Abu Dhabi: The new executive regulations for the UAE Traffic Law, which will come into effect at the beginning of January, 2027, set out a series of conditions and obligations for vehicle rental activities in the country, including a requirement to install tracking devices on all vehicles designated for rental.Under Article 123, companies must obtain prior authorisation from the licensing authority before engaging in vehicle rental activities. The authorisation is valid for one calendar year and is renewable.To obtain authorisation, companies must meet several requirements, including holding a valid commercial licence, installing approved tracking devices on all vehicles designated for rental, and registering with and linking to the unified electronic platform approved by the Ministry and licensing authority. Companies must also meet any additional requirements imposed by the competent authorities or traffic control authority.Article 124 sets out five key obligations for licensed rental offices. These include verifying the validity of the renter’s driving licence, using a unified rental agreement for transactions and electronically registering the agreement with the licensing authority.Rental offices may only rent vehicles registered in their name and licensed for that purpose. The article also prohibits vehicles from being loaned between rental offices except under a notarised contract. Employees of the same office may use its vehicles, subject to approved regulations.Under Article 126, the relevant ministry will establish and design an electronic system to register rental office vehicles, record their data and information relating to vehicle rentals, and track the geographical scope of their movements.Article 127 prohibits the rental or leasing of private vehicles that are not licensed for rental purposes. It also prohibits the use of such vehicles to transport passengers or goods in return for any form of material compensation.
