Dubai issues new law to regulate autonomous vehicles

Introduction

On 6 April 2023, Dubai Law No. 9 of 2023 was issued, which comes into force 90 days after the Gazette was issued on 14 April 2023, i.e. by 13 July 2023. 

This law is the first piece of legislation in the UAE which covers a new licensing, regulatory and liability framework for autonomous vehicles. We refer to Dubai Law No. 9 of 2023 as the “new law” in this article.

The context for the new law is that it is part of the UAE’s “strategic vision to transform Dubai into a model for cities of the future and the best city in the world to live, work and visit.” The UAE aims to deploy around 4000 autonomous vehicles by 2030.

The law sets out provisions to govern the licensing and regulatory framework, as well as operational standards for autonomous or self-driving vehicles. The scope of this law does not seek to regulate vehicles with driver assistance systems, such as cars that contain automatic braking, lane control or parking services. Instead, the focus of the new law is on vehicles that are fully automated.

The objectives of the new law include regulating the operation of autonomous vehicles to uphold safety and quality and to address the legal and regulatory challenges that arise from artificial intelligence in transportation. 

We have set out below some of the key provisions of this new law.

Licensing

The new law makes it clear that it will prohibit the driving of any autonomous vehicle in the UAE unless a license has been issued by the RTA. The new law specifies certain conditions for obtaining a licence for an autonomous vehicle. This includes the vehicle passing a technical examination conducted by the RTA and meeting safety and security standards that will be set by the RTA.

The vehicle must also be insured with a UAE insurer.

Further licence conditions and procedures will be issued in due course.

The RTA’s key role

The RTA will play a supervisory role over the development of the autonomous vehicles industry. Its powers will include the development of policies and plans to operate autonomous vehicles in Dubai. The RTA will put into place technical, safety and security standards. It will also periodically assess the performance of the operators of autonomous vehicles and can require any autonomous vehicle report to the RTA for technical inspections.

The RTA will determine the routes and areas in which the autonomous vehicle can operate, as well as the traffic rules that will apply and the speed at which the vehicles can operate. The RTA will be responsible for developing the infrastructure necessary to allow the autonomous vehicles to navigate the relevant areas of the city.

The RTA is the body that will deal with licensing. As part of the licensing process, it will be responsible for conducting technical inspections in accordance with standards, controls and procedures that it adopts. It will also play a role in monitoring and inspecting the authorised persons under the new law and will be the body that receives complaints and grievances.

The RTA will therefore be a licensing body, as well as a regulatory and investigation body.

Liability and insurance

The law provides that liability for compensation will rest with the operator, if the autonomous vehicle causes damage to individuals or property. The operator’s rights to defend a claim for issues of causation will continue to remain intact. 

The existing UAE criminal law regime will continue to apply should any acts occur which constitute criminal offences. 

The law imposes administrative fines on any party that violates the new law.

Next steps

Executive regulations are due to be passed to clarify certain aspects of the new law. However, the new law demonstrates the forward thinking nature of the regional authorities in being the first regional country to pass such a law, planning for the future to come.

We expect the area of autonomous vehicles to be a developing area of regulation and legislation as the transportation industry embraces technological innovation and the impact of artificial intelligence. Issues of regulatory scrutiny and liability will continue to develop as the regulatory framework for this novel area grows. 

In particular, cyber related risks connected with autonomous vehicles will need to be considered carefully. We also expect that further regulations in this area, as well as the court’s approach will clarify the possible conflict of interest that can arise in liability allocation between human occupants, system operators and insurers.

Nonetheless, it is clear that the UAE remains at the forefront of technological innovation. The development of the autonomous vehicle sector in the UAE also presents key investment opportunities for international and regional parties.