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Dubai, UAE

Car sharing in the UAE

Carsharing in the UAE + insurance.

Our company is setting up a car sharing platform to be launched in Dubai. The concept will make the owners money and enable the hirers to get cheap rental rates.

We have learned that it is illegal for private individuals to make money on their car unless they register it as a taxi or similar in RTA. We cannot find the actual law anywhere, and we are wondering why it is illegal?

Is there a way to circumvent this issue? For instance by having the owners register their car on our site in a way that would accommodate the RTA requirement? The fines are big for individuals and we don't want any of the customers being fined.

In regards to the company, we are also looking for a way to not get fined for facilitating this service. How would we make sure of this? And what would be the insurance requirements in this case?

Many thanks in advance!

Prudential Middle East Attorneys & Legal Consultants
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18 Nov 2016, 11:34

The provision of car sharing in UAE may be apparently different than other countries and there may be some variations of local regulations in this regard that may change from one emirate to other. It purely based on the specific requirement of each area. We can see some transport sharing but it should be in compliance with local regulations.

Regarding the question, we also need to understand the business activities of the company as per DED regulations if you are entitled to do the same. Based on further business plan and related matter we can definitely find the way to protect the interest of all the concerned parties in compliance with the local regulations. You may send details at info@pmealc.com    

18 Nov 2016, 11:59

The business plan is to take a flat fee from the car hirers and to take a %-fee of the owner's rental fee. And they would pay through our platform in order to be properly insured etc. as well.

So for instance: I have listed my car on the platform and you want to rent it for the weekend where I have already marked it as available. I have already set the rental rate on the site and you click your way to the payment gateway to confirm you want to rent it. The payment goes through and our company takes 25% of this payment to the owner and a 1-3% fee from the hirer.

We are aware that rules vary from country to country and from emirate to emirate - we are interested in knowing which rules applies in Dubai?

18 Nov 2016, 12:59

Thanks for the clarification, we still need to know if you are a registered company in UAE and what kind of trade license do you have to know if you are able to do business in this specific sector, further we are unable to fully illustrate our legal opinion on this matter publically, you may contact us directly to seek further assistance.

I hope you will understand and appreciate our policy.  

21 Nov 2016, 06:52

Ok, we are registered in the UAE and our company has a so-called service license issued by DMCC - what kind of license does it require?

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