Prince Hamdan issues Resolution regulateing pay-by-the-hour car rental activity

Crown Prince of Dubai and Chairman of Dubai Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has issued Executive Council Resolution No. (49) of 2016, regarding the regulation of pay-by-the-hour car rental activity in Dubai.

The Resolution aims to provide alternative low cost public transportation solutions that meet the needs of people in Dubai.

As per the Resolution, individuals renting the car should hold a valid driving license recognised by Dubai’s Road and Transport Authority (RTA). The rented car should meet the specifications stipulated in the regulations outlined by the Resolution. The vehicle rental period should not exceed six hours a day within Dubai.

The Resolution prohibits the provision of pay-by-the-hour car rental services in Dubai without a license from RTA’s Licensing Agency. The executive regulation defines the procedures for issuing and renewing the license. Car rental firms are required to have their cars licensed by RTA.

The Resolution also allows RTA to authorise any company or establishment to conduct car rental business in Dubai through a franchise model. Franchise contracts should clearly specify the rights and obligations of each party, the way in which the service is delivered, the franchise fee and the mode of payment. It should also meet all conditions set by RTA as per Dubai’s current laws.

As per the resolution, advertisements cannot be displayed on the external body of the car without prior written approval of RTA. Cars rented out should be registered and insured annually. Cars should be rented only to individuals who hold a driving license recognised by RTA.

Licensed firms are required to create records tracking the movement and location of the cars.
The Resolution specifies the fees and penalties that will be imposed on anyone who violates its provisions. It also clearly defines complaint procedures.

The new Resolution annuls any other resolution or clause that may contradict it.
The Resolution will be published in the Official Gazette, and will be effective 60 days after the date of its publication.


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