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New Resolution to Regulate Pay-by-the-Hour Car Rental Activity in Dubai

29/9/2016

An Executive Council Resolution No. (49) of 2016 now regulates the pay-by-the-hour car rental activity in Dubai.

An Executive Council Resolution No. (49) of 2016 now regulates the 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 recognized 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. Provision of pay-by-the-hour car rental services in Dubai without a license from RTA’s Licensing Agency is prohibited. The new Resolution also allows RTA to authorize 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.

Fees and penalties that will be imposed on anyone who violates its provisions are specified by the Resolution. It also clearly defines complaint procedures.

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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