The future of mobility in the UAE: Are more residents choosing car sharing

Traditional car rental and ride-hailing will always have their place, but more people are choosing car sharing today because it gives them the freedom to use a car whenever they need one, without the costs and commitment of owning a vehicle.

The UAE is entering a strong growth phase for app-based shared mobility, with car sharing offering significant room for expansion. Ken Research values the country’s wider shared-vehicle market at $1.2 billion in 2025 and forecasts it to reach $2.2 billion by 2031, representing 14.75% annual growth. We expect car-sharing to expand faster than traditional car rental as more residents seek flexible vehicle access without the financial commitment of ownership.

Public transport serves major corridors effectively, while many journeys still require a car for the first or final leg. Car sharing meets this need by giving customers immediate access for minutes, hours or days.

It is often questioned whether car sharing is becoming a genuine alternative to private car ownership, or if it primarily complements public transport, taxis, and traditional car rental services. Car sharing can actually do both, depending on how often someone drives. Many people need a car only a few times each week. Car sharing gives them access when required, without the cost and responsibility of ownership.

In our latest report, 90% of customers are UAE residents, who drove more than 45 million kilometres in 2025. This pattern shows that car sharing supports everyday journeys such as commuting, errands and family trips rather than just occasional tourist demand. Public transport serves major routes, while ride-hailing works for journeys when passengers prefer not to drive. Car sharing bridges the gap between the two by offering people an alternative when they need a private car for several hours.

The UAE has created a supportive environment for new mobility services, with operators and local authorities working closely together. As car sharing grows, greater alignment between the emirates would help operators expand and give customers a more consistent experience.

Common national guidelines for parking, insurance, operations and secure data sharing would make cross-emirate journeys easier. Local authorities could still manage their own service areas and parking while following shared basic requirements and digital processes. This would attract further investment and make car sharing more widely available across the UAE.

The success of a car-sharing business depends on using each vehicle efficiently. A large fleet alone does not guarantee strong results. Operators need the right types of cars in locations where demand is highest, with as little idle time as possible.

This requires careful purchasing, regular maintenance and a fleet that matches customer needs. Technology and data help operators predict demand, place cars in the right areas, set suitable prices and identify maintenance issues early. A sustainable business also needs regular customers and flexible rental options by the minute, hour or day. Together, these factors help each vehicle cover its costs and generate consistent returns.

Studies show that car sharing can reduce the need for private ownership and make better use of existing vehicles. Private cars spend much of the day parked, while a shared car can serve several people.

The benefits are greatest when car sharing works alongside public transport, taxis and ride-hailing. This gives residents more choice and can help households avoid buying another car or replacing one they rarely use. As adoption grows, fewer underused vehicles can reduce parking pressure and support lower emissions, especially as shared fleets introduce cleaner vehicles. Its impact should be measured by reduced ownership, better vehicle use and a more connected transport system.

Electric vehicles are the most immediate opportunity for car sharing. Shared cars are used more frequently than most private vehicles, so savings on fuel and maintenance can build up faster. The UAE’s National Electric Vehicles Policy provides clear direction, targeting a 50% EV share on the country’s roads by 2050.

Autonomous vehicles will take longer to become widely available, but they could transform how shared fleets operate. Cars could travel to charging or maintenance locations on their own and spend less time sitting unused. This could make car sharing more convenient, affordable and accessible.

Wider adoption will require more charging points, clear safety regulations and close cooperation between governments, technology companies and mobility operators. Abu Dhabi’s commercial launch of fully driverless vehicles in 2025 shows that this transition is already beginning.