The UAE is a car-centric country. Public transport exists and is improving, but for most expats daily life is significantly easier with a car. Many new arrivals ask the same questions:
- Should I rent short term first or sign a long lease immediately?
- Is leasing better than buying?
- How do insurance, Salik, traffic fines and deposits work?
- What documents do I need to rent or lease?
- Can I lease on a tourist visa?
- Which option is best for my visa status and length of stay?
This guide explains everything you need to know about car rental and leasing in the UAE, covering short-term rentals, long-term leasing, costs, insurance, deposits, eligibility, and the pros and cons of each option.
Primary calls to action:
→ Compare renting vs leasing using our Expat Planning Portal
→ Speak with an adviser before committing to a contract
UAE Car Rental key takeaways
- Car leasing is usually the best option for expats staying 1–3 years
- Short-term rental suits tourists and new arrivals waiting for residency
- Buying is best for long-term residents who want ownership
- Leasing typically includes maintenance and basic insurance
- Emirates ID is normally required for leasing
- Always review mileage limits, deposits and early exit penalties
Common questions about car rental in the UAE
What is the difference between car rental and car leasing in the UAE?
Car rental is short-term (days or months). Leasing is long-term (usually 1–3 years) with fixed monthly payments, maintenance and sometimes insurance included.
Is leasing a car cheaper than renting monthly?
Yes. Monthly rentals are usually more expensive than formal leasing contracts. Leasing typically offers lower fixed payments for longer commitments.
Can tourists rent a car in the UAE?
Yes. Tourists can rent if they hold a valid passport, visit visa, home-country licence and, in many cases, an international driving permit.
Can I lease a car without Emirates ID?
Usually no. Most leasing companies require Emirates ID, residency visa, UAE driving licence and proof of income.
Do car leases include maintenance?
Yes, most leases include routine maintenance and servicing. Tyres and insurance may also be included depending on the contract.
Short-term car rental in the UAE
Short-term car rental is ideal for:
- Tourists and business visitors
- New expats waiting for residency
- Short contract workers
- Those unsure how long they will stay
Requirements for short-term rental
You will normally need:
- Valid passport
- Valid visit visa or residency visa
- Valid driving licence
- International Driving Permit in some cases
- Credit card for deposit
Typical short-term rental costs
Costs vary by vehicle type, but general ranges are:
- Economy: AED 90–160 per day / AED 1,500–2,400 per month
- Mid-range: AED 180–350 per day / AED 2,800–4,500 per month
- SUV or luxury: AED 300–2,000+ per day
Additional charges may apply for:
- Salik toll usage
- Additional drivers
- Traffic fines
- Insurance upgrades
- Excess kilometres
Short-term rental is the highest flexibility and highest cost option.
Long-term car rental in the UAE (1-12 months)
Long-term rental is a bridge between daily rental and formal leasing. It suits:
- Professionals on probation
- Contractors on short-term projects
- Expats waiting for visas or Emirates ID
- Students
Benefits include:
- Fixed monthly payment
- No long contract lock-in
- Maintenance included
- Option to switch cars easily
- Possible approval without full residence paperwork
Drawbacks include:
- Higher cost than leasing
- More restricted mileage limits
- Less negotiation power
Car leasing in the UAE – how it works
Car leasing is one of the most popular choices among expats who plan to stay at least one to three years.
What car leasing in UAE typically includes
Most leases include:
- Brand new or nearly new car
- Fixed monthly payment
- Routine servicing and maintenance
- Registration renewal
- Breakdown assistance
- Basic insurance
Some include:
- Replacement car during service
- Tyre replacement
- Full insurance options
What car leasing in UAE usually does NOT include
- Salik toll charges
- Traffic fines
- Excess mileage costs
- Fuel costs
Documents required for car leasing in the UAE
Most UAE car leasing companies require:
- Passport copy
- Residency visa page
- Emirates ID copy
- UAE driving licence
- Salary certificate or employment contract
- Bank statement (1–3 or 6 months depending on provider)
- Security deposit or credit card guarantee
Tourists usually cannot lease cars in UAE, but can rent short-term.
Typical car leasing costs in the UAE
Car leasing cost depends on:
- Brand and model
- Contract length
- Mileage allowance
- Insurance level
- Emirate
Approximate monthly leasing ranges:
- Economy (Yaris, Picanto, Sunny): AED 1,200 – 1,800
- Mid-range (Corolla, Civic, Altima): AED 1,800 – 2,500
- SUVs (Sportage, Tucson, Fortuner): AED 2,200 – 3,800
- Luxury vehicles: AED 3,500 – 10,000+
Mileage charges apply if you exceed your allowance.
Insurance for rental and lease cars
There are three typical insurance arrangements in the UAE:
- Basic insurance included with excess
- Full insurance add-on
- Personal accident insurance options
Always check:
- Accident excess amount
- Off-road exclusions
- Young driver surcharges
- Windscreen and tyre cover
Internal linking prompt:
- Link “Car Insurance In UAE Guide”
Salik, traffic fines and deposits
Salik (Dubai tolls)
Salik is the Dubai road toll system. With rentals:
- Salik is charged automatically
- Providers add service fees to Salik usage
Traffic fines
Traffic fines are:
- Charged to the vehicle
- Deducted from the deposit or invoiced later
Deposits
Deposits are:
- Normally taken by credit card
- Refunded after fines and Salik are reconciled
- Can take up to 30 working days
Leasing vs buying a car in the UAE
| Factor | Leasing | Buying |
|---|---|---|
| Upfront cost | Low to medium | High |
| Ownership | No | Yes |
| Monthly cost | Fixed | Variable |
| Maintenance | Usually included | Paid by owner |
| Flexibility | Medium | Low |
| Suitable for | 1–3 year stays | Long-term residency |
Key principle:
Leasing is a cost for convenience. Buying is a cost for ownership.
Can you lease a car without a credit card?
Most companies require a credit card deposit. However:
- Some allow debit card deposits at higher amounts
- Some accept bank guarantee cheques
- Some accept corporate guarantees
Check contract terms very carefully in these cases.
Frequently asked questions about car rental and leasing in the UAE
Is leasing cheaper than buying a car in the UAE?
Leasing is cheaper upfront and over short periods. Buying may be cheaper long term if you keep the car for several years.
Can I rent a car in Dubai without a UAE licence?
Yes. Tourists can usually rent using a home-country licence and sometimes an International Driving Permit.
Can I lease a car in UAE on probation period?
Yes in some cases, but many providers require salary history or employer guarantee.
What happens if I leave the UAE during my lease contract?
Early termination penalties usually apply. Always check your contract terms.
Do I need insurance if it is included in my lease?
Insurance is normally included, but you should understand excess, exclusions and optional upgrades.
Can I take a leased car across borders?
Usually no. Cross-border driving typically requires special permission and insurance.
Can I modify a leased car?
Modifications are usually prohibited. Vehicles must be returned in original condition.
What happens at the end of a car lease?
You return the car, pay any excess mileage or damage charges, and may renew or change vehicle.
How PlanUAE helps
PlanUAE does not simply connect you to whichever rental or leasing company pays the highest commission. Instead, we:
- Help you decide between renting, leasing and buying
- Integrate transport costs into your financial and relocation plan
- Introduce vetted partners where appropriate
- Prioritise your visa status, cashflow and life goals
Primary calls to action:
→ Compare your options in the Expat Planning Portal
→ Request personal assistance from our team