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Oil pinch hurt growing in the UAE as Uber, Sharjah Taxi take cues

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Kumar Shyam

The pinch on the pockets of the UAE residents is starting to hurt badly by the day with rising oil prices and its knockon effects.

As soon as the petrol and diesel prices went up by at least 50 fils for the month of July, ride-hailing company Uber has followed suit.

The company sent out an email on Friday to inform about the fare hike. Uber would charge as much as 11 per cent extra for some trips, the American company added.

The hike is Uber’s second this year in the UAE, after a hike in March but the UAE’s market-linked price for the black gold has continued unabated. The country opted for a dynamic pricing with global trends in 2015. But Russia’s attack on Ukraine has messed all economies around the world.

Yet, petrol in UAE is three times more expensive than in Kuwait and almost double the average cost per litre in the six-member Gulf Cooperation Council, according to a Bloomberg report.

Dynamic pricing

Uber is not alone with Sharjah Taxi also deciding to base their fares with the rise or fall of fuel prices with this month.

The Sharjah Roads and Transport Authority (SRTA) said the meter flag down rate will be increased or decreased every month in direct co-relation with the prices. Petrol prices in the UAE have jumped over 56 per cent since January 2022.

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Also read: UAE ranks first regionally and twelfth globally in growth potential
UAE petrol price to get costlier by 50 fils in July 2022
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Early last month, Suhail Al Mazrouei, Minister of Energy and Infrastructure, had admitted that prices could go higher as Chinese demand is likely to recover significantly while efforts by Opec+ to raise production were not yielding results fast enough.

The latest data showed Opec+ was running 2.6 million barrels a day short of its production target, Mr Al Mazrouei said at the Middle East and North Africa-Europe Future Energy Dialogue in Jordan.

He expects China, the world’s biggest importer and second largest economy, which has been easing its coronavirus lockdowns, to “come with more consumption”.

“With the pace of consumption we have, we are nowhere near the peak because China is not back yet,” Mr Al Mazrouei said. “The situation is not very encouraging when it comes to the quantities that we can bring. We’re lagging by almost 2.6 million barrels a day and that’s a lot.”

 

Dubai most expensive city in the Gulf

Meanwhile, Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.

Dubai-expensive The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.

The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).

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UAE: Dh2,000 fine as police target loud modified cars disturbing neighbourhoods

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Police across the UAE have launched a major crackdown on illegally modified cars and motorcycles after residents reported late-night engine blasts that sounded like explosions, sparking panic in several neighbourhoods.

During the quiet hours of the night, many residents said the sudden thunder-like bursts from revving engines left them alarmed. With regional tensions dominating headlines, some initially feared the sounds could be linked to security developments before realising they were caused by vehicles deliberately producing “backfire” sounds.

Authorities say the disturbances were largely caused by teenagers and young drivers modifying exhaust systems or aggressively revving engines to create explosive noises that echo through residential streets.

Police clarified that the sounds heard in parts of Dubai and Sharjah were not related to any security threat, but rather reckless driving and illegal vehicle modifications.

Patrols intensified across neighbourhoods

Following multiple complaints, police have stepped up patrols and enforcement campaigns in residential areas to stop motorists from creating excessive noise.

Major General Saif Muhair Al Mazrouei, Assistant Commander-in-Chief for Operations at Dubai Police, said authorities are using advanced monitoring systems and targeted enforcement to track down offenders.

“Our priority is to protect the comfort and safety of residents while addressing violations such as illegal vehicle modifications and excessive noise,” he said.

Sharjah launches inspection campaigns

In Sharjah, police have also intensified inspection campaigns and checkpoints to detect vehicles fitted with unauthorised modifications.

Brigadier Khalifa Al Khassouni, Director of the Central Region Department at Sharjah Police, said the campaign aims to restore calm in residential areas and reassure communities, particularly at a time when sudden loud sounds can easily trigger concern.

Heavy penalties for offenders

Under UAE traffic laws, motorists caught driving vehicles that create excessive noise face:

  • Dh2,000 fine
  • 12 black points on their driving licence
  • Possible vehicle impoundment

Vehicles with illegal modifications may also be confiscated, with release fees reaching up to Dh10,000.

Police are also urging parents to keep a close watch on teenagers and young drivers, and have asked residents to report reckless driving immediately through official police channels.


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Explained: Dubai’s new law on administrative violations, fines and penalties

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Dubai has introduced a new legal framework governing administrative violations, penalties, and enforcement measures across government entities.

Issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, Law No. (6) of 2026 aims to make enforcement fairer, more transparent, and consistent across the emirate.

Here’s a simple breakdown of what the law means.

What is the purpose of the law?
The law creates a unified framework for handling administrative violations and penalties across Dubai government entities. It is designed to ensure enforcement actions respect fairness, transparency, accountability, and legality while protecting public services and community interests.

How are violations classified?
Administrative violations must now be clearly defined by the competent authority and are classified into three categories:

  • Minor violations
  • Moderate violations
  • Serious violations

This classification helps authorities apply appropriate penalties based on the severity of the offence.

What penalties can authorities impose?
Government entities may apply several administrative measures depending on the violation, including:

  • Warnings to correct the issue
  • Temporary closure of a business (up to six months)
  • Permanent closure of an establishment
  • Cancellation or modification of licences or permits
  • Suspension of projects, activities, or transactions

How will fairness be ensured?
The law requires penalties to be proportionate to the violation and consider factors such as:

  • Whether the violation was intentional or accidental
  • Repeated violations
  • Damage caused
  • Whether the offender took steps to fix the issue early

What are the procedures before penalties are announced?
Authorities must follow strict procedures before publishing violations:

  • Approval from the Director General of the government entity
  • Coordination with the Government of Dubai Media Office for public announcements

When does the law take effect?
The law comes into force immediately after publication in the Official Gazette. Any conflicting provisions in previous laws will be cancelled.
Officials say the law will help standardise enforcement practices across Dubai, prevent misuse of authority, and increase compliance with regulations, ultimately improving governance and protecting public interests.

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Abu Dhabi expands driverless taxi services on Yas Island

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Abu Dhabi has expanded its driverless taxi services on Yas Island with the addition of a new operator, Autogo, marking another step forward in the emirate’s autonomous mobility plans.

The expansion is being implemented in collaboration with Apollo Go, a subsidiary of China’s technology company Baidu, while Autogo, a subsidiary of K2, will serve as the local operator joining the growing ecosystem of autonomous transport providers.

The move follows the successful completion of testing and operational trials on Yas Island, allowing the service to transition into commercial operations for Level 4 autonomous taxis, which are capable of operating without human intervention in most conditions.

Residents and visitors can access the service through the AutoGo smart application, available on both Android and Apple app stores.

According to Waleed Alblooshi, Vice President of Strategy at K2, the rides will be offered free of charge at this stage, allowing the public to experience autonomous mobility as a practical transportation option before the service moves to full commercial operations.

Driverless taxi services are also expected to expand in the future to Al Reem Island, Al Maryah Island, and Al Saadiyat Island, as part of Abu Dhabi’s broader strategy to introduce smart mobility solutions across the emirate.

The initiative forms part of Abu Dhabi’s long-term vision to expand autonomous mobility services, diversify operators, and strengthen the overall readiness of the transport ecosystem.


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