Augmentation In Qatar And Oman Along With Rise In Car Leasing To Stimulate Growth In Middle East Car Rental And Leasing Market: Ken Research
High investments in Qatar impending FIFA 2022 and Demand from Expatriate Population will boost growth
The Car Rental Market in Middle East will continue to grow at a considerable rate in the coming years. The market for car rental in Middle East has been driven by countries such as Oman, Qatar, Bahrain and Kuwait. Countries such as Saudi Arabia and UAE constitute for a major portion of car rental revenues across the Middle East region. The market for car rental in the country has been driven by the rise in demand for local players in Middle East although the market has been dominated by players such as Hertz Corporation, Sixt, Avis Corporation and Europcar. Local players predominant in the Middle East Car Rental Industry are Regency, Strong car rental, Auto rent, Market Rent- A- Car, Al- Mulla, Al Sayer and others, according to Ken Research Analyst
Renting a car has become one of the most preferred decisions of the inhabitants and expatriate population in the Middle East region. Majority of the population in the region prefers to switch their cars alternatively in order to suit their social needs. Since a major part of the population in the Middle East region comprises of the expatriate population therefore the demand for car rental market has always posed tremendous opportunities.
Improving economic conditions, stability, growth of tourism and investment in travel infrastructure has led to a growth in Middle East car rental industry. Over the past five years from 2010-2015, the car rental industry in Middle East has posted an average annual growth rate of 2.8%.
Majority of the international car rental companies have been expanding their operations across the region strategically in order to serve various car rental customers who seek out convenience, value for money and the trust of a leading brand. Around 60% of the travel bookings in the region are obtained from Emirates with Dubai being the hub for car rental companies across the region. Demand for car leasing market is higher in the Middle East region as compared to chauffeur driven due to affordable pricing backed by lower petrol/diesel or gasoline prices. according to Ken Research Analyst
Saudi Arabia is one of the largest car rental market owed to the presence of holy places such as Mecca and Medina and existence of good educational institutions in the country. In 2015, UAE is the second largest car rental market in terms of revenue in the Middle East region. Presence of various tourist destinations and corporate firms across the country has enhanced the car rental opportunities in the country in past five years. Kuwait is the third largest car rental country in terms of revenue followed by Qatar. This has been majorly due to presence of numerous opportunities such as expansion of oil fields and related projects by Kuwait National Petroleum Corporation and FIFA 2022 world cup hosting by Qatar has augmented the expatriate/ work force in these countries. Oman, Egypt, Jordan and Bahrain are other popular car rental companies in the Middle East region.
The decline in expatriate population in various countries (majorly Kuwait) due to the enunciation of government regulation is likely to defy the long term car rental market in the region. FIFA world cup hosting by Qatar in 2022 and expansion of petroleum projects by Kuwait National Petroleum Corporation is likely to be one of the major drivers in the car rental market in the Middle East region., according to Ken Research Analyst.
According to an industry veteran, “The introduction of latest technology and innovations like GPS which helps the company to track their cars and also help in suggesting the best route possible, in addition to the recent developments of booking cabs through internet and mobile applications have significantly helped in the surging growth of the car rental industry in Middle East.”
“Larger and diversified fleet size with flexible renting options would help the competitors in the market to grow and incline their share in the market pie. This along with the presence of offices of various car rental firms across various airport terminals and other important locations in the region will help the augmentation of the revenues of car rental companies.” according to the Research Analyst, Ken Research.
The revenues for the car rental market are expected to incline at a stupendous CAGR during the period 2016-2020, with the revenues expected to be mounted at USD 1.7 billion by 2020.
The report titled “Middle East Car Rental and Leasing Market Forecast to 2020 – Augmentation in Qatar and Oman along with Rise in Car Leasing to Stimulate Growth” provides detailed overview on the car rental and vehicle leasing market and will help the readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, car rental companies and other stakeholders to align their future growth strategies according to ongoing and expected trends in the future considering the recommendations and insights given in the report. according to Ken Research Analyst.