Administrative Resolution No. (1004) of 2018

Issuing the Implementing Bylaw of

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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The Director General and Chairman of the Board of Executive Directors of the Roads and Transport Authority,

After perusal of:

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

Executive Council Resolution No. (8) of 2006 Establishing the Agencies Affiliated to the Roads and Transport Authority and Approving their Corporate and Organisational Structures;

Executive Council Resolution No. (49) of 2016 Regulating the Activity of Hourly Rental of Vehicles in the Emirate of Dubai and its amendments; and

Administrative Resolution No. (107) of 2017 Issuing the Implementing Bylaw of Executive Council Resolution No. (49) of 2016 Regulating the Activity of Hourly Rental of Vehicles in the Emirate of Dubai,

Does 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.

PTA:

The Public Transport Agency of the RTA.

Resolution:

Executive Council Resolution No. (49) of 2016 Regulating the Activity of Hourly Rental of Vehicles in the Emirate of Dubai and its amendments.

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.

Activity:

Renting out Vehicles for a period not exceeding the daily number of hours determined by the RTA, to travel within the Emirate for a prescribed rate.

Establishment:

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

Vehicle:

A light vehicle that meets the requirements prescribed by this Resolution.

Permit:

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

Vehicle Operation Authorisation:

A document issued by the PTA authorising an Establishment to operate a Vehicle.

Functions of the PTA

Article (2)

For the purpose of implementing the Resolution, the PTA will have the duties and powers to:

1.    issue Permits to new Establishments;

2.    renew Permits for existing Establishments;

3.    vary the details of a Permit;

4.    cancel a Permit upon the request of an Establishment;

5.    issue or cancel a Vehicle Operation Authorisation;

6.    issue a replacement for a lost Permit;

7.    follow up compliance by Establishments with the operational performance indicators stipulated in their contracts;

8.    conduct periodic audit to verify compliance by Establishments with the Resolution and the resolutions issued in pursuance thereof, including this Resolution, and with the contracts concluded with them; and inspect Vehicles to verify their safety and roadworthiness; and

9.    issue no-objection certificates addressed to competent entities within the RTA, and other competent entities, in respect of the Activity, Establishments, or Vehicles.

Using Vehicles

Article (3)

a.    A User will register in the electronic system or smart application of an Establishment and provide the required information and documents, including the User’s name, telephone number, email address, credit card number, passport-size photo, copy of driving licence, and copy of Emirates ID Card (for UAE residents) or copy of passport and entry visa (for UAE visitors); and any other information or documents required by the Establishment.

b.    Upon verification of all information and validation of all documents referred to in paragraph (a) of this Article, the Establishment will provide the User with a password and a personal identification number (PIN).

Obligations of Establishments

Article (4)

In addition to the obligations prescribed by the Resolution, an Establishment must:

1.    not lend any of its Vehicles to any other Establishment;

2.    provide a minimum of fifty (50) Vehicles as a prerequisite for conducting the Activity. Number plates will be assigned to these Vehicles based on the relevant Franchise Agreement concluded with the RTA;

3.    not operate any Vehicles in excess of the minimum number referred to in sub-paragraph (2) of this Article without first obtaining the approval of the PTA and participating in the RTA public auction for the number plates of the Vehicles approved for conducting the Activity in the Emirate based on the relevant studies conducted by the PTA;

4.    replace any Vehicle when it completes four (4) years in service;

5.    not make any substantial modifications to the body, engine, or main component parts of any of its Vehicles;

6.    provide a twenty-four hour call centre to provide support to its Users and customers and answer their queries;

7.    not rent out a Vehicle with a driver;

8.    comply with the dates of periodic maintenance of Vehicles, as prescribed by the manufacturer or authorised agents;

9.    specify the rights and obligations of each User and inform him thereof in accordance with the relevant template adopted by it;

10.  ensure that Vehicles meet the relevant technical requirements at all times;

11.  provide appropriate offices that meet the requirements prescribed by the RTA for conducting the Activity, and notify the RTA of any relocation of these offices and of their new addresses;

12.  allocate car parking spaces for the Vehicles used in conducting the Activity as prescribed by the RTA in this respect, ensure that no damage is caused to public car parks, and pay the fees for using public car parks as prescribed by the legislation in force in the Emirate;

13.  comply with the Vehicle requirements prescribed by Article (9) of this Resolution; and

14.  comply with the resolutions issued by the RTA in relation to the implementation of the Resolution and the resolutions issued in pursuance thereof, including this Resolution.

Cessation of the Activity

Article (5)

a.    No Establishment may cease the Activity without notifying the PTA at least three (3) months prior to the date of cessation and obtaining the PTA's approval of the same.

b.    No Establishment may make any changes or modifications to the areas or parking spaces designated for conducting the Activity without notifying the PTA of the same at least three (3) months prior to the date of change or modification and obtaining the PTA's approval of the same.

Requirements for Issuing Permits

Article (6)

a.    The issuance of a Permit will be subject to the following requirements:

1.    The necessary approvals must be obtained from the concerned entities in the Emirate.

2.    The commercial licence of the Establishment must be limited to the Activity, to the exclusion of all other activities.

3.    The Establishment must have a single traffic file.

b.    The Establishment must obtain the written approval of the PTA and satisfy the conditions prescribed in paragraph (a) of this Article when establishing any branches within the Emirate.

Procedures for Issuing Permits

Article (7)

When issuing a Permit, the following procedures will be followed:

1.    A Permit application will be submitted to the PTA on the form it prescribes for this purpose, supported by the following documents:

a.    the initial approval of the Department of Economic Development in Dubai, which must include a reserved trade name;

b.    a copy of the valid passport of the applicant;

c.     a copy of the valid UAE residence permits of non-UAE national partners in the Establishment;

d.    a copy of the valid Emirates ID Card of the owner;

e.    for non-UAE nationals, a no-objection letter from the sponsor;

f.      economic feasibility study on conducting the Activity; and

g.    proof of payment of the relevant prescribed fees.

2.    The PTA will issue the Permit upon verifying that the Permit applicant has satisfied the conditions and complied with the procedures prescribed by this Resolution, and validating all the documents referred to in paragraph (1) of this Article.

Conditions and Procedures for Permit Renewal

Article (8)

A Permit will be valid for a period of one (1) year, renewable for the same period subject to the same conditions and procedures prescribed for its initial issuance. The application for renewal must be submitted within thirty (30) days from the date of expiry of the Permit.

Vehicle Requirements

Article (9)

A Vehicle Operation Authorisation will be issued subject to the following requirements:

1.    The year of manufacture of the Vehicle must not be more than one (1) year back from the year in which the Vehicle Operation Authorisation application is submitted.

2.    The Vehicle must not have been previously operated or used for conducting any other activity.

3.    The seating capacity of the Vehicle must not exceed five (5) passengers, including the driver.

4.    The Vehicle must be fitted with the safety equipment prescribed by the PTA.

5.    Periodic technical inspection of the Vehicle must be conducted to verify its roadworthiness.

6.    The Vehicle must meet the GCC specifications.

7.    The Vehicle must be in any of the colours prescribed by the RTA.

8.    The side windows, windscreen, and rear window of the Vehicle must not be tinted.

Cancellation or Replacement of Vehicle Operation Authorisations

Article (10)

The PTA may, on its own initiative or upon an Establishment’s application, cancel or replace a Vehicle Operation Authorisation in any of the following cases:

1.    where the Vehicle has a major breakdown or has been involved in an accident rendering it a risk to the life of its User or others;

2.    where the Vehicle completes four (4) years in service, or where it is decommissioned; or

3.    where the Vehicle has been under maintenance for a period exceeding three (3) months.

Registering Additional Vehicles in the Establishment’s Traffic File

Article (11)

The PTA may authorise an Establishment to register additional vehicles in the Establishment’s traffic file, to be used for purposes other than conducting the Activity, subject to the following:

1.    The vehicles may not be of the same specifications and colours of the Vehicles designated for conducting the Activity.

2.    The number of additional vehicles to be registered for use in recovery and towing of the Establishment’s broken-down Vehicles may not exceed two (2).

3.    The number of additional vehicles to be registered may not exceed three (3) maintenance and administrative services vehicles per each one hundred (100) Vehicles designated for conducting the Activity.

Issuing Implementing Instructions

Article (12)

The Chief Executive Officer of the PTA will issue the instructions required for the implementation of the provisions of this Resolution.

Repeals

Article (13)

The above-mentioned Administrative Resolution No. (107) of 2017 is hereby repealed. Any provision in any other administrative resolution will also 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 on the day on which it is published.

Mattar Al Tayer

Director General and Chairman of the Board of Executive Directors

Issued in Dubai on 30 December 2018

Corresponding to 23 Rabi al-Thani 1440 A.H.

 



©2019 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.