Motorists in Dubai may soon face higher public parking charges after Parkin, the city’s largest paid parking operator, formally requested changes to its fee structure. The proposal has been submitted to the Roads and Transport Authority (RTA) and will require further review and final approval from the Dubai Executive Council before any changes can come into effect.Parkin confirmed that the submission was made in mid-February 2026. If approved, the changes could increase the weighted average public parking charges in Dubai. The company said the move was aimed at resolving price imbalances arising from the introduction of a variable tariff system in April 2025.
Why Dubai parking fees will rise in 2026?
Dubai introduced a variable parking fee model in April 2025, changing how motorists are charged based on peak and off-peak demand, location and time of day.After the launch, the weighted average public parking fee will increase from approximately AED 2.01 per hour in 2024 to AED 3.03 per hour in 2025, a year-on-year increase of 51%. However, this shift also significantly changes driver behavior. Many motorists choose to use seasonal parking passes instead of paying by the hour, which provides better value for frequent users.In the fourth quarter of 2025 alone, seasonal card sales increased by approximately 140%, with the number of active licenses exceeding 89,000. This dramatic increase changed revenue patterns and occupancy data, prompting Parkin to request a readjustment of tariff levels and seasonal card structures.The review is aimed at maintaining long-term discounts for regular users, while ensuring pricing better reflects actual demand and usage patterns, the company said.
Growth of Dubai’s parking network
Parkin’s proposal comes at a time of strong financial performance and business expansion. By the end of 2025, the company managed approximately 229,000 paid parking spaces in Dubai’s public areas and developer-managed facilities.Financial results reflect this expansion. Parkin reported in the fourth quarter of 2025:
- Revenue reached AED 389.4 million, a year-on-year increase of 47%
- Net profit reached AED 183.6 million, an increase of 53% compared with the same period in 2024
Full-year revenue in 2025 will reach AED 1.32 billion, with annual net profit of approximately AED 625.5 million.Growth drivers include the introduction of variable tariffs, expansion of paid parking areas, improved compliance enforcement using smart number plate recognition systems and increased demand for seasonal passes.Looking ahead, Parkin expects to add 5,500 to 7,500 new parking spaces by 2026, with public parking revenue expected to be between AED 560 million and AED 610 million in this segment.
What does this mean for residents?
If approved, the proposed changes could mean higher hourly parking rates in some areas, particularly high-demand commercial and residential areas.However, no final decision has been made yet. The RTA will carefully assess the proposal before forwarding it to the government for approval.For motorists, this is a sign that Dubai’s parking system is continuing to evolve towards a demand-based dynamic pricing model. While the pricing structure may adjust, frequent parkers may still benefit from seasonal passes.As Dubai continues to expand and densify, parking management remains a key tool for traffic control, congestion management and urban planning efficiency
