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New Rules in place for renting of cars in Dubai

02 March 2017

The Dubai RTA has announced new rules for issuing permits to practice car rental activities in Dubai. This forms part of its efforts to streamline the business of this sector.

According to Nasir Al-Haj, the Director of Commercial Transport Activities, RTA’s Licensing Agency, the new conditions aim at improving business practices of the car rental sector. It curbs offences and risks and defines the roles and responsibilities of the parties associated with the sector.

According to Nasir Al-Haj, the new conditions include the following rules:

  • Allocation of designated car permits for rentable cars should not impact public parking.
  • Regular service timing as specified in the manuals should be followed.
  • The rights and obligations of the renting party should be defined by the renting office. 
  • The insurance deal made between car rental Company and the insurer will be applicable in the event of any accident sustained by the vehicle.
  • A copy of the vehicle handing over document should be issued to the renter showing damages, if any, before taking receipt of the vehicle.
  • Also, refund of financial deposit to the renter within 30 days from date of handing back the vehicle to the office in the same payment method, should be followed.
  • No private documents pertaining to the renter like passport or ID card should be retained.
  • The Licensing Agency should be notified in case the business outlet is relocated, and the electronic car rental system has to be activated when the relocation is complete. 
  • Ageing vehicles should be replaced as per instructions by RTA.
  • The car rental office should be approved by the Department of Economic Development (DED) and should comply with the applicable procedures by DED.
  • In the event of abolishing the license, the car rental office should submit the list of disowning vehicles. Also the company should submit an evidence of owning the minimum number of vehicles in the traffic folder before renunciation.
  • The manufacturing year of the used vehicle should correspond to the same year of applying for registration. The office should provide atleast 10 vehicles during initial year in the Head Office and three in each branch. In case any unit owns vehicles worth more than Dh.600,000 in value, the Head Office should have at least five vehicles. 
  • The renter should complete the form manually or online.

car rental rules

All these new rules have been introduced as part of commitment by RTA to legalize the car rental sector, and this is vital to realizing the RTA’s vision of Safe and Smooth Transport for all, Al-Haj said.

Robin Vinod

Writer/blogger who writes on topics such as travel, real estate, employment and everyday life on GCC countries

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