The Revenues for the Car Rental Market in Middle East are Expected to Incline at a CAGR of 7% in the Future

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Short term Car Rental has accounted significantly of the revenues in 2015 out of the total Middle East car rental market revenues. Rest of the revenues has been accounted by the chauffeur driven market. Chauffeur Driven Car Rentals are preferred by the tourists visiting the region for travel and leisure purposes. Inclination in the price levels and increasing competition among vehicle rental companies has been another rationale for rise in car rental business in the country.

The car rental market size in Middle East has showcased variations in the revenue figures over the past five years from 2010-2015. The rapid economic recovery and burgeoning tourism industry in the Middle East provided a strong impetus to the car rental industry in the region

Large corporates in UAE have exaggerated the concept of leasing in the country since they wish their service team to be mobile and want to provide them with safe means of transport. This transition in the mind set of corporates has pushed the middle east vehicle leasing industry.

Chauffeur driven car rental market in Egypt has been dominated by On-airport car rental services. Online booking in car rental services in Egypt majorly takes place through mobile phones. The user selects a car rental agency, browses the company’s website and then books the cab according to his specifications and requirements.

It has been recorded that in 2015, most of the market revenues were amassed by the passenger vehicles while only a very small proportion of the leasing revenues were hoarded by the commercial vehicle leasing.

 

Although the concept of car sharing is not as popular as car leasing due to issues related to matter of trust yet the market has witnessed an upturn on account of rise in migrant population in the country.

Inclination in the price levels and increasing competition among vehicle rental companies has been another rationale for rise in car rental business in the country.

Majority of the population in Saudi Arabia has opted for a self-drive car rental market. The lower price of fuels and absence of governmental entities in terms of issues in insurance policies have been the major basis of the growth in the self drive market. Majority of the roads in Saudi Arabia are long straight and in good condition that encourages male drivers to put their foot down and race.

For more information on the market research report please refer to the below link:

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/middle-east-car-rental-leasing-market/42895-100.html

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