GCC Car Rental Market Overview

Market Size in 2025: USD 1.8 Billion

Market Size in 2034: USD 4.0 Billion

Market Growth Rate 2026-2034: 9.22%

According to IMARC Group's latest research publication, "GCC Car Rental Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The GCC car rental market size was valued at USD 1.8 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 4.0 Billion by 2034, exhibiting a CAGR of 9.22% from 2026-2034.

How AI is Reshaping the Future of GCC Car Rental Market

  • AI-Optimized Dynamic Pricing: AI algorithms at Sixt GCC adjust rental rates in real-time based on demand and events, boosting revenue by 25% during peak tourism in Dubai and Riyadh, aligning with Vision 2030's digital mobility goals.
  • Personalized Vehicle Recommendations: Machine learning on platforms like Careem Rides suggests tailored cars, increasing user engagement by 30% among expats and tourists in UAE and Saudi Arabia's $11.9 billion market.
  • Predictive Fleet Management: AI forecasts maintenance needs for electric fleets at Hertz UAE, reducing downtime by 20% and supporting sustainability initiatives with hybrid vehicle integrations.
  • Fraud Detection Automation: AI monitors transactions in real-time across GCC apps, cutting fraudulent bookings by 15% and enhancing security for cross-border rentals under unified GCC visas.
  • Route and Demand Forecasting: AI predicts peak rental periods for Jahez in Saudi Arabia, optimizing inventory by 18% and driving efficiency amid the region's 8.221% CAGR expansion.

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GCC Car Rental Market Trends & Drivers:

The rental car market in the regional GCC markets is substantial. It has been driven by existing tourism and business travel, as well as the growth of online travel agents (OTAs), smartphone penetration, mobile applications, online and live inventories, contactless online bookings, and state and regional green initiatives that have supported the adoption of electric and hybrid rental cars.

Most airports, roads and other infrastructure are designed by expatriates and visitors. Most people simply hire a car to get around, living in places where there is no public transport. Demand for rented luxury cars and SUVs is increasing. Disposable income is increasing, therefore leisure travel and corporate travel along with business migration to new geographies is increasing. Telematics and predictive analytics driven long-term leasing are other developments increasing the efficiency of car rental.

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.

Recent News and Developments in GCC Car Rental Market

  • September 2025: Sixt expands its EV fleet in Riyadh with 1,000 new Tesla models, integrating AI for route optimization and targeting a 15% increase in sustainable rentals amid Saudi tourism growth.
  • July 2025: Careem launches a subscription-based car rental service in Dubai, using AI to match vehicles with user needs, attracting 50,000 subscribers in the first quarter.
  • May 2025: Hertz partners with UAE airports for premium chauffeur services, employing AI for dynamic scheduling and boosting corporate bookings by 20% during Expo 2030 preparations.
  • April 2025: Jahez introduces electric scooter rentals in Jeddah, powered by AI predictive maintenance, reducing operational costs by 10% and aligning with Vision 2030's green mobility push.

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