Summary

The UAE is a major global importer of oil and gas, accounting for roughly 30% of the country's gross domestic product. With a thriving oil and gas industry, the UAE's construction equipment rental market is expected to grow significantly. Elevators, conveyors, mining trucks, heavy vehicles, small tools and dies, and construction tasks such as rig setup and well foundation construction are all required in the production and extraction of oil and gas. Al Mutawa Heavy Equipment Trading LLC, Al Shola Rental Solutions, Yellow Cat Heavy Equipment & Machinery Rental, Mohamed Abdulrahman Al-Bahar LLC, Byrne Equipment Rental, Tanzeem Heavy Equipment Rental LLC, Gallagher International, Obaid Kneish & Sons Transport, AL Jaber Leasing Service, Al Faris International Heavy Equipment Rental, and other prominent players are among the leading players in the UAE construction equipment rental market.

According to the research report, “UAE Construction Equipment Rental Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 0.26 Billion by 2028. The rental business is experiencing increased demand as a result of rising equipment costs, increased economic insecurity, a cash crisis, technical advancements, and major infrastructural construction. Contractors prefer to hire construction equipment to control project costs, which have risen due to increases in labour and raw material prices. Rental companies are heavily investing in technologically innovative and environmentally friendly construction equipment in order to expand their fleet sizes and successfully meet their clients' increasing expectations. Construction equipment is an expensive investment. A new excavator, for example, is the most expensive piece of construction equipment, with prices ranging from USD 100,000 to USD 500,000 for a full-size rig and from USD 80,000 to USD 150,000 for a mini excavator. Furthermore, accumulating this equipment involves depreciation, which reduces its value over time. As a result, many construction firms chose to rent out their equipment and machinery, lowering their maintenance and technical charges. As a result, the market is expected to grow rapidly.

The UAE has a population of 10.08 million people, with 6.93 million men and 3.13 million women. 1.5 million Of the entire population are under the age of 14. 6.55 million People are between the ages of 25 and 54. There are 8.2 million urban residents and 1.26 million rural residents. According to the World Bank, the UAE's GDP in 2020 was USD 358.87 billion, the inflation rate was -2.1%, and the per capita income was $36,284.6. (2020). According to the Census data, there are 551 thousand homes in the United Arab Emirates. There are estimated to be 92.8 thousand homes in Abu Dhabi alone, with 35,000 homes in Dubai following closely behind. Because there are so many more homes being built, the market for construction equipment rentals is expanding quickly.

The construction industry, like the construction equipment rental market, is heavily reliant on economic growth. However, during temporary economic downturns or slowdowns, construction activities were halted, resulting in a lack of consumer demand for construction equipment rental services. This dependency has a significant impact on the UAE construction equipment rental industry because construction requires large-scale activities and it takes a long time to recover from an economic downturn. This factor is a major impediment to the UAE's construction equipment rental market.

Renting earth-moving equipment such as excavators, motor graders, and loaders has increased in recent years as a result of growing infrastructure projects related to road and highway networks in countries such as Saudi Arabia and the UAE, as well as the penetration of more construction contractors in light of Saudi Vision 2030. For example, in February 2020, Saudi Crown Prince Mohammed bin Salman directed the construction of major roads in the heart of Riyadh in order to improve the city's transportation system. The project's goal is to make Riyadh a major hub for providing sustainable transportation and logistics services in the Middle East. The programme will focus on creating interchanges between Riyadh's ring roads and major routes. It will expand the road network by 400 kilometers by building new roads and improving existing junctions.
Several rental companies are expanding their rental fleets and developing plans to upgrade their product portfolios in order to strengthen their market position. For example, Al Faris Group expanded its fleet by adding five new Faymonville 8-axle low loaders to deal with difficult terrain, narrow job sites, and winding platforms. Salim Equipment Rental, based in Dubai, received two Liebherr HS 8130.1 duty cycle crawler cranes as part of its fleet expansion to serve the region's specialized foundation industry.

Recent Development
Sudhir Power Ltd., a construction equipment and power generator rental company, announced a joint venture with FuelBuddy, an Indian doorstep fuel delivery service startup, in July 2021, launching its operations in the UAE and Saudi Arabia.

Tendered, a digital procurement platform for equipment rentals, has been invited to join the World Economic Forum's Global Innovators Community in May 2021.

Covid-19 Impact
The spread of COVID-19 contributed to the decline of the UAE Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries.

Considered in this report
• Geography: UAE
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• UAE Construction Equipment Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment type
• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application type
• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.