Dubai may introduce parking fees for electric vehicle owners

With the rise of electric vehicles (EVs) in Dubai, Parkin PJSC, the operator of public parking spaces across the emirate, announced its exploration of opportunities for monetization in the EV sector. This initiative follows the company’s recent launch of an initial public offering (IPO) and subsequent listing on the Dubai Financial Market (DFM).

One significant avenue for growth identified by Parkin is the effective implementation of tariff optimization. Currently, public parking spaces designated for electric cars in Dubai are available free of charge for a limited time. These spaces, marked in green to denote their exclusive use for eco-friendly vehicles, allow a maximum parking duration of four hours. Moreover, various malls, offices, and government compounds reserve spots specifically for EVs, imposing a fine of Dh1,000 on non-EV vehicles found occupying these designated green parking slots.

Managing a combined total of 197,000 paid public and private parking spaces across six operational verticals, Parkin operates in areas such as public on-street and off-street parking, public multi-storey car parks, developer-owned parking lots, permits and seasonal parking subscriptions, parking reservations, and rental services.

The pursuit of monetization opportunities will involve collaboration with the Roads and Transport Authority (RTA) and the Dubai Electricity and Water Authority (DEWA). Under its 49-year concession agreement, Parkin pays RTA a quarterly concession fee equal to 20 per cent of the company’s revenue generated from paid public parking in Dubai, subject to inflation-linked adjustments.

Dubai has witnessed a significant surge in EV usage since 2015, with 25,929 electric cars registered by the end of 2023, compared to a mere 14 owners who participated in DEWA’s EV Green Charger initiative in 2015. DEWA has responded to this trend by deploying 382 EV Green Charging Stations across Dubai, many of which offer dual charging outlets and operate round the clock at locations such as petrol stations, public parks, DEWA customer happiness centers, and commercial shopping centers. With a target of establishing 1,000 public charging stations by 2025, DEWA aims to support the UAE’s goal of achieving net-zero emissions by 2050.

In alignment with these environmental objectives, Parkin has committed to achieving net-zero operations by 2050 through various measures. These include the deployment of fully solar-powered charging meters, the transition to paperless tickets and fines, the adoption of a hybrid vehicle fleet, and the expansion of smart parking inspection capabilities.