New Dubai rule allows car rental on hourly basis

Rent-a-cars in Dubai will now also be available on an hourly basis, according to a new resolution issued on Tuesday by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of Dubai Executive Council.

New rules for car rentals will mean that individuals can now rent vehicles by the hour.

The resolution is designed to provide alternative low-cost public transportation solutions to the people of Dubai.

Currently, most companies allow car rentals for a minimum of one day and the new resolution will provide new possibilities and convenience for residents as well as tourists.

Under the hourly system, the cars can be rented for a maximum of six hours per day and can be driven only in Dubai.

Requirements to rent a car

As per the resolution, those renting cars need to hold a valid driving license recognised by Dubai’s Roads and Transport Authority (RTA).

Additionally, the rented vehicle needs to meet the specifications stipulated in the regulations outlined by the resolution, and the rental period must not exceed six hours a day within Dubai.

The resolution prohibits pay-by-the-hour rental services without a license from the RTA Licensing Agency.

Requirements for rent-a-car businesses

  • Cars rented out should be registered and insured annually.
  • Cars should be rented only to individuals who hold a driving licence recognised by RTA.
  • The name of the company must be displayed on the car, in addition to the maximum number of passengers.
  • The cars must use parking spots and locations that have been specified by the authority.
  • The companies are not allowed to display any advertisements on the car without obtaining a written pre-approval from the RTA’s licensing department.
  • The companies are also obliged to set up a special system to monitor the movement and location of rented cars.
  • The cars must also be fitted with GPS.

Complaint procedures and penalties for violators are clearly defined in the resolution.

Additionally, the resolution allows RTA to authorise companies to conduct car rental businesses through a franchise model, and notes that franchise contracts should clearly specify the rights and obligations of each party, the way in which service is delivered, and the franchise fee and payment method.

Licensed firms are required to create records to track the movement and locations of their vehicles.

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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