, the demand for such contracts grew by 150% from 2022 to 2023. The following year, it grew by 50%. This year, it is expected to expand by 25%.
In conclusion
Renting cars is a steady trend in the UAE. It has a lot to do with the millions of visitors who come here every year, looking for convenient travel methods. What’s more, this trend has expanded worldwide. It signifies an overall shift to a sharing economy, which offers numerous benefits. As one of the market leaders, Renty continues to boost and deliver top-notch services in car and yacht rentals.
Source:: Emirates Drivers Choose Renting Over Owning. The Experience of Renty