Car Rental vs. Car Lease: Which is Right for You in Dubai, UAE?

According to Statista, the car rentals market in the UAE is expected to generate a revenue of US$182.53m by the end of 2025. 

When it comes to driving in the UAE as a tourist or an expat, there are two usual options—renting a car or opting for a car lease agreement.  

But what’s the difference between these two options? Which one is better for people in Dubai? Let’s discuss everything in detail.  

Car Rental and Leasing in Dubai, UAE 

If you need a car for work trips or simply want to roam around the city for leisure, fun and sightseeing, it’s important to know the basics behind leasing and renting. This can help you in making an informed decision on the suitable option for your needs.   

Knowing the right option can ensure that you secure the fit for your car lease or rental deal.  

Your choice between a lease or rental depends on several factors like budget constraints, duration of usage and the preference for ownership rights. 

Before we discuss each option in detail, let’s understand the basics first.   

What is Car Rental? 

Car rental may seem somewhat similar to leasing.  However, there are a lot of differences.  

For car rentals, you solely incur costs for your requirements without any obligation to commit for a particular period of time. Rental vehicles are usually accessible at notice without necessitating a payment.   

When it comes to renting a car, you'll find a range of options compared to leased vehicles because rental companies in Dubai usually have a greater variety of makes and models available.   

Car rental companies do not include maintenance or repair expenses in their coverage. Renters will need to cover these costs themselves if needed. 

When you decide to rent a car for a short period, like for days or weeks, you agree to pay a weekly fee for using the vehicle. Once the rental period ends, you simply return the car back to the company.  

What is Car Leasing? 

Leasing a car in Dubai involves a contract between the vehicle owner (known as the lessor) and an individual or business (referred to as the lessee), granting the lessee the privilege to utilize the vehicle for a specified duration in return for regular payments.   

After a period of 2 to 3 years, at the end of the lease agreement, the individual leasing the vehicle is given the option to either return it or buy it outright.   

In a few special cases, the company leasing the vehicle takes on the responsibility for ownership as long as the lease is active and covers costs like repairs and taxes throughout the lease period.   

Key Differences Between Car Rental and Car Lease 

Renting a car can be a good option for a short period of time, such as a weekend getaway or an event in Dubai or Abu Dhabi where you require a family vehicle for a few days only. If you are looking for luxury car rentals, check out our fleet here. 

If you are planning to enjoy a summer break with your family and need a car for commutes on weekdays or weekends alike, consider going for the car leasing option. There are extended car rental agreements with some added benefits as well.  

Car Rental and Leasing Regulations in Dubai, UAE 

Well, be it renting or leasing a car, there are specific rules and regulations, such as: 

Insurance 

Renting a car in Dubai requires third party coverage as per the law. Some travel insurance plans may also provide coverage for car rentals.  

However, most rental companies offer insurance options at an extra cost which can be expensive if chosen on the spot without prior planning.  

So, make sure to plan ahead to secure the appropriate insurance that suits your needs at a competitive price.  

International Driving Permit  

Tourists visiting Dubai from the GCC countries can freely use their home country’s driving license to drive in the city without any issues.  

Same is the case for individuals from countries like the UK, USA, Canada, Germany, South Korea, France and Japan.  

However, tourists from other countries need to make sure they have an International Driving Permit (IDP) with them before hitting the road in Dubai.  

It's a good idea to check with rental companies to make sure they accept your driver’s license from your home country or if you'll need to get an International Driving Permit (IDR) beforehand since rules can vary.  

Age  

To rent or lease a car in Dubai, you need to be 21 years old.  

Credit Card  

When renting a car in Dubai, you'll likely need to pay with a credit card. This card will be charged automatically for any fines or fees that may arise during your rental period.  

Travel Outside the UAE  

When traveling outside the UAE to a neighboring country by car, remember that additional documentation from your provider may be required as most do not permit this. It is wise to think about your travel plans prior to renting or leasing a vehicle.  

FAQs 

How long can I rent a car in Dubai? 

You can rent a car in Dubai for a minimum of 1 day to a few months. Some companies provide the option for longer periods, i.e., 6 months, offering flexibility to suit your needs.  

What are the typical contract durations for car leasing in Dubai? 

In Dubai, car leasing deals usually provide lease terms that last from 2 to 5 years and come with mileage restrictions set between 20k to 30k kilometers.  

Is maintenance included in car leasing agreements? 

Maintenance services are typically not part of the features offered in car lease agreements. They can be added as an optional upgrade if required or selected as part of a specialized car leasing package that covers maintenance costs.  

Can I lease a car in Dubai without a UAE residence visa? 

Yes. If you don't have a UAE residence visa, a valid visit visa works fine for leasing a car. Just make sure to have proof of insurance coverage and completion of leasing paperwork. 

Are there mileage restrictions for both rental and leased cars? 

When you lease a car, there is usually a mileage limit of around 20,000 to 30,000 kilometers per year. If you go over this limit, you'll be charged a fee for the miles. 

For luxury car rentals, some rental services offer a milage limit and some don’t. This totally depends on the provider. For example, if you rent a Chevrolet Camaro Ss V8 from us, this is the mileage limit for the car: 

1 - 6 Days: 300 KM/Day 

7 - 29 Days: 250 KM/Day 

30+ Days: 200 KM/Day 

What documents are required to rent a car in Dubai? 

For residents: 

• A copy of Dubai-issued driver’s license 
• Dubai’s residency card or visa 
• A copy of your passport  

For tourists: 

• A copy of your international driver’s license  
• Copies of your passport and visa. 

Please remember that if you want your car delivered to the airport, a plane ticket is required. 

Can I buy a leased car at the end of the contract? 

Some lease contracts may not offer the option to purchase the vehicle at the end of the lease term. However, if your lease agreement includes a buyout clause, then you are entitled to buy your car before it expires. 

Which option is better for tourists visiting Dubai, renting or leasing a car? 

Choosing between a monthly car rental and leasing in Dubai depends on your needs and length of your stay. If you are in Dubai for a short period, a monthly car rental offers the most convenience and flexibility. 

Similarly, if you are here to stay for at least a year or two, car leasing could be a good option for you.  

Where to Rent a Car in Dubai, UAE? 

If you are looking for a convenient luxury car rental service in Dubai, Mirage Rent A Car is the best option for you. Here’s why tourists and locals prefer us: 

• A huge variety of luxury vehicles. 
• No hidden charges. 
• Choose from a range of options that suit your needs, even if it’s a monthly arrangement.  
• Make reservations with our online booking system for pick up and drop off services.  
• Highly responsive customer service.  

Whether you are visiting Dubai as a tourist or living there as a resident​​​, we offer an affordable option to travel around and explore the city​​ of wonders!