The rules do not specify the additional fee or clarify how residents who already have more than five registered vehicles will be affected.
Individual UAE residents who register or renew more than two vehicles will be required to pay an additional fee for each vehicle beyond the limit from January 1, 2027, under a new federal traffic regulation. However, the total number of vehicles licensed to one resident cannot exceed five.
The requirement is outlined in Article 89 of Cabinet Decision No. 174 of 2026, which sets out the executive regulations of Federal Decree-Law No. 14 of 2024 on traffic regulation.
Under the provision, individuals can have up to two vehicles without paying the additional fee. Registering or renewing a third, fourth or fifth vehicle will incur an extra charge. Payment of the fee does not permit residents to exceed the five-vehicle limit.
The cap applies to each individual resident, not to a household. The provision refers to vehicles in general rather than exclusively to passenger cars. It also does not establish a similar numerical limit for companies under the same clause.
However, the regulation does not specify the additional fee or clarify how residents who already have more than five licensed vehicles will be affected. It also provides no details on transitional arrangements or a deadline for selling or transferring vehicles that exceed the limit.
Other vehicle-licensing requirements
The same article states that vehicle owners, or their legally authorised representatives, must submit licensing applications through the channels or applications designated by the relevant licensing authority. Applicants are required to comply with the authority’s procedures and instructions.
Right-hand-drive vehicles cannot be licensed under the provision and may only be used for display purposes. Vehicles that fail to meet traffic-safety standards are also ineligible for licensing.
Earlier FNC discussion
Vehicle-ownership rules were raised during a Federal National Council (FNC) session earlier this year, as part of discussions on road safety and traffic congestion. The council recommended regulating vehicle ownership conditions, including introducing limits on a vehicle’s service life, to help tackle the rise in journeys during peak hours.
Reported at the time that the Minister of Energy and Infrastructure had said legislation being prepared for submission to the Cabinet would include restrictions on the number of vehicles an individual could own.
The new regulation replaces the UAE’s previous traffic rules, which were issued under Ministerial Resolution No. 130 of 1997.
Under the earlier provision governing vehicle-licensing applications, owners or their representatives had to apply to the relevant licensing authority and pay the prescribed fees.
