Dubai Parking Fees May Rise as Parkin Seeks Tariff Revision
Motorists in Dubai could soon encounter increased public parking charges following a formal request by Parkin, the emirate's largest paid parking operator, to revise its tariff structure. The proposal has been submitted to the Roads and Transport Authority (RTA) and will undergo thorough review and final approval from the Executive Council of Dubai before any changes are implemented.
Background and Rationale for the Proposed Increase
Parkin confirmed that the submission was made in mid-February 2026. If approved, the adjustments could elevate Dubai's weighted average public parking tariff. The company stated that this initiative aims to address pricing imbalances that emerged after the introduction of the variable tariff system in April 2025.
Dubai's variable parking tariff model, launched in April 2025, altered how motorists are charged based on factors such as peak and off-peak demand, location, and time of day. Following this rollout, the weighted average public parking tariff surged from approximately Dh2.01 per hour in 2024 to Dh3.03 per hour in 2025, marking a substantial 51 percent year-on-year increase.
However, this shift also triggered significant changes in driver behavior. Instead of opting for hourly rates, many motorists began purchasing seasonal parking cards, which offer better value for frequent users. In the fourth quarter of 2025 alone, seasonal card sales skyrocketed by around 140 percent, surpassing 89,000 active permits.
This dramatic rise in seasonal card adoption altered revenue patterns and occupancy data, prompting Parkin to request a recalibration of both tariff levels and the seasonal card structure. The company emphasized that the review seeks to maintain long-term discounts for regular users while ensuring that pricing more accurately reflects actual demand and usage patterns.
Parkin's Financial Performance and Expansion
Parkin's proposal comes amid a period of robust financial performance and operational growth. As of the end of 2025, the company managed approximately 229,000 paid parking spaces across public zones and developer-managed facilities in Dubai.
Financial results underscore this expansion. In the fourth quarter of 2025, Parkin reported revenue of Dh389.4 million, representing a 47 percent increase year-on-year, and net profit of Dh183.6 million, up 53 percent compared to the same period in 2024. For the full year 2025, revenue reached Dh1.32 billion, with annual net profit standing at approximately Dh625.5 million.
This growth was driven by several factors, including the introduction of variable tariffs, the expansion of paid parking zones, enhanced compliance enforcement through smart license-plate recognition systems, and increased demand for seasonal passes. Looking ahead, Parkin anticipates adding between 5,500 and 7,500 new parking spaces in 2026, with projected public parking revenue forecast between Dh560 million and Dh610 million for that segment.
Implications for Dubai Residents
If approved, the proposed adjustments could result in higher hourly parking rates in specific areas, particularly high-demand commercial and residential zones. However, no final decision has been made, as the RTA will meticulously assess the proposal before forwarding it for government approval.
For motorists, this development signals that Dubai's parking system is continuing to evolve toward a demand-based, dynamic pricing model. Frequent parkers may still benefit from seasonal passes, although pricing structures could be adjusted. As Dubai continues to expand and densify, effective parking management remains a critical tool for traffic control, congestion management, and urban planning efficiency.
