Dubai parking fees could rise after Parkin submits tariff hike request

Dubai: Dubai motorists could soon face higher public parking costs, a move that could affect thousands of daily commuters across busy commercial and residential zones.

According to Parkin's 2025 earnings report, the company submitted a formal proposal to revise tariffs. The parking solutions provider asked the Roads and Transport Authority to approve adjustments that would increase the weighted-average public parking tariff. The proposal includes changes to seasonal card pricing and structure aimed at reducing price gaps that have emerged since variable tariffs were introduced last year.

Officials confirmed that the RTA has received the submission and will conduct a detailed review before referring the matter to Dubai’s Executive Council for guidance and final approval.

Parkin said the proposed revisions are designed to maintain fairness while keeping long-term discounts in place for regular users.

As reported previously, the weighted-average hourly tariff increased 51% to Dh3.03 following the introduction of the variable parking tariff in April 2025. As a result of the uplift in daily parking tariffs, zones B and D experienced a material increase in their weighted-average tariffs relative to zones A and C.

The company’s move shows a growing shift in customer behaviour that has altered how motorists pay for parking. Many frequent users have switched to seasonal cards, taking advantage of a pricing gap created after daily tariffs were raised in April 2025.

This shift has driven record sales of seasonal permits while reducing overall utilisation rates, since cardholders are not counted in hourly occupancy figures. Seasonal card sales surged 140% during the final quarter of last year, reaching more than 89,000 units.

Parkin said the proposed changes aim to reduce price arbitrage while ensuring customers continue to benefit from long term value.

The tariff request comes alongside strong financial momentum for the company, which reported record quarterly and annual results for 2025.

Total revenue in the fourth quarter rose 47% to Dh389.4 million, supported by higher tariffs, expanded parking capacity and increased enforcement activity. Net profit climbed 53% to Dh183.6 million during the same period.

“We closed 2025 with a strong quarter, converting disciplined execution into higher earnings,” said Eng. Mohamed Abdulla Al Ali, CEO of Parkin. “Seasonal card sales reached record highs as customers continued to recognise the relative value offered by this product.”

He added that the company benefited from the earlier introduction of variable tariffs and ongoing investments in smart enforcement technology.

Parkin expanded its footprint significantly during the year, increasing total parking spaces by 11% to around 229,000 across public, developer and multi storey facilities. Developer parking alone grew sharply following multiple contracts signed during the second half of 2025.

Technology also played a key role in operational growth. Smart inspection vehicles scanned more than 17 million licence plates in the quarter, contributing to a sharp rise in enforcement notices and revenue.

Any decision on tariff adjustments will depend on regulatory approval following the RTA review process. Management guidance for 2026 currently excludes any potential impact from the proposed changes.