GCC Car Rental Market to reach $11.9 Billion by 2030; growing tourism industry, rising business travel, government investments in infrastructure and growing digital economy investments are driving the growth of the GCC Car Rental Market.

The GCC Car Rental Market size is estimated to reach $11.9 million by 2030, growing at a CAGR of 6.7% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “GCC Car Rental Market - By Booking (Online and Offline), By Vehicle (Luxury, Executive, Economic, SUV and Off Road), By Rental Duration (Short Term and Long Term), By End User (Self Driven and Chauffer Driven), By Country - Opportunity Opportunity Analysis & Industry Forecast, 2024-2030.”

The booming tourism industry in the GCC is a major driver for the car rental market. With the GCC’s role as a business hub, the need for corporate travel has risen supporting the demand for premium rentals including chauffeur-driven and executive vehicles. Furthermore, the development of road networks and transportation hubs across the GCC enhances accessibility and facilitates increased car rental demand.

Saudi Arabia dominated the GCC Car Rental Market in 2023. The country's efforts to diversify its economy and attract tourists have boosted the demand for car rentals especially in major cities like Riyadh and Jeddah. According to the UN World Tourism Organization, Saudi Arabia earned $39.3 billion in international tourism spending in 2023. Millions of pilgrims visit Saudi Arabia annually for Hajj and Umrah creating a significant demand for transportation services including car rentals. Additionally, the government's investments in infrastructure development, including roads and highways, facilitate easier travel and increased the need for car rentals. The Makkah region in Saudi Arabia embarked on a significant infrastructure development initiative with the launch of 20 road projects worth US$373 million. With a total length of 385km, the projects aims to enhance connectivity and facilitate travel within the region.

The GCC region’s significant and growing expatriate population drives demand for car rentals as they seek affordable, flexible and short-term transportation options. Qatar witnessed a surge in its population, registering a 4.91% increase by the end of February 2024 compared to 2023, as per data from the Planning and Statistics Authority. In February 2024, Qatar’s population reached 3.12 million, a significant rise from the 2.98 million in February 2023. Most of the population comprises foreigners and migrant labourers, with Qatari nationals making up a smaller percentage of that. Many expats prefer renting over purchasing vehicles due to the transient nature of their stay or uncertain length of residence. Car rental companies benefit by offering tailored packages, long-term leasing or self-drive options meeting the needs of various customer segments including families and individuals. Additionally, rental services provide a cost-effective solution for expatriates without committing to the long-term expenses of car ownership. 

Government investments in infrastructure, including roads, airports and tourism facilities are transforming the GCC’s transportation landscape creating growth opportunities for car rental companies. As modern highways and road networks expand, travelers and residents find it easier to explore the region by eoad increasing demand for accessible rental services. New infrastructure projects, particularly in Saudi Arabia's Vision 2030 initiatives and Dubai's urban expansions, also support tourism growth, contributing to a rise in rental service usage. Airport expansions and improvements enable car rental companies to offer streamlined services to international travelers. This comprehensive infrastructure development aligns with the needs of both tourists and residents. 

Key companies profiled in the GCC Car Rental Market are 

1. SIXT

2. Hertz

3. Hanco (Al Tala’a International Transportation Co. Limited)

4. Avis Budget Group, Inc.

5. Europcar Mobility Group

6. Speedy Drive Car Rental

7. Budget Rent A Car LLC

8. Autostrad Rent a Car

9. Selfdrive Mobility

10. Gulfcar Rental

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