Comprehensive Guide to Car Rental in the UAE; Important Rules and Tips Focused on Dubai

Renting a car in the UAE can be a convenient and flexible choice for tourists, families, and individuals who frequently travel between different areas of Dubai, Abu Dhabi, or other cities in the country. However, the amount you see in the car rental advertisement is not always the final cost. Taxes, insurance, deposits, mileage limits, Salik fees, parking, fuel, and administrative costs may increase the final amount.

To avoid unexpected costs, disputes over damages, or delays in deposit refunds when renting a car in Dubai or other emirates, you should document all terms and payments in writing from the time you choose the company until you return the vehicle.

Car rental regulations may not be the same across different emirates. Sections of this guide that refer to the unified car rental contract, the TARS system, deposit refunds, and Consumer Rights pertain to licensed companies in Dubai.

Is Renting a Car in the UAE Right for You?

Renting a car without a driver is usually suitable for those traveling with family, whose accommodation is far from the metro station, have a tight daily schedule, or intend to travel between several emirates.

If most of your travel is limited to a few short routes in central Dubai, using the metro, taxis, or ride-hailing services may be simpler and in some cases more cost-effective.

To compare the cost of renting a car with taxis or public transport, do not only consider the daily rate of the vehicle. Fuel costs, parking, Salik, additional insurance, deposits, extra mileage, and delivery or pickup fees should also be included in the final calculation.

Required Documents for Car Rental in Dubai and the UAE

The documents required for renting a car depend on the individual's residency status, the country of the driver's license, the type of visa, the regulations of the rental company, and the conditions of the insurer.

Tourists usually need to provide the following documents:

• Valid passport;

• Visa or entry document to the UAE;

• Valid driving license from the home country;

• International driving license, if required;

• Valid bank card for payment or deposit registration.

Residents of the UAE usually need to present a valid Emirates ID and a valid UAE driving license.

The minimum legal age to obtain a light vehicle driving license in the UAE is 18 years; however, this does not mean that all companies rent cars to 18-year-olds. The rental company or insurer may set a higher minimum age, such as 21 or 25 years. Additional fees or restrictions may apply for younger drivers or for renting luxury and sports cars.

Therefore, before making a payment, ask the company in writing about the minimum driver age, required license history, and any potential fees for younger drivers.

Tourists and Residents Driving with a Foreign License

UAE residents should not assume they can permanently drive with their home country license or an international license in the UAE. Residents usually need to obtain a UAE driving license unless they fall under one of the specified exceptions according to official regulations.

Some foreign licenses can be converted to a UAE license based on an official list and under specified conditions. The ability to convert may depend on the country of the issuing license, the individual's nationality, residency type, license validity, and additional documents.

The list of permitted countries may change; therefore, it is advisable to check the latest conditions on the official website of the Roads and Transport Authority of Dubai or the driving licensing authority of the resident emirate before proceeding.

Tourists who have entered Dubai with a short-term visa may, under specific conditions, drive a light vehicle or motorcycle with an international license issued outside the UAE. Tourists should note that the international license must be valid and accepted by the rental company and the insurance company.

Renting a Car with an Iranian License

As of the last review of this matter, Iran's name does not appear on the list published by the RTA for the direct conversion of foreign licenses to UAE licenses. Therefore, individuals with UAE residency should not expect to convert their Iranian license directly to a Dubai license.

Iranian tourists should also not attempt to rent or drive a car with only a Persian license. It is better to obtain a valid international license from an authorized authority in the home country before traveling and to carry the following items:

• Original valid Iranian driver's license;

• Original valid international driver's license;

• Passport;

• Visa or entry document to the UAE.

Before making a payment, ask the rental company to confirm in writing that your documents will be accepted for vehicle delivery and that the vehicle insurance covers your driving. Simply receiving the vehicle from a company does not necessarily mean that the insurance coverage is valid in case of an accident.

Iranian individuals with UAE residency usually need to obtain a valid UAE driver's license to drive and rent a vehicle, and they cannot use an international driver's license as a permanent substitute for a UAE license.

How to choose a reputable car rental company?

When renting a car in the UAE, do not rely solely on low prices, Instagram pages, online ads, or WhatsApp messages. Before payment, check the legal name of the company, business license number, office address, landline contact number, and the recipient's account information.

The name of the company stated in the contract and invoice must match the name of the company receiving the rental or deposit amount. Depositing money into a personal account of someone whose legal connection to the company is unclear carries more risk.

The following can be signs of danger:

• Price significantly lower than the usual market rate;

• Request for immediate payment without providing a pro forma invoice;

• Refusal to disclose the deposit amount or insurance deductible;

• Lack of office, license, or clear contact information;

• Providing an incomplete contract or one without a final amount;

• Requesting the deposit to be paid to a personal account;

• Refusal to provide an official receipt;

• Emphasis on cash payment without recording information in the contract.

Rental conditions, deposit amount, mileage limits, type of insurance, and all additional costs must be documented on the website, pro forma invoice, contract, or official company message.

When renting luxury and sports cars, verifying the company's credibility is even more important; as the deposit amount, insurance deductible, and potential damage costs are usually higher.

What costs are included in car rental prices?

Before payment, ask the company to send you a pro forma invoice with the final amount. The pro forma invoice should specify whether the quoted price includes tax, basic insurance, vehicle delivery, and other services.

The final cost of renting a car may include the following:

• Daily, weekly, or monthly rental amount;

• Value-added tax, if applicable;

• Deposit or blocked amount on the credit card;

• Comprehensive insurance and deductible;

• Cost for each additional kilometer;

• Delivery or collection fee;

• Cost of delivering the vehicle at the airport, hotel, or accommodation;

• Cost of returning the vehicle at a different branch or emirate;

• Cost for a second driver;

• Cost for a young driver;

• Salik, parking, and traffic fines;

• Fuel cost or returning the vehicle with less fuel than agreed;

• Special cleaning fee, smoking, or damage inside the cabin;

• Administrative fee for processing fines, charges, or damages;

• Late return fee.

Do not accept phrases like "no deposit", "full insurance", "no deductible", or "final price" without seeing written conditions.

Renting a car without a deposit may come with a higher rental rate, mileage restrictions, higher deductibles, more limited insurance coverage, or stricter conditions.

How to Review a Car Rental Agreement?

In Dubai, the Roads and Transport Authority emphasizes the use of a unified car rental agreement. This agreement is registered through the Transport Activities Rental System (TARS) and allows for tenant identity verification and digital signature with a one-time password.

The unified agreement must include the tenant's information, vehicle specifications, transaction details, rental duration, vehicle condition upon delivery and return, vehicle images, and the obligations of both parties. The RTA has also stated that undisclosed fees, including additional charges related to toll gate crossings, should not be imposed on the customer later without prior notice.

Before signing the agreement, check the following:

• Legal name and license number of the company;

• Model, color, and plate number of the vehicle;

• Exact date and time of delivery and return;

• Rental amount and tax;

• Allowed mileage limit;

• Cost per additional kilometer;

• Fuel level upon delivery;

• Deposit amount and its refund time;

• Type of insurance and deductible amount;

• Names of all authorized drivers;

• Cost of a second driver;

• Contract renewal conditions;

• Late return fee;

• Costs for Salik, parking, and fines;

• Conditions for breakdown or provision of a replacement vehicle;

• Cancellation or refund conditions.

Do not sign any blank, incomplete, or unspecified amount contracts. After signing, also obtain and keep the final contract, pro forma invoice, invoice, and payment receipt.

If you plan to take the vehicle to another emirate or return it at a different branch, inform this before renting and write the potential cost in the contract.

Taking the vehicle out of the UAE, including land travel to Oman, is usually not allowed without written permission from the company, vehicle exit documents, and cross-border insurance coverage. Even if the company verbally agrees, obtain written confirmation and necessary documents before departure.

Car Rental Deposit and Its Refund Time

The deposit may be collected directly from the customer or temporarily blocked on their bank card. Before payment, the deposit amount, holding period, refund method, and items the company is allowed to deduct should be specified in writing.

The payment receipt should clarify that the amount received is for "refundable deposit" and not part of the final rental cost.

According to the official commitments of the RTA for licensed car rental companies in Dubai, the company should not keep the original passport or Emirates ID of the customer as a guarantee. In these commitments, the financial guarantee must be returned within a maximum of 30 days after receiving the vehicle and through the same initial payment method mentioned.

If an amount is temporarily blocked on the card, it may take a few more days for the amount to show in the bank account after the company announces its release. This time may depend on the card issuer bank and the type of transaction.

Do not delete the contract, receipts, vehicle images, and correspondence with the company until the deposit is fully refunded or released.

If any amount is deducted from the deposit, request a detailed invoice and documentation related to fines, tolls, fuel, cleaning, or damages. The company should be able to specify the reason and amount of each deduction.

Car Rental Insurance and the Concept of Deductible

The type of insurance coverage and the driver's liability vary among different companies. Having basic insurance does not mean that all damages are covered without cost to the tenant.

Terms like CDW, LDW, Super CDW, Full Insurance, or Zero Excess should be interpreted based on the contract text and insurance policy, not just the verbal explanation of the company employee.

The franchise or Excess is the amount that may be the responsibility of the renter in case of an accident or damage. The franchise amount must be specified before signing the contract.

Before receiving the vehicle, ask whether the following items are covered:

• Tires and rims;

• Glasses and lights;

• Roof and undercarriage;

• Lost or damaged key;

• Damage inside the cabin;

• Parking damage;

• Damage caused by flood or weather conditions;

• Roadside assistance;

• Towing the vehicle;

• Off-road driving;

• Damage to the vehicle while stopped or parked.

Driving by a person not registered in the contract, using the vehicle outside the permitted area, reckless driving, driving under the influence of alcohol or drugs, unauthorized exit from the country, or lack of an official accident report may limit or void insurance coverage.

For this reason, written clarification about insurance, coverage exclusions, and the franchise amount is more important than the general phrase "full insurance".

What should we document when receiving the vehicle?

Before departure, take a continuous and clear video of all parts of the vehicle. Record the body, bumpers, doors, glasses, lights, rims, tires, mirrors, and roof of the vehicle from a close distance.

Then film the inside of the cabin, seats, dashboard, console, trunk, mileage, and fuel level. It is better to specify the date, time, and location of delivery in the video as well.

All scratches, dents, breaks, and previous damages must be recorded in the delivery sheet or contract images. The integrated RTA contract also anticipates photographic documentation of the vehicle's condition at the time of delivery and return.

Before departure, check these items as well:

• Air conditioning performance;

• Front and rear lights;

• Indicators;

• Wipers;

• Brakes;

• Dashboard warnings;

• Tire condition;

• Presence of a spare tire or puncture repair kit;

• Fuel level;

• Plate number and vehicle registration card.

If the warning light is on, the tire is damaged, or the vehicle has a technical problem, inform the company in writing before departure and request a replacement vehicle if necessary.

Salik, Parking, and Traffic Fines

The cost of passing through Salik gates is usually charged to the customer after the rental period ends or when issuing the final invoice.

From June 1, 2026, a 5% VAT will be added to the Salik gate usage rates and the activation fee for the Salik tag.

According to the regular Salik program, from Monday to Saturday, the peak rate is 6 AED plus tax during peak hours and 4 AED plus tax during off-peak hours. Peak hours in the regular program are set from 6 to 10 AM and from 4 to 8 PM.

No charge is applied from 1 to 6 AM. On Sundays, except for public holidays and major events, the applicable rate is 4 AED plus tax. The hours and rates during Ramadan differ and should be checked on the official Salik website before traveling.

The rental company may charge an administrative fee in addition to the actual Salik, parking, or fine amount. This fee must be specified in the contract before renting.

Match the final invoice with the date of passage, number of gates, and amount for each item. Note that passing through multiple gates on a route may incur several separate charges.

Traffic fines are initially issued to the registered owner of the vehicle, i.e., the rental company, and then the company collects the amount from the renter.

If a company requests a payment for a fine, ask for the violation number, date, location, and official documentation. Do not settle for just a WhatsApp message or an unclear image.

What to do in case of an accident?

In case of an accident, first consider the safety of yourself, the passengers, and other individuals present at the scene.

If someone is injured, there is an immediate danger, or vehicles cannot be moved safely, call the emergency number 999 and follow the police instructions. In minor accidents without injuries, if possible, move the vehicle to the side of the road to avoid obstructing traffic. Every incident, even a minor one, must be reported through the official channel.

In Dubai, you can use the official Dubai Police services to report simple accidents. The Ministry of Interior also provides a service for issuing reports on simple traffic accident inspections. The exact procedure for reporting depends on the emirate where the incident occurred.

After the accident:

• Notify the rental company immediately;

• Take photos of the scene, vehicles, license plates, and damages;

• Record the information of the other driver(s);

• Do not repair the vehicle without the company's permission;

• Do not make personal agreements about compensation with the other driver;

• Obtain an official accident report;

• Keep all messages and documents.

The absence of an official report may cause the insurance company to deny the claim or the rental company to charge the renter additional fees.

What to do in case of vehicle breakdown?

If the vehicle has a technical problem, stop in a safe location and inform the rental company.

Take photos or videos of dashboard warnings, the location of the vehicle, and its exterior condition. Do not take the vehicle to a repair shop without the company's permission and do not incur costs for towing or personal repairs unless the company has confirmed this in writing.

Check the contract to see if the following services are provided:

• 24/7 roadside assistance;

• Replacement vehicle;

• Towing;

• Tire replacement;

• Battery or fuel delivery;

• Reimbursement for taxi or alternative transport costs.

If the breakdown is due to a technical issue with the vehicle, ask the company to provide in writing how they calculate the costs for the days you were unable to use the vehicle.

Common rental car abuse methods

Common disputes in car rentals include incomplete price declarations, charging for pre-existing damages, ambiguous insurance, unclear deductions from the deposit, and undisclosed administrative fees.

To reduce risk:

• Get the final amount in writing before payment;

• Do not accept the vehicle without a contract and delivery receipt;

• Do not hand over the original passport or Emirates ID as collateral;

• Take a complete video when delivering and returning the vehicle;

• Do not sign a contract or blank form;

• Do not accept unlimited and unclear deductions from your card;

• Request documentation for any amount deducted from the deposit;

• Include promises made on WhatsApp in the contract;

• Pay the deposit amount only upon receiving an official receipt;

• Keep a copy of the contract, invoice, and vehicle return receipt.

If the company claims that damage has occurred to the vehicle, request photos from the time of delivery and return, the time of damage registration, and the repair invoice or estimate.

Returning the vehicle and receiving the deposit

Return the vehicle at the agreed time and place with the specified amount of fuel. Delays, even for a short time, may incur additional charges according to the contract.

Before returning the vehicle, take another video of the body, interior, mileage, fuel level, rims, tires, and windows.

It is better to have the final inspection done in your presence. The vehicle return receipt should at least include the time of return, mileage, fuel level, and vehicle condition.

If you are returning the vehicle outside of working hours or without the presence of an employee, record the following:

• Exact location of the car park;

• Delivery time;

• Condition of the body and cabin;

• Mileage and fuel level;

• Location to place the key;

• Message sent to the company;

• Response or confirmation of receipt from the company.

Also, get written confirmation regarding the timing of sending the Salik bill, fines, and the release of the deposit.

Keep all documents, images, messages, and receipts related to the rental until the full return of the deposit.

Complaint against the car rental company in Dubai

First, send your complaint in writing to the company and allow a reasonable time for a response. In the complaint, clearly explain the subject, the disputed amount, the rental date, and your request.

Prepare the following documents:

• Rental agreement;

• Proforma invoice and invoice;

• Payment receipt;

• Deposit receipt;

• Delivery and return images and videos;

• Police report, if available;

• Messages and exchanged emails;

• Penalty document, Salik or damage;

• Car return receipt.

If the company is licensed in Dubai and the dispute is about price, additional charges, service quality, refund, or non-compliance with the agreement, residents and tourists can file a complaint through Consumer Rights under the Department of Economy and Tourism in Dubai.

In the Consumer Rights system, car rental is considered one of the categories of complaints, and providing the contract, invoice, or proof of purchase is essential for reviewing the complaint.

If the company's license belongs to another emirate, the appropriate authority for the complaint depends on the place of issuance of the license. In such cases, the matter can be pursued through the local economic department or the consumer complaints handling service of the Ministry of Economy and Tourism.

If you encounter an unlicensed company, a fake website, document forgery, unauthorized bank withdrawal, or fraud, in addition to the consumer protection authority, pursue the matter through the police and the issuing bank of the card.

Summary

Before renting a car in the UAE, carefully review the company's credibility, required documents, final price, mileage limits, insurance conditions, deductible amount, deposit, and additional costs.

All agreements should be documented in the contract, proforma invoice, or official company message. When delivering and returning the car, also take videos of all parts of the vehicle and keep your contracts, receipts, and correspondence until the full return of the deposit.

The cheapest offer is not always the best option. Choosing a reputable company, clear contracts, specified insurance, and accurate documentation are the most important ways to avoid hidden costs and disputes when renting a car in Dubai and other emirates.

This article is a general guide and does not replace the review of the rental contract, insurance policy, or the latest regulations announced by the official authorities of the UAE.