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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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New Dh750m Sharjah-Dubai traffic solution plan: What motorists need to know

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For years, motorists travelling between Sharjah and Dubai have faced some of the UAE’s longest daily traffic delays. Now, a major infrastructure programme announced by Sharjah is aiming to change that.

His Highness Sheikh Dr Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, has unveiled a package of road projects worth Dh750 million that will introduce new routes into Dubai, expand key traffic corridors and create a direct underground link beneath one of Sharjah’s busiest intersections.

The flagship project is a tunnel that will pass underneath Al Taawun Roundabout, creating a dedicated route for vehicles heading towards Dubai through Al Nahda Bridge. The tunnel is expected to remove a significant volume of through-traffic from surface roads, helping ease congestion in an area that regularly experiences heavy peak-hour delays.

New corridor

Alongside the tunnel, Sharjah is building Noor Road, a new corridor that will connect Al Orooba Street directly with Dubai. Though the competition date is yet to be announced, Sheikh Dr Sultan said Noor Road is scheduled to open before the end of 2026 and is expected to provide motorists with an additional alternative to existing entry points between the two emirates.

The projects form part of a broader strategy to improve traffic across Sharjah’s eastern and central districts while strengthening links with Dubai. Road upgrades will focus on improving access between residential communities, commercial centres and major highways, creating a more efficient network for both daily commuters and businesses.

Transport challenges

Traffic between Sharjah and Dubai remains one of the UAE’s biggest transport challenges, with thousands of residents crossing emirate borders every day for work and education. Officials believe the new projects will help distribute traffic more evenly across the network, reduce pressure on existing bottlenecks and improve journey reliability.

Authorities say the investment is not solely about reducing congestion. The developments are also intended to support future urban growth and improve connectivity.

While construction timelines for some elements are still being finalised, Noor Road is expected to be operational by the end of next year, marking one of the first major milestones in the programme.

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Learning to drive in Dubai? RTA approves new training institutes across city

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Getting driving lessons in Dubai could soon become much more convenient for residents living in some of the city’s fast-growing neighbourhoods.

Dubai’s Roads and Transport Authority (RTA) has approved an expansion of areas where new driver training institutes and branches can be established, making it easier for residents to access driving lessons closer to home.

The initiative is designed to support Dubai’s continued urban growth while improving access to essential licensing and driver education services across the emirate.

New areas

The newly approved locations include:

  • Wadi Al Safa
  • Jebel Ali
  • Mushrif
  • Al Maktoum City
  • Madinat Hind

With these communities continuing to attract new residents, the move is expected to reduce travel times for learner drivers while improving access to training facilities.

Opportunity for investors

The expansion isn’t just good news for residents. It also opens the door for accredited driving institutes looking to grow their footprint and for new investors interested in entering Dubai’s driver training sector.

RTA has invited eligible operators and investors to apply for licences to establish new branches in line with the authority’s regulations and service standards.

Ahmed Mahboob, CEO of RTA’s Licensing Agency, said this decision will bring services closer to residents in emerging communities and support Dubai’s long-term development plans.

He noted that easier access to driver training services will help reduce the need for long commutes while contributing to safer roads and better mobility across the city.

He also highlighted RTA’s commitment to supporting investors through a streamlined application process that aligns with existing laws and policies.

Beyond convenience, the expansion is expected to strengthen driver education standards across Dubai by increasing access to quality training and promoting greater traffic awareness among motorists.

As Dubai continues to grow, the authority says expanding driver training infrastructure will play an important role in preparing safer and more confident drivers for the roads.

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UAE waives overstay fines: Stranded travellers to get 30-day visa grace period

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The UAE has introduced a 30-day grace period for individuals who were previously unable to leave the country due to exceptional regional circumstances, giving them time to regularise their status or depart without incurring penalties.

According to the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the grace period runs from June 10 to July 9, 2026, and applies to people who had benefited from an earlier exemption on overstay fines.

The move comes as travel conditions across the region have largely stabilised, allowing affected individuals to make the necessary arrangements to either remain in the UAE legally or complete their departure procedures.

Authorities said the measure is designed to support compliance with immigration regulations while providing a practical window for people to update their residency, employment or visa status.

The ICP noted that its earlier decision to waive overstay fines was introduced as a humanitarian response to exceptional circumstances that disrupted travel plans for many residents and visitors.

With regional conditions improving, the authority said the reasons behind the temporary exemption no longer apply, making it possible for normal procedures to resume.

Individuals who wish to stay in the UAE can use the grace period to adjust their residency or employment status through the usual channels. Those planning to leave the country can do so without any additional preliminary requirements, provided they complete their departure during the specified period.

The authority also encouraged affected individuals to monitor official communication channels for the latest updates and guidance.

Earlier this year, the UAE exempted visa holders, exit permit holders and residents with cancelled visas from overstay fines after widespread travel disruptions, including flight suspensions and airspace closures, prevented many from leaving the country. The exemption was introduced to ease the financial burden on those impacted by circumstances beyond their control.

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