Sheikh Hamdan bin Mohammed issues Resolution on Vehicle Rental Activity

Crown Prince of Dubai and Chairman of Dubai Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum issued the Executive Council’s Resolution No. (47) of 2017 pertaining to the regulation of road transportation and vehicle rental activity in Dubai. The Resolution is aimed at regulating the transportation of passengers, goods, valuables, packages, foodstuff and furniture by specialised companies. The Resolution also regulates the rental of buses, trucks, recreational vehicles, motorcycles and bicycles.

The Resolution is applicable to all relevant entities in Dubai, including those based in special development zones, free zones and Dubai International Financial Centre. The Resolution forbids anyone from undertaking any transportation activity or renting transportation vehicles without obtaining a permit from RTA’s Licensing Agency. The permit is valid for a renewable term of one year. Government entities are exempt from the Resolution. To obtain the permit, the applicant must submit a renewal request within 30 days of the permit’s expiry. The bylaws of this Resolution define the terms and conditions for obtaining the permit.

The Resolution specifies the competencies and authorities of RTA’s Licensing Agency in this regard, which include evaluating and approving applications, determining the number of vehicles operated by each company, monitoring adherence to permit terms and conditions, establishing and managing a database for the activities, entities and vehicles subject to this Resolution.

The Resolution also prescribes the obligations of the licenced entities. These include conducting only those activities defined in the permit, ensuring the provision of an office, vehicles and parking space suitable for the licenced activity and the regulations outlined in the Resolution’s bylaws.

The Resolution also details the RTA Licensing Agency’s approved fees; fines and penalties for any violations; and grievance procedures. All entities undertaking road transportation and vehicle rental activity must comply with the provisions of the new Resolution within one year of its date of issuance. RTA’s Director-General and Chairman of the Board of Executive Directors may extend this period, if deemed necessary.

Furthermore, RTA’s Director-General and Chairman of the Board of Executive Directors may issue all the required bylaws to ensure implementation of this Resolution. Such bylaws become effective only after they are published in the Official Gazette. This Resolution annuls any other legislation that contradicts or challenges its articles. This Resolution will be published in the Official Gazette, and will be effective 60 days after the date of publication.