Understanding Car Rental Deposits in Dubai

Car Rental in Dubai: Is the Deposit Justified and When Is It Returned?

Car rental is an extremely popular option in the United Arab Emirates, particularly in Dubai, among both tourists and local residents. Due to the city's excellent infrastructure, well-maintained roads, and extensive highway network, many people choose to navigate with a rented car for shorter or longer periods. However, many renters are surprised to find that companies require a deposit, and in some cases, they do not receive a satisfactory explanation as to why this is necessary.

Is the Deposit Justified?

Yes, in Dubai, it is completely lawful for car rental companies to request a deposit from their customers. According to Federal Regulation No. 14 of 2024, car rental is only allowed for businesses with the appropriate licenses. These companies are obliged to check the validity of the renter's driving license, whether local, recognized foreign, or naturalized documents.

A written contract must be concluded during the rental, which includes the car's technical data, the rental period, insurance details, the rental fee, the amount of the deposit, and its repayment rules.

What Is the Purpose of the Deposit?

The deposit serves as a financial guarantee for car rental companies. This amount covers several potential costs incurred during or after the rental period, such as:

Traffic fines (e.g., speeding, illegal parking)

Salik tolls (Dubai's electronic toll system)

Minor vehicle damages (e.g., scratches, dents)

Missing fuel

Administrative fees

It is important to note that car rental companies cannot charge extra fees just because someone pays with a bank card or mobile application – this is explicitly prohibited by the Consumer Protection and Fair Trade Office of the Dubai Department of Economy and Tourism according to circular 2024/1.

When and How Is the Deposit Returned?

According to regulations, the deposit must be returned within 30 days after the vehicle's return. This can happen:

In cash

By bank transfer

Companies are obliged to bear the bank costs related to the transfer and can only withhold from the amount if real costs have arisen, such as:

Unpaid fines,

Salik tolls,

Minor damage costs,

Documented administrative fees.

If these do not exist, the full deposit is refunded.

What to Do if You Don't Get Your Deposit Back?

If the car rental company does not refund the deposit within the deadline, or applies unjustified deductions, it is advisable to file a complaint with the relevant office of the Dubai Department of Economy and Tourism. The administration is quick and efficient, and in most cases, they decide in favor of the consumers.

Conclusion

Car rental in Dubai is a regulated and transparent process, where requesting a deposit is not only legal but is also common practice. Its purpose is to protect the lessor, yet the interests of renters are also protected – strict rules guarantee that the deposit is returned within 30 days at the latest if no justified deduction occurs.

(The article is sourced from the Department of Economy and Tourism announcement.)