New UAE Traffic Rules Cap Personal Vehicle Ownership at Five, Extra Fees After Two
A new federal traffic regulation approved by the UAE Cabinet will, from the start of 2027, set a cap on the number of vehicles an individual resident can own. Under Article 89 of the Executive Regulation of Federal Decree-Law No. 14 of 2024 on the Regulation of Traffic, each resident is allowed to hold up to two vehicles under the standard licensing provision. For any additional vehicles, a resident must pay an extra fee per vehicle, but the total number of licensed vehicles in the resident’s name must not exceed five.
The decision, adopted as Cabinet Decision No. 174 of 2026, does not specify the exact amount of the extra fee or how the limit will be applied to residents who already have more than five vehicles registered in their names. It also does not state whether the additional charges will be uniform across all emirates or how existing registrations will be treated when the rules take effect.
Key requirements under Article 89
Vehicle owners, or their legally authorised representatives, must submit licensing applications through the electronic channels or applications announced by the relevant licensing authority. They are required to comply with the prescribed procedures and instructions. The article also prohibits the licensing of right-hand-drive vehicles, though such vehicles may still be used for display purposes only. Vehicles that do not meet the prescribed road safety standards are also ineligible for licensing under this regulation.
The five-vehicle limit applies specifically to individual residents. The article does not set any equivalent numerical restriction for companies. The regulation, which replaces the previous executive regulation issued under Ministerial Decision No. 130 of 1997 (along with its implementing decisions), was issued on 6 October 2026 and will come into force on 1 January 2027.
