UAE car rental firms must fit vehicle trackers from 1 January 2027

Rental companies across the UAE must put approved trackers in every car they offer to customers and sign up to a single electronic platform when new federal traffic rules take effect on 1 January 2027. The rules come from Cabinet Decision No. 174 of 2026, which puts Federal Decree-Law No. 14 of 2024 on road traffic into practice.

No person or company may run a rental business without a permit from the relevant licensing authority. Four conditions apply. The company needs a valid commercial licence for vehicle rental. Each rental car must carry a tracker approved by the licensing authority. The company must register with, and subscribe to, a platform that both the Interior Ministry and the licensing authority have approved. It must also satisfy any further requirements set by the licensing or traffic enforcement authority.

The permit lasts one calendar year and can be extended for another year. The Interior Ministry is to design an electronic system that records the vehicles owned by rental companies, the areas where they are driven and the data on each rental.

Licensed companies also face five obligations. They must confirm that a customer has a valid driving licence before handing over a car. Every rental must use the standard contract provided through the approved rental system, and the contract must be registered with the licensing authority through its electronic channels. Companies may rent out only cars registered in their own name and cleared for rental by the authority. They may not pass cars to other rental businesses unless a registered contract covers the transfer. Use of cars by the company's own employees is exempt, under conditions set by the licensing authority.

For visitors and residents hiring a car in the UAE, the rules mean the company will verify the driving licence, issue a standard contract and register it with the authority. Available vehicles can be browsed in the car rental catalogue.

Gulf News reported the details on 8 November 2026.