Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No (30) of 2023 establishing ‘Parkin’, a public joint stock company that will oversee operations related to parking spaces in Dubai.

According to a statement, the new company will have financial, administrative and legal autonomy to execute its responsibilities.

The company’s duration is 99 years, starting from the date of its registration. It will be renewed for a similar period.

According to the law issued, the new company will be tasked with creating, planning, designing, operating, and managing public parking spaces with legislation regulating them.

The new company is also responsible for issuing permits to individuals, enabling them to subscribe to public parking, utilise and operate it, and reserve parking spaces by the terms of the franchise contract.

Moreover, the company is tasked with the establishment, design, and management of private parking spaces, as well as investment in related business activities, among other responsibilities.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, also issued Executive Council Resolution No (121) of 2023, forming the Board of Directors of the new company.

The board will be chaired by Ahmed Hashem Bahrozyan, while Ahmed Hassan Mahboub will serve as vice chairman.

RTA to delegate responsibilities linked to parking to Parkin

Law No (30) of 2023 mandates the RTA to delegate certain or all of its responsibilities related to public and private parking, as well as the issuance of relevant permits as outlined in Executive Council Resolution No (5) of 2016 and existing regulations in the emirate.

This handover of duties is to be facilitated by a franchise agreement to be finalised between RTA and new company.

The company’s issued and paid-up capital shall be determined by its articles of association.

All the company’s shares are fully owned by the government of Dubai.

The Executive Council of Dubai has the authority to determine the percentage of shares that may be transferred to third parties through public or private subscription.

The company’s liability is limited to its paid-up capital, and the responsibility of its shareholders is limited to the nominal value of the shares they own.

What the new law allows

The law permits individuals to own shares in the company through public or private subscription. The ownership percentage of the government of Dubai must not fall below 60 per cent of the company’s capital when its shares are offered for subscription.

According to the law, the company’s articles of association will be approved by the chairman of The Executive Council of Dubai. The law also defines the areas that should be included in the articles of association.

Furthermore, the law enables the transfer of certain employees from RTA to Parkin, through a decision issued by the RTA’s chairman, without compromising their rights.

The law annuls any other legislation that contradicts it. and will be published in the Official Gazette.