Car rental companies across the UAE must fit approved tracking devices on every vehicle available for hire and register on a unified electronic platform from January 1, 2027. The requirement is part of Cabinet Decision No. 174 of 2026, the implementing regulations of Federal Decree-Law No. 14 of 2024 on road traffic.
No individual or company may run a vehicle rental business without a permit from the relevant licensing authority. The permit is valid for one calendar year and renewable for equal periods. To obtain it, an operator must meet four conditions:
- Install tracking devices approved by the licensing authority on every vehicle designated for rental.
- Register and subscribe to the unified platform approved by the Ministry of Interior and the licensing authority.
- Hold a valid commercial licence from the competent authority allowing vehicle rental operations.
- Meet any additional requirements set by the licensing authority or the traffic enforcement authority.
Licensed companies must also meet five obligations:
- Check that customers hold a valid driving licence before renting them a vehicle.
- Complete every rental on the standardised agreement available through the vehicle rental system approved by the licensing authority.
- Register rental agreements with the licensing authority through its approved electronic systems.
- Rent out only vehicles registered in the company’s own name and authorised for rental.
- Not lend vehicles to other rental businesses unless a registered rental agreement covers the arrangement. Use by the company’s own employees is exempt, under conditions set by the licensing authority.
The regulations also require the Ministry of Interior to establish and design an electronic system to register vehicles owned by rental companies, track the geographical areas in which they operate and record all data relating to their rental.
The same Cabinet Decision sets a maximum of nine hours of driving in a 24-hour period; the other rule changes taking effect on January 1, 2027 are in our report on the 2027 traffic rules.
