UAE Shared Mobility Market Expected to Surge at 25.1% CAGR Through 2026

According to MarkNtel Advisors, the UAE Shared Mobility Market is anticipated to grow at a CAGR of around 25.1% during the forecast period, i.e., 2021-26. The growth of the market attributes primarily to the increasing focus of the UAE government on implementing environment-friendly mobility solutions and mounting adoption of connected technologies. 

UAE Shared Mobility Market Forecast Market Overview & Analysis

• Rapid Consumer Shift: With daily commuting comprising 53.7% of shared mobility usage, escalating vehicle ownership costs and steep fuel prices are driving individuals toward ride-hailing and car-sharing solutions
• Urban Congestion: Dubai, holding ~46% market share, struggles with chronic traffic and parking shortages. Shared mobility offers a viable alternative, especially in the commercial and corporate sectors .
• Government Participation: The RTA and local authorities are promoting sustainable transport by offering free parking for shared vehicles and enhancing licensing frameworks. These policies reduce entry barriers and accelerate uptake
• Smart & Connected Technology: Widespread smartphone and IoT vehicle integration underpin user-friendly app-sharing platforms, dynamically adjusting demand and availability .
• COVID-19 Recovery: After initial dips in 2020 and early 2021, shared mobility witnessed a strong recovery. Enhanced hygiene protocols and contactless solutions have restored public confidence .

Key Takeaways: Growth Factors

• Rising fuel and vehicle maintenance costs
• Chronic traffic congestion and parking scarcity in urban hubs
• Government incentives, such as free RTA parking for shared vehicles
• High smartphone penetration and tech-enabled mobility solutions
• Post-pandemic focus on safety via contactless and hygienic services

UAE Shared Mobility Market Forecast Market Leading Players

Top innovators stimulating the UAE shared mobility landscape include:

• Uber,
• DiDi Chuxing,
• Drive Now,
• Lyft,
• Ekar,
• Udrive,
• Arabia Taxi,
• Car Tax,
• City Taxi,
• Dubai Taxi,
• Metro Taxi,
• National Taxi,
• One Road

These players continue to diversify offerings—ranging from two-wheeler sharing to car-sharing and shuttle services—enhancing both user convenience and market resilience.

UAE Shared Mobility Market Segmentation Analysis

By Service Type

• Two-Wheeler Sharing
• Ride Hailing
• Ride Sharing
• Car Rental
• Car Sharing
• Bus/Shuttle Service

By Commuting Pattern

• Daily Commuting
• Last-Mile Connectivity
• Occasional Commuting
• Others

By Booking Type

• On-Line
• Off-Line

By End User

• Leisure
• Business
• Others (Emergency etc.)

By Vehicle Type

• ICE (Internal Combustion Engine)
• EV (Electric Vehicle)

Driver Spotlight: Pay‑Per‑Minute Models

The shift toward pay-per-minute car-sharing options—offered by Ekar and Udrive—is transforming individual mobility. This on-demand model seamlessly blends affordability with flexibility, letting users pay only for the journey time rather than full-day rentals. Unlike traditional car rental, this micro-payment system removes long-term commitments, fitting urban household budgets and reducing idle vehicle hours—a key sustainability benefit for congested cities like Dubai.

Regional Market Insights

Dubai leads the UAE shared mobility market, accounting for nearly 46% of usage As a global business hub, its corporate population experiences high vehicle dependency, and shared mobility helps alleviate productivity losses due to traffic delays.

Sharjah & North Emirates, and Abu Dhabi & Al Ain are emerging fast, showing clear growth potential as infrastructure investments for public and last-mile transport ramp up.

The strategic interplay of public policy, urban development, and consumer readiness makes Dubai the creme‑de‑la‑creme in regional mobility advancement.

Future Outlook

With these evolving dynamics, the UAE shared mobility market is expected to expand further between 2025 and 2030. The convergence of technology, sustainability, and consumer behavior is reshaping the landscape and opening new opportunities for incumbents and new players alike. Companies that strategically use SWOT analysis to optimize their services, align pricing models, and enhance user experience will thrive. Meeting evolving consumer expectations—through contactless payments, real-time ride tracking, and service variety—will critically drive market scale, revenue growth, and industry-wide transformation across the GCC and beyond.