Car Rental

RTA introduces new conditions to streamline car rental business

Feb 28 2017


The Roads and Transport Authority (RTA) has announced new stipulations for issuing permits to practice car rental activities in Dubai as part of endeavours to streamline the business of this sector.

“The new conditions aim at improving the business practices of this sector, curb offences and risks, and define the roles & responsibilities of parties associated with this sector,” said Nasir Al-Haj, Director of Commercial Transport Activities, RTA’s Licensing Agency.

The new conditions provide for allocating designated car permits for rentable cars without impacting public parking, complying with the regular service timing as specified in the manuals, and defining the rights and obligations of the renting party by the renting office. The conditions state that the insurance agreement made between the car rental company and the insurer shall apply in the event of any accident sustained by the vehicle.

Conditions call for issuing a copy of the vehicle handing over document to the renter showing any damages, if any, before taking receipt of the vehicle. Stipulations also include refunding the financial deposit to the renter within 30 days from the date of handing back the vehicle to the office in the same payment method. No private documents relating to the renter shall be retained such as the passport or identity card. The Licensing Agency has to be notified in case the business outlet is relocated, and the electronic car rental system has to be activated once the relocation is completed. The office is obliged to replace the ageing vehicles as per instructions of the RTA.

The revised conditions stipulate that the car rental office has to be approved by the Department of Economic Development (DED) and comply with the applicable procedures set by the DED. The car rental office shall submit a list of disowning the vehicles in the event of abolishing the license. In case of relinquishing the license, the company shall submit an evidence of owning the minimum number of vehicles in the traffic folder before relinquishment. The manufacturing year of the used vehicle shall correspond to the same year of applying for registration. The office is obliged to provide at least 10 vehicles during the initial year in the Head Office and 3 vehicles in each branch. In case an entity owns vehicles exceeding AED600,000 in value, the Head Office shall have at least five vehicles. Finally, the renter is obliged to complete the form manually or online.

“These new stipulations are introduced as part of RTA’s commitment to legalize the car rental sector; which is instrumental to realizing RTA’s vision of Safe & Smooth Transport for All,” said Al-Haj.