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

UAE authorities are set to impose new regulations on car rental companies, mandating the installation of approved tracking devices on all vehicles available for hire and registration on a unified electronic platform, starting from January 1, 2027. These rules, outlined in Cabinet Decision No. 174 of 2026, are derived from Federal Decree-Law No. 14 of 2024 governing road traffic.

Car rental businesses will need to secure a permit from the relevant licensing authority and meet four specific conditions. These include installing authorized tracking devices on every rental vehicle, registering and subscribing to an approved electronic platform managed by the Ministry of Interior and the licensing authority, and complying with any additional requirements set by the licensing or traffic enforcement authorities.

Furthermore, these companies must possess a valid commercial licence from the appropriate authority to operate a vehicle rental business. The operating permit will be valid for a year and can be renewed. The UAE will also establish an electronic system managed by the Ministry of Interior to register rental vehicles, monitor their operational geographical areas, and record all related rental information.

Car rental companies must confirm that customers possess valid driving licenses before renting vehicles to them, using the standardized rental agreement available through the approved rental system. They must register rental agreements through the licensing authority's electronic systems and operate only authorized vehicles registered in their names.

Rental companies will also be restricted from lending vehicles to other rental businesses unless such transactions are covered by a registered rental agreement with the licensing authority, excluding scenarios involving employees of the same rental company acting within defined conditions and controls. Additionally, the UAE has introduced other 2027 traffic rules, including a limit of two-year car registrations for individual residents and a restriction on driving for nine hours within a 24-hour period.