New Vehicle Registration and License Costs in the UAE

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New Vehicle Registration and License Costs in the UAE

His Highness Sheikh Mohammed bin Rashid Al Maktoum who is also the vice-president as well as the Prime Minister and the sovereign ruler of Dubai issued a Ministerial Decision No.30 pertaining to the vehicle license and registration costs due to which buying, selling and owning a new and/or used car in UAE has just become slightly more expensive for the UAE residents. This new unified federal decree was implemented on 1st December 2017 due which the fees for almost all vehicle-related services i.e. vehicle registration, vehicle testing and driver licensing have increased and in some cases, nearly doubled. This federal decree pertaining to the new vehicle licensing fees came into effect on 1st December.

One of the Roads and Transport Authority customer service centers or the RTA told the Khaleej Times almost all service fees have been unified when asked about the new fee structure. However, according to them, an additional service fee may be charged at the discretion of the transport authority in various states in the Emirates.

Drivers with an international driving license wanting to convert it into a UAE license no longer have to pay just one set of conversion fees as now the whole conversion fee process has been revamped by the government. Earlier, drivers in Dubai would pay Dh 400 plus an extra Dh 20 for a complete changeover from the international license to a UAE license plus the RTA fee. However, now they have to pay other fees as well including a revised fee of Dh 600 for license conversion Dh 200 to open a traffic file, Dh 50 for handbook manual and Dh 20 as the RTA fee. This sums up to Dh 870 which is more than double the previous fee. Additionally, on the maintenance side, an inspection report for an accident on a small scale will now cost Dh 500 and a detailed technical test for any vehicle will cost Dh 350.

The process of license renewal is relatively simple and easy in UAE where the drivers are given a grace period of 30 days to renew their registration once it expires. Secondly, this process is so easy that it allows owners to drive their cars to the garage if a car fails inspection to have it repaired and hence this is why that UAE is the only country where insurance policies are 13 months long. In the past, if the drivers and/or the vehicle owners didn’t renew their licenses after the grace period ended, they were fined Dh 10 a month however since the federal decree has been passed, drivers caught driving without a valid license are charged Dh 500 as fine and they also receive 4 black points. Not only this, but cars can also be impounded for seven days.

All UAE residents and citizens above the age of 18 can obtain a driver’s license. However, the licenses are only valid for one year for new drivers below the age of 21 and it needs to be renewed every year until the drivers turn 21, when the validy increases to 10 years. According to the revised fee structure, light vehicle owners now have to pay AED 400 for first-time vehicle registration, Dh 350 for renewal fee as opposed to the previous renewal fee of Dh 250. Change of ownership will now cost Dh 350 whereas the re-registration of the vehicle against the new owner’s will now costs Dh 400. Similar charges like these have also been levied on the registration of public transport. Initially, the light vehicle testing fee was Dh 120 which has now been increased to Dh 150. Issuance of a driving license for one year is now typically going to cost around Dh 100 whereas a driver license with a validity of more than 1 year is going to cost Dh 300.

This resolution was also published in the Official Gazette where the Article 2 stipulates that the Ministry of Interior will be coordinating with the licensing authorities to render as well as develop and improve services and update the required systems in the area in accordance with the Federal Law – No. 21 of the year 1995.

Provided below is a summarized version of all the fees related to driver licenses, vehicle inspections, and other services.

Fees related to driver licenses are as follows;

• Opening a traffic file: Dhs200
• Theory test against receiving a driver’s license: Dhs200
• Practical test against receiving a driver’s license: Dhs200
• Medical test against receiving a driver’s license: Dhs100
• Setting an appointment for theory and/or practical test for a driver’s license: Dhs300
• Transference costs of transferring a driving trainee’s file from one emirate to another: Dhs200
• Modification of permit data for a driving occupation: Dhs100
• Special committee testing for a driving trainee: Dhs300
• Transferring a trainee’s driving test: Dhs100

Fees related to vehicle inspections are;

• Technical license for testing and repairing vehicles: Dhs300 per year
• Technical test for a light vehicle and/or a car: Dhs150
• Redo of a technical test for a light vehicle: Dhs50
• Technical test for a heavy vehicle: Dhs200
• Redo of a technical test for a heavy vehicle: Dhs75
• Technical test for trailers and semi-trailers: Dhs150
• Redoing a technical test for trailers and semi-trailers: Dhs100
• Technical test for a vehicle following substantial changes: Dhs1,000
• Detailed technical test for a vehicle: Dhs350
• Technical test for exporting a vehicle outside the UAE: Dhs100
• Heavy vehicle inspection: Dhs200
• Inspection service for a classic car: Dhs420
• Redoing a test for a classic car: Dhs100

Other service fees are as follows;

• Inspection report for a simple accident: Dhs500
• Issuing a black points clearance certificate: Dhs100
• Issuing traffic fines clearance certificate: Dhs100
• Issuing a traffic conduct certificate (for drivers): Dhs150
• Requesting a picture from a radar speeding fine: Dhs100
• Asking for an original traffic accident certificate: Dhs100
• Issuing a permit for vehicle repairs: Dhs50
• Issuing a traffic accident report (due to hit and run): Dhs400
• Issuing a replacement for a traffic report: Dhs100
• Statement on traffic violations history: Dhs50
• Towing a light vehicle: Dhs400
• Towing a heavy vehicle: Dhs600
• One-day entry permit for a heavy vehicle: Dhs400
• Modifying data on a vehicle registration: Dhs100
• Canceling ownership of a vehicle: Dhs200
• Car selling approval: Dhs50
• Issuing of a car ownership certificate: Dhs100
• Releasing a car from impoundment certificate: Dhs100
• Clearance certificate: Dhs100
• Issuing a permit for advertisement stickers on a vehicle: Dhs500
• Issuing and renewing driving training cards: Dhs100

A number of people were asked about their opinions on these increases in vehicle registration and licensing costs in UAE and most of them praised this initiative. There were some who thought that the timings weren’t that good for passing such a decree. The advocates of this decree said that they welcome this change as it is another addition to increasing road safety for the people. However, those who are against this increase say that after this VAT will also be implemented and people need to prepare for this as everything has come in to effect at the same time and if it had been a step by step process then it would have been more pocket-friendly. Secondly, those against this decree said that it will prove to be a lot costlier for those families who have four or more than four people in the household and possess three cars.

Initially, when this law was passed a lot of motorists protested against this price increase however this new unified decree still came in to effect as it is another one of the commitments of the UAE government against the road and traffic safety as it makes UAE one of the safest countries in the world.

Sources:

  1. Ahmad, Anwar. (2017). Vehicle Registration and Licensing to cost more the UAE. Retrieved from https://gulfnews.com/uae/transport/vehicle-registration-and-licensing-to-cost-more-in-the-uae-1.2135939
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