UAE car rental companies must install vehicle trackers under new 2027 rules

uae Dubai: Car rental companies across the UAE will be required to install approved tracking devices on all vehicles available for hire and register on a unified electronic platform under new federal traffic regulations taking effect on January 1, 2027.

The requirements are part of Cabinet Decision No. 174 of 2026, which introduces the implementing regulations of Federal Decree-Law No. 14 of 2024 governing road traffic.

Under the regulations, no individual or company will be permitted to operate a vehicle rental business without first obtaining a permit from the relevant licensing authority and meeting four conditions.

These include installing tracking devices approved by the licensing authority on every vehicle designated for rental, registering and subscribing to a unified platform approved by the Ministry of Interior and the licensing authority, and meeting any additional requirements imposed by the licensing authority or traffic enforcement authority.

Rental companies must also hold a valid commercial licence issued by the competent authority authorising them to operate a vehicle rental business.

The operating permit will be valid for one calendar year and may be renewed for an equivalent period.

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 information and data relating to their rental.

In addition to the four licensing conditions, the regulations set out five obligations that licensed car rental companies must fulfil.

Companies must verify that customers hold valid driving licences before renting vehicles to them.

All rental transactions must be completed using the standardised rental agreement available through the vehicle rental system approved by the licensing authority.

Rental companies must also register rental agreements with the licensing authority through its approved electronic systems.

The regulations further require companies to conduct rental activities only using vehicles registered in their own names and authorised for rental by the relevant licensing authority.

Rental companies will also be prohibited from lending vehicles to other rental businesses unless the arrangement is covered by a rental agreement registered with the licensing authority.

An exception applies to the use of vehicles by employees of the same rental company, subject to conditions and controls determined by the licensing authority.

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