26-02-2025
UAE: Ramadan drives 35% surge in car rentals, with full-size SUVs in high demand
Some car leasing companies are experiencing a surge of up to 35 per cent in rentals during Ramadan. The demand is high for full-size SUVs, which indicates an increase in large groups and families using car rentals for community gatherings, according to experts.
Car rental and subscription service company SelfDrive Mobility is anticipating a 30 to 35 per cent surge in app-based bookings, driven by shifting mobility patterns, flexible work schedules, and increased social and family gatherings.
"During Ramadan, we observe a significant increase in reservations, particularly for full-size SUVs," said Soham Shah, CEO and founder of the company. "This trend is driven by families and groups preferring spacious and comfortable vehicles for iftar gatherings, late-night commutes, and long-distance travel. The extended evening hours and changes in commuting patterns also contribute to higher demand during this period."
The holy month of Ramadan, which is likely to begin on March 1, will see Muslims worldwide fasting from dawn to dusk. During this month, school hours are shortened and many private and government offices have reduced and different work timings. This brings about a change in patterns in spending, socialising and commuting across the UAE.
Business picks up slowly
According to Rahul Singh, Managing Director of car rental at AA Al Moosa Enterprises, the month of Ramadan will start slowly before picking up. 'Ramadan typically starts with a slower pace, but by the end of the first week, demand picks up steadily, reaching its peak in the final days leading into Eid Al Fitr,' he said. 'During this time, larger vehicles, particularly SUVs, are in high demand as families prefer spacious, comfortable rides for evening outings when the city comes to life.'
He said that demand remained steady at airports throughout the month, reflecting travel preferences and holiday planning trends in the region. 'However, our mall locations see a significant rise in activity during the evenings,' he said. "As families and friends gather after Iftar, shopping centres become a hub for dining, entertainment, and social outings, driving increased car rentals during these hours. This shift in routine creates distinct demand patterns, with more short-term and evening rentals compared to other times of the year."
Budget friendly cars
As per the data of the super app Careem, despite the increase in demand for larger vehicles in Ramadan, budget-friendly vehicles topped the list of the most popular cars. 'A key trend shaping the industry is the rise of budget-friendly cars with modern tech features such as Apple CarPlay, Android Auto, and reverse cameras,' said a spokesperson.
'Chinese manufacturers are leading this shift, offering competitive pricing, feature-rich vehicles, and stylish designs. Currently, Chinese brands hold approximately 20 per cent of the UAE's rental market, and this share is expected to grow further. Japanese car manufacturers, who dominate this segment, may need to take note and adapt.'
He added that Careem usually observed a dip of 10 to 15 per cent during Ramadan, but this year, with the month overlapping with tourist season, an influx of visitors is expected to offset the decline.
