Dubai will allow electric car owners to park in public places for free.
The decision is meant to encourage motorists to consider going electric when looking for a new vehicle.
The scheme will run until July 2022, the city's Roads and Transport Authority (RTA) said.
Existing measures allow electric car owners the exclusive use of specially designated spots.
Taking the decision to switch to electric "contributes to improving the air quality, curbing carbon emissions and enhancing sustainability", said Maitha bin Adai, from the RTA.
The city has seen a rise in the popularity of hybrid vehicles, including thousands of public taxis and ride-hailing cars run by Careem and Uber.
But very few drivers have taken the decision to switch to fully electric vehicles.
Ms bin Adai said just over 1,800 vehicle owners will benefit, adding that the car must be licensed in Dubai and not the other emirates.
"Owners of electric vehicles need not approach RTA to obtain the exemption," she said.
"Vehicles listed as electric vehicles will be automatically exempted from parking fees and the smart systems in place will ease the monitoring of public parking."
She added: "Motorists have to comply with all public parking regulations and avoid misusing parking slots reserved or designated for specific categories."
Electric charging stations have popped up in the past two years and drivers can use them for free until the end of 2021.
