Minister of Commerce and Industry, Khalifa Al-Ajeel, has implemented a significant regulation prohibiting cash transactions in the sale of vehicles, effective from October 14, 2024. This decision aims to enhance transparency and regulate financial practices in the automotive sector.

Expanded Categories of Restrictions

The new regulations extend the existing restrictions by adding four specific categories:

Buying and Selling Motor Vehicles

Activities related to the buying and selling of motor vehicles are now restricted to non-cash transactions.

Wholesale and Retail Trade of New and Used Motor Vehicles

Both wholesale and retail trades for new and used vehicles must comply with the new cashless policy.

Car Auctions

All transactions occurring in car auctions will also be subject to this cash prohibition.

Sale of Scrap Cars

The sale of scrap cars will now be processed without cash transactions.

Previous Regulations

This move follows an earlier directive from Al-Ajeel, which came into effect on October 1, 2024, banning cash transactions for companies and individual businesses involved in the sale of all types of vehicles, whether in wholesale, retail, or commission-based sales.

Implications for Vehicle Sellers and Buyers

The implications of these new regulations are substantial for both vehicle sellers and buyers. Stakeholders in the automotive industry must adapt to these changes and consider alternative payment methods to remain compliant.