Three Dubai car rental companies have been shut down in 2023-24 for violating the laws related to consumer protection rights, the Department of Economy and Tourism said.

“There are different categories of fines, depending on the violation, with a minimum of Dh10,000. If the violation is repeated, the fine is doubled each time. However, we don’t wait till that time. If the violation is repeated, such companies’ offices are closed. We closed three offices of car rental companies – two in 2023 and one in the first quarter of this year,” Ahmed Ali Mousa, director of consumer protection at the Department of Economy and Tourism in Dubai, told Khaleej Times in an interview.

Recently, the Dubai Corporation for Consumer Protection and Fair Trade, which operates under the Department of Economy and Tourism, issued a circular to all vehicle rental firms to return deposits of the customers within 30 days of returning the vehicle.

According to the Roads and Transport Authority, Dubai's car rental industry reported a 23.7 per cent growth in the number of companies registered in the first half of 2022, up from 1,087 companies registered in the same period last year. Around 78,000 vehicles were registered in the first half of 2022 as compared to 69,000 in the same period last year.

However, Mousa revealed that the Department also penalised some car rental firms for exorbitantly charging for car washing.

Mousa advised customers to make sure that they have a clear contract with the company – be it car rental, furniture or any other service provider.

“Also, make sure that you read the contract. In case, they face any challenges, they are welcome to reach out to us for any protection through our call centre or website.”

He added that the Department of Economy and Tourism makes sure that there is no fraud because that practice will help attract more businesses to Dubai and increase the percentage of spending that is happening in Dubai.