Roads and Transport Authority permit needed for all Dubai transportation firms

27 Jan 2020

All transportation firms must now first get a permit from the Roads and Transport Authority before operating in Dubai, a senior official with the authority revealed on Thursday.

The Roads and Transport Authority Licensing Agency’s director of commercial transport activities Sultan Al Marzooqi says that the no objection certificate is a prerequisite for firms to complete their business permits’ amendment, issuance and renewal.

The directive is based upon Administration Decision No. 706 of 2019, which was taken in order to implement Resolution No. 47 of 2017 of the Executive Council for the regulation of all car rental and road transport within Dubai.

All transport services are covered by the decision, including passenger car rentals and light and heavy trucks that are used to deliver the likes of goods, food, money, raw materials and furniture in addition to hazardous materials.

Also falling under the regulation is the rental of bicycles, buses, motorcycles and recreational vehicles.

Al Marzooqi says that the decision is part of the move to have road transport leveraged and to streamline the emirate’s car rental activities.

The ultimate objective is to ensure that all such activities within Dubai are covered by regulations.

There are approximately 12,000 car rental and transportation firms registered in the emirate, with around 255,000 vehicles registered for rental and transportation activities.

The decision is a clear definition of the Roads and Transport Authority Licensing Agency’s role in regard to such regulations. 

The Roads and Transport Authority will be preparing and approving safety and technical standards pertaining to the operation of the vehicles, and will also be looking out to ensure that operators are complying with franchise contracts and permits.

Al Marzooqi says that should stipulations be breached, the companies involved will be hit with the applicable penalties that the decision has provided for.

The Licensing Agency of the Roads and Transport Authority is also going to be making decisions in regard to permit applications and specifying the number of vehicles that can be operated by a company for the delivery of passenger transport.

A database is also going to be set up for the purposes of monitoring the facilities and activities, a move to which the administrative decision also made specific reference.

Anyone who drives any kind of motor vehicle in the United Arab Emirates for any reason must be covered by at least a basic form of third-party car insurance as a legal requirement of the nation.

Third-party car insurance is mandatory in the UAE because it ensures drivers protection from liability that may arise due to property damage or third-party bodily injuries caused by the vehicle covered by the insurance.

There are a number of car insurance companies that offer coverage in the country.

On the other hand, there are also more extensive forms of car insurance that provide drivers with wider protection against theft, vandalism, fire or damage caused by accident regardless of who is responsible.