JAFZA — Jebel Ali Free Zone
- Company setup from
52,636 AED
Registration in 2 weeks
Offices, warehouses, plots of land
A lot of well-known food and consumer goods manufacturers are located in JAFZA, thanks to its wide range of warehouses and…
Car lease business in the UAE
The car lease sector in the UAE includes several business models, each with its own licensing and regulatory requirements. All activities must comply with the rules of the Department of Economy and Tourism (DET) and the Roads and Transport Authority (RTA).
Main types of car lease services
1. Self-drive car lease
Description: Renting out vehicles without drivers for one day or longer.
Examples: Sedans, SUVs, pickups, trucks, trailers, camper vans.
Clients: Tourists, residents, individuals whose vehicles are under repair.
Requirements:
- Physical office and parking space
- Registration of all vehicles with the RTA
- SIRA-certified GPS trackers
- Regular inspections and compliance with technical standards
2. Chauffeur-driven car lease
Description: Providing vehicles with professional drivers.
Examples: Premium sedans, SUVs, limousines
Clients: Business travelers, tourists, event guests
Requirements:
- Separate passenger transport license
- RTA-approved driver permits
- Adherence to safety and comfort standards
Car sharing services
Description: Short-term rentals via mobile apps.
Examples: ekar, Udrive
Clients: Urban residents, tourists, people without personal vehicles
Requirements:
- Special RTA permit for car sharing
- System integration with the RTA
- Compliance with parking and vehicle placement rules
Specialized vehicle rental
Description: Renting out specialized vehicles such as trucks, trailers, camper vans.
Clients: Businesses, event organizers, travelers
Requirements:
- Additional permits depending on vehicle type
- Compliance with technical and operational standards
The Roads and Transport Authority (RTA) regulates vehicle rental, transportation services, car sharing, and transport-related applications in Dubai.
Where to get a car lease license?
Unlike car trading licenses, car lease services must be licensed in the mainland by the Department of Economy and Tourism.
Technically, a free zone license is possible but will restrict operations to within that zone. With a free zone license, you cannot:
- Rent out vehicles to clients in Dubai, Abu Dhabi, or other emirates
- Register vehicles with the RTA (required for public road use)
- Operate freely across the UAE
To run a full-scale car lease business, you must obtain a mainland license and RTA approvals. You may open a free zone branch to expand, but the parent company must be mainland-registered.
How to get a car lease license in the UAE
- Choose a mainland jurisdiction (you can select the emirate).
- Define business activities (e.g., self-drive, chauffeur, limousine rental) from the DET and RTA approved list.
- Obtain initial approvals from DET and RTA.
- Rent an office and a parking lot — mandatory for RTA approval.
- Submit documents: passports, business plan, lease agreement, etc.
- Register all vehicles under the company name and ensure they pass inspections.
- Pay government fees and collect your license.
- Apply for additional RTA permits if needed (e.g., for limousines or drivers).
Aidina K.
Start a profitable business with expert support! Contact us to learn how to get your car lease license in the UAE.
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