Hidden Cost of Traffic Jams in Dubai in 2025

In this article, we investigate why Dubai still has traffic jams despite the RTA investing billions. We look at the link between congestion and accidents. Why, as a driver you need to be more vigilant than ever. What you can do to minimize the chances of an accident in 2025. And finally, what you should expect from your UAE insurance company.

Post Pandemic, congestion is back with a bang

Post-covid as we return to work and Dubai continues to grow we have all experienced increased congestion. In fact, studies show that if you live in Dubai you will lose more than 33 hours a year to traffic jams this year. Of course, Dubai is not even in the top 50 of Globally Congested Cities – drivers in London and New York will lose 5 times as many hours to congestion at about 160 hours a year (That is nearly a week just stuck sitting in traffic).

That ranking illustrates how the UAE has become a global leader in reducing congestion by investing billions in Rapid Transit, new roads, the new Blue Line, over 1,500 buses, air taxis and congestion charging. (And by the way they have reduced road fatalities by over 65% in 15 years, too.)

So why do we still have traffic jams?

In the UAE we buy more cars, and we drive them more.

Dubai’s success has made people wealthy and with low taxes it means more of us can own our own car. In fact, we have a high car ownership rate – which combined with a large increase in population means there was a record breaking quarter of a million new cars on the road this year.

And because petrol is so cheap, we drive more. In the UK petrol costs over 2 and half times more than here in the UAE, so there is no reason not to drive.

More drivers mean more trips mean more congestion

Congestion in the UAE happens when intersections simply can’t handle the volume of cars at peak time leading to saturation and traffic standstill. And research has shown that building more roads doesn’t help. As the UAE’s roads improve, people choose to live further away and thus travel more. It is called Induced Demand and leads to the Traffic Congestion Paradox.

More congestion means more distractions means more accidents

The UAE has around 150,000 minor traffic accidents per year. Of those around 5,000 are classified as a major accidents.

The most common cause of a traffic accident? Distracted driving usually involving a phone. The bad news – congestion causes accidents which cause more congestion. In fact, as much as half of delays you face are caused by other accidents. And don’t rubberneck - fines are AED 1,000 now! The most likely time for an accident? Between 4pm and 8pm in the evening. Probably on a Saturday or Sunday, And probably with a younger driver.

The good news? Your next accident will probably be cosmetic

The UAE is one of the safest countries in the world to drive – with fatalities at an all-time low and getting lower, too: they are 1/3 of the rate in 2008. In fact, it is 25% safer to drive here than in the USA and 50% safer than in India which means your next accident will probably be minor one.

Vaibhav Shah, Head of Product, GIG Gulf: ‘A write-off is very uncommon, over 90% of our motor claims are for cosmetic repairs with a typical claim being around AED 5,000 due to minor road accidents. It usually takes less than a week to process the claims, and assuming the garages are not full after the Flood, you can be back on the road within 2 weeks,’

The bad news? Your next accident is “when”, not “if”.

With over 3 million cars on the road of the UAE, if you drive more than 50 kilometers a day it is quite likely that you will have an accident within the next 5 years. It also means that however good a driver you are you are more likely to be involved in an accident than you think.

Remember: you are not as good a driver as you think you are

The next time you get behind the wheel, keep these two delusions in mind.

• We overestimate our driving ability. Everyone thinks they are above average in driving (which is impossible) – called the Illusory Superiority
• We underestimate the likelihood of an accident because we are bad at estimating risks – called the Optimistic Bias – where we think ‘accidents don’t happen to me, only to other people’

This means the insurance you have and the company you choose actually matters.

So how do you reduce the chance of an accident?

• Avoid Distractions: don’t touch your phone, don’t change the radio, don’t talk to the kids.
• Don’t speed. Don’t drive when tired.
• Take precautions when it is raining or foggy.
• Practice Defensive Driving and keep a 2 second gap between you and the car in front.

And knowing that your next accident is ‘when’ not ‘if’ what should you do?

• Choose an insurer who has a 24/7 telephone number – so whether your battery is dead, or your car is underwater will send help immediately.
• Keep our telephone number with you at all times.
• Choose an insurer who has an excellent reputation for claims handling – fast and fair claims with regular updates.
• Choose an insurer who has a network of garages who will repair your car to ensure it loses no value and can quickly complete the repairs.

GIG Gulf offers one the UAE’s most popular car insurance policies. We have policies for all price points and offer high level of service, with fast and fair claims handing. We are proud of never having had a fair motor claim overturned by the UAE regulator.