A new Dubai ordinance imposes a punishment of up to Dh10,000 on car rentals.

Dubai has published a new resolution concerning vehicle transportation, facility requirements, infractions, administrative fines, and complaints.

Crown Prince of Dubai and Chairman of the Dubai Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued Executive Council Resolution No. (2) of 2022 revising some provisions of Executive Council Resolution No. (47) of 2017 on the management of road traffic and car rental in Dubai.

The amended resolution replaces paragraphs 1, 3, 5, 8, and 10 with new paragraphs.

According to the modified resolution, a permission is required to engage in the activities.

The permit is valid for an annual period that is renewable. The applicant must submit a request for renewal within thirty days of the permit's expiration.

Per the terms and circumstances, RTA's Licensing Agency may renew the permission for no more than three years. Government organizations are excluded from the permission requirements.

The Resolution also outlines the responsibilities of licensed organizations. These include, among others, following to the rules and regulations established by the RTA about the activity and assuring the availability of an office, cars, and parking places that are acceptable for the permitted activity and comply with the bylaws of the Resolution.

According to the Resolution, licensed organizations may not affix advertising materials to their vehicles without prior RTA consent.

Fines for violators

The Resolution also specifies the penalties for infractions. If the same infringement is committed again within a year of the first offense, the fines will be doubled, but should not exceed Dh10,000.

RTA may take many actions against offenders, beginning with giving a written warning, then suspending their activities for no more than six months, and finally revoking the permission permanently.

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In accordance with the Resolution, complaints must be made in writing to the RTA's Director-General and Chairman of the Board of Executive Directors within 30 days of the decision or action taken against the party.

A committee established by the Director General will consider the filed grievance within thirty days.

The committee's decision on the grievance is final.

The Resolution will enter into force within ninety days of its issuing and will be published in the Official Gazette.