Ramadan Boosts Car Rentals in Dubai 35%
The Ramadan period brings significant changes in traffic and social habits in Dubai and other parts of the United Arab Emirates (UAE) every year. This year also confirmed this trend, with a 35% increase in the car rental market, and a particular rise in demand for larger, comfortable SUVs. These changes are mainly influenced by family and community gatherings and the customs surrounding iftar (breaking the fast at sunset).
Families and communities lead the trend
During Ramadan, Muslims around the world fast from dawn until sunset, bringing significant changes to the daily rhythm. In Dubai, this period is characterized by shorter school hours and more flexible work schedules, impacting traffic habits as well. Families and groups of friends often participate in iftar gatherings together, and in the evening head within the city or even embark on longer trips. This explains why larger, comfortable SUVs have become so popular.
The founder and CEO of SelfDrive Mobility, a car rental and subscription service company, highlighted that the number of bookings increases by 30-35% during Ramadan, especially for larger SUVs. "Families and groups prefer spacious and comfortable vehicles to travel together to iftar gatherings, for evening traffic, or on longer trips. The longer evening hours and changes in traffic habits also contribute to this higher demand," he explained.
Slow start, growth towards the end of the month
According to the managing director of the car rental division of AA Al Moosa Enterprises, the month of Ramadan typically starts slowly, but after the first week, demand gradually increases, peaking in the days before Eid Al Fitr, the festival marking the end of Ramadan. "Larger vehicles, especially SUVs, are very popular among families, as spacious and comfortable cars are ideal for evening programs when the city comes to life," he said.
At airports, demand remains stable throughout the month, reflecting the region's travel habits and holiday planning trends. However, a significant increase is observed near shopping malls in the evening hours. "After iftar, families and friends often meet, and shopping malls become the hub of social life, where people dine, entertain, and organize meetings. This evening activity increases the number of short-term and evening car rentals," he added.
Cost-effective cars remain popular
Although demand for larger SUVs increased significantly during Ramadan, cost-effective cars remain the most popular category. According to data from the Careem super app, cheaper but technologically modern cars remain at the top of the list. "Cost-effective cars, equipped with modern technological features such as Apple CarPlay, Android Auto, or a rear camera, are increasingly important in the market," said a Careem spokesperson.
The spokesperson emphasized that Chinese car manufacturers lead this change, offering well-equipped and stylish vehicles at competitive prices. Currently, Chinese brands represent about 20% of the UAE car rental market, and this proportion may increase. "Japanese car manufacturers, who currently dominate this market, should pay attention to this trend and adapt to it," he added.
Tourism season also impacts the market
The Ramadan period coincides with the tourist season this year, which could further boost the car rental market. According to the Careem spokesperson, a 10-15% decrease in demand is generally observed during Ramadan, but this decline is expected to balance out with the arrival of tourists this year. Visitors also use car rental services to explore the region and participate in Ramadan-related events.
Overall, Ramadan brings significant changes not only in spiritual life but also in traffic and social habits in Dubai. The dynamics of the car rental market reflect this transformation well, with families, groups of friends, and tourists all seeking the most suitable solutions to travel comfortably and safely.
