All rental vehicles in UAE must have tracking device

The new executive regulations for Federal Law No. 14 of 2024 on the Regulation of Traffic, which will take effect on January 1, 2027, stipulate that no person may operate a vehicle rental business in the country without first obtaining a permit from the licensing authority and meeting four requirements: installing a tracking device approved by the licensing authority in every vehicle intended for rental purposes, registering with the unified platform approved by the Ministry and the licensing authority, complying with any additional conditions imposed by the licensing or traffic enforcement authorities, and holding a valid commercial licence for vehicle rental activities issued by the competent authority. The permit will be valid for one calendar year and renewable for an equivalent period.

The regulations also require the Ministry to develop and design an electronic system to register vehicles owned by rental agencies, monitor their geographical movements, and record all data and information related to their rental.

Licensed vehicle rental agencies must fulfil five obligations: verify the validity of the prospective renter’s driver’s licence, complete rental procedures using the standardised rental agreement available through the vehicle rental system approved by the licensing authority, register the rental agreement with the licensing authority through its approved electronic systems; conduct rental operations exclusively using vehicles registered in the agency’s own name and licensed for rental use by the licensing authority, and refrain from lending vehicles between rental agencies unless covered by a rental agreement registered with the licensing authority. An exception applies to the use of such vehicles by the agency’s own staff, subject to the terms and conditions established by the licensing authority.