According to the new federal traffic rule, individual residents of the United Arab Emirates (UAE) who register or renew more than two vehicles will have to pay an additional fee for each subsequent vehicle, starting January 1, 2027.
The total number of licensed vehicles per resident must not exceed five. This requirement is stipulated in Article 89 of Cabinet Resolution No. 174 of 2026, which is the executive regulation of Federal Decree-Law No. 14 of 2024 on traffic regulation.
Under this provision, residents are allowed to own up to two cars without incurring the additional payment requirement. Registering or renewing a third, fourth, or fifth vehicle will result in the imposition of an extra fee. However, paying this fee does not grant the resident the right to exceed the established limit of five vehicles.
It is important to note that the restriction applies to each individual resident, not to the household. The wording refers to vehicles in general, not only passenger cars, and the same article does not set an equivalent numerical limit for companies.
The document does not specify the amount of the additional fee, nor does it explain how issues will be resolved for residents who already own more than five licensed vehicles. Furthermore, transitional provisions or deadlines for such residents to sell or transfer their vehicles have not been detailed.
The same article requires vehicle owners or their legal representatives to submit licensing applications through channels or applications announced by the relevant licensing authority. Applicants must follow the procedures and instructions of this authority.
Right-hand drive vehicles cannot be licensed under this provision and are permitted only for demonstration purposes. Vehicles that do not meet road safety requirements also cannot obtain a license.
Issues regarding vehicle ownership were discussed at a meeting of the Federal National Council earlier this year as part of a discussion on road safety and traffic congestion. The Council recommended regulating ownership conditions, including defining the service life of the vehicle, to help manage increased rush-hour travel.
Previously, the publication Khaleej Times reported that the Minister of Energy and Infrastructure stated that the draft legislation to be submitted to the Cabinet includes restrictions on the number of vehicles a person can own.
The new regulation replaces previous UAE traffic rules, which were issued under Ministerial Decree No. 130 of 1997. Previously, according to the vehicle licensing application regulations, owners or their representatives had to approach the licensing authority and pay the established fees.



