Project Description

Market Assessment for a Rent-A-Car Business in UAE, with a focus on Abu Dhabi

  • The car rental and lease services market in the UAE was estimated at USD 1.8 billion in 2018, and is expected to grow at a CAGR of 7.0% to reach USD 2.5 billion by 2023—driven by an inflow of international tourists, an improvement in business environment and mega events such as Expo 2020
  • The fleet size in the UAE is expected to reach 278,659, increasing from an estimated 195,000 in 2018. Passenger cars contribute ~60% of the total fleet
  • Abu Dhabi is estimated to account for ~35% of the total UAE car rental and lease services market in 2018. The market in Abu Dhabi is less competitive than that in Dubai, and is hence projected to grow faster compared to the overall market. Between 2018 and 2023, the car rental and lease services market in the Emirates is likely to grow at a CAGR of 9.1% to reach USD 928 million by 2023
  • Car leasing is estimated to account for 55% of the total fleet and 45% of the total market. The market share of car leasing, in terms of value, is less compared with that of car rentals, as car leasing is comparatively cheaper than car rentals
  • In terms of the vehicle type, cars in the economy segment, which are mostly preferred by international tourists, dominate the market with ~55% share of the total rental fleet. However, in the lease segment, Mid-size sedans and compact SUVs dominate the fleet and are mostly preferred by corporates

Table of Content:

Market Overview

  • General overview of UAE –demographics, economic developments that could impact the rent-a-car business
  • outlook on the rent-a-car business in UAE with focus on Abu Dhabi

Market Assessment

  • Structure of the industry; competitive environment in UAE
  • Identify 6-8 major players operating presently in the branded rent-a-car business in Dubai & Abu Dhabi/UAE, with a brief commentary on the major competitors (possibly including Hertz, Avis, Budget)
    • Profiles
    • Fleet sizes
    • Type of vehicles in fleet
    • Target markets
    • Reputation
    • Possibly market shares etc.
    • Trade practices in respect of credit etc.
    • Revenues figures, as may be available
    • Staffing levels
  • Information on products offered
    • Car, van, bus, limousines;
    • Pricing of services, if any
    • Understanding of nature of contracts, terms and conditions, etc.
  • Key clients, their industry, local or multinational etc.
  • Marketing efforts, value-adds offered, if any
  • Assessing competition reputation and image in the market; strengths and weaknesses
  • SWOT analysis of the existing players

Demand Assessment

  • Estimating size of the market and key drivers affecting market size and future demand; assessing relative correlations
  • Trends in respect of key drivers of demand till 2018 in UAE; Potential future opportunities for rent-a-car businesses, uptake by resident vis-à-vis tourist populations
  • Key risk factors that could affect future demand for rent-a-car business
  • Assessing prospects and likely demand for rent-a-car in UAE till 2018; on that basis, assessing achievability of ‘client’ revenue forecasts, (as will be provided), in light of market size and anticipated market growth considerations; commenting on achievability of projected revenues and margins including marketing issues that may need to be addressed

Opportunity Assessment

  • Overview of the rent-a-car business in UAE, with focus on Abu Dhabi
  • Assessment of present and future demand, demand drivers, need gaps
  • SWOT analysis of competitor players
  • Market projections to 2023
  • Conclusions on achievability of ‘client’ revenues to 2023, with reasons thereof