US taxi firm Uber and the local Careem suspended services in Abu Dhabi on 28 August amid concerns over licensing.

An Uber spokesperson in Dubai said in a statement that “this suspension was temporary”, without providing any further details regarding the reasons for halting operations and when the service would resume.

Local newspaper The National quoted unnamed sources in the capital as saying that drivers for both companies had been arrested over licensing issues.

The Abu Dhabi government’s Center for Regulation of Transport by Hire Cars, which manages the taxi and transport sector, did not respond to questions from MEED on 28 August.

It remains unclear why the services have been suspended, but there have been earlier concerns regarding the legality of services such as Uber and Careem.

It is understood that in late 2014, the authorities in Dubai allowed for Uber and Careem to operate as private limousine companies. The companies are allowed to operate as long as average fares are 30 per cent more than standard taxi services in the emirates.