Car Ownership in the UAE Obligations Under the UAE Law

The legal framework governing car ownership in the UAE is designed to ensure road safety, environmental compliance, and the protection of all road users. This article examines the primary statutory requirements mandated by the Federal Traffic Law, which dictates that every motor vehicle must be registered with the relevant licensing authority and covered by a valid insurance policy. By understanding these mandates—including annual technical inspections and the “Black Points” system—owners can avoid heavy fines, vehicle impoundment, or the revocation of driving privileges.

Adhering to specific maintenance and safety standards is essential for passing the mandatory RTA or Tasjeel inspections required for registration renewal. Furthermore, understanding the legal implications of the “transfer of ownership” process and the liability associated with road accidents is critical for both buyers and sellers. This guide serves as a strategic resource for residents and expatriates seeking to navigate the administrative complexities of car ownership in the UAE while remaining fully compliant with the nation’s rigorous traffic regulations.

How to identify the owner of a vehicle?

The owner of a vehicle is the person whose name is on the license of the vehicle. Every vehicle will have an official document issued by the licensing authority, which will contain details about the vehicle, including the ownership of the vehicle, the official insurer of the vehicle, the validity dates of the license, and other relevant information specific to a vehicle. The person whose name is contained in this license will be considered the owner of the vehicle.

Transfer of ownership

Under the Law, Article 22 talks about transfer of ownership of a vehicle. The law states that if the ownership of a vehicle is to be transferred, either as part of a sale or due to another reason, such transfer must be mandatorily registered with the licensing authority.

Liabilities of an owner after transfer of ownership

Article 22 further states that the owner of the vehicle will remain liable for the obligations arising from the use of the vehicle until the Vehicle License is registered in the name of the new owner in accordance with the procedures followed by the licensing authority. Therefore, in instances where physical transfer of the vehicle has been carried out and the future owner of the vehicle commits a traffic crime while using the vehicle, the previous owner will continue to be liable for such offenses, unless the transfer of ownership is registered with the competent authority.

Obligations of a vehicle owner

• Obligation to renew vehicle registration
  Vehicle registration renewal must be carried out annually. Vehicle owners get a grace period of 30 days after their vehicle registration expires every year. If you apply for the renewal after the allotted flexible period, an additional fee will be charged. The following documents are required for vehicle registration renewal:
  • Emirates ID
  • Valid Driving License
  • Renewed Vehicle Insurance Policy
  • Vehicle Registration Card, also known as Mulkiya
  • “Passed Certificate” from an assigned RTA testing facility.
• Obligation to approve vehicle modifications
  The vehicle owner must ensure that no substantial modifications are to be made to the vehicle shape, (chassis), body, engine power or color except with the approval of the licensing authority in accordance with the law. The licensing authority will inspect and approve the modifications before the vehicle can be used.
• Obligation after vehicle recall and re-inspection
  The licensing authority has the right to recall any vehicle for re-inspection. Furthermore, the traffic control authority may also refer a vehicle for re-inspection, to the licensing authority, if it deems that the vehicle is a risk to traffic safety. In such cases, if an inspection raises problems and shows that the vehicle is not roadworthy, the licensing authority may inform the vehicle owner not to use the vehicle. However, the authority is required to provide a statement of the deficiencies and defects in the vehicle.The vehicle owner may begin to use the vehicle once these deficiencies have been addressed, and the vehicle undergoes a successful re-inspection.The Vehicle Owner has the right to appeal the Inspection result to the licensing authority within (10) ten days, and its decision issued in this regard shall be final
• Exemption from Vehicle License Renewal Fees
  As per Article 24, if a vehicle owner does not wish to use the vehicle, he can request to cancel the Vehicle License and handover the license plate as prescribed. Consequently, he will be exempt from the Vehicle License Renewal Fees.

Conclusion

Vehicle ownership is often seen as an integral requirement in the UAE. However, individuals are often unaware of the responsibilities that arise when owning a vehicle in the UAE. The UAE law not only lays down obligations for car owners, but also imposes fines if these obligations are not met. Therefore, it is extremely important to be aware of these liabilities and fulfil them in accordance with the UAE law.

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