Dubai has introduced a new variable tariff for parking, causing Dubai’s parking fees to increase by 51%. The average hourly rate is now AED 3.03, a significant change aimed at better managing parking demand across the city.
What Drivers Can Expect from the New Tariff
The system now adjusts parking fees based on demand. Rates go up in peak hours and drop during off-peak hours. Peak hours run from 8 am–10 am and 4 pm–8 pm, when parking demand is highest.
The aim is to park more easily in busy areas, such as Downtown Dubai and Zones B and D.
These locations will see the most significant price increases. With the new system, drivers can find affordable parking in less busy hours. Premium Parking near public transport hubs will cost more. Standard zones will still stay affordable for residents and visitors.
Parkin’s Role and Surge in Seasonal-Card Sales
Parkin manages Dubai’s parking fees and has led the tariff changes. Profits rose 50%, hitting AED 157 million in Q3 2025. Growth comes from the successful tariff and a 126% jump in seasonal-card sales, bringing the total to 81,000 cards.
Parkin’s CEO says seasonal cards offer value for customers seeking to lock in current rates. The growth in card sales shows drivers are preparing for future price hikes.
RTA’s Review and Potential Adjustments
The Roads and Transport Authority is reviewing the new system through a third party. The review checks for pricing gaps and whether changes are needed. If improvements are found, RTA could suggest updates to ensure fairness and better match demand.
Impact on Revenue and What’s Next
Dubai’s parking revenue rose 30% to AED 135 million, driven by higher parking fees. Higher rates and a larger parking portfolio drove this gain. Revenue per parking spot also grew 21%, showing the system is generating more income.
The success of the new tariff is also shown in the rise of revenue during peak hours, which reached AED 74.4 million, accounting for 55% of total parking revenue. This revenue boost supports Dubai’s goal of improving parking availability and reducing congestion in crowded districts.
Conclusion
As Dubai’s parking fees rise, the city is adopting a more innovative approach to managing its parking resources. The variable tariff system aims to improve availability, reduce congestion, and provide flexibility for drivers.
With Parkin’s role and the rise in seasonal-card sales, Dubai is seeing a positive impact from these changes. The RTA’s review may lead to further adjustments, but for now, the new pricing system is already proving successful.
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