Abu Dhabi’s taxi and hire car regulator in partnership with the National Bank of Abu Dhabi (NBAD), is delivering on its promise to compensate current taxi owners fairly as part of its dynamic initiative to transform the Emirate’s transportation sector. According to the decree no. 19 issued in 2006, the launch of an innovative financial vehicle – called the Compensation Fund - will ensure regular monthly payments to licence owners with the introduction of the new taxi system in the second half of 2007.
Following a competitive tender among all national banks in Abu Dhabi, NBAD, one of the UAE’s leading banks, has been appointed by the regulator as financial advisor, fund manager and custodian for the compensation scheme. Starting from Q3 2007, taxi owners will receive a certificate entitling them to a monthly income after they hand-in their licence at the Department of Vehicles Registration and Licensing during the various phase-out periods. The certificate – known as a beneficiary certificate – will be valid for 25 years and entitles the owner to the similar income of operating a taxi.
“As we switch to a modern, safe and cost-effective taxi system, taxi owners will benefit from fair, regular and customer-friendly monthly payments without the hassle of running a taxi operation. Together with NBAD, we have structured a state-of-the-art compensation fund that ensures long-term security, flexibility and peace of mind for current taxi owners,” says Khaled Saleh Al Rashedi, General Manager, Taxi and Hire Car Regulation Centre (formerly the Taxi Transport Regulation Centre).
“While the fund is sophisticated, it will be easy for taxi owners to take advantage of the benefits once their licences are handed over. We will introduce dedicated NBAD ATM cards and various NBAD banking services to enable collection of monthly payments from the NBAD’s largest ATM network in the UAE. We will also provide a full range of money transfer options,” says Mr. Al Rashedi, who adds that full details of the payment scheme will be announced in the coming months.
Flexible finance structure brings peace of mind to owners
Stuart Henrickson, Head of Corporate Finance, NBAD, explains: “NBAD is proud to partner with Taxi and Hire Car Regulation Centre in the Emirate of Abu Dhabi on this groundbreaking government project, the first of its kind in Abu Dhabi. The Centre’s scheme puts the needs of taxi owners first and foremost. An investment fund will be set-up and maintained by NBAD, driven by the strategy of the Centre to invest in low risk and capital guaranteed investments. For taxi owners, monthly payments will be made through a simple, safe and secure NBAD process that can be tailored to individual needs.”
Beneficiary certificates issued through the Taxi and Hire Car Regulation Centre to licence owners will provide holders with a high level of liquidity. These certificates are tradable on an individual basis between UAE nationals and are not open to trade with corporations. All transactions will be supervised by the Taxi and Hire Car Regulation Centre and National Bank of Abu Dhabi.
During the first phase of the new taxi system, fixed trading dates will be set to guarantee fair payments to previous holders and the approximate trading value is estimated at AED 100,000 per certificate. The initiation of the fund by the Taxi and Hire Car Regulation Centre will also ensure the fair regulation of the trade in existing taxi licences.
For more information about the new taxi system, the Abu Dhabi Taxi Centre hotline is 600 56 0006.
Notes to Editor:-
1. President H.H. Sheikh Khalifa bin Zayed Al Nahyan, in his capacity as Ruler of Abu Dhabi, has issued a law on October 1, 2006, to regulate and organise taxi transport service in the Emirate of Abu Dhabi.
2. Five benefits of new taxi system in Abu Dhabi:
• Reasonable cost and high quality regulated by an independent Taxi Centre – improving Abu Dhabi for all
• Modern, efficient taxi system for citizens, residents and visitors run by specialist companies which maintains the welfare benefits for taxi owners
• Regular and long-term income without added problems of running the taxi, plus possibility of new job opportunities with flexible working hours for qualified nationals
• Trained professional drivers, higher safety and customer service standards, and modern cars
• As employees of regulated companies, drivers will access a range of benefits, including a monthly salary, maximum working time of 12 hours, and purpose-built accommodation
