Saudi Arabia: Shaping The Future: The Future Of Transport In Dubai

Last Updated: 8 November 2017
Article by Omar Omar and Bushra Abutayeh

The Roads and Transport Authority (RTA) has recently approved its revised Strategic Plan 2017-2021 to align with the Dubai Government's Drive Dubai (10X Initiative), the UAE National Agenda and the Dubai 2021 Plan.

Through the revisions, the RTA's strategic goals have been reclassified into three core drivers: Community, Transit Systems and Internal Efficiency. In simpler terms, this translates to developing smart solutions for transport, roads, and traffic; ensuring integration between mobility and urban planning and make roads and transit systems friendly to all. 

In this Article, we consider recent developments in the legislative landscape of transport in Dubai. In specific, we look at the legal developments and initiatives introduced or materialised in the year 2017 that offer 'smart' solutions for mass transport and mobility.

New Laws and Developments

1. The Dubai Integrated Mobility Platform - 

Bylaw No. 130 of 2017 issued pursuant to Executive Resolution No. 6 of 2016 Regulating Passenger Transportation by Vehicles 

We have previously touched upon the matter of App-based (e-hail) taxi services in Dubai in our Law Update issue of June-July 2016. App-based taxi service providers had operated in legal vacuum until Dubai Executive Council Resolution No. 6 of 2016, Regulating Passenger Transportation by Vehicles ("Resolution No. 6") mandated that the activity of providing passenger transportation by vehicles through phone calls, electronic means, smart applications or any other channel is to become a licensed activity.

Under Resolution No. 6, a company that offers transportation services to its customers through a smart application ("e-hailer") in Dubai must apply to the Public Transport Agency at the RTA to obtain a permit that would allow it to offer passenger transport services through electronic means and smart applications (the "Permit"). The fee to issue or renew the Permit, which is valid for a renewable term of one year, is AED 500. A penalty of AED 5,000 will be imposed if transport services are offered through electronic or smart means without having the requisite Permit. 

On 26 February 2017, Bylaw No. 130 of 2017 (the "Bylaw") was issued by the RTA's Board of Directors to further specify the conditions and requirements of transporting passengers in Dubai, whether by taxis or luxury (limousine) cars, including those pertinent to the issuance of the Permit for e-hailers. 

In what can be considered an important upgrade to the affair of passenger transport in Dubai, the Bylaw introduced the concept of the "Electronic Platform" or what is otherwise advertised as the Dubai Integrated Mobility Platform. This Platform is intended to provide Dubai residents and visitors with easy access to all mass transit systems available in Dubai through a single window (smart mobility application). The said mass transit systems will include the RTA's multi-modal transit systems such as the metro, tram, buses, marine transit and taxis. 

In addition, the Dubai Integrated Mobility Platform is projected to integrate the RTA's mass transit systems with transit systems of other entities in Dubai, such as luxury car service of the Dubai Taxi Corporation, Palm monorail and more importantly to integrate the electronic taxi booking services such as Uber, Careem, and others. An important element to consider in the proposed integration of systems between the RTA and e-hailers is that of a realised partnership between the public and private transport sectors in Dubai aimed to offer innovative and economic mobility solutions. 

With a view of this projected integration, the Bylaw provides that to obtain the Permit an e-hailer must: 

a. Make available the systems, electronic means and smart application(s) necessary to provide the e-hailing service;

b. Connect its systems, electronic means and smart application(s) which are necessary to provide the e-hailing service with the Electronic Platform (the Dubai Integrated Mobility Platform); and 

c. Install and connect its systems, electronic means and smart application(s) which are necessary to provide the e-hailing service through the Electronic Platform on/with the smart taximeters recommended by the RTA (which are available in the approved taxis and luxury cars). 

By the same token, the Bylaw specifies the conditions applicable to entities desirous of obtaining a permit to transport passengers by taxis and luxury cars, which also include connecting the applicant's electronic systems to the Electronic Platform (the Dubai Integrated Mobility Platform).

Made to coincide with the well known Gitex event, the RTA launched the mobility application named S'hail. As of now , the available transport options are the metro, tram, bus, waterbus, taxi, e-Hail, Uber and Careem services. Dubai's marine transport options, the Palm Monorail, Downtown's Dubai Trolley and the two-seater Autonomous Air Taxi (AAT) service will be integrated at a later stage.   

2. Transport and Rental Activities 

Executive Council Resolution No. 47 of 2017 relating to road transportation and vehicle rental activity in Dubai.

On 15 June 2017, the Executive Council issued Resolution No. 47 of 2017 ("Resolution No. 47") under which activities involving transport by road and rental of vehicles have now become regulated and licensed activities. This Resolution came as a measure to set standards for and to monitor the companies operating in this sector and to control the quality of the services offered.

The scope of Resolution No. 47 covers an array of transport activities, which includes transport of passengers (in buses on international routes), goods, valuables, packages, foodstuff, furniture, dangerous and radioactive material and other items by specialised companies; and rental activities such as the rental of buses, trucks, recreational vehicles, motorcycles and bicycles. The Resolution also applies to the services of transport of the elderly and sick in non-emergencies, mobile maintenance (mechanical, electric, tyres, and air conditioning) services, vehicle registration, home delivery, logistics, home gas distribution, vehicle fuel distribution and the management of vehicle fleets. 

The activities subject to this Resolution, with a total of 52 activities, are listed in Annex 1 of the Resolution. 

Resolution No. 47 stipulates that in order to undertake any of the transportation or rental activities listed, the interested party must obtain a permit from the Licensing Agency at the RTA. The permit is valid for a renewable term of one year and must be renewed within 30 days of expiry. Amongst other fees, fees related to the issuance, renewal, amendments of, cancellation or suspension of permits are listed in Annex 2 of Resolution No. 47 and range between AED 50 to AED 5,000. Additional details about the issuance of the permit, such as the terms, conditions, process and required documents will be mentioned in a follow-up bylaw. 

Save for government entities, which are exempt, all entities undertaking road transportation and vehicle rental activity must comply with the provisions of Resolution No. 47 within one year of its date of issuance (extendable if deemed necessary by the RTA's General Director and Chairman). This includes entities based in special development zones, free zones, and the Dubai International Financial Centre. 

Finally, Resolution No. 47 also defines the fines and penalties for any violations committed and list them in Annex (3). The violations notably include failure to undertake road transportation and vehicle rental activities without permits (fine of AED 10,000), taping or posting any advertisements or promotional material on vehicles without the prior approval of the RTA's Licensing Agency (AED 5,000) and using the vehicle for non-permitted activities (AED 4,000). The Resolution also provides for a grievance procedure, which allows the concerned person/entity to file a complaint within 15 days of being notified of the decision/procedure/measure to be complained against and provides that a (final and conclusive) decision must be issued in the matter of grievance within 30 days of date of complaint. 

3. Pay-by-the-Hour Car Rental Activity

Executive Council Resolution No. 49 of 2016 regarding the regulation of pay-by-the-hour car rental activity in Dubai.

As a result of Executive Council Resolution No. 49 of 2016 and bylaw no. 107 of 2017 issued pursuant to it (together, "Resolution No. 49"), Dubai residents may now elect to benefit from the concept of car sharing, whereby they can pick up a car from any location and drop it anywhere else in Dubai and pay for the service by the minute or on an hourly basis. 

Resolution No. 49 aims to provide a premium mode of transport at low cost, thus affording Dubai residents with an alternative transportation solution suitable to their needs and budgets. The Resolution also aims to apply best-adopted practice worldwide in car sharing while concurrently seeking to regulate it in an efficient and flexible manner.

Pay-by-the-hour car rental service is a licensed activity, and the requisite license must be obtained from the Licensing Agency at the RTA. Bylaw No. 107 defines the procedures for issuing and renewing the license for the car rental companies and the cars in service. Individuals renting the car should similarly hold a valid driving license recognised by the RTA.

Pay-by-the-hour car rental services are now offered by the RTA in partnership with two firms, Udrive and ekar. The pay-by-the-hour car rental service is one of the 'last mile solutions' afforded by the RTA in addition to feeder buses and taxis. It should be noted, however, that according to Resolution No. 47 pay-by-the-hour car rental services will be allowed for a maximum period of six hours per day.

Looking Forward

Dubai's journey of development continues, as conceptualised in the RTA's revised Strategic Plan 2017-2021 and the different initiatives it has undertaken to realise the vision of making Dubai a global capital of the future, which offers its residents and visitors an effective and seamless transportation experience. One of the key components in realising this vision would naturally mean having the right legal framework to formalise and implement it. While we have seen future forward legislation introduced to regulate the different transport projects envisaged by Dubai, we continue to look forward to laws and regulations that usher in the next chapter in Dubai's innovative and smart development.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions