Picture this, you’re a tourist visiting Dubai for the first time. As soon as you arrive and clear formalities, you pull out your phone, open an app, and make a few taps. Soon after, you’re behind the wheel of a rental car, ready to explore the vibrant city of Dubai.
This is a reality for many tourists who seek to drive themselves around when visiting Dubai. In this digital age, this easy process of booking your rental car is made possible through a business activity categorized under 7710.86, known as “Using Electronic Media Smart Applications, or Any Other Means of Renting Vehicles.” Regulated by the Road and Transport Authority (RTA), this innovative approach to vehicle rental has transformed the way individuals and businesses access car rentals in Dubai.
If you’re looking to set up shop under the umbrella of this business activity, you’ll offer vehicle rental services through digital platforms and mobile applications. Gone are the days of in-person transactions. This digital process allows users to book, pay, and access their rental vehicles with the tap of a screen.
Here’s a breakdown of the key details you’d need to know if you’re looking at setting up a digital vehicle rental service in Dubai:
Activity Code: 7710.86
Activity Name: Using Electronic Media Smart Applications, or Any Other Means of Renting Vehicles
DED Activity Code: 7710015
Activity Group: Car rent and passenger transport
License Type: Professional
Third-party Approval: Required
Filing of Economic Substance Return: Not required
Anti-Money Laundering Compliance: Not required
Pre-License Third-Party Approval from RTA
In addition to your trade license to conduct business in Dubai, you will also need to secure third-party approval from the Road and Transport Authority (RTA).
Who Does This Business Activity Cater To?
Here is a quick look at the potential customers that your business should target:
Businesses
Businesses are always on the lookout for ways to streamline their activities and processes. This type of business activity will cater to businesses that require rentals for employee commutes, client transportation, and logistical support.
Residents and Tourists
Residents and tourists in Dubai prioritize seamless mobility, allowing them to explore the city when they want to. Securing rentals through apps streamlines this process even more, allowing for more time to explore.
Car Rental Companies
The potential for established car rental companies to diversify their services by integrating digital platforms is also present at large. This will expand their customer base, allowing them to stay ahead of the competition.
Business Travelers
Business travelers enjoy the ease of securing transportation through digital means, ensuring a hassle-free experience during their stay in Dubai.
Simplifying the License Acquisition Process with Set Hub
Setting up a digital-first car rental business may seem like a long and arduous process. While this may be the case if you venture out on your own, SetHub and its expert business consultancy services can streamline this process for you. Our guidance will ensure that you meet the prerequisites, paving the way for navigating the complexities with ease. SetHub will assist you in obtaining approval from the RTA, ensuring a transparent and efficient licensing process.
Recent Market Growth
The recent growth of this sector comes down to the efforts of the Roads and Transport Authority (RTA). The strategic decision to allow car rental companies to use digital platforms has resulted in an expansion in service offerings. This also aligns with Dubai’s goal of becoming the world’s smartest and happiest city.
The Future of Car Rental in Dubai
This digital approach will soon become the industry standard. Dubai’s vision for fully integrated smart solutions that cover all aspects of life means that the transformation of car rentals is just the beginning.
