Dubai: Rent-a-cars in Dubai will now also be available on an hourly basis, according to a new resolution issued on Tuesday by Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of Dubai Executive Council.

Resolution No 49 of 2016 aims to provide alternative low-cost public transportation solutions that meet the needs of the people in Dubai.

According to Mattar Al Tayer, director-general and chairman of the Board of Executive Directors of RTA, the new facility will allow public transport users to pick up and drop rent a cars at metro and tram stations.

The facility will offer commuters the convenience of renting cars for short trips at a cost much lower than the taxi fare.

Currently, most companies allow car rentals for a minimum of one day and the new resolution will provide new possibilities and convenience for residents as well as tourists.

Under the hourly system, the cars can be rented for a maximum of six hours per day and can be driven only in Dubai.

According to a salesperson of Hertz Rent A Car operator, right now a customer can hire a car for a minimum of 24 hours and whether a customer uses it for one hour or 24 hours he will be charged for the whole day.

Another salesperson at Avis Rent A Car also said that they only rent cars on a daily basis and so far they have not received any information about the new law.

The provision of hourly service could be available once the resolution comes into effect.

Al Tayer said that the resolution backs the RTA’s efforts to boost the popularity of public transport, while helping achieve integration between different modes of transport.

According to Al Tayer, the RTA looked into global best practices that showed renting cars on an hourly basis has greater benefits, such as reducing the number of private car ownership.

He pointed out that under the system, 25 to 71 per cent of people refrained from buying new cars, while 15 to 20 per cent of people got rid of their private cars.

In places where the hourly system is in place, the public transport ridership also went up by 13 to 54 per cent.

The resolution bans any establishment from providing car rental services in the emirate without receiving a permit from RTA’s Licensing Agency.

It also states that organisations will not be allowed to provide rental services except through cars that have been licensed by the RTA for the same purpose. RTA issues annual renewable rental permits for car rental firms as well as the cars for hire.

The RTA is authorised to provide car rental permits to any company or organisation in accordance with a contract that specifies the rights and commitments of both parties.

The resolution also allows RTA to authorise any company or establishment to conduct car rental business in Dubai through a franchise model.

According to the resolution, cars rented out should be registered and insured annually. Cars should be rented only to individuals who hold a driving licence recognised by RTA.

As per the resolution, the name of the company must be displayed on the car, in addition to the maximum number of passengers. The cars must use parking spots and locations that have been specified by the authority. The companies are not allowed to display any advertisements on the car without obtaining a written pre-approval from the RTA’s licensing department.

The companies are also obliged to set up a special system to monitor the movement and location of rented cars. The cars must also be fitted with GPS.

They must also provide any statistics or reports requested by the licensing department.

The companies are also required to join the RTA’s online information system for car rental services. No company is allowed to rent a car without registering the transaction in the online car rental information system.

The resolution will be published in the Official Gazette, and will be effective 60 days after the date of its publication.

—With inputs by WAM