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There are some good public transport options across the UAE but most people travel by car, whether that’s driving themselves or using the generally excellent and inexpensive taxi service.
Whether you have just arrived in the UAE, have guests visiting, or prefer to drive a rental, all the main car rental companies, plus a few extra, can be found throughout the emirates.
Most leasing companies include the following in their rates: registration, maintenance, replacement, 24 hour assistance and insurance. If driving in Dubai, most rental companies will keep track of how many times you pass through Salik gates and charge you at the end of the month, along with a Salik service charge.
It is best to shop around as the rates vary considerably. Leasing is generally weekly, monthly or yearly. Monthly lease prices start at around Dhs.1,800 for a small vehicle such as a Toyota Yaris, and go up from there. As the lease period increases, the price decreases, so if you’re considering keeping the car for a long period, it may not work out that much more expensive than buying.
Before you take possession of your leased car, check for any dents or bumps. To hire any vehicle you will need to provide a passport copy, credit card and a valid driving licence. While on a visit visa, you can drive on an international licence and you can hire a car with your international licence as long as it is at least one year old. Getting a UAE driving licence is compulsory, however, once you have a residence visa. Comprehensive insurance is essential; make sure that it includes personal accident coverage, and perhaps Oman cover if you’re planning on exploring.
ADCB offers a choice of car loans up to Dhs.500,000, which are quick and easy to set up, and can be repaid over 60 months.
Most of the major car makes are available through franchised dealerships in the UAE, especially big Japanese and American brands. New vehicles are surprisingly affordable too and many expats find they can splash out on an SUV or luxury car because the price of buying the vehicle, as well as fuel, is cheap.
New and used cars
There is also a large second-hand car market in the UAE. Dealers are scattered around the cities but good areas to start are Motor World Abu Dhabi in Shamkah, and Sheikh Zayed Road and Warsan in Dubai. Expect to pay a premium of between Dhs.5,000 and Dhs.10,000 for buying through a dealer (as opposed to buying from a private seller), since they also offer a limited warranty, insurance, finance and vehicle registration. For private sales, check the classifieds in local newspapers and online sites as well as expat forums.
The process of buying a vehicle in the UAE is fairly straightforward, particularly when buying a new vehicle as the car dealer will typically handle most of the paperwork. New vehicles must be insured and registered annually, but they don’t need to be inspected at a test centre for the first two years. All vehicles two years or older must be tested annually prior to registration. This can be done at any test centre that is approved by your emirate's vehicle licensing authority.
Vehicle registration
Whether you purchase a new or used car, the vehicle must be registered every 12 months with the police, and you will need to insure it. When you buy a second-hand vehicle, chances are that the registration is still valid in the seller’s name so you will need to transfer ownership to your name. If driving in Dubai, you will also need to purchase a Salik tag.
If buying a second-hand vehicle, check that the engine plate number on the car corresponds with that given on the vehicle registration card, and check with the local police that the vehicle is neither stolen nor has any fines.
It is possible to import or export your car, from another emirate or overseas, but be prepared for lots of paperwork.
With ADCB's mobile banking app, you can then pay your Salik bills while on the move.
See the How To's section for step by step guides to buy a new and second-hand vehicle.
The responsible transport authorities in the UAE include the Drivers Licensing Department (DLD) in Abu Dhabi, Roads and Transport Authority in Dubai, Sharjah Roads & Transport Authority, Ajman Public Transport Corporation, Fujairah Transport Corporation, Ras Al Khaimah Transport Authority, and Umm Al Quwain Municipality will be able to provide further advice.
In the UAE, you can use a car loan to buy either a new or used vehicle. Normally, most banks require that you pay a 20% down payment of the total car value at the time of applying. New cars are financed at an interest rate of around 3.99%, whilst used cars are generally financed at 4.5%. These rates may vary according to your bank. You can apply for a car loan at ADCB to receive flexible and competitive offers.
Bear in mind that as well as the cost of the vehicle, you will need to pay vehicle registration fees and vehicle insurance, both of which are compulsory by law and renewable annually.
Before you can register your car you must have insurance. The insurers will need to know the usual details such as year of manufacture, and value, as well as the chassis number. If you got a real bargain of a car, make sure you instruct the insurance company to cover it at the market value.
Annual insurance policies last for 13 months (allowing a one-month grace period for when registration expires). It’s best to get fully comprehensive cover with personal accident cover, and for more adventurous 4WD drivers, insurance for off-roading accidents is also recommended. Rates depend on the age and model of your car and your previous insurance history, although no-claims bonuses accrued in your home country are rarely recognised. Expect to pay between 4-7% of the vehicle’s value, or a flat rate of 5% for cars over five years old. If you feel your car is worth more than you paid for it, make sure the insurance company covers it at the market value. Insurers will need to see copies of your UAE driving licence, passport and vehicle registration form.
Most insurance agencies now let you request a quote online, and there’s a multitude of choice out there from local companies to international favourites.
All vehicles in the UAE must be registered annually with the local police department; if you’re buying new, then the dealer should do this for you.
Vehicle registration, vehicle testing and the renewal of annual car insurance generally take place at the same time. To start the process, first check you have no outstanding traffic offences and fines against your car, as registration renewal can’t be completed until they are cleared. You will need to pay the fines in the emirate where your car is registered, for example, if your car is registered in Sharjah, you'll need to settle your fine in Sharjah.
Then, renew your insurance as you will be asked to show a valid 13 month certificate, and get the vehicle tested. If your vehicle passes, you’ll receive a test certificate. If your vehicle fails the inspection, have it repaired and retested within 30 days for no additional fee. Some insurance companies offer to collect your vehicle and handle the test and registration for you – often within a couple of hours.
With this done, take your vehicle to a service centre approved by your emirate's vehicle licensing authority. You’ll receive a new registration card plus a new sticker for your vehicle’s rear plate. Now you’re all legal to drive the vehicle for another year.
You have one month’s grace for renewal of your car registration, hence the 13 month insurance policy. This keeps you legal if it’s inconvenient to get the car registration renewed at the specified time. After that month though, you will incur fines of Dhs.10 for each month you delay.
See the How To's section for step by step guides to buy a new and second-hand vehicle.
The responsible transport authorities in the UAE include the Drivers Licensing Department (DLD) in Abu Dhabi, Roads and Transport Authority in Dubai, Sharjah Roads & Transport Authority, Ajman Public Transport Corporation, Fujairah Transport Corporation, Ras Al Khaimah Transport Authority, and Umm Al Quwain Municipality will be able to provide further advice.