Driverless Cars and Delivery Drones: Recent Updates to Laws Governing Autonomous Vehicles and Drones in the UAE
Transport & Logistics Focus
Yazan SaoudiPartner,Transport & Insurance
Bushra Abu TayehSenior Counsel,Transport & Insurance
Ameen KimParalegal,Transport & Insurance
Self-driving transport (SDT) has been one of the primary initiatives of the Government of Dubai since the inception of the city. Currently, the Dubai Metro is one of the largest self-driving public transportation systems in the world. The metro line has been merely a starting point, as Dubai has subsequently been implementing test phases of driverless taxis and other vehicles using artificial intelligence (AI). By 2030, Dubai aims to have 25% of all of its transportation to be smart and driverless. Initiatives such as the Dubai World Challenge for Self-Driving Transport have been hosted by the Dubai Road Transport Authority (RTA) to incentivize industry leaders and start-ups in the automated transport sector. Furthermore, on 14 April 2023, the Government of Dubai issued the UAE’s first legislation that governs the licensing requirements, regulatory framework, and liability of autonomous vehicles (AVs) through Law No. 9 of 2023 on Regulating the Operation of Autonomous Vehicles in the Emirate of Dubai (the “AV Law”). Additionally, this July, the UAE Council of Ministers approved the first preliminary national license for self-driving cars to China’s Weride, allowing the company to test drive AVs on public roads throughout the UAE.[1]
Similarly, the Government of Abu Dhabi has been executing test runs of AVs in Yas Island and Saadiyat Island through the Smart Mobility Project (SMP) implemented by the Integrated Transport Centre (ITC) and the Department of Municipalities and Transport (DMT). As of last year, the SMP on Yas Island and Saadiyat Island included a fleet of eight taxi autonomous vehicles, the first fully automated self-driving taxis in the UAE, four mini Robobuses, and fifteen charging stations. The SMP also includes the implementation the Autonomous Rapid Transit (ART) system. The Government of Abu Dhabi currently does not have a legal framework that specifically governs AVs, but we anticipate such legislation to be issued within the following months.
The Dubai Roads and Transport Authority (RTA)The AV Law establishes the RTA to be the governing body of authority for AVs in determining the licensing, operational, technical and safety standards of the AVs. The RTA is further authorised to regulate the roads, areas and pathways in which the AVs will operate, as well as the speed of the AVs. In addition to preparing the infrastructure for the operation of the AVs, the RTA will monitor and evaluate the performance of the Operator of the AVs, the Operator being any person authorized by the RTA to carry out any activity related to the use of AVs approved by the Executive Council of Dubai, including the owner of an AV.
The OperatorThe AV Law enumerates the various obligations of the Operator, including the responsibility to develop instructions for using the AV for the passenger, maintaining the AV to standards set by the RTA, operating the AV, and removing AVs from the roads upon an accident, among others. The Law further provides that the Operator will face civil liabilities for any damage to persons or property arising out of an accident involving AVs. The Operator may retain its right to defend itself and dispute grounds of causation for the damage in accordance with the general rules of liability available in the UAE. The Law specifically provides that the RTA will not be liable for any damages sustained by third parties caused by using AVs.
The AgentAVs can only be sold to the Operator through an authorized Agent, which is a person or entity that is granted the exclusive distribution of AVs under a commercial agency contract. The RTA approves of the transfer of title from one Operator to another. The maintenance, repair, or modification of AVs, including the Automated Driving System (ADS), must only be carried out by Agent. The Agent has several obligations under the Law, including updating the ADS in line with the updates introduced to road and traffic systems and ensuring that the technical systems of the AVs are compatible with the different technical systems of the RTA or other relevant authorities.
The AV law excludes civil liability for the RTA for any damages caused by the usage of AVs that are sustained by third parties. Instead, the Operator is liable for such damages inflicted on persons or property caused by AVs. However, the Operator retains the right to claim compensation from any person upon establishing the appropriate causal link in accordance with the general rules of liability. Criminal liabilities may also be imposed under the appropriate federal laws if the acts committed by the usage of AVs amounts to any of the enumerated offenses.
Drones in the UAEThe Government of Dubai has been propelling the increased usage of drone in both the private and public sectors for the past decade. A wide range of drone usages involve commercial usage for the collection of data, recreational usage, as well as surveillance usage by the government. Due to the arising privacy and security concerns caused by the increased usage of drones, the General Civil Aviation Authority (GCAA) and the Dubai Civil Aviation Authority (DCAA) prohibited the usage of drones near, around and over airport and federal and municipal authorities have prohibited flying drones over residential areas. Furthermore, in early 2022, the UAE Ministry of Interior in coordination with the GCAA briefly banned the recreational flying of drones and light-sports aircrafts in the UAE due to the ongoing geographical conflict that involved the usage of drones in military combat.
The current existing legal framework governing drones is the Law No. (4) of 2020 Regulating Drones in the Emirate of Dubai (the “Drone Law”). The Drone Law provides that the DCAA is the designated authority that implements and regulates the activities, operations, importations of Drones in Dubai. The usage of drones is currently limited to the following activities: Government activities to be conducted by government entities under the legislation in force; business activities; academic and research activities; activities related to practising hobbies and air sports; and any other activities determined by the Director General of the DCAA. Furthermore, the area in which drones may operate are determined by the DCAA in coordination with Dubai Air Navigation Services Corporation (DANS). The Drone Law also lays out the condition that all usages of drones must protect the privacy of residences and persons, personal, commercial, and the confidentiality of legally protected data.
The Government of Dubai recently issued Law No. 10 of 2023, which replaces Articles (7), (20), (21) and (23) of the existing Drone Law. The amendments establish that DCAA will be the primary governing authority for drone aerodrome regulations and permit issuance in the place of the Dubai Aviation Engineering Projects Corporation. The DCAA, in coordination with the competent authorities in Dubai, has the authority to approve the specifications, standards, conditions, engineering designs of drone aerodromes and terminals for governmental and non-governmental uses. It also governs the criteria for qualification and certification of contractors and consultants working in the field of construction of drone aerodromes. Furthermore, the DCAA, in coordination with the Dubai Aviation Engineering Projects (DAEP) and other competent authorities, has the oversight for developing the criteria for the design and operation of drone aerodromes in Dubai Aviation City as well as the criteria for qualification and certification of contractors and consultants working in the field of construction of drone aerodromes.
The DCAA also issues permits for any infrastructure constructed to conduct operations of drones. Any persons that seek to establish, operate, or make any changes to drone aerodromes must also obtain a permit for the DCAA. Furthermore, any person that desires to supply of fuel or power for drones must also obtain a permit from the DCAA. The DCAA will lay out the conditions and procedures for such applications in conjunction with other such related authorities.
Along with the expected growth in safety and regulatory concerns with the rise of SDT in Dubai, we further anticipate that the autonomous vehicles sector will bring about increased activity in customs-related inquiries for the import of autonomous vehicles, consumer data protection matters, as well as insurance matters involving claims and risk management.
Al Tamimi & Company's Transport & Logistics team has extensive experience in the UAE with regards to matters regarding the implementation of autonomous transport systems in Dubai and in Abu Dhabi. We furthermore have our respective experienced Customs, Insurance, and TMT teams that can provide assistance to any technical or insurance related matters in relation to automated systems. In addition, we have rights of audience before the courts across in Bahrain, Egypt, Iraq, Jordan, Kuwait, Morocco, Oman, Qatar, Saudi Arabia, and UAE, as well as local insights have enabled us to represent clients in complex local and multi-jurisdictional claims, defences, and commercial transactions.
For further information on this sector or for any inquiries for assistance, please contact our Transport and Logistics team, Insurance team and Technology, Media and Telecommunications team.
[1] https://u.ae/en/about-the-uae/strategies-initiatives-and-awards/policies/transport-and-infrastructure/national-electric-vehicles-policy
For further information,please contact Yazan Saoudi or Bushra Abu Tayeh.
Published in August 2023
