Executive Council Resolution No. (49) of 2016

Regulating the Activity of

Hourly Rental of Vehicles in the Emirate of Dubai[1]

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We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Chairman of the Executive Council,

After perusal of:

Federal Law No. (21) of 1995 Concerning Road Traffic, its Implementing Bylaw, and their amendments;

Law No. (5) of 1994 Establishing the Dubai Transport Corporation and its amendments;

Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;

Law No. (17) of 2005 Establishing the Roads and Transport Authority and its amendments;

Law No. (9) of 2006 Affiliating the Dubai Transport Corporation to the Roads and Transport Authority;

Law No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate of Dubai and its amendments;

Law No. (5) of 2015 Concerning Disposition of Lost-and-Found and Abandoned Property in the Emirate of Dubai;

Law No. (22) of 2015 Regulating Partnership between the Public Sector and the Private Sector in the Emirate of Dubai;

Law No. (1) of 2016 Concerning the Financial Regulations of the Government of Dubai;

Law No. (8) of 2016 Regulating the Grant of Law Enforcement Capacity in the Government of Dubai;

Decree No. (22) of 2005 Concerning Use of the Electronic Information System of Car Rental Agencies;

Executive Council Resolution No. (8) of 2008 Establishing the Licensing Agency of the Roads and Transport Authority; and

Executive Council Resolution No. (15) of 2012 Approving the Violations and Fines Schedule for the Electronic Information System of Car Rental Agencies,

Do hereby issue this Resolution.

Definitions

Article (1)

The following words and expressions, wherever mentioned in this Resolution, will have the meaning indicated opposite each of them unless the context implies otherwise:

Emirate:

The Emirate of Dubai.

RTA:

The Roads and Transport Authority.

Director General:

The director general and chairman of the Board of Executive Directors of the RTA.

Agency:

The Licensing Agency of the RTA.

User:

A natural person who rents a Vehicle to drive it from one place to another within the Emirate, and who holds a light Vehicle driving licence recognised by the RTA.

Vehicle:

A light Vehicle that meets the specifications prescribed by the Implementing Bylaw.

Activity:

Renting out Vehicles for a period not exceeding six (6) hours per day to travel within the Emirate for a prescribed rate.

Establishment:

A company or entity authorised to conduct the Activity in the Emirate.

System:

The Electronic Information System of Car Rental Agencies.

Person:

A natural or legal person.

Permit:

A document issued by the Agency, authorising an Establishment to conduct the Activity in accordance with the conditions and procedures adopted by the RTA in this regard.

Implementing Bylaw:

The implementing bylaw of this Resolution.

Objectives of the Resolution

Article (2)

This Resolution will have the following objectives:

1.       to regulate the Activity through a flexible and effective Vehicle management system;

2.       to provide alternative means of transport that meet the needs and demands of public transport users in the Emirate;

3.       to benefit from Vehicle sharing international best practices; and

4.       to provide highly effective low-cost means of transport.

Conducting the Activity

Article (3)

a.       No Person may conduct the Activity in the Emirate without first obtaining a Permit. The Implementing Bylaw will prescribe the requirements and procedures for Permit issuance and renewal.

b.       An Establishment may conduct the Activity only by means of Vehicles so authorised by the RTA.

c.       The Permit referred to in paragraph (a) of this Article will be valid for a renewable period of one (1) year.

Franchise Agreement

Article (4)

The RTA may, pursuant to a franchise agreement, authorise an Establishment to conduct the Activity in the Emirate. The franchise agreement will provide for the rights and obligations of the parties; method of conducting the Activity; the franchise fee and its method of payment; and any other requirements prescribed by the RTA in accordance with the legislation in force in the Emirate.

Obligations of Establishments

Article (5)

An Establishment must:

1.       comply with the terms of the Permit, and the franchise agreement to which it is a party;

2.       provide premises and the minimum number of Vehicles and car park spaces commensurate with the nature of the Activity, as prescribed by the Implementing Bylaw;

3.       provide user guides and manuals stating the rules and conditions for use of Vehicles and other information;

4.       use Vehicles exclusively for the Activity stated in the Permit;

5.       display, clearly and legibly on the body of each Vehicle, the name of the Establishment and the maximum number of Passengers permitted in that Vehicle;

6.       use the car parks and places designated by the Agency and the concerned entities for conducting the Activity;

7.       not stick or hang any advertising material on the body of a Vehicle without first obtaining the relevant written approval from the RTA;

8.       obtain, and annually renew, Vehicle licences and insurance pursuant to the relevant legislation in force;

9.       comply with the rules and conditions stipulated in the Implementing Bylaw for regulating the work of Establishments;

10.   cooperate with the employees of the RTA and concerned Government entities, and provide them with the information, data, and documents they require;

11.   not rent out a Vehicle to a person who does not hold a driving licence recognised by the RTA;

12.   create registers and documents related to Vehicle movement and locations, prepare the data and statistics prescribed or required by the Agency, and maintain the same for the period prescribed by the Agency;

13.   comply with the rates prescribed by the RTA for Vehicle rental;                          

14.   create and maintain paper or electronic records of the periodic maintenance of Vehicles;

15.   subscribe to and register on the System, and connect the Establishment’s electronic system to the System in accordance with the relevant procedure approved by the RTA and the concerned entities;

16.   not rent out Vehicles to other than the Users registered on the System;

17.   use the standard contract approved by the RTA;

18.   not assign its Permit to others or amend it without first obtaining the approval of the Agency;

19.   not suspend the Activity without first obtaining the approval of the Agency;

20.   not rent out a Vehicle for a period exceeding the daily hourly limit allowed per User;

21.   provide the RTA with the documents, data, and statistics it requires;

22.   equip Vehicles with a geographic tracking system;

23.   notify the competent entities of any acts committed by Users that may compromise public security; and

24.   perform any other obligations determined by the relevant resolutions issued by the RTA.

Obligations of Users

Article (6)

A User must:

1.       comply with the legislation regulating road traffic in the Emirate;

2.       use the Vehicle in accordance with his contract with the Establishment;         

3.       comply with the maximum number of Passengers permitted, by the Agency, in the Vehicle;

4.       notify the concerned entities of any items found in the Vehicle;

5.       not use the Vehicle beyond the period allowed for use;

6.       not permit others to drive the Vehicle; and

1.       perform any other obligations determined by the relevant resolutions issued by the RTA.

Fees

Article (7)

In return for issuing Permits and providing services under this Resolution, the RTA will charge the fees prescribed in Schedule (1) attached hereto.

Administrative Penalties

Article (8)

a.       Without prejudice to any stricter penalty stipulated in any other resolution, any Person who violates the provisions of this Resolution and the resolutions issued in pursuance hereof will be punished by the fine indicated opposite that violation in Schedule (2) attached hereto. Upon repetition of the same violation within one (1) year from the date of the previous violation, the amount of fine will be doubled. A fine must not exceed twenty thousand Dirhams (AED 20,000.00).

b.       In addition to the penalty of a fine referred to in paragraph (a) of this Article, the RTA may take one or more of the following actions or measures against a violating Establishment:

1.       warning;

2.       suspending the Activity for a period not exceeding six (6) months; and/ or

3.       revoking the Permit.

Law Enforcement

Article (9)

RTA employees nominated pursuant to a resolution of the Director General will have the capacity of law enforcement officers to record the acts committed in breach of the provisions of this Resolution and the resolutions issued in pursuance hereof. For this purpose, they may access Establishments or any of their facilities; review their registers, books, and documents; issue the necessary violation reports; and seek the assistance of the concerned Government entities in the Emirate including police personnel.

Grievances

Article (10)

Any affected party may submit a written grievance to the Director General against the decisions, procedures, and measures taken against him in accordance with the provisions of this Resolution and the resolutions issued in pursuance hereof, within fifteen (15) days from the date of being notified of the contested decision, procedure, or measure. The grievance will be determined by a committee formed by the Director General for this purpose, within thirty (30) days of its submission, and the decision issued by the committee on the grievance will be final.

Payment of Fees and Fines

Article (11)

The fees and fines collected pursuant to this Resolution will be paid to the Public Treasury of the Government of Dubai.

Issuing Implementing Resolutions

Article (12)

The Director General will issue the Implementing Bylaw and resolutions required for the implementation of the provisions of this Resolution.

Repeals

Article (13)

Any provision in any other resolution will be repealed to the extent that it contradicts the provisions of this Resolution.

Publication and Commencement

Article (14)

This Resolution will be published in the Official Gazette and will come into force sixty (60) days after the date of its publication.

Hamdan bin Mohammed bin Rashid Al Maktoum

Crown Prince of Dubai

Chairman of the Executive Council

Issued in Dubai on 5 September 2016

Corresponding to 3 Thu al-Hijjah 1437 A.H.

 


Schedule (1)

Fees for Permits Issued and Services Provided by the Agency

SN

Description

Fee (in Dirhams)

1

Issuing or renewing a Permit

2,000.00

2

Variation of the details of a Permit

1,000.00

3

Cancelling a Permit upon the request of an Establishment

1,000.00

4

Issuing  a Vehicle operation authorisation

AED 150.00 per Vehicle

5

Revoking a Vehicle operation authorisation

AED 100.00 per Vehicle

6

Issuing a replacement for a lost Permit

100.00

 


 

Schedule (2)

Violations and Fines

SN

Violation

Fine (in Dirhams)

1

Conducting the Activity without a Permit

10,000.00

2

Failure to renew an expired Permit without a reason acceptable to the Agency

5,000.00

3

Sticking or hanging any advertising material on the body of a Vehicle without first obtaining the relevant approval from the RTA

3,000.00

4

Failure of a Vehicle to meet the technical requirements

5,000.00

5

Failure by an Establishment to provide the minimum required number of Vehicles

AED 2,000.00 per unprovided Vehicle per month

6

Use, by an Establishment, of a Vehicle for other than the permitted purposes

4,000.00

7

Obstructing the work of RTA employees and inspectors

2,000.00

8

Failure to maintain the data or documents related to Vehicle movement and locations; or provision of data and documents which prove to be false, inaccurate, or inadequate

5,000.00

9

Assigning, or varying the details of, a Permit without obtaining the approval of the Agency

10,000.00

10

Suspending the Activity without obtaining the approval of the Agency

5,000.00

11

Operating a Vehicle that is not authorised for conducting the Activity

5,000.00

12

Failure to provide the RTA with any documents, data, or statistics it requires

5,000.00

13

Failure to use the car parks and places designated by the Agency and the concerned entities for conducting the Activity

1,000.00

14

Using a Vehicle beyond the allowed daily hourly limit

300.00

15

Renting a Vehicle out to a person who does not hold a driving licence recognised by the RTA

1,000.00

16

Failure to provide Vehicle user guides and instruction manuals, and other information

200,00

17

Failure to equip a Vehicle with a geographic tracking system

2,000.00

18

Failure to display, clearly and legibly on the body of a Vehicle, the name of the Establishment and the maximum number of Passengers permitted in the Vehicle

2,000.00

19

Failure to comply with the operation conditions and rules prescribed by the Implementing Bylaw

3,000.00

20

Renting a Vehicle out to other than the Users registered on the System

2,000.00

21

Failure to subscribe to or register on the System, or failure to connect the Establishment’s electronic system to the System in accordance with the relevant procedure approved by the RTA and the concerned entities

5,000.00

22

Failure to maintain the records, data, documents, statistics, and reports related to periodic maintenance of Vehicles or failure to make them accessible to the RTA in paper or electronic form

5,000.00

23

Failure to comply with the rates prescribed by the RTA for renting out Vehicles

3,000.00

24

Failure to comply with the resolutions issued by the RTA in implementation of the provisions of this Resolution

2,000.00

 

 



©2017 The Supreme Legislation Committee in the Emirate of Dubai

[1]Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.