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UAE Mandates Tracking Devices and Electronic Contracts for All Rental Vehicles

New executive regulations under Federal Law No. 14 of 2024 will require UAE rental car companies to install tracking devices connected to a unified electronic system starting January 1, 2027. Operators must secure annual renewable permits, hold valid commercial licenses, and issue only standardized electronic contracts.

Published Source: Gulf Today
Issuing authority
UAE Licensing and Traffic Authorities
Jurisdiction
United Arab Emirates
Publication date
November 7, 2026
Effective date
January 1, 2027
Stage
Final rule
Official document
Executive Regulations of Federal Law No. 14 of 2024 on the Regulation of Traffic
Official source
www.gulftoday.ae
Illustration: A modern car rental lot in Dubai with rows of clean vehicles parked under sunlight, editorial news style, no people, no text, no logos
Illustration

The executive regulations for Federal Law No. 14 of 2024 on the Regulation of Traffic will come into effect across the UAE on January 1, 2027, according to Gulf Today.

Under the updated rules, running a vehicle rental business will require a formal permit issued by the relevant licensing authority. Issued permits will remain valid for one calendar year and can be renewed for an equivalent period.

Rental operators will be required to install approved tracking devices in all rental vehicles and link them to a unified electronic tracking system. Additionally, companies must hold a valid commercial license and adhere to operational standards established by traffic and licensing bodies.

The regulations also mandate that rental agencies verify customer driver licenses and conduct all rental agreements solely through standardized electronic contracts.

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